A new study by blockchain intelligence company Arkham has shed light on the level of privacy provided by the Zcash cryptocurrency. While Zcash is widely regarded as a leader in terms of anonymity, the research suggests that this may not be entirely accurate.
According to Arkham's analysis, over half of all Zcash transactions can be linked to known entities, including organizations and individuals. This challenges the conventional wisdom that Zcash is one of the most privacy-focused cryptocurrencies available.
The study found that exchanges, custodians, and institutional players prefer to use transparent addresses for regulatory and compliance reasons, making entry and exit points visible throughout the network. This provides valuable data for blockchain intelligence companies like Arkham to track user behavior.