Definition ∞ Pseudonym De-Anonymization is the process of linking a blockchain address, which is a pseudonym, to the real-world identity of its owner. This is achieved by analyzing transaction patterns, correlating on-chain data with off-chain information, or exploiting security vulnerabilities. The goal is to pierce the veil of anonymity often associated with cryptocurrency transactions.
Context ∞ The discussion around pseudonym de-anonymization is central to debates concerning financial privacy, regulatory oversight, and law enforcement in the digital asset space. While many users value the privacy offered by pseudonymous addresses, authorities increasingly employ advanced analytics to trace illicit funds. This ongoing tension drives innovations in privacy-enhancing technologies and regulatory frameworks for digital assets.
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