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Methodology

Data Sources

The privacy score analysis is powered by data from the Arkham API.

Privacy Score

The Privacy Score is calculated on a scale of 0-10, where 10 represents the highest privacy and 0 represents the lowest privacy. The score is computed using the following formula:

Score = 10 - (Subtractor × Multiplier)

Step 1: Calculate Cumulative Proximity Score

Sum all individual proximity scores from counterparties (see Proximity Score section below).

Step 2: Determine Subtractor Based on Cumulative Proximity Score

  • ≥ 4,000: Subtract 5
  • ≥ 2,000: Subtract 4
  • ≥ 1,000: Subtract 3
  • ≥ 600: Subtract 2
  • ≥ 300: Subtract 1
  • ≥ 50: Subtract 0.5

Step 3: Calculate Financial Multiplier

Based on Peak Net Worth + Total Inflows:

  • ≥ $100,000: Multiply by 2
  • ≥ $10,000: Multiply by 1.5
  • ≥ $1,000: Multiply by 1.2
  • < $1,000: Multiply by 1

Step 4: Calculate Final Score

Apply the multiplier to the subtractor, then subtract from 10. The final score is clamped between 0 and 10.

Proximity Score

Each counterparty receives a proximity score (0-100) that measures how closely connected they are to the analyzed address. Higher scores indicate stronger connections and lower privacy. The score is calculated in two stages:

Step 1: Base Proximity Score

The base score starts at 100 and is reduced based on three factors:

1. Transaction Count

  • ≥ 25 transactions: -1
  • ≥ 10 transactions: -5
  • ≥ 5 transactions: -10
  • ≥ 3 transactions: -20
  • 2 transactions: -30
  • 1 transaction: -40

2. USD Transaction Value

  • > $1,000: -1
  • > $100: -5
  • > $10: -10
  • ≤ $10: -40

3. Bidirectional Flow

  • Bidirectional transactions (money flows both ways): -1
  • Unidirectional transactions: -10

Step 2: Connections Between Counterparties

After calculating the base score, network analysis is performed to understand relationships between counterparties. For the top 20 counterparties by base score, we fetch their counterparties to build a network graph. The proximity score is then adjusted based on network connections:

For each connection a counterparty has to another counterparty (excluding the analyzed address), +10 points are added to the proximity score.

Note:

  1. Protocol addresses (DEXs, bridges, lending protocols, exchanges, etc.) and high-transacting addresses are excluded from the analysis.
  2. The graph visualization displays the top 200 counterparties by base score for clarity.
  3. The network analysis is performed on the top 20 counterparties by base score.

Peak Net Worth

Peak Net Worth represents the highest total value of assets held by the address across all supported blockchains at any point in time. This is calculated by:

  1. Aggregating USD balance data by date across all chains
  2. Summing the total USD value for each date
  3. Identifying the date with the maximum total value

Higher peak net worth values indicate greater financial exposure and are factored into the privacy score calculation through the financial multiplier.

Total Inflows

Total Inflows represents the cumulative total of all USD value that has flowed into the address across all supported blockchains over time. This metric:

  • Tracks all incoming transactions in USD value
  • Aggregates data across all chains
  • Shows the total volume of value received by the address

Counterparties

Counterparties are individual addresses that have transacted with the analyzed address. The counterparty analysis:

  • Excludes known protocol addresses (DEXs, bridges, exchanges, etc.)
  • Excludes high-transacting addresses
  • Calculates a proximity score for each remaining counterparty
  • Displays transaction count, USD value, bidirectional flow status, and proximity score

The sum of all individual proximity scores forms the cumulative proximity score, which is a key component in calculating the overall privacy score.