The article discusses the significance of wallet clustering in the Bitcoin transaction graph, highlighting how transactions link inputs and outputs, and exploring the privacy implications. The Bitcoin white paper emphasizes using a new key pair for each transaction to maintain anonymity, yet multi-input transactions can inadvertently reveal ownership connections. Over time, advanced methods for clustering have emerged to improve the identification of wallet connections, although challenges like 'cluster collapse' remain in differentiating between users' coins. This ongoing development stresses the complex interplay between privacy and traceability in Bitcoin transactions.
"Address reuse is not the only concern. Some linking is still unavoidable with multi-input transactions, which necessarily reveal that their inputs were owned by the same owner."
"A new key pair should be used for each transaction to keep them from being linked to a common owner."
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