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Pseudonymous

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Bitcoin is not, contrary to popular belief, anonymous. But it is pseudonymous. The blockchain itself has no account names, for instance. Your Bitcoin is not labeled with your name or any identifying information. (You learn how the blockchain works in Chapter 2.) But the blockchain is open to viewing by the public. Anyone can get in and dig around, and trace transactions from one address to another, to another. This means that if information exists identifying your “entry” into the blockchain — for instance, when you buy Bitcoin from an exchange following KYC (Know Your Customer) banking regulations — your transactions can be traced.

Bitcoin For Dummies

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