Bitcoin Whitepaper on Privacy - Reading Assignment

Privacy Coins - Ultimate Course
#161

  • What is the basic method of maintaining anonymity?
    A) Breaking the flow of information. Keeping public keys anonymous

  • What additional method does Satoshi suggest?
    A) A new key pair should be used for each transaction.

  • What weakness does this additional method have?
    A) Some linking is unavoidable with multi inputs. This could reveal other transactions that belong to the same owner.

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#162

1 The public key is annonymous, i.e. just a hexnumber.
2 For every new transaction, a new pair of keys are created.
3 You may still be able to link transactions to a specific user, as all historic transactions are to be found on the BC. If one owner of a public key is exposed, this may cause several transactions tracable to this owner.

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#163
  1. What is the basic method of maintaining anonymity?
    By keeping key anonymous.
  2. What additional method does Satoshi suggest?
    Change the public kay every transaction.
  3. What weakness does this additional method have?
    If the owner kay is revealed, linking other transactions that belonged to the same owner
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#164
  1. Basic method is decoupling identity from key pair
  2. For every transaction use new public key
  3. Multiple public keys transactions, that link to one private key, can reveal the connection upon being spent together.
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#165
  1. Basic method of maintaining anonymity is to keep your private key secure, and showing no information about yourself directly.
  2. He suggests changing private key after each transaction so outsiders can’t follow the transactions and see whether the same person did or did not do those transactions.
  3. You have to keep changing private keys… which due to their long nature and the fact that you cannot type a single letter wrong, is a risk in and of itself
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#166

I don’t see this as an issue really because the wallet handles your keys.
The issue is if the owner of a key is revealed it can be tracked and transactions linked to that person. :slight_smile:

#167

  • What is the basic method of maintaining anonymity?
    Keep your public key anonymous and transaction public.

  • What additional method does Satoshi suggest?
    Generate a new key pair for each new transaction avoids address re-use and thereby linked to a common owner.

  • What weakness does this additional method have?
    In multi-input transactions transactions can still be linked to an owner if his key is revealed.

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#168

  1. What is the basic method of maintaining anonymity?
    Traditional method is hiding identifies and transactions to the public

  2. What additional method does Satoshi suggest?
    Show transactions to the public but hiding identities , so that it is anonymous.

  3. What weakness does this additional method have?
    If anyone can match a public key or address with an identity , all his transactions could be tracked

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#169

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

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

  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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#170
  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?
    If the owner of a key is revealed, linking could reveal other transactions that belonged to
    the same owner.
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#171

  1. Keeping public keys anonymous

  2. Use a new key pair for each transaction

  3. If owner of a key is revealed, linking could reveal other transactions by the same owner

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#172
  1. Public can see the transactions but cannot link owner to public address.
  2. A new public address should be used for each transaction.
  3. If you need to bundle more UTXOs together for a new transaction, all the previous public keys will be linked to the same private key / owner.
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#173
  1. What is the basic method of maintaining anonymity?
    -> 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?
    -> 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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#174
  1. By keeping public keys anonymous.
  2. Generate a new key pair for every transaction.
  3. It still does not solve the problem of multi-input
    transactions, which necessarily reveal that their inputs were owned by the same owner
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#175

1. What is the basic method of maintaining anonymity?

Ensuring that the identities of the individuals transacting are kept confidential from the public by keeping public keys anonymous.

2. What additional method does Satoshi suggest?

Creating a new key pair for each new transaction to make it more difficult to acknowledge the owner of the transaction.

3. What weakness does this additional method have?

Some linking can be unavoidable with transactions comprising of multiple UTXOs as input, since it can reveal the ownership of those UTXOs are by the same owner. If the key of an owner is revealed then one can trace other transactions made by that same owner.

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#176
  1. What is the basic method of maintaining anonymity?
    The traditional banking model achieves a level of privacy by limiting access to information to the parties involved and the trusted third party. The necessity to announce all transactions publicly precludes this method, but privacy can still be maintained 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?
    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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#177
  1. hashing the private key into a public key so that only the public key can be seen by anyone investigating and only that is linked to transactions. the owner (and the private key) can’t be identified from this information (although the first node that receives the transaction can see the IP address linked to the transaction and the public key)
  2. a new keypair should be used for each transaction
  3. when there is a multi-input transaction it’s unavoidable to see that it belongs to the same owner and other transactions could also be revealed as a result
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#178

Keeping the public key anonymous - the public can see that an amount went from one person to another without the transaction being linked to anyone in particular.

Using new key pairs for each transaction.

Because of the nature of UTXOs, multi-input transactions would necessarily reveal that each input had previously belonged to the same owner, so a certain amount of linking is not only possible but unavoidable.

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#179

  1. Hashing a private key that is kept personal to a public key that is used to receive money and sign spends.

  2. Using diffeent public keys (effectively different private keys) for each transaction.

  3. IP tracking may still be possible, multi-input transactions may still be tied together into a transaction history, and in general it seems difficult to implement.

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#180
  1. The basic method would be not to give out your public key.
  2. An additional method would be to keep both the public and private keys, private and not to give those out.
  3. There is one problem with this situation though. If one were to do transactions on a regular basis, it may be possible to ‘backtrack’ an owners’ hash and identify him or her.
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