Headline, May 12 2022/ ''' '' THE BLOCKCHAIN TAP '' '''

''' '' THE BLOCKCHAIN

 TAP '' '''

'' THE INITIAL IMPETUS FOR WHAT WE THINK OF as digital cash and currency was privacy. It's flipped all the way around. ''

A NEW KIND OF CRYPTO BUSINESS : About a decade ago, Mr. Levin, then a master's student in economics at Oxford University, was at a pub with a friend when the conversation turned to cryptocurrency arbitrage.

Variations in the prices of Bitcoin across two exchanges had created an opportunity : Buy Bitcoins at the lower price, then sell it for a profit. But the arbitrage trade proved too time consuming and logistically complicated for Mr. Levine to execute.

Before a new breed of cryptocurrency detectives helped bring him down, Ryan Felton marketed his crypto scheme with a grandiose promise : He was creating ''Netflix on the blockchain.''

He called the crypto-themed streaming service FLiK. For a small amount of the popular digital currency Ether, customers could purchase a FLiK token, which would give them access to shows and movies broadcast on the new platform.

Mr. Felton described the project as an '' entertainment revolution '' crypto enthusiasts bought more than $2 million worth of FLiK coins.

But the streaming business never materialized. Instead, Mr. Felton bought a $1.5 million house, along with $32,000 in diamonds. He spent $180,000 more on a red Ferrari.

WHEN THE CRYPTOCURRENCIES HIT THE MAINSTREAM IN 2010s, the tech was widely regarded as a perfect vehicle for crime. A drug dealer or a scam artist could transfer large quantities of money instantly, without relying on a bank to validate the transaction.

To early advocates, crypto was appealing because it promised the secrecy and anonymity of cash, without the inconvenience of face-to-face exchanges.

THAT SECRECY was an illusion. Crypto transactions are inscribed on a publicly viewable ledger called a blockchain. To the untrained observer, blockchains record are unintelligible - a jumble of meaningless letters and numbers. But a growing industry is dedicated to deciphering them.

At the center is the New York analytics start-up Chainalysis, which was valued at $8.6 billion after a funding round last year.

With tens of millions of dollars in federal contracts, Chainalysis has built a reputation as one of the crypto industry's leading detectives - a team of blockchain analysts that help the U.S. government track crypto transactions.

As federal agencies have cracked down on crypto fraud, Chainalysis has come to occupy an increasingly important position in the industry.

The company markets itself to the government and private companies as a force for good in a badly behaved sector - a firm dedicated to solving crimes and cooperating with public officials.

After the FTX exchange imploded, its bankruptcy lawyers hired Chainlysis to disentangle the web of entities at the center of Sam Bankman's empire and track the $400 million in crypto that a hacker had stolen from FTX.

Chainalysis has also been conducting some light diplomacy : 

Last month, it hosted a conference in New York to bring together government officials and the chastened crypto-executives who are trying to win back their trust. Guests received socks stitched with Chainalysis logo.

But that ambassadorial role has also set Chainlaysis at odds, with some of cryptos most passionate advocates, who envisioned digital money as a private, anonymous financial network.

That conflict represents a battle for crypto's future, and is unfolding at a turbulent moment in the industry's short history.

From the government's perspective. Chainalysis is arguably the most trusted company in the industry, but only because it sells powerful tools aimed at penetrating the secrecy that made crypto attractive in the first place.

A blockchain is ''oftentimes the key to unlocking a case,'' said Jonathin Levin, one of the founders of Chainalysis. ''It's more traceable and more conclusive.''

The Honour and Serving of the Latest Global Operational Research on Blockchain and Privacy  continues. The World Students Society thanks author David Yaffe -Bellany.

With respectful dedication to the Global Founder Framers of The World Students Society, and then Students, Professors and Teachers of the world.

See You all prepare for Great Global Elections !WOW! - the exclusive ownership of every student in the world : wssciw.blogspot.com  and Twitter !E-WOW! - The Ecosystem 2011 :

Good Night and God Bless

SAM Daily Times - the Voice of the Voiceless