Regularly rotating or managing pseudonyms is a recognized best practice in blockchain systems to mitigate correlation attacks, where adversaries analyze patterns in user behavior to link pseudonymous identifiers to real-world identities. By frequently changing pseudonyms, users can disrupt these patterns, making it more challenging for attackers to establish connections between different activities. This strategy is particularly effective when combined with other privacy-enhancing techniques, such as mixing services or the use of privacy-focused protocols. However, it’s essential to implement pseudonym rotation carefully to avoid inadvertently creating new patterns that could be exploited. For instance, the paper “Privacy-Preserving Solutions for Blockchain: Review and Challenges” discusses how, despite the use of pseudonyms, users are not entirely anonymous, as their movements can still be traced, highlighting the need for robust pseudonym management strategies to enhance privacy.

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