Monero Transactions Can Be Tracked, Privacy And Security Worrying

Monero transactions can be tracked (Photo; Doc. Newsbtc)

JAKARTA - A leaked video from Chainalysis reveals the potential for tracking Monero transactions (XMR). Monero, which has been known as a crypto asset that prioritizes transaction privacy and confidentiality, is now facing major challenges. This video, which was spread, shows how Chainalysis, a blockchain intelligence firm, can track XMR transactions and connect them with the associated IP addresses.

The video, which has since been deleted, shows the tracking method Chainalysis has used to track Monero transactions since 2021. One of Reddit users with the pseudonym u/lt posted an image of this leaked video and explained that Chainalysis is likely to use the malicious (dangerous) node they run on various geographic locations and internet service providers (ISPs) to capture IP addresses and time stamps from the transactions that occur.

According to the user, the company may also obtain data from popular wallet nodes used by the Monero community, as well as using fake inputs or decoys to reduce the level of user anonymity. Even so, this has not been officially confirmed by Chainalysis.

This news sparked concerns among crypto communities, especially as Monero is known as a prominent crypto asset in maintaining the privacy of user transactions. Monero often positions itself as a secure, personal, and untraceable crypto asset, with a key feature to maintain the confidentiality of user funds.

However, even though this leak raises concerns, some parties actually see Chainalysis' move as part of an attempt to make Monero safer. Another user under the pseudonym u/It states that Chainalysis is only doing its job in tracking blockchain transactions and no one forbids them from running nodes that collect transaction information and IP addresses.

Although claims about this potential tracking are surprising, some Monero investors are not fully concerned. This is because for most people, Monero remains one of the blockchains that is difficult to track, except by certain parties with high-level blockchain expertise such as Chainalysis.

However, this leak invites further discussion of privacy protection in the crypto ecosystem, especially for those who rely on Monero for tighter financial privacy. With the growing tracking technology by firms like Chainalysis, the challenge for Monero to continue to maintain its reputation as an untraceable crypto asset has become increasingly real.