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Leo WalletScrutiny Wandersleb

Which chain analysis service does Kraken use today?

@LeoWandersleb

That's the sad part. By not doing it themselves, they sell out their clients. Chain Analysis works by the company keeping track of who can ID which addresses, so there is a huge network effect. The more companies work with one of them, the more intel they have to sell to others.

Jesse Powell

@jespow

Yeah, so if you were going to create a new service to compete with a neutral party like

@chainalysis

, how could you possibly have an edge over that? Why would an agency buy your service over theirs? Why even bother to sell your service for less than you pay your sales guy?

He isn't suggesting an edge, he is suggesting doing your own taint analysis to segment off central tainting. Which service does Kraken use today?

Jesse Powell

@jespow

You need to have an edge to win contracts. Could be it's just way better pricing but on a vastly inferior product. Doesn't seem like the kind of trade law enforcement agencies would want to make. We don't disclose our vendor relationships. We've built a lot of tools over 9 years

Why do you need contracts? How is it not virtue-signaling for you to chastise your former employee while likely using his service and/or similar services just the same?

Jesse Powell

@jespow

I haven't chastised any former employees. Subscribing to a service out of a legal obligation is not the same as developing and selling that service yourself. It makes much more sense for a neutral party to be selling this service than it does a full-KYC wallet/exchange.

5:46 AM · Jul 12, 2020Twitter Web App

How so? As Leo describes, removing yourself from the profit aspect doesn't actually protect users data better, it centralizes it allowing better triangulation and taint of the entire chain.

Replying to

I think you're conflating two topics here. We have: 1. whether to buy services from someone 2. whether to develop services internally 3. whether to sell the services yourself Buying data doesn't improve triangulation for the vendor, and you don't have to sell your own data/tools

Replying to

Not conflating, relating. I want answers for all of those things because they interact to form the whole paradigm. I can't evaluate any of this without knowing all of that.

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· Jul 12, 2020

Replying to @BitcoinErrorLog @jespow and 4 others

What are your actual legal obligations to taint and use blockchain taint as a business? Can you refer me to any documentation that shows this type of requirement?

Leo WalletScrutiny Wandersleb

Replying to

So help me there, how does Chainalysis and Co. work? I was under the impression that when you work with them, you tell them all the addresses that you could identify and in turn Chainalysis tells you which category of sender/recipient addresses are that your clients use.