Tool for determining “anonymity level” bitcoin transactions

The developers of the Blockchair analytical blockchain platform have added the “Privacy-o-meter” metric to its functionality. Thanks toUsers will be able to evaluate the level of confidentiality of transactions in the Bitcoin network.

The initiative aims to educate users on how to hide traces of their network activity. Privacy-o-meter is the key to blockchain transaction chain tracking.

In the Bitcoin blockchain (if the funds from the wallet are not completely transferred) each transaction includes at least two outputs, where one is returned to the sender (“change”).

Today we release Privacy-o-meter - a tool forBitcoin users and developers to assess the privacy level of their transactions. Many of you have heard about blockchain surveillance companies. Privacy-o-meter is the first step to defend yourself against heuristics they use. pic.twitter.com/g15TMgSYaw

- Blockchair (@Blockchair) June 24, 2020

Blockchair evaluates privacytransactions on several indicators. For example, in a transaction with a low level of confidentiality, one of the addresses of the recipient is also the sender, which simplifies the definition of “change”. If the amount in the output is a round number, then it is most likely the receiver of the transaction. The system also analyzes a number of other indicators - the use of multi-signature, differences in scripts between inputs and outputs, as well as their order.

Although such blockchain analysis companies asChainalysis, Elliptic and CipherTrace today are developing very sophisticated tools for deanonymizing cryptocurrency users, Blockchair hopes that the new function will help educate users to maintain confidentiality in bitcoin transactions at least at a basic level.

For now, Privacy-o-meter is only available for the Bitcoin blockchain. Blockchair promises to add this feature for other cryptocurrencies in the near future.

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