Certified Bitcoin Professional Practice Exam

Is it possible to determine other addresses owned by the same person by investigating a Bitcoin address's transaction history?

1. Yes, it is possible

2. No, it is impossible

3. Only with special software

4. Only if the addresses are similar

The correct answer is: No, it is impossible

The assertion that it is impossible to determine other addresses owned by the same person by investigating a Bitcoin address's transaction history aligns with the fundamental principle of Bitcoin's pseudonymity. Each Bitcoin address does not inherently reveal the identity of its owner, and while transactions are recorded on a public ledger known as the blockchain, they do not provide direct personal identifying information. In Bitcoin transactions, it's true that if multiple addresses are transacting together, there may be an inference drawn about their potential ownership. However, without further context or supplementary data (such as off-chain identifiers), one cannot definitively state that these addresses belong to the same individual. The design of Bitcoin allows users to generate numerous addresses, and while transaction patterns might suggest possible relationships, the separation of ownership remains largely intact due to the structure of the Bitcoin network. Thus, while analytics on the blockchain might give clues or suggest relationships, concluding that a specific individual owns multiple addresses based solely on transaction history does not hold rigor, making it challenging—if not impossible—to definitively link them. This ensures users retain a level of privacy within the pseudonymous attributes of Bitcoin transactions.