When a user creates a transaction that aggregates multiple inputs to pay one larger output, can the coins that are used in that transaction be traced back to a single owner?
Question: When a user creates a transaction that aggregates multiple inputs to pay one larger output, can the coins that are used in that transaction be traced back to a single owner?
Yes, the coins used in a transaction can be traced back to a single owner. There is a public record of all transactions that occur on the blockchain, and this allows investigators to trace where a given Bitcoin was last spent. In a transaction that aggregates multiple inputs, each input has its own unique address and can be traced back to its original owner. Furthermore, because all Bitcoin transactions are pseudonymous, investigators can trace these addresses to the individual user’s personal identity.
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