Digital asset data analytics firm Inca Digital will explore the national security implications of digital assets under a one-year contract with the Defense Advanced Research Projects Agency (DARPA), which the company announced on Sept. 23. DARPA is the research and development arm of the United States. Ministry of Defence.
Inca Digital will be working on a project called Mapping the Impact of Digital Financial Assets, which aims to create a “cryptocurrency ecosystem mapping tool” to provide information to the US government and businesses.
In addition to addressing possible money laundering and sanctions evasion, the project will contribute to understanding the interactions between traditional and digital financial systems, money flows to and from blockchain systems, and other uses of cryptocurrencies in areas of interest to the US government. Inca Digital CEO Adam Zarazinsky said in the announcement:
“The Department of Defense and other federal agencies need to have better tools to understand how digital assets work and how to use their jurisdictional powers in digital asset markets around the world.”
DARPA program manager Mark Flood told The Washington Post: “DARPA is not in the business of surveillance. I will emphasize that we are careful in this study and do not interfere with personal information.”
Related: Simba Network wins another US Department of Defense contract
DARPA has been studying blockchain technology for several years, both in terms of its security and as a potential tool for its own purposes. In June, he partnered with Trail of Bits to analyze the extent to which blockchains are decentralized and what their vulnerabilities are.
Inca received a second phase of small business innovation research for the project. The company is the developer of the Nakamoto Terminal, a system used by the US Commodity Futures Trading Commission to monitor the market. It was founded by former Interpol analysts in 2009.