Bitcoin Whitepaper on Privacy - Reading Assignment

Privacy Coins - Ultimate Course
#322

  1. By keeping your public keys anonymous

  2. Always moving your satoshis to another wallet with each transaction.

  3. Owner and transactions can be linked together

1 Like
#323

  1. That you cannot hash a public key into a private key.

  2. Changing the public key for every transaction

  3. Owner and transaction can be linked together

1 Like
#324

  1. Keeping public keys anonymous.

  2. Using new key pair 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
#325
  • keeping public keys anonymous
  • mostly everyone here talks about changing the public key for every transaction, but as I understand it, Satoshi recommends changing private and public key for every tx?
  • linking to previous transactions
2 Likes
#326

A1. Not linking public key for sender and receiver and the amount in transaction.
A2. A new public key for each transaction.
A3. Owner can still be found by tracking pattern or if owner is revealed.

2 Likes
#327
  1. by breaking the flow of information in
    another place: by keeping public keys anonymous
  2. 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.
2 Likes
#328

  1. What is the basic method of maintaining anonymity?
    By breaking the flow of information in another place: 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?
    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
#329

  1. By keeping public keys anonymous.

  2. A new key pair should be used for each transaction to keep it from being linked to a common owner.

  3. A technique called “mixing” as an additional method of maintaining anonymity. Mixing involves sending your Bitcoin to a third-party service, which then mixes it with the Bitcoin of other users and sends it back to you in a different address. This makes it difficult to trace the transaction back to you.

However, this method does have a weakness: if the third-party mixing service is compromised or becomes untrustworthy, your anonymity could be at risk. Additionally, mixing is not a foolproof method, as it is possible for a sophisticated attacker to analyze the patterns in the mixed transactions and potentially link them back to the original source.

1 Like
#330

What is the basic method of maintaining anonymity?

The basic method of maintaining anonymity is by breaking the flow of information, by keeping public keys anonymous.

What additional method does Satoshi suggest?

Satoshi suggest a new key pair should be used for each transaction.

What weakness does this additional method have?

The weakness to this method comes in multi-input transactions, which reveal that the inputs were from the same owner.

#331

1. What is the basic method of maintaining anonymity?
by breaking the flow of information and restricting access to information.
2. What additional method does Satoshi suggest?
Creating a new key-value pair for each transaction.
3. What weakness does this additional method have?
Transactions with multiple inputs make it easy to link to a common source and public exposure of the key could reveal more transactions

#332

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?

By using a new key pair for each transaction.

3.What weakness does this additional method have?

Some linking is still unavoidable with multi input transactions, which necessarily reveal that their inputs we’re owned by the same owner. The risk is that if you owner of a key is revealed, linking could reveal other transactions that belonged to the same owner.

#333
  1. By not associating yourself with your public key
  2. He suggests sending to new keys first to help anonymity.
  3. It’s still a risk if any transaction is identified as they can tracks all transactions you’ve conducted.
#334

Maintaining anonymity involves concealing one’s identity or personal details when engaging in various activities, such as online interactions or transactions. Basic methods include using pseudonyms or anonymous communication tools like Tor or VPNs to mask IP addresses.

Satoshi Nakamoto, the pseudonymous creator of Bitcoin, suggested an additional method for anonymity. He proposed using Bitcoin’s blockchain, which records transactions transparently, but associates them with pseudonymous addresses rather than personal identities. By creating new addresses for each transaction, users could enhance privacy.

However, this method’s weakness lies in the pseudonymous nature of the blockchain. While it conceals real identities behind addresses, transaction patterns and additional data could potentially be used to infer connections between addresses or link them to real-world identities, compromising anonymity. Additionally, if an individual’s identity gets linked to a particular address, all transactions associated with that address become visible.

#335
  • The basic method of maintaining anonymity in Bitcoin is by keeping public keys anonymous. This means transactions can be seen, but without direct linkage to the identities of the people involved.
  • Satoshi suggests using a new pair of keys for each transaction to enhance privacy. This method makes it more difficult to link transactions to a common owner.
  • The weakness of this additional method is that if the owner of a key is revealed, it could potentially expose other transactions linked to the same owner, as transactions could be analysed and connected back to the same individual.
#336

By keeping public keys anonymous

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 in case of multi input transactions.

#337

Basic Method of Maintaining Anonymity:
The basic method of maintaining anonymity in cryptocurrency transactions is by keeping public keys anonymous. This allows the public to see that a transaction occurred but not who was involved.

Additional Method Suggested by Satoshi:
Satoshi suggests using a new key pair for each transaction to prevent linking transactions to a common owner.

Weakness of the Additional Method:
The weakness of using new key pairs for each transaction is that multi-input transactions can still link some inputs together, revealing that they were owned by the same person. If one key is identified, it can expose other related transactions.