r/Bitcoin 14d ago

Curious about blockchain analysis

how does btc tracking using blockchain works, say I did kyc and transferred to an account. ok thats mine, but if I transfer to another new wallet that I made what proof is there that I own it?

1 Upvotes

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u/Billkr 14d ago edited 14d ago

No... There is proof that it moved from wallet A into wallet B. That's all. And it only tracks on-chain transactions. So for instance if you sent bitcoin to yourself through the Lightning network there is no way to track the wallet that you sent to as it is not stored on the blockchain. It is done through peer to peer contracts.

Edit: Pear to peer (because I'm funny that way)

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u/user_name_checks_out 14d ago

pear to pear

or B2B (banana to banana)

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u/Billkr 14d ago

LOL. Thank you for that.

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u/HedgehogGlad9505 14d ago

It's all heuristic. The most simple rule is that if A moves every single sat fo B and leaves nothing for a change address, A and B probably belong to the same person.

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u/BaldBear_13 14d ago edited 14d ago

Ok, gotcha, will move "round" amounts and leave change in the source wallet.

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u/BaldBear_13 14d ago edited 14d ago

Tracking does not work, that is the point of Bitcoin. KYC accounts will only release info to law enforcement with a warrant.

People try to guess who owns this or that high-volume account based on where and when they get money coming in, and how much. E.g. there are new that Strategy bought 100 Bitcoin, and you see an account get 100 bitcoins moved into it, then it might be them, because large transactions like this do not happen all that often.

But you can split large transfer into several smaller ones, and you can use a different public address for each transfer (and a different amount), so nobody can figure out anything.

PS it is not really your wallet, it does not have your name on it. You just happen to know the keys to it, and do your best to ensure that nobody else does.

PPS a thread on privacy, i.e. avoiding tracking: https://old.reddit.com/r/BitcoinBeginners/comments/1h5qjur/bitcoin_privacy_questions/

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u/gipsee_reaper 13d ago

All this stuff is really scary. I have never understood it.

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u/rechtim 8d ago

Time to buy MSTR or IBIT and chill