Ethereum Significantly Less Private Than Bitcoin, New Research Shows

Please log in or register to like posts.
News

A paper published on May 29 by Ferenc Béres and a team of primarily Hungary-based researchers analyzed the Ethereum blockchain to find out how easily its transactions can be de-anonymized.
The research, which has not yet been subjected to peer review, focused on several Ethereum-specific features that overall make the network easier to track than competitors like Bitcoin (BTC).

Ethereum transactions are even easier to de-anonymize than Bitcoin due to its specifics, but a lot of it comes down to careful usage of mixing tools.

A paper published on May 29 by Ferenc Béres and a team of primarily Hungary-based researchers analyzed the Ethereum blockchain to find out how easily its transactions can be de-anonymized.

The research, which has not yet been subjected to peer review, focused on several Ethereum-specific features that overall make the network easier to track than competitors like Bitcoin (BTC).

The researchers noted that Ethereum’s account model, contrasted with Bitcoin’s Unspent Transaction Output (UTXO) model, already makes it less private due to the practice of wallet reuse:

“The account-based model reinforces address-reuse on the protocol level. This behavior practically makes the account-based cryptocurrencies inferior to UTXO-based currencies from a privacy point of view.”
The Ethereum name service

A unique feature of Ethereum is its name service, which ties addresses to human-readable “.eth” domains. The researchers were able to scrape 890 domains located on public Twitter profiles.

This was already enough to discover potentially compromising activity, as about 10% of those wallets interacted with gambling platforms, while 5% used adult services.

The researchers then used the ENS addresses as starting points to discover if they could tie other addresses to the person’s public identifier.

They proposed several methods to identify specific account owners across multiple addresses, which include time zone signatures, gas prices and shared activity among multiple addresses.

Leave a Reply

Your email address will not be published. Required fields are marked *