Bitcoin Whitepaper on Privacy - Reading Assignment

Privacy Coins - Ultimate Course
#41
1. What is the basic method of maintaining anonymity?

The public keys included in transactions are anonymous in the sense they do not directly link to an identity.

"2. What additional method does Satoshi suggest?

It’s recommended to use a different “key pair” (address?) for each transaction.

"3. What weakness does this additional method have?

When multiple inputs are required for a transaction it will reveal they are owned by the same wallet.

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#42
  1. By using hashed keys, it is hard to tie a transaction to individual people.
  2. Using different “random” public keys for each transaction so as not to so easily tie transactions together.
  3. By linking UTXO inputs, you are showing a relationship between different public keys and the sender.
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#43

  1. The basic method of maintaining anonymity is that the public keys are anonymous, so everyone can see someone is sending an amount to someone else but without information linking the transactions to anyone, just like information released from stock exchanges.

  2. An additional method Satoshi suggests for maintaining anonymity is using a new public key for each transaction to keep separate transactions from being linked to a common owner.

  3. One weakness this method has is that some linking is unavoidable with multi input transactions which will reveal that the keys are owned by the same owner. If the owner is revealed this could link other transactions that belong to him.

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#44
  1. Keeping public keys anonymous is the basic method of maintaining anonymity.
  2. To increase your anonymity, Satoshi suggests a new key pair should be used for each transaction to keep them from being linked to a common owner.
  3. Some linking to a common owner is unavoidable with multi-input transactions where one of the inputs can reveal the owner. The risk is if a owner of a key is revealed, linking could reveal their whole transaction history.
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#45
  1. What is the basic method of maintaining anonymity?
  • Transactions are visible and transparent on the blockchain, but they are never linked to someones real identity.
  1. What additional method does Satoshi suggest?
  • Satoshi suggests generating a new key pair for each transaction, so multiple transactions can’t be linked to the same owner.
  1. If the real identity of the owner of a key is revealed, this means that all transactions that are linked to this key can also be associated with the owners real identity.
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#46
  1. Anonymity is maintained on the BTC network similarly to the way stock exchanges release information: size and time of trade is disclosed but not parties. With BTC, transactions are made available to anyone however, public keys are kept anonymous.

2.Satoshi suggested that to increase the level of anonymity, additional transactions to public keys owned by the same individuals should be made.

  1. The problem is not solved as the owner should generate a new set of keys for each transaction he/she intends to make. This practice would be not viable in the long term. Additionally, if the identity of the owner of those keys is revealed, would be easy to track down all the TX he/she made.
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#47
  1. What is the basic method of maintaining anonymity?
    It is done by keeping the public keys anonymous.
  2. What additional method does Satoshi suggest?
    Abew jey pair should be used for each transaction.
  3. What weakness does this additional method have?
    If one of the owner’s key is revealed, the linking could reveal other transactions that belonged to the same owner.
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#48

1.The basic method of anonymity is by limiting access to the public keys.

2.Satoshi suggests using a firewall by creating new key pairs for each transaction.

3.The public key could be revealed in multi-input transactions, making it possible
to link other transactions to same address.

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#49

  1. The basic method of maintaining anonymity is to go from private key to public key to addresses and it would be very very hard to get an identity.

  2. Saotshi suggests to keep changing addresses for each transaction.

  3. This additional method weakness is that once you discover the identity for one public key then you would be able to know the rest of the linked addresses and transactions.

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#50
  1. not linking the public key to an identity; keeping the public key anonymous.
  2. generating a new public key for each new transaction
  3. UTXO merging in transactions and links in transaction history can reveal identity by blockchain analysis.
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#51

  1. What is the basic method of maintaining anonymity?
    It can be maintained by breaking the flow of information in
    another place: by keeping public keys anonymous.

  2. What additional method does Satoshi suggest?
    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?
    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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#52

  1. Having all transactions announced publicly, yet without any linkage between the senders or receivers identities. Satoshi likens this system to that of stock exchanges, where time and size of transaction is publicly known, but not who the parties were.

  2. Generating a new key pair for each transaction. This avoids address re-use and thereby avoids linking the owner of a key to any other transactions.

  3. One can still assume that in transcations with multiple inputs, those inputs belong to the same owner.

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#53

  1. What is the basic method of maintaining anonymity?
    Keeping the public key anonymous. The public can only know one sending coins to another, but don’t know who is that sender or receiver

  2. What additional method does Satoshi suggest?
    Changing private and public key pair for every transaction

  3. What weakness does this additional method have?
    In multi-input transaction, if a owner’s key is revealed, linking could reveal other transactions that belonged to same owner.

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#54
  1. What is the basic method of maintaining anonymity?

Basic method of maintaining anonymity is keeping public keys anonymous (not linked to your identity or IP address).

  1. What additional method does Satoshi suggest?

Satoshi suggests using a new key pair for each transaction to keep them from being linked to a common owner.

  1. What weakness does this additional method have?

Weakness is that with multi-input transactions we can reveal that inputs were owned by the same owner and if the owner of the key is revealed we can link other transactions that belonged to him.

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#55
  • Keeping the public keys anonymous, as the stock exchange; they publish the transactions but you cannot tell who bought or sold.
  • Using a pair of new keys, so they cannot link several transaction to one owner.
  • If you do multiple inputs in one Tx, all of them can be linked to you.
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#56
  1. What is the basic method of maintaining anonymity?
    Keeping public key anonymous and breaking the flow of information.
  2. What additional method does Satoshi suggest?
    Using new keys so that they can not be linked to owner
  3. What weakness does this additional method have?
    In multi-input transactions transactions can still be linked to an owner if his key is revealed
#57

  1. By keeping public keys anonymous

  2. Using a new pair of keys for each transaction

  3. Some linking is still unavoidable with multi-input
    transactions, which necessarily reveal that their inputs were owned by the same owner.

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#58
  1. Make public keys anonymous so that no one can trace the owner of the transaction.
  2. A new key pair should be used for each transaction to keep them
    from being linked to a common owner.
  3. A great risk would occur if someone discovered the owner of a transaction, in which case he would be able to see all the transactions of that person (and spread them).
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#59

  1. The basic method of creating anonymity is through hiding information. In case of BTC it means that there should be no information about the user who owns the public key. That being said BTC is pseudonym. When you know who is in control of the public key of an address, you can look at most of his transactions and trace which belong to the user.

  2. Satoshi suggests to use a new address for all transactions which are made. When you are not sending the whole amount of your balance, you will send the rest amount back to your address. To create more anonymity you should use a new address for each address.

  3. In case of multi-input transactions it is still possible to conclude on the owner back. In case of these multi-input transactions they could reveal that their inputs are owned by the same user. When you know who is “behind” of the address, you could also see other transaction which belong to the same user.

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#60

Q1: The public can see funds are being sent from account to account but with no key identifiers there is no way to verify the ID of the person(s) sending and receiving funds.

Q2: A new key pair should be used for each TX to keep them from being linked to the person who is transferring funds.

Q3: If the owner of a key was revealed that info could be used to link other TXs to that owner

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