Throughout its history, PIVX has marked many firsts on the crypto market. These include being the first PoS project to use zk-SNARKs, masternodes, blockchain governance, deflationary mechanisms, and private staking. With a solid value proposition and numerous achievements under its belt, PIVX makes use of innovative technology to create a privacy-oriented paradigm within the cryptocurrency space.
Blockchain Intelligence and Data Mining
Famously referred to as de-anonymization through correlation, blockchain intelligence serves the purpose of tracking transactions and connecting them to their owners. By making use of smart algorithms that crawl through blockchain transactions, chainalysis companies can easily keep tabs on cryptocurrency addresses of interest.
Arguments in favor of crypto tracking include deterring cyber-attacks, dealing with money launderers, and stopping illegal activity. However, most cryptocurrency enthusiasts are aware that chainalysis companies have the tendency of digging deeper, oftentimes in people’s private but legal affairs. This is no different when compared to cookie tracking over the internet, but financial information is where most people draw the line.
If cryptocurrencies are to disrupt the current financial status quo, then enthusiasts must face the issue that transactions are indeed public – not for the sake of criminals, but rather for the sake of protecting people’s fundamental human right to privacy. The banks of today protect privacy to some degree by at least making transactions invisible to third parties – And for blockchain to realise its true calling, this principle must be mirrored.
Transparency vs. Privacy – A Sacrifice?
Cryptocurrency transaction tracking is made possible thanks to blockchain’s inherent transparency, which is both a blessing and a curse. Without transparency, blockchains could potentially lose part of their value proposition as transaction tracking brings a host of benefits such as voting, elections, shipping and
