BitLaundry - Reading Assignment

Privacy Coins - Ultimate Course
#82
  1. The sender’s information is hidden for both Alice and Bob since Bitlaundry is giving Alice a one-time use address.
  2. Bitlaundry keeps transaction information after transaction is sent instead of deleting it and their computer gets hacked.
  3. The incentive to be honest is that the owner of Bitlaundry will continue to make transaction fees on every transaction.
  4. Stealing people’s bitcoin instead of sending it to the recipient.
#83

1: there is no link between Alice and Bob. Address of the receiver is hidden from Alice. Bitlaundry created a one time address for bob.
2: If there is not much traffic in bitlaundry the transaction could lead to the identity of Alice and bob being traced
3: To stay in business and grow.
4: If a large transaction is done through BitLaudry, bitLaubdry could be tempted to send the money to themselfs

#84

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

From what I’ve gathered what’s hidden is that the sender and receiver is hidden. Alice sends to bitlaundry, using a one time use address provided by bitlaundry. Bitlaundry then waits 30 mins to send the funds to Bob.

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

From what I understand, the amount sent from Alice to Bob is gonna be exact and not broken into multiples since only one address is provided and used by bitlaundry. Also its the same utxo information on the coins unless bitlaundry sends different coins which aren’t connected to Alice originally. Also bitlaundry could unknowingly save logs of the transactions of its customers for use at a later date to steal/ monitor or even pass the information on to 3rd parties or government.

What is BitLaundry’s incentive to be honest?

From what i’m seeing, their incentive comes in the form of building a reputation of providing great and reliable service.

What is BitLaundry’s incentive to be dishonest?

From what i can see, they could up and run off with the funds Alice and others send because they are middleman-ing the transaction and leave everyone with nothing. Or while holding the funds, change the fee’s at a moments notice. As mentioned before bitlaundry could unknowingly keep records of all the transactions they’ve done and ad that information over to some one or have it stolen from them.

#85

  1. Alice uses BitLaundry to send funds to Bob. What information is hidden for Alice: sender, receiver or amount? How about for Bob?
    Bobs real adress. since they are using fake-adresses, you can´t see really to where Alice is sending BTC. For Bob; the sending adress is hidden but he know it´s Alice so it doesn´t matter.

  2. Explain a situation where Alice’s and Bob’s privacy could be compromised?
    If they are alone in a certain time intervall or if their amount stands out from the rest.

  3. What is BitLaundry’s incentive to be honest?
    The fees people are paying.

  4. What is BitLaundry’s incentive to be dishonest?
    Stealing the Tx from the users, sell data to interested buyers.

#86
  1. Alice cannot see Bob’s address, Bob cannot see Alice’s address. They both obviously know the amount.
  2. Their privacy could be compromised by men in black with guns arriving at the BitLaundry office and taking the computers. Even if all previous 30 minute logs are gone presumabely the current log can be taken. Also if Alice is the only user in a 30 minute block their are no other transactions to be ‘laundered’ with. If Alice sends a similar transaction on a regular basis it would make it easier to identify a pattern with some level of confidence between Alice sends and Bob receives.
  3. BitLaundry’s incentive to be honest is to maintain a loyal user base and be the rent seeking middleman taking a consistant 0.5% cut.
  4. If a huge transaction comes in it might be better financially to steal all of it and exit out rather than take the regular small cut.
#87
  1. Both people have privacy as they don’t know each other’s real public or private adressss.
  2. One way is if they were to be the only people using the service within a certain time period.
  3. To build honest reputation and keep providing the service and earning transaction frees.
  4. Exit scam is a possibility if trusted with large amounts of funds.
#88

  1. Basically BitLaundry was created to hide the actual receiver of the TX.

  2. Their privacy would be compromised in case if they would be the only sender receiver in the system.

  3. To get a good reputation, to gain money by charging fees

4.speculate with the information, blackmailing

#89

For Alice sender is hidden, for Bob receiver is hidden
It could be compromised at a future sending of funds
Incentive to be honest is to build a trusted reputation
Incentive to be dishonest if it is a large transaction amount

#90

  1. Alice uses BitLaundry to send funds to Bob. What information is hidden for Alice: sender, receiver or amount? How about for Bob?
    there is no direct transactions between bob and alice. bob doesnt know the public address of alice, Alice knows bob public key

  2. Explain a situation where Alice’s and Bob’s privacy could be compromised?
    When the flow of transactions drop

  3. What is BitLaundry’s incentive to be honest?
    more people will want to do more transactions with you

  4. What is BitLaundry’s incentive to be dishonest?
    Wait for a huge pay load and then dip out

#91
  1. Alice uses BitLaundry to send funds to Bob. What information is hidden for Alice: sender, receiver or amount? How about for Bob?

no direct connection in the transaction; Alice knows Bobs public key, Bob does not know the public address of Alice

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

if they are the only sender and receiver in the system

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

fees from the people using the service

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

Stealing people’s bitcoin instead of sending it to the recipient.

#92

  1. Alice uses BitLaundry to send funds to Bob. What information is hidden for Alice: sender, receiver or amount? How about for Bob?
    The receiver of Alice’s transaction is hidden. BitLaundry should also require more than the amount needed to be sent and and the remaining amount (after fees) be sent back to Alice at another wallet address. This would mean the BitLaundry input from Alice and the output to Bob is less likely to be linked.

