It says that if two “cash” are spent in a single transaction, they in all probability belonged to the identical particular person, or organisation.

If that is not clear possibly it’s going to assist to assessment slightly of what’s what in Bitcoin.

In Bitcoin, the closest factor to a coin is an unspent transaction output (UTXO). That is an output from a previous transaction that can be utilized by the recipient as an enter to a subsequent transaction. Thus spending it.

Each transaction output, together with the unspent ones (UTXOs) has a Bitcoin locking script related to it. The deal with is an abstraction of that script. It’s utilized by a payee to inform a payer learn how to assemble a payement to them – learn how to create an acceptable locking script in a transaction output part. One the payee can subsequently spend as a payer.

So two addresses, when every is related to two inputs to a transaction, will be inferred to be prone to be below the management of 1 particular person.

After all, folks intentionally use “mixers” to forestall this heuristic from being efficient. These days, folks ony ever use any deal with as soon as, additionally to scale back this type of intrusion into their monetary privateness.