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May 31, 2020, 02:22:26 PM |
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while using pseudonymity, one cannot be identified but can still be singled out, and that's what poses a challenge in privacy for blockchain. Let's take a look at the following challenges:
Public blockchain ledger: Since the public blockchain ledger is
available for anyone, some addresses can be grouped by their
ownership, using behavioral patterns and publicly available
information from outside blockchain sources.
Wallet address: The wallet address reuse links your transactions
together into a single profile.
IP address reuse: IP address reuse also hints to the world that a
single party, such as you or me, controls various addresses.
Combining inputs from multiple transactions: This reveals
the set of addresses you control.
Using lite clients: If you're using lite clients, not really strictly
written clients, these are effectively revealing to a third-party
your full set of addresses and whatnot.
Bitcoin addresses clustering as another famous technology stack, which poses a challenge for deanonymizing Bitcoin address users. It does so while addressing all addresses generated by a single user, via analysis of information derived from the blockchain. It can then be observed that the P2P network represents other information sources that aid in the deanonymization of Bitcoin users. Combining these two together can easily assist Bitcoin address clustering and help in
identifying individuals. In some cases, it can also help in correlating all transactions of the file user. At the same time, there are many companies in the world today that are building businesses around blockchain. As the network increases, these companies gain a lot of importance because incentives to track the flow of such capital becomes stronger.
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