Bitcoin Whitepaper on Privacy - Reading Assignment

If you don’t give your public key, no one will be able to send you funds. You should keep it anonymous, not linked to an identity.

If you would share your private key, then you would be in trouble for other reasons, not privacy :stuck_out_tongue: for better privacy Satoshi mentions in the whitepaper you should create a new keypair for each tx.

[quote=“Grant_Hawkins, post:1, topic:13028, full:true”]
Look at the Bitcoin Whitepaper (https://bitcoin.org/bitcoin.pdf ) and answer these questions from section 10. Privacy. Post your answers below.

  1. What is the basic method of maintaining anonymity?
    By keeping public keys anonymous.

  2. What additional method does Satoshi suggest?
    As an additional firewall, a new key pair should be used
    for each transaction to keep them from being linked to a
    common owner.

  3. What weakness does this additional method have?
    Some linking is still unavoidable with multi-input
    transactions, which necessarily reveal that their inputs
    were wned by the same owner. The risk is that if the owner
    of a key is revealed, linking could reveal other transactions
    that belonged to the same owner.

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  1. What is the basic method of maintaining anonymity?
    Keeping public keys anonymous, since public can see that someone is sending
    an amount to someone else, but they do not have information linking the transaction to anyone.

  2. What additional method does Satoshi suggest?
    Using a new key pair for each transaction.

  3. What weakness does this additional method have?
    If the owner of a key is revealed, linking could reveal other transactions that belonged to
    the same owner.

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  1. by keeping public keys anonymous
  2. As an additional firewall, a new key pair should be used for each transaction to keep them
    from being linked to a common owner.
  3. Some linking is still unavoidable with multi-input
    transactions, which necessarily reveal that their inputs were owned by the same owner. The risk
    is that if the owner of a key is revealed, linking could reveal other transactions that belonged to
    the same owner.
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  1. The public can see that someone is sending an amount to someone else, but without information linking the transaction to anyone. This is similar to the level of information released by stock exchanges, where the time and size of individual trades, the “tape”, is made public, but without telling who the parties were.
  2. As an additional firewall, a new key pair should be used for each transaction to keep them from being linked to a common owner. Some linking is still unavoidable with multi-input transactions, which necessarily reveal that their inputs were owned by the same owner.
  3. The risk is that if the owner of a key is revealed, linking could reveal other transactions that belonged to the same owner.
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What is the basic method of maintaining anonymity?

The basic method to maintaining anonymity is separating the public keys to keeping them anonymous.

What additional method does Satoshi suggest?

Satoshi suggests to change the public key for every transaction so that it is difficult to trace the transactions back to the owner.

What weakness does this additional method have?

If the owner’s key is revealed, other transactions can be traced back to that owner.

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  1. What is the basic method of maintaining anonymity?

Keeping the identity of the owner of a public key separate [and therefore private] from the publicly knowable transaction/s associated with that same key.

  1. What additional method does Satoshi suggest?

Generating a new key pair for every new transaction would help further anonymise the process.

  1. What weakness does this additional method have?

Transactions with multiple inputs are linkable to a single owner, allowing other connected transactions to also be linked back to the owner - so if their identity were revealed at one point, information can be gathered with these interconnected transactions

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1. What is the basic method of maintaining anonymity?
By keeping your private key secret and only use a public key.

2. What additional method does Satoshi suggest?
possibility to verify a payment without using a whole block.

3. What weakness does this additional method have?
this simple verifying system is easier to attack by an attacker.

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  1. The basic method Bitcoin uses to maintain privacy is keeping the identity connected to the public keys anonymous.

  2. The additional method of privacy that Satoshi suggests is using a new key pair for each transaction in order to obscure the connection of identities that exist between the keys.

  3. The weakness of this method is that if the identity of the owner of a key is revealed, other transactions belonging to the same owner could also be known.

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If you reveal your private key, you loose your funds. Satoshi mentions to keep you identity separate from your keys.

