We are seeking innovative solutions for tracing and attribution of privacy coins and Layer 2 off-chain transactions, such as expert tools, data, source code, algorithms, and software development services to assist users in carrying out their mission as it relates to cryptocurrency privacy technologies. These should support one of the outlined initiatives on Monero or Layer 2 network protocol transactions, or other cryptocurrency obfuscation technologies. The primary goals of this solution challenge are:
Provide information and technical capabilities for users to trace transaction inputs and outputs to a specific user and differentiate them from mixins/multisig actors for Monero and/or Lightning Layer 2 cryptocurrency transactions.
Provide technology which, given information about specific parties and/or transactions in the Monero and/or Lightning networks, allows users to predict statistical likelihoods of other transaction inputs, outputs, metadata, and public identifiers.
Provide algorithms and source code to allow users to develop, modify, and integrate these capabilities with their internal code and systems.
We are looking for solutions which provide the best results for tracing obfuscated cryptocurrency transactions using Monero and/or Lightning. Programmers may choose to submit solutions to address Monero or Lightning transactions, or both as all approaches will be considered. The exact method of solving these problems is unspecified as many different approaches may be viable. We expect programmers will offer solutions in the form of software development and source code, data feeds, standalone tools, or some combination of these, but these are not the only types of solutions that will be considered.
The proposed approach for tracing Monero or other anonymity-enhanced cryptocurrency, or Lightning or other Layer 2 off-chain cryptocurrency protocols, should include at least some of the following features:
Trace transaction inputs and outputs to a specific user and differentiate them from mixins/multisig actors.
Identify details about specific transactions such as date/time; amount; the parties in a user group (e.g. ring), behind a ring signature or participants in an off-chain transaction, and statistical probabilities.
Given information about specific transactions in the network, provide statistical likelihoods of other transaction inputs and outputs.
Associate the public address of each user from the stealth address or aggregated addresses and provide statistical probabilities.
Defeating attempts at obfuscation through churning or cycling.
Develop an application for tracing transactions on Layer 2 off-chain protocols.