| Problem Statement ID | 1445 |
|---|---|
| Problem Statement | |
| Title | De-anonymisation for monitoring and tracking of illegal activities performed using cryptocurrency transaction technology |
| Description | Whatever the darkest corner of diabolical human mind can conceive, Dark-Web can deliver with anonymity and impunity. Dark web markets and |
| forums are filled with illicit activities such as counterfeit currency, fake documents, contraband drugs, ransomware attacks etc. In India, Dark-web | |
| crimes have proliferated in recent times especially in the arena of Cyber terrorism, drug trafficking, counterfeit documents, currency and sale of | |
| classified Government documents. Governments have also recently raised concern over digital currency and use of Dark-Web for drug trafficking. It | |
| Is Important that appropriate tools and techniques may be developed to monitor and track anti-national activities carried out behind the shield of | |
| anonymity by using dark web and cryptocurrency technology. |
Anonymity in the Bitcoin system is based on the following facts:
(1) Bitcoin address cannot be mapped to the real identity;
(2) Bitcoin transactions don’t contain any personal information;
(3) The new transactions are spread radially, thus the sender's IP address will not be exposed.
However, the weakness of Bitcoin anonymity is reflected in the following areas:
(1) The real-name authentication mechanism helps Bitcoin service providers to find the addresses that ever deposited and withdrew;
(2) Bitcoin address exposed on the internet can be related to its owner;
(3) The chain of transactions is transparent and traceable;
(4) Gathering some or all inputs when sending Bitcoins to others, which may expose other addresses of the sender;
(5) The change address of transactions could be classified by attackers to the sender
Two Most used method for deanonymization
Analysis of the Transaction Chain (ATC), which is to obtain transactions from public blockchain data, to classify Bitcoin addresses based on the weakness of Bitcoin anonymity and to relate Bitcoin addresses to personal identities
Analysis of the Bitcoin Protocol and Network (ABPN). This makes use of the spreading characteristics of Bitcoin transactions to deduce the source IP address of a new transaction and known attacks include the Bitcoin protocol sniffer, Sybil attack , fake Bitcoin nodes
Base for Analysis of the Transaction Chain (ATC)
Bitcoin stores transfer records rather than the balance of every Bitcoin address
Each input is connected with the output of the previous transaction so that the input address of a transaction can be obtained through the output address of the previous transaction
ATC is able to cluster many Bitcoin addresses to one user, or find clue to connect Bitcoin addresses with real or virtual user identity information.
Taint analysis is one the Analysis of the Transaction Chain (ATC) Attacks which can be used to determine next node of Trasaction Address
Taint analysis is a service provided by https://www.blockchain.com/, which is used to calculate the percentage of Bitcoins in an address from another address.
Amount analysis is another method to deduce the relationship between the inputs and the outputs within a CoinJoin transaction, according to the characteristic that the input amount of a Bitcoin transaction equals to the output amount plus transaction fee.
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