Chainalysis recently released a product called Know Your Transaction. KYT allows the businesses to track down those customers with ease who are involved in any illegal digital currency related activity.
KYT is on a mission to blacklist all those bitcoin holders who have a shady history related to their digital currency investment. Now, this does not spell good news for those who own the digital currency. The reason is that most of the people will not prefer the fact that their transactions get tracked.
However, what cryptocurrency owners need to understand is that software like KYT had to emerge on the forefront sooner or later. The important thing is KYT seems to question the biggest perk of digital currency and that is anonymity.
This is why most of the users out there will not support KYT. The vital thing is that makers of KYT need to redefine the objective of this software. Ideally, it should only be used to track those transactions that do not look clean.
At the moment digital currency is still in a state of evolution and it will not be able to survive this extreme monitoring. This is why the better approach will be to define a roadmap for using KYT so that the users do not feel uncomfortable using this software.
If we look at the entire scenario with a neutral perspective, then Chainalysis is not all wrong in coming up with this software. Most businesses prefer to have an impressive customer portfolio and do not want to put their reputation on the line.
Such businesses are justified to investigate their customers. One bad client can put a bad mark on the reputation of a business. The crucial thing to understand is that people should not exploit the use of KYT.
If this software is used appropriately, then it will encourage digital currency owners and investors who indulge in legitimate digital currency related activities. Apparently, it seems that KYT is here to stay and make an impact. However, people who do not indulge in legitimate digital currency related activities may find it hard to survive now.
If KYT venture goes well, then there is a possibility that Chainalysis might come up with more such products in the near future. There is also a possibility that Chainalysis may introduce some advancement in KYT as well. Till then everyone needs to wait and watch for Chainalysis’s next move.