Blockchain Explorer informs users with a data protection score for Bitcoin transactions

The cross-platform blockchain explorer Blockchair has added a “privacy notice” for each Bitcoin (BTC) transaction, indicating which part the change is.

This is the key to tracking a chain of transactions on the blockchain. While the Bitcoin blockchain is theoretically transparent, In practice, it can be difficult to determine the actual cash flow. Unless the wallet is completely emptied, each transaction contains at least two unspent transaction points (UTXO), one of which is returned to the sender in exchange.

Blockchair uses various basic and advanced heuristics to assign a privacy rating. For example, in a transaction with low data protection, one of the recipient addresses is also a sender, which makes it trivial to understand the change. If one of the results is a round number, you are probably also the recipient of the transaction.

Blockchain Explorer informs users with a data protection score for Bitcoin transactions
Blockchain Explorer informs users with a data protection score for Bitcoin transactions

The system also analyzes technical information such as the type of multiple signature used, the differences in writing between the inputs and outputs and their sequence.

The identification of these factors is the basis for blockchain surveillance systems. provided by companies like Chainalysis, Elliptic, CipherTrace, Coinfirm and others.

The company hopes to let users know about sending Bitcoin without exposing themselves. too easy.

Data protection in Bitcoin

The analytical techniques have increased in sophistication over time. This led to the creation of the CoinJoin protocol that mixes Bitcoin by adding different users’ spending and redistributing it to new wallets.

This data protection protocol has been used steadily since 2019 and peaked in 2020. This is largely due to two purses, Samourai and Wasabi, which were a valid alternative to centralized mixed services.

However, While this approach can improve privacy, its abuse can also leave evidence for investigators to prevent transactions. PlusToken, one of the largest crypto scams, has more than 50% of its sales to the over-the-counter Chinese markets despite using the most advanced obfuscation techniques available.

Although the large numbers made the persecution easier, The researchers showed a number of heuristics that could affect the mix in Ethereum. Although they found that UTXO-based currencies may be more private, they believe the difference is not so significant that tracking CoinJoin becomes impossible.

Even standard privacy coins like Monero (XMR) can have cases where extra attention is needed to ensure privacyFor example, through the practice of “hitting” transactions or sending them to yourself.

It appears that misuse can create or damage a data protection tool, making user training essential.

Do not stop reading:

Similar Posts