BitLaundry - Reading Assignment

[mattsf]

1. the receiver’s address and the sender’s address is hidden.
2. when there are few transactions of the same amount sent and received, someone could link Alice and Bob.
3. they have an incentive to be honest in order to attract more users
4. they are in possession of others’ money. if the amount of money is large enough, they may chose not to complete the transaction

[n1g3]

1. For Alice, using BitLaundry will mean it will be publicly visible that she sent money to BitLaundry, but not to Bob specifically. The amount is not hidden. For Bob, he will see a payment from a bitLaundry address, so he will also see the amount, but not know who it was sent by.
2. If someone was targetting either of them, analysing their on-chain activity, they could figure out that Alice is sending Bitcoins to / Bob is receiving them from BitLaundry.
3. Their reputation and the 0.5% fee they charged on each payment sent.
4. The incentive to be dishonest is the size of the payment, so for a very large payment, they could be tempted not to forward it on to Bob.

[Bull75rm]

1. Bob will not know the funds originate from the address of Alice and so Alice will be able to keep the origin address private from Bob.
2. If there are few transactions going on the log file can easily be attacked.
3. Their incentives to be honest are the profit and the low fees.
4. Disappear with all the money and sell all the customer data.

[JamesA]

1. Alice uses BitLaundry to send funds to Bob. What information is hidden for Alice: sender, receiver or amount? How about for Bob?
   Alice’s hidden info is just the receiver, and it’s not even hidden it’s obfuscated.
   For bob the sender is obfuscated. it depends on how many people use the laundering service.

2. Explain a situation where Alice’s and Bob’s privacy could be compromised?
   Not enough people use the service, the way they tell bitlaundry could be compromised.

3. What is BitLaundry’s incentive to be honest?
   Continued business

4. What is BitLaundry’s incentive to be dishonest?
   A payment large enough to offeset the potential future gains.

[Aiisnotbad]

1. Alice uses BitLaundry to send funds to Bob. What information is hidden for Alice: sender, receiver or amount? How about for Bob?

Sender(proxy address), tx details such as time.
As for Bob, the sender address is hidden.

2. Explain a situation where Alice’s and Bob’s privacy could be compromised?

The BL server is own by a malicious agency that keeps logs.

3. What is BitLaundry’s incentive to be honest?

To keep a good reputation so that the service is used, generating incomes through fees.

4. What is BitLaundry’s incentive to be dishonest?

BL might want to keep the tx details for himself or for another organization such as a government.

[Kahoobb]

Alice uses BitLaundry to send funds to Bob. What information is hidden for Alice: sender, receiver or amount? How about for Bob?

Sender and reciever is hidden for Alice and Bob. As Alice sends BTC to the Address that Bitlaundry gives her, Bitlaundry gives addresses to many users making it harder to link. When Bitlaundry randomly pays out to Bob, the address used to send to bob will be an address that is constantly sending out to many other bitlaundry users as well, making it way harder to link the two as it isnt a direct payment.

Explain a situation where Alice’s and Bob’s privacy could be compromised?

If there is a low amount of transactions using this service, it will be easier to link Alices transaction to Bobs

What is BitLaundry’s incentive to be honest?

“This is a pay service, it’s priced at roughly 0.5% of the transaction. Eventually it will have a minimum 1BTC price for laundering, but right now while it’s being tested, the minimum is 0.02.” It is a paid service and they created a minimum amount of BTC needed for someone to use the service, meaning that they have a minimum fee they will recieve for everyone who uses their service

What is BitLaundry’s incentive to be dishonest?

To steal everyones bitcoin to keep that gained value as the bitcoin blockchain is irreversible and the creater could of easily made their bitcoin blockchain address without any KYC to connect to their personal identity.

