Ethereum is less private than Bitcoin, True or Not?

Ethereum is less private than Bitcoin, True or Not?

Because of the practice of wallet reuse, Ethereum’s account model unlikely to Bitcoin’s unspent Transaction Output (UTXO) already makes it less private. Reinforcement of address-reuse in the account-based model makes the account based cryptocurrencies inferior to UTXO based currencies from a privacy point of view.

A unique feature of Ethereum

A feature that differ Ethereum from others is Ethereum name service or ENS which is distributed. This lookup system links information to a name. The service being built on Ethereum offers a secure and decentralized way to address resources using human-readable names.  This distributed domain name provider allows anyone to buy and manage domains.

Discovering potentially compromising activity is possible and researchers were capable of scraping 890 domains located on Twitter profiles. ENS addresses were in use by researchers to know whether they could tie other addresses to the person’s public identifier.

De-anonymizing mixer services

Applying of these methods were on well-known trustless mixer letting users clean their funds by dispatching them to a fresh address. 7.5% of them withdrew their money to the exact same account where the deposit was made.

The identification was easy because of direct transfers between the deposit and withdrawl wallets and use of custom gas values across several transactions. Through using these simple crafts, more than 17% transactions can be de-anonymized. Besides, a number of linked users don’t retain their funds in the contract for more days.  On the other hand, a number of users use the same wallets to receive several 0.1 ETH withdrawls. Researchers said that the same techniques could also be used on UTXO-based currencies.

Spread the love

Leave a Comment

Your email address will not be published.

Scroll to Top