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by dgrin91
2094 days ago
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Cross-chain swaps are an extremely rare, very power user move. If you discount them you're still left with the vast majority of transactions on the chain. I would guess over 99.9999% Most people who want a cross-chain trade just use an exchange like Coinbase. But even if we decide to include cross-chain swaps, its not untraceable at all. You still need to verify hashes match up, its just an extra hop to have an oracle look on the other chain. |
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And it really depends on the surveillance vector.
For example, I'm not worried about the government having records, via a subpoena, but I don't want customers, merchants, random blockchain sleuths and pencil pushers having any usable information.
As such, I often trade with OTC desks. OTC desks have reportedly had more volume than deposit/withdrawal-based exchanges for years. This is not a "lit" market, it is the opposite.
When I trade with an OTC desk, they give me a new address, and they send me the other crypto I asked for at an agreed upon price. OTC desk addresses are not giant labelled hot/cold exchange wallets that everyone watches on a block explorer. So when you are following a transaction on chain, lets say it was bitcoin you felt was stolen because thats a circumstance where people watch the transactions, you and others would assume that the transfers to new addresses are all the thief attempting to hide their tracks, and then everyone waits until some of that bitcoin is transferred to a known exchange wallet to then notify the exchange, hoping to freeze the assets as well as identify a KYC'd user. What nobody knows is that the actual bitcoin changed ownership amongst distinct humans 10 addresses ago. The "thief" being followed already received a completely different cryptocurrency from the OTC desk, ages ago and there is no way of knowing that. If the person actually committed a crime, then in this model the OTC desk has records if anyone identifies the OTC desk instead of simply inconveniencing or framing the person that received tainted bitcoin to their KYC'd account.
I wouldn't be surprised if the wrong people are getting inconvenienced or even charged with their tainted cryptocurrencies more often. Don't use surveillance coins.
I often transfer digital assets to Monero for any reason, and then when I want fiat I sell the Monero to an OTC desk.
Or if the amounts are too small (OTC desk minimums are often $100,000), I convert the Monero to another large cryptocurrency and cash that out on an exchange.