[Alex_Chaz]

1. Receiver and Sender transactions are hidden for Alice and Bob respectably, there will be no link between Alice’s inputs and Bob’s outputs.
2. By linking Alice’s inputs with Bob’s outputs, using a common used public key
3. Incentive for honesty: to get all those fees from customers.
4. Incentive for dishonesty: they could keep a lot of data, or even get away with all the bitcoin for themselves

[Daf72]

1. The sender and receivers address

2. When BitLaundry will be investigated

3. Money, tx fee

4. Legally nothing has been noted down so they just have to trust and believe BitLaundry

[Bhujanga]

1. Alice uses BitLaundry to send funds to Bob. What information is hidden for Alice: sender, receiver or amount? How about for Bob?

sender won’t be linked to receiver address, receiver won’t be linked to sender address.

2. Explain a situation where Alice’s and Bob’s privacy could be compromised?

If BitLaundry would have to less traffic going.

3. What is BitLaundry’s incentive to be honest?

To earn a fee by helping you to launder your BTC

4. What is BitLaundry’s incentive to be dishonest?

BitLaundry could scam people easily.

[LukeS]

1. The information of who she is sending too is hidden. Whereas what address sent the Bitcoin is hidden for Bob.
2. If exact amounts that are not the same as others are transferred it could be possible to trace sender and receiver.
3. Reputation and the potential for ongoing business would be the incentive to be honest.
4. If there were transactions for “large” immediate gains then they could dash with the money.

[steve]

1. No information is hidden. Her public address is visible, the amount and that it went to bitlaundry then to another address(bobs) there is some small amount of obfuscation but not anonymity.
2. If there has been KYC/AML done and Alice uses a platform containing this information, the origin and identity behind the transaction can be revealed. Bitlaundry cannot hide the transactions either.
3. Bitlaundry seeks to establish reputation based on trust by ensuring the transactions they’re receiving are passed on correctly in the manner they have promoted. They’re a 3rd party that builds its reputation on honesty and consistency.the incentive would be fees.
4. They could capture a vast amount of bitcoin in the short term and disappear with it.

[vegas316]

1. Alice uses BitLaundry to send funds to Bob. What information is hidden for Alice: sender, receiver or amount? How about for Bob?
Alice is disassociated from the final recipient of the transaction.
Bob cannot see who was the original sender of the transaction was.
2. Explain a situation where Alice’s and Bob’s privacy could be compromised?
If Bitlaundry doesn’t have sufficient transaction volume, and you know a corresponding transaction will be sent out within 30 minutes, then it would be easy to statically associate the probable senders with the probable receivers.
3. What is BitLaundry’s incentive to be honest?
If they are honest, they can make money from volume and transaction fees.
4. What is BitLaundry’s incentive to be dishonest?
If they are dishonest, people will stop using their service.

[hexdotcompays40apy]

BitLaundry - Reading Assignment

1. Alice uses BitLaundry to send funds to Bob. What information is hidden for Alice: sender, receiver or amount? How about for Bob?

A. For Alices, BTC send, the receivers address is shielded. From Bobs, receive transaction, the original senders address is shielded by the BitLaundry service.

2. Explain a situation where Alice’s and Bob’s privacy could be compromised?

A. If the service somehow defaulted to send out payments immediately without letting time for more transactions to be received. Maybe, the service is not decentralized and the owner is attacked in one way or another and forced to give away data to regulators/thugs.

3. What is BitLaundry’s incentive to be honest?

A. The founder’s principles and their use of the project as well as other high net worth individuals use and their knowledge of the space.

4. What is BitLaundry’s incentive to be dishonest?

A. Unsure, maybe none, or some very specific incentive.

[Zulu1]

Alice uses BitLaundry to send funds to Bob. What information is hidden for Alice: sender, receiver or amount? How about for Bob? For Alice the receiver’s information is hidden. For Bob, his address is hidden, instead he get a one-time use address.

Explain a situation where Alice’s and Bob’s privacy could be compromised? The privacy could be compromised if the one-time link is traced by to Bob’s address

What is BitLaundry’s incentive to be honest? Bitlaundry incentive is to make money.

What is BitLaundry’s incentive to be dishonest? Dishonest implies that you’re doing something wrong, in this case is was protecting privacy but nothing illegal.

