Anonymity in the Bitcoin Network
Anonymity in the Bitcoin Network

Summary/Abstract: This paper deals with the issue of identification (based on the Benford's distribution) of non-typical transactions in the Bitcoin network. For the sample selected addresses of the Bitcoin wallets, the Benford's distribution was compared with the distribution of frequencies of occurrence of individual digits in the first most significant position in the amounts of transactions associated with these addresses. These distributions did not correspond with the Benford’s distribution. Attention was also paid to the necessity of maintaining high caution in analysing transactions with statistical tools such as the Benford’s distribution. Lack of correspondence with the Benford’s distribution is in no case equivalent with illegal activity. On the other hand, correspondence with the Benford’s distribution does not guarantee absence of irregularities.

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