A label describes an address; it does not hold or send funds. One address can carry several labels, and labels go stale when a service changes hands or a list is updated, so good labels keep their source, date, and confidence.
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Glossary term
What is Address label?
An address label is a tag attached to a blockchain address that records what is known about it, such as the entity that controls it, the service type, or a risk category like sanctioned, scam, or hack. Labels come from public lists, research, investigations, and partner data, and they are the starting point for attribution and risk screening.