A study by the Rand Corporation revealed that people who use Zcash for illicit or criminal purposes on the darknet may not fully understand the underlying technology.
According to the 65-page report released May 7, the U.S.-based think tank and government contractor stressed that criminals have doubts about the anonymity offered by Zcash.
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The investigation highlights that the governance of Zcash and its marking as being in compliance with AML/CFT standards may make it less susceptible to exploitation for illicit or criminal purposes.
However, there is one aspect that the study reveals as the perception that many criminals have of Zcash: market conditions, rather than the specific characteristics of a particular crypto currency.
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The Bitcoin domain
The report suspects that criminals choose to „go where the money is,“ explicitly mentioning Bitcoin (BTC). They point out that Bitcoin has „hegemony“ and gives criminals confidence to carry out their illicit activities, due in part to its popularity.
The study also notes that criminals do not consider Zcash practical in terms of usability.
Analysis of the Darknet revealed that Zcash has a minor or non-existent presence. This may show that it is not attractive to users of these illegal sites.
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Lack of knowledge about Zcash’s operating model
The report also explains that most criminals do not use protected cash payments, which would otherwise help protect their identities. Researchers speculate that these users „either don’t understand Zcash’s operating model or are not aware of it.
The study concludes:
„Bitcoin continues to be perceived as the dominant crypto currency for
- Bitcoin Evolution
- Bitcoin Revolution
- Bitcoin Billionaire
- Immediate Edge
- Bitcoin Code
or criminal activity in the darknet.“
Rand Corporation clarifies that studies on the use of crypto currencies in illicit activities remain „an emerging field“.
The study contrasts with other research conducted by Chainalysis, reported by Cointelegraph in 2019. In this study, Chainalysis showed that Bitcoin is considered the worst payment method for darknet users. However, it is still the most widely used and accepted.
The Rand Corporation also published research on illegal transactions on the darknet in 2019, reaffirming the idea of Bitcoin’s popularity in criminal activities.