Elliptic Follows Chainalysis in Adding Zcash to Monitoring Platform
“We are helping regulated businesses look at transactions on the blockchain and completely support people’s rights to financial privacy,” said Tom Robinson, Elliptic’s chief scientist. Regarding the philosophical issue of shining a light on private transactions, Chainalysis communications director Madeleine Kennedy said:
"We believe there needs to be a balance between privacy and transparency and specifically blockchains like bitcoin achieve this balance.
Similar to how exchanges want to know if a bitcoin transaction has come their way via a mixer (a technique of combining many addresses to hide the originator of the transaction), Elliptic is offering a comparable service for privacy coins, said Robinson, showing when a transaction has come from a shielded address. Being able to tell when a transaction comes from a shielded zcash or horizen address will help increase adoption of these coins, Robinson said, since in some cases exchanges have been forced to delist privacy coins in order to maintain banking relationships.