Bitcoin Users Warned Against Using Public Block Explorers
A recent warning on X cautions Bitcoin users against entering their wallet addresses into public block explorers, citing concerns about data collection and potential exposure to government agencies.
Public block explorers allow anyone to enter an address or transaction identifier to retrieve records from a blockchain. However, this process can create a layer of off-chain metadata around a public on-chain record, which may be associated with the user's internet protocol (IP) address.
The policies of various block explorers reveal differing practices in collecting and retaining visitor data. WalletExplorer, for instance, explicitly states that it shares visitor information within Chainalysis, its corporate owner. This practice is distinct from other explorers, which may retain logs for varying periods or leave the linkage between IP addresses and address queries unspecified.
The 2021 report by CoinDesk highlighted the use of WalletExplorer's IP data associated with Bitcoin addresses to generate leads for law enforcement. The episode involved Chainalysis and WalletExplorer at that time.