Pseudonymity
Pseudonymity means activity is represented by an identifier such as a blockchain address rather than directly by a person's real-world identity.
✦ Key Insight
Pseudonymity provides less privacy than true anonymity because addresses can sometimes be linked to real identities.
✕ Common Misconceptions
Pseudonymous does not mean invisible, secret or untraceable.
Detailed Explanation
In Practice
Dig Deeper
Address
An address is a public identifier used to specify a destination or account on a blockchain network.
Transaction
A blockchain transaction is a signed or authorized instruction that changes blockchain state or transfers value when accepted by the network.
Public ledger vs privacy
A public blockchain can expose transaction activity to anyone while still representing users through addresses rather than automatically revealing their real-world identities.
Mixer
A cryptocurrency mixer is a service or mechanism designed to make it harder to trace the direct relationship between incoming and outgoing transactions.