Blockchain
Blockchain isn’t anonymous, it records every transaction publicly and stores real IP addresses and metadata on network nodes. And many of them are controlled by hackers. If your wallet connects to a malicious node, attackers can capture its IP address, trace the physical location of your server, and potentially identify the person or company behind it.
In this article, the BitHide team explains how deanonymization happens, and what companies can do to protect their IP addresses, transaction data, and crypto infrastructure.
Blockchain Isn’t Anonymous
A lot of people still think using crypto means staying anonymous, but that’s far from the truth. Blockchains don’t show names, but they record every transaction and store metadata on network nodes.
Trying to hide behind a VPN or Tor won’t help much. VPNs are often compromized, and Tor connections are blocked by most nodes or flagged as suspicious. On top of that, there are dozens of ways to track crypto activity: from graph analysis and transaction timing to fee clustering and CEX interactions.
What Blockchain Nodes Can See
Every time a computer starts a transaction, the node receives data from it.s:
- Key metadata.
- Wallet address.
- Transaction details (time, amount, token type).
- IP address.
In the wrong hands, this level of detail makes full deanonymization not just possible, but likely. And that’s just the beginning. Aaside from what nodes can see, there are lots of other ways to trace transactions and connect them to real people or businesses.
How Transactions Are Tracked and Identities Revealed
Even if your wallet uses VPN, other patterns can still link your operations together:
- Graph analysis: Tools like Chainalysis or Crystal Blockchain flag wallet addresses that have come into contact with suspicious or “dirty” crypto.
- Behavioural profiling: Regular payroll-style payments or predictable timing signal organized activity.
- Fee clustering: If the same wallet address pays blockchain gas fees for multiple transactions, they can be linked together.
- KYC-exchange: When funds enter or exit through a centralized exchange (CEX), they can be tied to a verified KYC profile.
Combined, these signals can uncover much more than you might expect, including your turnover, clients, suppliers, or treasury behavior.
How to Stay Anonymous: Practical Tools for Business
The good news? It’s possible to protect privacy, assets and data, but only with the right infrastructure. Here’s what BitHide, a crypto payment gateway, offers.
Wallet with Built-in IP Protection
BitHide changes IP addresses through both Tor and VPN before any blockchain node sees them, making it nearly impossible to track.
One-Time Addresses
When a business uses a single permanent address to collect all funds, it becomes easy to track the company’s total turnover. BitHide create one-time addresses for each transaction. This way, fraudsters can only see the amount of a single payment, while the overall volume of your business stays hidden.
Changing Fee Addresses
In networks like Ethereum, BNB Chain, and Tron, every transaction includes a gas fee paid from a specific address. If the same address is used repeatedly, it becomes easy to link different transactions together. To prevent this, BitHide uses fee addresses with a limited lifespan. Transactions stay separate and harder to trace.
Final Thoughts
Blockchain privacy is a myth. From IP addresses to transaction patterns, too many tools exist today to deanonymize crypto activity, especially for high-volume operations.
To stay protected, B2B platforms must move beyond simple wallets and adopt privacy-native infrastructure. BitHide’s architecture is built for exactly that, letting you process crypto payments securely, privately and on your own terms.
