DARPA joins hands with Inca Digital to launch a crypto project

Under the terms of a new agreement with the United States Department of Defense, a crypto data analysis company Inca Digital’s government contracting division, Inca Digital Federal is doing research on the potential effects that digital assets may have on national security.

According to Inca Digital’s announcement, the company will collaborate with the Defense Advanced Research Projects Agency (DARPA) on a venture titled “Mapping the Impact of Digital Financial Assets.” Inca Digital’s Chief Executive Officer Adam Zarazinski stated:

“Digital asset markets hold amazing promise, but also contend with money laundering, market manipulation, and state actors that may pose risks to U.S. national security.”

Given the growing prevalence of digital assets, the Department of Defense and other federal agencies, according to Zarazinski, require improved tools to better recognize how digital assets function and how to leverage their jurisdictional power over digital asset markets around the world. This is necessary in the light of the fact that digital assets are becoming increasingly common, he believes.

Inca Digital to develop a crypto mapping tool

Moreover, the company has the intention of developing a cryptocurrency mapping tool that will be the “first-of-its-kind” in order to “analyze cross-market crypto-financial data and risk.”

According to Inca Digital, the analysis of the data will provide insights into the use of blockchain-based technology that is linked to money laundering, terrorist financing, or the evasion of sanctions. This will help the government and commercial companies understand the impacts cryptocurrency may have on traditional financial systems. Inca Digital believes that the initiative will also conduct a study into the ways in which money is transferred into and out of various blockchains.

It is important to note that a study conducted by DARPA on blockchain technology explored a variety of topics, including the potential for increased message security when using the system.

On the other hand, the Treasury Department is also working actively in the world of crypto and recently decided to sanction renowned Ethereum-based crypto mixer Tornado Cash, as TheCoinRise reported.