[Vikthor]

1. Any strange observer from outside will see Alice sending to someone and Bob receiving from otherone.

2. If private keys (or internal data) from BitLaundry are revealed to somebody, they can track history by transaction ammounts.

3. Reputation and 0.5% fee.

4. Sell information, cooperate with goverments or steal a good ammount of coins and disapear.

[ol_frank]

1. Alice uses BitLaundry to send funds to Bob. What information is hidden for Alice: sender, receiver or amount? How about for Bob?
   Alice’s receiver will be anonymous and Bob’s sender will be anonymous. Also the amount sent is anonymous as it the BTC is split up and sent at different times.

2. Explain a situation where Alice’s and Bob’s privacy could be compromised?
   Through a breach in privacy, the information that BitLaundry has could be leaked or hacked. This would leave all history available to the attacker and/or public.

3. What is BitLaundry’s incentive to be honest?
   They take a 0.5% fee on transactions. And any stain of their reputation will render them untrustworthy and effectively destroy their business model.

4. What is BitLaundry’s incentive to be dishonest?
   They hold private financial information on any user. As a gateway for transactions they could rake more money from user or worse, steal/rug pull users. Also they could sell their data/information to governments or criminal organisations.

[Batist_Van_Houtte]

1. Alice uses BitLaundry to send funds to Bob. What information is hidden for Alice: sender, receiver or amount? How about for Bob?
   Alice: ‘no information is hidden for Alice’. Bob: ‘sender if Alice says nothing’.
2. Explain a situation where Alice’s and Bob’s privacy could be compromised?
   By an instandpayment.
3. What is BitLaundry’s incentive to be honest?
   To avoid bad user experience and thus loss of transactionfees.
4. What is BitLaundry’s incentive to be dishonest?
   They are laundering money so they know that customers wil not report them to the police when they steal of their customers.

[HemalT]

1. Alice uses BitLaundry to send funds to Bob. What information is hidden for Alice: sender, receiver or amount? How about for Bob?
   The public addresses, the time sent and received
2. Explain a situation where Alice’s and Bob’s privacy could be compromised?
   If BitLaundry records information centrally and stores login details, IP addresses and other private and sensitive details.
3. What is BitLaundry’s incentive to be honest?
   Collecting fees from users of the service.
4. What is BitLaundry’s incentive to be dishonest?
   Collecting and perhaps trading private data.

[Samuel1]

1.The sender is hidden for Alice and the receiver is hidden for Bob, so that Alice can send funds to Bob and the sender is hidden.
2. Their privacy could be compromised if BitLaundry is dishonest or gets hacked. The amount is not hidden, just the parties in the transaction.
3. BitLaundry’s incentive is that they will continue to get 0.5% on transactions if it is demmed trustworthy and used by many.
4. The incentive to be dishonest is that you can steal people’s BTC.

[Artur_Raudna]

Hi there!

1. Alice uses BitLaundry to send funds to Bob. What information is hidden for Alice: sender, receiver or amount? How about for Bob?
   1.1 Actually no information is hidden neither for Alice or Bob. If Alice sends funds to Bob using Bob’s address in BitLaundry then funds don’t go directly to sender to recipient, but BitLaundry intervenes with different factors like, time, new random address and mixed Bitcoins pooled in BitLaundry. But if Bob or Alice wants to check the TX by using public address on blockchain.com/explorer then its possible. TX info can be hidden from public by using BitLaundry.
   This example is valid only for Bob and Alice, but if there is several TX and parties involved with reasonable same time and same amount then, it’s difficult to pinpoint sender.
   2.Explain a situation where Alice’s and Bob’s privacy could be compromised?
   2.1 Most simple way the compromise could happen, is when there is low volume on BitLaundry in 30min intervals, the sender and receiver amounts can be distinguished if in the Bitlaundry has only few transacted amounts of BTC similar to Alice and Bob.
2. What is BitLaundry’s incentive to be honest?
   3.1 Fee based money that comes from each TX.
3. What is BitLaundry’s incentive to be dishonest?
   4.1 I think the intervention of 4-th party (government, legal institution) to squeeze BitLaundry to give info or tamper TX.