Identifying blockchain-based cryptocurrency accounts using investment portfolios

TL;DR

This paper investigates whether blockchain cryptocurrency accounts can be identified using social media-derived investment portfolios, challenging the assumption of user anonymity in blockchain transactions.

Contribution

It introduces a novel algorithm and uses BlockSim to analyze the potential for linking user accounts across cryptocurrencies based on investment data.

Findings

Blockchain transactions are not always anonymous.

A new algorithm can identify user accounts from investment portfolios.

Simulation with BlockSim supports the feasibility of account identification.

Abstract

Cryptocurrencies based on decentralized systems, especially blockchain, are gaining popularity more than ever. Freedom advocates hail blockchain technology as a breakthrough in digital privacy and internet anonymity. Unfortunately, after recent studies conducted, it may come as a surprise that the transactions are, in fact, not always anonymous. In this short paper, the possibility of identifying a user's accounts in different cryptocurrencies given the user's portfolio of investment gained from social media is investigated. In this study, the generic elements of blockchain systems are briefly studied. In section \ref{sec:blocksim}, BlockSim which is a tool for simulating transactions, and an algorithm for answering this question is introduced.