Ransomware has angered the U.S. Department of Homeland Security, which has authorized its laboratory to develop Bitcoin analysis tools

Sandia National Laboratories (SNL), owned by aerospace technology company Lockheed Martin and funded by the US government, is developing a Bitcoin analysis tool for the Department of Homeland Security (DHS).

The project follows on the heels of research by the DHS, funded by the DHS Science and Technology Directorate, which last year called for government-wide blockchain research.

The bitcoin project is still in its early stages, but SNL has reportedly released a set of requirements for creating analytical tools and plans to develop a user interface to conduct some additional experiments.

SNL R&D analyst Andrew Cox said in an interview that they will conduct large-scale investigations and research from multiple angles to maximize the use of Bitcoin analysis tools.

For the project to be successful, we had to combine multiple algorithms and various research and investigation techniques, including some old-fashioned police work.

He also said such tools could actually help increase the popularity of Bitcoin.

Bitcoin is seen by most people as a tool for crime. From many perspectives, effectively combating the illegal use of Bitcoin to reverse its image in people's minds will help Bitcoin gain mainstream acceptance.

SNL was founded in the 1940s. Its predecessor was involved in the Manhattan Project (the code name for the U.S. Army's nuclear weapons program during World War II) and the invention of the atomic bomb. Today, SNL's main goal is to develop technology suitable for nuclear weapons. At the same time, SNL also conducts defense and energy projects under the authorization of the U.S. National Nuclear Security Administration (NNSA).

Although the Bitcoin tool is still in the development stage, it is very similar to the tools currently in use in the market.

Startups like Chainalysis, Skry, and Elliptic are doing similar work. They realize the importance of blockchain forensics tools to law enforcement, and they also feel that the privacy advocated by the Bitcoin field is unreasonable. The recent frequent occurrence of ransomware has also become the fuse for the rise of such research.