​Anonymity and cryptocurrencies

​Anonymity and cryptocurrencies

​

There is a false idea about the anonymity of cryptocurrencies. I am sure that many of you think that using Bitcoin, your operations and transactions are encrypted and cannot be tracked by third parties at all. This is not true.

​

Bitcoin, like the vast majority of cryptocurrencies, is pseudonymous. What does it mean? Let's figure it out.

​

All the anonymity of Bitcoin and most other cryptocurrencies is manifested only in the fact that the address of your crypto wallet is not tied to your identity in any way. That is, when you start a new wallet, you should not provide any data about yourself, and in fact, anyone can be the owner of the wallet. You can also transfer the wallet to someone else's possession to anyone. But that's all. This is where all anonymity ends.

​

Otherwise, Bitcoin is the opposite of anonymity. The Bitcoin blockchain is a solid notebook where every transaction ever made in the entire history of the Bitcoin network is recorded. And it's all in the public domain. You can go to this site (or to this one if it is Ethereum), enter the address of the Bitcoin wallet there, and find out how much money is in the account, when and from whom this money came, went, etc. Full transparency and openness.

​

Some of you will probably say: "Well, what's the difference? No one can prove that this is my wallet! " And you will be right, but not always.

​

You are right only if your wallet is really anonymous and no one knows about its existence except you. But if you have entered the address of your wallet in crypto exchanges or published it somewhere on the Internet, then there is a huge chance that you and your crypto wallet can be connected. Do not forget that at the request of the authorities (or individuals on the black market), any social network, provider, the mobile operator will hand over any information about you. And then you will just need to connect the dots to have dirt on you.

​

"Listen, why do I need all this at all? I'm not hiding anything from anyone! " -one of you will say. But this post is not about hiding something from someone. The only purpose of this post is to dispel the myth of the anonymity of cryptocurrencies.

​

If you still need to remain anonymous and be sure that your transactions cannot be tracked, then take a closer look at such coins as Monero and Zcash. They were created as completely anonymous cryptocurrencies.