IRS Wants to Track Monero Transactions and Pays $1 Million for It – TechNadu

September 12, 2020 By admin
  • The IRS is paying one million USD to anyone who can develop a Monero transaction tracing system.
  • The solution will not be locked to the IRS, and the developer will be able to offer it elsewhere too.
  • Monero remains one of the hardest nuts to crack, so this is going to be an interesting case.

There’s one thing that tax collectors don’t like, and this is money that can fly under their radar. The United States Internal Revenue Service (IRS) has published a call for proposals to companies that can prove they can develop Monero-tracking tech. For this, the agency is offering up to one million USD and sets a due date for September 16, 2020.

The primary goals of the solution that’s to be developed are the following three:

  1. Provide information and technical capabilities for CI Special Agents to trace transaction inputs and outputs to a specific user and differentiate them from mixins/multisig actors for Monero and/or Lightning Layer 2 cryptocurrency transactions with minimal involvement of external vendors.
  2. Provide technology which, given information about specific parties and/or transactions in the Monero and/or Lightning networks, allows Special Agents to predict statistical likelihoods of other transaction inputs, outputs, metadata, and public identifiers with minimal involvement of external vendors.
  3. Provide algorithms and source code to allow CI to further develop, modify, and integrate these capabilities with internal code and systems with minimal costs, licensing issues, or dependency on external vendors.

Monero is considered one of the most private, anonymous, and decentralized cryptocurrency networks out there, and this is why it’s used so extensively by crypto-mining campaigners. Since Monero transactions are almost impossible