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According to a new study, Ethereum has less data protection than Bitcoin

May 29, 2020

An article published on May 29 by Ferenc Béres and a team of researchers from Hungary. analyzed Ethereum Blockchain to find out how easy it is to “decrypt” your transactions.

The research that has not yet been reviewed by other employees focused on several specific Ethereum functions who usually make the network easier to track as competitors like Bitcoin (BTC).

The researchers found that unlike Bitcoin’s UnXent Transaction Exit (UTXO) model, the Ethereum account model already exists makes it less private Due to the practice of reusing wallets:

“The account model increases the reuse of addresses at the protocol level. This behavior makes these cryptocurrencies practically worse than UTXO-based currencies for data protection reasons. “”

Name service for Ethereum

According to a new study, Ethereum has less data protection than BitcoinAccording to a new study, Ethereum has less data protection than Bitcoin

A unique feature of Ethereum is the name service, this binds addresses to “.eth” domains human readable. The researchers were able to “scratch” 890 domains on public Twitter profiles.

That was enough for discover pretty exciting activities since approximately 10% of these portfolios interacted with gaming platforms, 5% used adult services.

The explorers They used the ENS addresses as a starting point to find out if they could link other addresses to the person’s public identifier.

They proposed various methods of identification certain account holders in multiple directions, including time zone subscriptions, GAS pricing, and shared activity between multiple addresses.

Crypto “anonymous” mix

The methods were applied to the well-known and reliable mixer, Tornado Cash, This allows users to “clean up” their money by sending it to a new address.
However, the researchers found this out 7.5% of them withdrew their money into the account to which the deposit was made. which made his blending efforts completely useless.

The price of personalized GAS for various transactions and the direct transfer between deposit and withdrawal portfolios They also make identification easier. In general, up to 17% of transactions can be anonymized using these simple techniques.

Most of these linked users too They don’t keep their money at the address for more than a few days. This can be used to reduce overall anonymity. Many also use the same wallets to get multiple 0.1 ETH withdrawals, making it easier to compare with incoming wallet transactions.

While the researchers focused on Ethereum’s weaknesses, they warned of the same techniques could also be used in UTXO based coins but not that easy. They came to the conclusion:

“We believe that Bitcoin mixers without a deposit also offer dramatically less privacy and fungibility in practice than the community currently expects.”