What Is Pseudonymous?

Pseudonymous or pseudonymity refers to using a different name than your real name on social media. For example, Satoshi Nakamoto is the pseudonym of the Bitcoin creator, and his real name (or their real names) remains unknown. 

Pseudonymous can also refer to blockchain security. For example, if the identity of a person making blockchain transactions is unknown, their transactions can still be traced and connected to the same pseudonymous wallet. However, by using privacy tools like a coin mixer, transactions can become fully anonymous, and the identity of a wallet owner cannot be revealed. 

Is Crypto Pseudonymous?

Crypto is partially pseudonymous. Many big crypto influencers and founders choose to remain pseudonymous to protect their identity and their security from cybercrime and harassment. Furthermore, cryptocurrencies allow a level of pseudonymity that is alien to traditional financial institutions. Still, crypto is not fully pseudonymous. Most of the big names in the space are open about their identity, and there have been calls to be more vigilant when it comes to interacting with protocols founded by pseudonymous founders due to frequent rug pulls. 

Why Is Crypto Pseudonymous?

Crypto culture is built in big parts on pseudonymity for several reasons. Cryptocurrencies are censorship-resistant and allow anyone to access their functionality without jumping through hoops like KYC. This gave rise to a culture of pseudonymous actors, the most famous of which is Satoshi Nakamoto, the creator of Bitcoin.

Moreover, cryptocurrencies strive to be egalitarian and allow access to financial services even to marginalized groups that are shut out by traditional finance. Therefore, participating as a pseudonymous actor is a vital component of crypto, and many famous cryptocurrencies are developed and founded by pseudonymous individuals.

Is Pseudonymous the Same as Anonymous?

Pseudonymous refers to using a different name than one's real name. This can be a pen name or a nickname. Anonymous is the complete absence of an identifiable name. Anonymous actors do not appear on social media and pass on information through burner accounts or third parties. In blockchain security, anonymous transactions cannot be traced back to their origin, thanks to privacy tools obscuring the trail of funds. 

Who Is the Pseudonymous Creator of Bitcoin?

Satoshi Nakamoto is the pseudonym of the person or group of people that created Bitcoin. It remains unknown who Satoshi Nakamoto really was.