There are the basic reasons why Bitcoin is considered anonymous. When transactions are not tied to the identity of users, thus, if the miners agreed to include the transaction in the block, everyone can transfer Bitcoin from one address to any other without the need to disclose any personal information. As with cash, even the recipient does not need to know the sender. Bit coin’s transactional information is transmitted by randomly selected P2P network nodes. While Bitcoin nodes are connected to each other via IP addresses, the nodes do not know whether the transaction received was created by the transferring node or it just redirected it.
How is anonymity revealed?
First of all, although transactions are randomly transmitted through the P2P network, this system is not completely tight. For example, if an attackerhas the ability to connect several nodes to the Bitcoin network, the information collected by them may be sufficient to determine the source of a specific transaction. Secondly, a Bitcoin address can be associated with specific people if their personal information was in any way associated with such a Bitcoin address.
This includes addresses used for deposits or withdrawals from a regulated exchange or wallet, publicly available donation addresses, or simply addresses used to send Bitcoin using personal information. But most importantly, all transactions in the Bitcoin network are completely transparent to anyone interested. This allows you to associate several Bitcoin addresses and assign them to a specific user. Thus, if only one of these related addresses is tied to a particular person in one of the ways described above, all addresses will be de-anonymized.
What is clustering?
The easiest way to clustering is the analysis of transactional networks. In the most general case, this means finding several inputs combined into one transaction. While these inputs could have come from other addresses, the very fact that they are connected in one transaction suggests that all these inputs and therefore all the addresses associated with them are controlled by one user. You can get the help from the Bitcoin mixer. There are many ways to determine the “addresses for delivery” that connects them with the sender of Bitcoin. The easiest way to do this is when receiving coins. The exit that is not related to you, most often refers to the “delivery address” controlled by the sender. In addition, there are some programs that allow attentive users to find “addresses for delivery”.
Conclusion: one simple method
Another clustering method is the so-called “propagation analysis”. Such an analysis is fairly straightforward and available using several freely available block controllers. The “distribution analysis” calculates the percentage of Bitcoin at a specific address that came from another specific address and it is determined whether these addresses are connected by a single direct transaction or a chain of transactions.