In the case of blockchains without privacy protections such as Zcash anonymous transactions , governments and third party blockchain analytics companies have access to all of the blockchain data – by design.
In May last year, after Bitmain unveiled its new Antimer Z9 Mini, the Foundation funded research into ASIC resistance, partly to appeal to the network’s strong base of GPU miners.
According to the document, blockchain monitoring frameworks geared toward Zcash and Monero are of special interest to the DHS because its existing Bitcoin-focused analytics capabilities “cover only a limited scope within the realm of cryptocurrencies.” The expansion into the privacy cryptocurrency area is intended to keep pace with newer blockchain implementations and demonstrate that the DHS possesses sufficient extensibility to deal with the threat posed by illegal hidden transactions.
Thirdly, it uses burn-after-reading “stealth addresses.” Unlike Bitcoin, where anyone can track your wallet address on the blockchain, the only person who sees your Monero address is the one you’re transacting with. Unlike Monero, however, privacy isn’t “on” by default with Zcash.