The Nakamoto Terminal’s inventor will assist businesses and the government in tracking money entering and leaving blockchains and in understanding how traditional and digital financial systems interact.
Inca Digital, a digital asset data analytics company, stated on Friday that it will examine the implications of digital assets for national security as part of a year-long contract with the Defense Advanced Research Projects Agency (DARPA). DARPA is the United States Department of Defense’s research and development arm.
The “Mapping the Impact of Digital Financial Assets” project, which Inca Digital will work on, aims to develop a “cryptocurrency ecosystem mapping tool” to deliver data to the American government and private companies.
The project will contribute to understanding interactions between conventional and digital financial systems, money flows into and out of blockchain systems, and other uses of cryptocurrency in fields of interest to the U.S. government in addition to looking at potential money laundering and sanctions evasions. CEO of Inca Digital, Adam Zarazinsky, stated in the press release:
“The Department of Defense and other federal agencies require improved tools to comprehend how digital assets function and to make use of their legal authority over international digital asset markets.”
The Washington Post quoted DARPA program manager Mark Flood as saying, “DARPA is not involved in spying. I want to underline how careful we are in this research to avoid including personally identifying information.
DARPA has been investigating blockchain technology for a number of years, both to determine how it would affect security and as a potential tool for internal use. It teamed up with Trail of Bits in June to assess how decentralized blockchains are and pinpoint potential flaws.
For the project, Inca was awarded a Phase II Small Business Innovation Research grant. The business created the Nakamoto Terminal, a market monitoring tool utilized by the U.S. Commodity Futures Trading Commission. In 2009, it was established by former Interpol analysts.