Blockchain anonymity is one of the most advertised benefits from the decentralized ledger and smart contract technology. However, this means that sometimes blockchains may be used for illegal activities, hiding the true identity of criminals.
To make blockchain technology and cryptocurrencies more trustworthy in the eyes of authorities and the public, Elliptic has decided to develop a monitoring process, which strips away blockchain anonymity.
While trading cryptocurrencies attracts many users because of the opportunity not to reveal their true identity, businesses are not looking for the same kind of perks.
In order to make cryptocurrencies and blockchain technology more commercial, and a viable option for big enterprises, Elliptic has decided to remove blockchain anonymity as a factor. What the company does is simple. When companies want to offer their clients cryptocurrency trading services, Elliptic steps in and records all transactions happening on the blockchain.
This means that every transaction is linked to an already existing client identity. While this method removes any blockchain anonymity features, it guarantees that the transactions were not malicious.
Elliptic also allows enterprise users to monitor their users’ transactions and analyze potentially suspicious movements.
Bringin crypto to enterprises
According to one of Elliptic’s founders, Dr. Tom Robinson, the main hurdle before enterprises that want to incorporate services related to digital currencies, is the possibility of illegal activity.
Most companies are reluctant to diversify their portfolio with cryptocurrency-based services, because of the popularity of these assets on the Dark Web.
However, through Elliptics’ monitoring practices, more companies are gaining access to blockchain and cryptocurrency services. Not only that, but enterprises have started diversifying their services, as blockchain anonymity is no longer a concern.