Just recently researchers from the University College London published a paper about the patterns found in “shielded” and “unshielded” Zcash transactions. The study explains when users switch between these types of addresses anonymity is degraded. The team concludes that while Zcash transactions can be private, it’s also possible to diminish privacy if certain usage patterns are chosen by the Zcash user.
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Researchers from London Publish a Paper That Reveals It is Possible to Shrink the Zcash Anonymity Set
A group of researchers have found Zcash anonymity can be degraded through certain usage patterns. Sarah Meiklejohn, Mary Maller, George Kappos, and Haaroon Yousaf from University College London published a paper called “An Empirical Analysis of Anonymity in Zcash” which finds certain patterns of Zcash use can “shrink” the cryptocurrency’s anonymity set. Essentially Zcash transactions can be used in a private manner (shielded) and a completely transparent (unshielded) manner. Users that move their Zcash back and forth between unshielded and shielded may be losing quite a bit of the anonymity they desire.
“We investigate all facets of anonymity in Zcash’s transactions, ranging from its transparent transactions to the interactions with and within its main privacy feature, a shielded pool that acts as the anonymity set for users wishing to spend coins privately,” explains the researchers’ paper.
We conclude that while it is possible to use Zcash in a private way, it is also possible to shrink its anonymity set considerably by developing simple heuristics based on identifiable patterns of usage.
Zcash Founder Responds Calling the Paper ‘Insightful’ and Recommends Users ‘Store Zcash in a Shielded Address’
Zooko Wilcox.
The researchers conclude that ultimately