Use a new keypair for each tx.

If the owner of a key is revealed one can link other inputs to the same identity. :slight_smile:

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1 Keeping the public key anonymous
2 Public keys should be different for each and every tnxs
3 You might get exposed and traced

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  1. Keeping public keys anonymous

  2. Constant “hashing” of the public address.

  3. You could research a specific address and link them to other transactions

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  1. What is the basic method of maintaining anonymity?
    The public can see that someone is sending
    an amount to someone else, but without information linking the transaction to anyone.

  2. What additional method does Satoshi suggest?
    As an additional firewall, a new key pair should be used for each transaction to keep them
    from being linked to a common owner.

  3. What weakness does this additional method have?
    The risk is that if the owner of a key is revealed, linking could reveal other transactions that belonged to
    the same owner.

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  1. Separate transaction and identity. Only transaction is public
  2. New keys pairs generated.
  3. But because of the nature of multiple UTXOs original keys are still required to be revealed confirm historical chain of custody
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  1. What is the basic method of maintaining anonymity?
    -Keeping public keys anonymous.

  2. What additional method does Satoshi suggest?
    -Create a new public address for each transaction.

  3. What weakness does this additional method have?
    -Multi input TX’s in some cases are unavoidable. This could lead to linking previous TX’s.
    The result … anonymity diminishes.

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  1. By keeping public keys anonymous.
  2. A new public key for each transaction. So that it cant be linked to the common owner.
  3. Other transactions can be linked to the owner if you know their public key or BTC address.
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1-Public key anonymous.

2- Changing the public key for every transaction.

3- In the case that the owner’s key was revealed, then linking could reveal other transactions which belonged to the same owner.

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Bitcoin Whitepaper on Privacy - Reading Assignment

Hello Grant and everybody else in this course.
This is my answers for the reading assignment questions.

  1. What is the basic method of maintaining anonymity?
    By keeping public keys anonymous.

  2. What additional method does Satoshi suggest?
    A new key pair should be used for each transaction to keep them
    from being linked to a common owner

  3. What weakness does this additional method have?
    Some linking is still unavoidable with multi-input
    transactions, which necessarily reveal that their inputs were owned by the same owner. The risk
    is that if the owner of a key is revealed, linking could reveal other transactions that belonged to
    the same owner.

2 Likes
  1. by breaking the flow of information in another place: by keeping public keys anonymous.

  2. As an additional firewall, a new key pair should be used for each transaction to keep them
    from being linked to a common owner

  3. The risk is that if the owner of a key is revealed, linking could reveal other transactions that belonged to
    the same owner.

1 Like
  1. What is the basic method of maintaining anonymity?
    (Rather than) achieving anonymity by limiting the flow information to the parties involved and in the case of currency including a 3 rd parted institution (deemed to be trusted bank, out of need or lack or viable alternative until now :wink: ……

  2. What additional method does Satoshi suggest?
    …. Anonymity can be assured on an open, public ledger by everyone keeping their public keys anonymous….

  3. What weakness does this additional method have?
    …. provided no transactions or patterns of transactions are linked in time or amount of value amount of transactions, to anyone person that may one day reveal themselves and somehow link themselves to their previously used identifiers and thru backward linkages of UTXOs can ensure your relations to them and their transactions were also yours, back to your wallets or IP (yet use VPN).

it can be reasonably inferred a natural extension of Satoshi’s by his eloquent suggestion that one must consider the systemic risk’s mitigation methods, by
separating a desired single transaction into multiple transactions parts, ,
by making time vary and
varying the amounts of transaction
and by the amounts to not be so identifiably so unique (make them generic transactions amounts as possible AND
by making transactions variable over time too
as well as originating and terminating these transactions from and to unique public addresses.

Caveat with this systemic risk mitigation method is the person may reveal one’s self while also still incurring more transactions, which equals more fees

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