Address Clustering

Address clustering is the analytical technique of grouping blockchain addresses that appear to be controlled by the same entity. Because most chains are pseudonymous rather than anonymous, analysts apply heuristics such as common input ownership, where several addresses funding one transaction are assumed to share a controller, and change address detection. Clusters are then labelled when public information links them to an exchange, service or protocol. The results are probabilistic rather than proof: heuristics break down with shared custodial wallets, batched payouts and privacy tooling, and a mislabelled cluster can wrongly associate a person with activity that is not theirs. Compliance teams, researchers and investigators all use clustering, and users should assume on-chain history is analysable.