Pseudonymous identity refers to the practice of using a pseudonym or an alternate identifier instead of a real name. In this context, users transact and engage without revealing their true identities. In many blockchain networks, each user has a unique address associated with their digital assets. This address acts as a pseudonym, allowing transactions to be verified while maintaining privacy. Although these addresses can track transaction histories, they do not inherently link back to an individual’s personal information.This feature offers both advantages and risks. On one hand, it provides a degree of anonymity and protects user privacy. On the other hand, it can attract malicious activities, as individuals may engage in unethical practices without accountability.While pseudonymous identities can help protect users, they also raise questions about regulatory compliance and security. Balancing privacy with transparency remains a crucial topic in discussions about decentralization and digital finance.