Cryptoasset Anti-Financial Crime Specialist (CCAS) Certification Practice Test

Which technique involves using blockchain analytics to determine if a Bitcoin address is part of a larger wallet?

1. Address clustering

2. Address hashing

3. Interaction monitoring

4. Wallet searching

The correct answer is: Address clustering

Address clustering is the technique that involves using blockchain analytics to identify and group together multiple Bitcoin addresses that can be associated with a single entity or wallet. This process typically relies on analyzing transaction patterns, such as inputs and outputs, to reveal relationships between different addresses. When multiple addresses share the same input in a transaction or exhibit other identifiable links, they can be clustered together, which helps in understanding the ownership structure of a wallet. This technique is particularly important in anti-financial crime measures, as it aids in tracing funds and detecting illicit activities. Other techniques, such as address hashing, focus on data security and transformation rather than on the analysis of relationships among addresses. Interaction monitoring pertains to observing the behavior and transaction patterns over time but does not specifically focus on the clustering of addresses. Wallet searching might imply techniques for discovering wallet contents but does not specifically relate to the analysis and grouping of addresses. Therefore, the focus of address clustering on identifying connections among addresses makes it the correct choice for this question.