The Defense Advanced Research Projects Agency (DARPA), a division of the United States Department of Defense (DOD), turned to Inca Digital to develop mapping tools that can be used to analyze the impacts of cryptocurrencies in regards to to National Security.

The project is designated as Phase II of the Small Business Innovation Research (SBIR) contract. It is now widely known that digital currencies are permeating the broader economy and the Department of Defense is interested in how their use can disrupt the financial world.

Inca Digital will develop a first-of-its-kind cryptocurrency ecosystem mapping tool to analyze cross-market crypto-financial data and risks. As announced, the result of the research will be used by both the US government and commercial companies for crypto-financial mapping and analysis.

“Digital asset markets hold incredible promise, but they also face money laundering, market manipulation, and state actors that can pose risks to US national security,” said Adam Zarazinski, CEO of Digital Inca. “Given the increasing prevalence of digital assets, the Department of Defense and other federal agencies need better tools to understand how digital assets work and how to leverage their jurisdictional authority over digital asset markets globally.”

Furthermore, the research result will also enable key stakeholders in the digital asset ecosystem to understand the flow of resources in and out of the blockchain ecosystem. While the research will be funded by DARPA, the agency said the release of the results does not reflect the Defense Department’s position.

It is not uncommon to find major government agencies both in the US and around the world partnering with startups in the crypto ecosystem to better understand the digital currency ecosystem.

back in 2020, POT funded a blockchain-based solution for space communication while the US space force made its first foray into the non-fungible token (NFT) ecosystem in June 2021.

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