All Bitcoin transactions are public, traceable, and permanently stored in the Bitcoin network. Bitcoin addresses are the only information used to define where. On the one hand, cryptocurrency is entirely anonymous. On the other, it is completely transparent and trackable. It is anonymous in the sense. Blockchain Explorer displays a QR code specific to the bitcoin address, which can be used to send Bitcoins or to send a request for Bitcoins. Many Bitcoin. ETHEREUM BOOTSTRAP

The transactions on the blockchain can only be identified by a string of alpha-numerical known as a public key. This key makes bitcoin transactions pseudo-anonymous. This means that, while others can look at your transactions and your holdings, they cannot ascertain the real-world identity behind the public key.

Also Read: Everything you need to know about crypto savings accounts However, this changes when you need to exchange your cryptocurrency for cash or other tokens or to get a crypto debit card. You need to register with a centralised cryptocurrency exchange, decentralised application, or crypto bank for any such services. These platforms will most likely need you to complete a KYC process to take you on as a customer. Can Bitcoin be withheld? One of the most significant benefits of blockchain technology is that transaction records and personal crypto holdings cannot be tampered with or modified.

This is a feature known as censorship resistance or immutability. Therefore, on-chain tokens cannot be frozen, withheld, or modified in any way. Perhaps the only way to block a user from accessing their on-chain funds would be to shut off internet services in the vicinity. However, all this protection goes out the window when you transfer your funds to a crypto exchange, lending platform or DApp.

A central authority is then involved and can freeze funds if necessary. This often happens if the user is involved in some criminal activity. Government authorities can contact the developers to freeze a particular address. The developers blacklist the address, preventing the user from sending or receiving cryptocurrency. In some cases, the feature to blacklist an address can be misused by scammers. This means Bitcoin transactions are actually pseudo-anonymous. All Bitcoin transactions and the wallet addresses involved are recorded on a public blockchain — the Bitcoin blockchain, to be specific.

They are open and available to everyone to see. However, they do provide a foothold for further investigation. Imagine your Bitcoin address like an email address or an online alias; how hard it is to link to your actions depends largely on what you do with it and the willingness of another party to trace you.

Say you publicly share your Bitcoin wallet address. Perhaps on a forum. You may have shared identifiable details in another post under that username, which someone can track by looking through your posting history.

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