Bitcoin Whitepaper on Privacy - Reading Assignment

Privacy Coins - Ultimate Course
#101
  1. What is the basic method of maintaining anonymity?
    the basic method is by not linking anyone to a transaction
  2. What additional method does Satoshi suggest?
    the additional method is 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

all info found on page 6

#102
  1. What is the basic method of maintaining anonymity? >> keeping public keys anonymous
  2. What additional method does Satoshi suggest? >> change the public key per transaction
  3. What weakness does this additional method have? >> If the owner of a key is revealed, linking could reveal other transactions that belong to the
    owner.
#103

  1. What is the basic method of maintaining anonymity?
    The basic method of anonymity in Bitcoin is that the public key is not linked to anyone. So while anybody can view transactions by an address, they cannot directly link a person to that address.

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

  3. What weakness does this additional method have?
    One weakness, that could be argued, is that you would need multiple wallets and to sweep all of the UTXOs in everyone transaction. Many wallets these days operate with multiple addresses and cycle through a new address for each transaction anyway, so not a major weakness on many occasions.

#104

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

  2. What additional method does Satoshi suggest?
    Creating for every transaction a new key. So that the new transaction cannot be linked to the previous on.

  3. What weakness does this additional method have?
    once the owner identity of a key is revealed, it’s possible to link all other transactions of this owner.

#105

1 Keep public keys anonymous.

2 Use a public / private key pair for each transaction.

3 In the example given in the whitepaper, the use of multiple public keys signing a transaction is not being considered, which can be even more damaging to the privacy of the owner of these addresses.

Considering that the owner of the address utilize multiple inputs of the same public key to carry out a transaction, the owner of the address is “linking” these inputs to each other, which increases the chances that their addresses are linked through heuristics.

#106
  1. What is the basic method of maintaining anonymity?

The traditional banking method maintains a certain level of privacy by limiting the information it shares with each party involved in the transaction.

On the Bitcoin network a level of privacy ios achieved by keeping the public key anonymous by not linking it directly to one person or entity. So when you transact on the Bitcoin network it is possible to view all transactions that have been carried out by all public keys but it is not possible to know the person behind the public key initiating the transactions. The only point at which you could discover that, is if the person uses an exchange to sell their Bitcoin for fiat, as an exchange will have KYC.

  1. What additional method does Satoshi suggest?

He advises generating a new address for each transaction. He says that if you use the same one over and over it makes it easier to see all transactions going to that same address.

  1. What weakness does this additional method have?
    If the key owner is revealed other transactions might be discovered also.
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#107
  1. By keeping the public key anonymous or to not be able to link it to a physical person.
  2. Creating a new public key for each transaction.
  3. If the owner of a key is revealed it can be tracked and transactions linked to that person.
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#108
  1. What is the basic method of maintaining anonymity?
    To hide information about sender, receiver, the amount spend and the IP Address.
  2. What additional method does Satoshi suggest?
    For each transaction new key pair should be used. This reduces the linkage to the past transactions of the user.
  3. What weakness does this additional method have?
    The linkage to the owner for multi-input transactions is still there.
#109

  1. The basic method of maintaining anonymity is keeping public keys anonymous.

  2. Generating new key pairs for every transaction to keep them from being linked to a common owner.

  3. If the owner of a key in a multi-input transaction is revealed, this would reveal that the other transactions belong to the same owner.

#110
  • Keeping the public keys anonymous .
  • A new key pair for every transaction.
  • Linking could reveal other transactions that belonged to the same owner.
#111

According to Satoshi Nakamoto’s Bitcoin whitepaper, “[t]he public can see that someone is sending an amount to someone else, but without information linking the transaction to anyone.” So, bitcoin achieves privacy by decoupling the transaction from the identity behind the transaction via making public keys anonymous.

As an added layer of security, Satoshi suggests each transaction have a unique key pair as to keep the identity behind the transaction concealed. However, multi-input transactions make this unavoidable and run the risk of revealing all other transactions linked to the owner.

#112
  1. The public can see the transactions but the keys provide no information about their owners.
  2. Changing the key pair so that the owner cannot be linked to the transactions.
  3. If the key owner is revealed, it could link them to all their transactions.
#113

  1. using the psyeudonyme of the public adress which oes not relate to a name of the owner.
    keeping the keys private

  2. new pair for every transaction

  3. The linkage to the owner for multi-input transactions is still there.

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#114

1 What is the basic method of maintaining anonymity?
Public keys are anonymous

2 What additional method does Satoshi suggest?
Key pair can 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 with multi-input transactions which necessarily reveal that their inputs were owned by the same owner

#115
  1. you can see bitcoin was moved from one walley to another or an exchange but you cant tell who it is.
    2.you can change your public key so that its not linked to you.
    3.if they follow the imputs they can track who was holding that bitcoin
#116

  1. the hash code is the basic method of anonymity

  2. a second hash pair

  3. the risk is, that if a owner is revealed, other transactions could be revealed as well

#117
  1. What is the basic method of maintaining anonymity? Transactions are identified via a public key, yet a level of privacy is maintained as the individuals involved, are not identified on the public chain, only the transaction itself.
  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? “The risk is that if the owner of a key is revealed, linking could reveal other transactions that belonged to the same owner.”
#118
  1. What is the basic method of maintaining anonymity?
  • Keeping the keys anonymous.
  1. What additional method does Satoshi suggest?
  • A new key pair should be used in each transaction to keep them from being linked to a common owner.
  1. 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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#119

  • What is the basic method of maintaining anonymity?
    The information about a sender or receiver is represented by strings of data. As a result one can follow up the history of a transaction but unless you know the owner of a public address, the transactions remain anonymous.

  • What additional method does Satoshi suggest?
    For every new transaction, a new key pair is introduced.

  • What weakness does this additional method have?
    Multi-input transactions will show that they came from the same owner. If this owner is revealed all other transactions linked to him/her can be traced.

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#120

  • What is the basic method of maintaining anonymity?
    The privatwe key is hashed into an public key. the information is not working reverse, you cannot hash a public into te private key… In the transaction protocol is the public key written, you don´t know who is behind the public key.

  • 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…” (from the btc whitepaper)

  • 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." (from the btc whitepaper)

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