Financial Privacy
Financial privacy is the ability to limit unnecessary disclosure of information about a person's balances, transactions, counterparties, and financial activity.
✦ Key Insight
Financial records can reveal income, savings, relationships, purchases, locations, and business activity, making privacy relevant to personal security as well as confidentiality.
✕ Common Misconceptions
Pseudonymity is not anonymity. Blockchain analytics and off-chain information can sometimes connect addresses to real-world entities.
Detailed Explanation
In Practice
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Wallet Address
The public string of characters others send crypto to, derived from your public key.
Custody
Custody is the safekeeping and control of digital assets or the private keys needed to access them.
On-Chain Analysis
On-chain analysis is the study of data recorded directly on blockchains to understand transactions, wallet behavior, asset flows, and network activity.
Blockchain Analytics
Blockchain analytics is the systematic examination of blockchain data to identify transactions, fund flows, behavioral patterns, and possible links between addresses and entities.
Entity Attribution
Entity attribution is the process of linking blockchain addresses or address clusters to a real-world service, organization, or actor using supporting evidence.