An intelligence portfolio was born from a great idea in the world of encryption-which is the sub-items of analysis that aims to give meaning to the confusing amount of Blockchain public data.
I pledged to transparently, making it easier for the organizers, exchange, and compliance teams, discovering fraud and other illegal activities on the platform.
But what started as a basic form of supervising the series may have evolved into a strong weapon used by smart players now to influence the markets and even the target of individual users.
Wallet data feeds both innovation and exploitation
Many companies, such as ChaINALYSIS, Arkham Intelligence and Nansen, have transformed Blockchain data analysis into a prosperous industry. These companies convert the raw and confused Onchain data into high -resolution monitoring at the arms level. It is originally designed to comply, detect fraud and law enforcement, and is now generally available for the broader use of the market.
Merchants are regularly used from the portfolio wallet for predictive trading strategies, and they expect moves before they appear. Organizers use it to help apply KYC rules (know your customer) and fight criminal activity such as money laundering. Exchanging can be used to monitor amazing behavior – and even the monitoring transactions they find great risk.
But this vision mutation comes with danger. The knowledge available in the wallet can be good or bad. On the one hand, it also adds accountability; On the other hand, it places users at the mercy of control and manipulation. Portfolio data can be processed to transfer markets, suppress views, and reformulate novels – some of this manipulation occurs behind closed doors of the ostrich and without transparency.
Crypto’s privacy promise reveals under the eyes of monitoring
The complete goal of the cryptocurrency was privacy and liberation from centralization. Bitcoin and ILK presented a pseudonym – you can handle without revealing your identity, and escaping from the eyes of banks and intrusive governments.
However, transparency on Blockchain has a dark side. Each deal, exchange, or transfer of a symbol on the open professor’s book for immortality. The portfolio intelligence companies collect and analyze these data to organize detailed profiles that closely monitor the assets, trading behavior and relationships across the governor. The borrowed name has been eroded in encryption transactions.
Today, organizers can freeze governor with suspicious activity. Exploits can prevent proactive transactions using the degree of risk from wallet intelligence companies. This means that a handful of strong actors determines who is “risky” or “safe” – this appointment will affect the user experience and reach it.
The distinctive symbol of Mantra Omar is a case of transparent weapons. The symbol was very central – 90 % of the informed – and was circulated with very low liquidity. These conditions alone made exposed to market treatment.
When you are associated with the intelligence of the wallet, this weakness became explosive. Coordinated attackers can use detailed portfolio data for their trading time and implement huge short situations, which leads to coercive liquidation and market panic.
FTX collapsed revealed a new type of centralization in encryption
FTX’s 2022 collapse exposed to both the strength and risk of wallet intelligence. The organizers and auditors have not discovered the plan in time. But Blockchain screams in the encryption community, the intelligence tools, to track billions of dollars in the lost customer boxes.
They revealed the secret self -handling of Alameeda and FTX research by tracking wallet flows, which is a deception. The pocket intelligence enabled us to highlight the places where central actors sought to hide.
However, this force is tightly concentrated in a few companies. These companies have a distinguished access to the portfolio data, which allows them to identify the portfolios that must be placed in science and analyzing suspicious activities. This type of centralization contradicts Decentralized principles Which the encoded currency was based.
The encryption movement was built on decentralization. He undertakes to restore energy to users instead of allowing members of the Central Gate guards to make decisions for us. But the ambiguity promise may be removed by a growing group of wallet intelligence.
When a few companies dominate wallet data processing, the network control is unified in the hands of a few companies. It repeats “monitoring capital”, where user data and weapons are extracted for profit and control – but now wrapped in Blockchain technology.
This is a possible violation of the user’s privacy, fairness of the market, and ultimately, seeing a fully improvised financial system.
To maintain privacy and decentralization, individuals must restore control
A clear and present encryption community has a clear and present threat to face: the intelligence of the wallet is used as a weapon. If we want not to disclose his identity without losing transparency, we need to maintain privacy techniques such as zero -knowledge, secret transactions, or Blockchains for privacy.
Since the strength of the wallet intelligence affects many users, the governance of the wallet intelligence must be open and unanimous to avoid centralization by one party. Developers, organizers and users need to communicate with Sofeguards that protect privacy even because it allows accountability.
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