How to Track a Bitcoin’s Journey
Compared to the traditional financial system, cryptocurrency can seem murky. Bitcoin transactions are pseudonymous, which makes them attractive to criminals. When you send money to a Bitcoin address, who exactly are you dealing with? To provide a little more clarity, LongHash has added Bitcoin address search to our homepage, as shown below.
To be clear, we are not revealing the identities of Bitcoin holders. We just hope to offer more peace of mind to investors, regulators and the general public. The mainstream perception that cryptocurrency is associated with crime is not good for the industry as a whole.
First, go to our homepage, LongHash.com. Clicking on the “Address” link enables a search for any Bitcoin address. The following two modes are supported:
“Fuzzy” Search: If you enter the first few characters of an address, then any of the 10,000 richest bitcoin addresses that begin with those characters will pop up automatically in the search suggestions, in descending order of total account balance (i.e., richest accounts first).
Precise Search: You can enter any BTC address in the search box for detailed information about that address, including its balance, the amount of Bitcoin it received and sent, as well as transactions.
Let's take a closer look the results of a precise search.
Address Rate: We rate addresses by analyzing their transactions as well as the addresses that it sends money to and receives money from. If we find, for example, that an address is transacting with another address that is affiliated with crime, the first address will get a lower rating. The higher the address rate, the more trustworthy the address.
Tracking A Bitcoin’s Journey
Say you are receiving Bitcoin from an address, and you want to know more about that address. Where did that address get its money from, for example? In the course of its lifetime, a Bitcoin will likely pass through several different address types, some of which are associated with crime. We classified four main address types. The light blue refers to a mixing service, which purposely disguises the source of a Bitcoin transaction. The darker blue refers to a cryptocurrency exchange. The magenta refers to a mining pool, and the orange refers to a gambling site. The light purple refers to an old address that is no longer in use.
So in the chart below, the most inner ring represents where a Bitcoin address originally received its Bitcoin from. This demo illustrates an address’s early transactions. In the example below, the most inner ring is blue, which means that the address’s first 30 Bitcoin transactions came directly from cryptocurrency exchanges. But where did the cryptocurrency exchange’s Bitcoin come from? The second inner-most ring is purple, with a little orange. This means the majority of transactions came from cryptocurrency exchanges, with a small fraction coming from gambling sites. The outer ring shows that Bitcoins came from a combination of cryptocurrency exchanges, mixing services and mining pools, gambling sites. So by using this chart, you can see if a Bitcoin has any relationship to dirty money.
Address Chart: The chart below is a more detailed version of the circle chart above. It shows information for addresses that have traded with a given address. The first layer is comprised of addresses that have traded with directly this address. Similarly, the second and third layers are addresses that have traded directly with the previous layer. More detailed information such as balance and transaction type are available by clicking on any address in the chart, allowing you to trace the sources and recent transactions of the account you searched.
Blocks and Transactions:
Bitcoin transactions are recorded in blocks. This table shows the block details of each of the address’s transactions, including block height, transaction date and amount, as well as address balance.