  2. Explain a situation where Alice’s and Bob’s privacy could be compromised?
    As stated in question 1, Alice and Bob could have their privacy compromised as the transactions could be linked due to the amount being sent by Alice and received by Bob (less the set fee for ButLaundry). An unspecified extra amount should be included in the transaction which is returned to a separate wallet address owned by Alice. This way the ‘sent by Alice’ and ‘received by Bob’ amounts are unlikely to be correlated.

  3. What is BitLaundry’s incentive to be honest?
    BitLaundry’s incentive to be honest is to receive fees per transaction and build trust from users, which will continue to expand their customer base and therefore transactions, which in turn will yield more fees, etc, etc.

  4. What is BitLaundry’s incentive to be dishonest?
    BitLaundry’s incentive to be dishonest would be all the Bitcoin’s they are moving for users. They could receive BTC from senders and decide not to send it to the supposed ‘recipient’.

#93

  1. 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 will be hidden through BitLaundry.
    For Bob the receiver as well, as he gets the coins trough Bit Laundry.

  2. Explain a situation where Alice’s and Bob’s privacy could be compromised?
    If BitLaundry is not deleting the database link.

  3. What is BitLaundry’s incentive to be honest?
    If not, no one would use it and they could close there business.

  4. What is BitLaundry’s incentive to be dishonest?
    As all the transactions go through them, they could just keep them and disappear.

#94

  1. Alice sends funds to a one time address on BitLaundry. After a random interval of 30 minutes, the funds are sent from BitLaundry to Bob.
    No one can tell to whom Alice sent these funds (the receiver).
    No one can tell who sent the funds to Bob (the sender).

  2. If no one else sent the same amount to someone else? Or if in the meantime someone hacks the BitLaundry database.

  3. They get good reputation for being trusted. If they are highly trusted means more users will use it = more fees.

  4. They could shut down their service when demand is high and have a lot of funds in their addresses.

#95

1. Alice uses BitLaundry to send funds to Bob. What information is hidden for Alice: sender, receiver or amount? How about for Bob?
Well Alice agreed to use a coin mixer to send coins to Bob so presumably she knows how much she is sending and who she wants to send it to. But on chain neither entity is linked. It is not possible to see Who sent the coins and the mixer creates a “one time only use” address for her to send her coins to. This “only time only address” gets deleted after a period of time so there is no record of that.

2. Explain a situation where Alice’s and Bob’s privacy could be compromised?
If at the time Alice sends the Bitcoin to BitLaundry there are not so many coins in “circulation” it could be very easy to see transaction links between Alice and Bob as there are not so many coins to mix in with. The more coins that are sent out at the predetermined random 30 min intervals, the harder it is to trace back where the coins have come from.

3. What is BitLaundry’s incentive to be honest?
To maintain a good reputation and grow its user base.

4. What is BitLaundry’s incentive to be dishonest?
They could give Alice a “one time” address and “Tell” her its Bobs when in actual fact it is their own address so She, without realising it, sends Bitcoin directly to an entity in BitLaundry who cashs in. As the “one time only” address is deleted after use it would make it hard for Alice to find out who took her money.

#96

  1. Alice uses BitLaundry to send funds to Bob. What information is hidden for Alice: sender, receiver or amount? How about for Bob?
    Alice know sender, receiver and the amount. On the blockchain, however, the receiver is not directly linked to Bob.
    Bob sees the amount. The sender is hidden for Bob.

  2. Explain a situation where Alice’s and Bob’s privacy could be compromised?
    When at the time BitLaundry sending, there are little to no users besides Alice. If BitLaundry is compromised by hacking or a government agency.

  3. What is BitLaundry’s incentive to be honest?
    The reputation of BitLaundry and the fees.

  4. What is BitLaundry’s incentive to be dishonest?
    Send the Bitcoins to them self.

#97
  1. We do not know who the receiver of Alice’s payment is and we do not know who the sender of the payment Bob receives is.
  2. Someone could correlate the payment amount that Alice sends and that Bob receives to prove that Alice sent a payment to Bob.
  3. BitLaundry’s incentive to be honest is that by being honest it can have a good reputation allowing for more customers in the future.
  4. BitLaundry could steal bitcoin from its users.
#98
  • Neither are linked to each other because, BitLaundry receives and sends the funds.
  • If BitLaundry does not complete multiple transactions within that time frame of Alice and Bob’s transaction, then the transaction could possibly linked to Alice and Bob.
  • BitLaundry’s incentive is transaction fees and wanting to procure more business.
  • BitLaundry could keep the Bitcoin and close operation, instead of delivering to the sender. A large amount of Bitcoin could be an incentive to be dishonest.
#99

  1. Outsiders don’t know who send money to whom. i.e. Alice sent UTXO to someone while Bob received UTXO from someone.

  2. If private keys from BitLaundry are leaked, it would be easy to track all previous transactions.

  3. Reputation so his business can continue and then he maximize profits.

  4. Large transactions can be stolen or sensitive information can be sold.

#100
  1. destroyes transation details after send. no one knows the public key of the other
  2. hm… server hacked of bitlaundry, she telling anyone about the transaction… etc.
  3. fee collection
  4. there is none because ppl would stop using the service if we knew it was not legit. And they would be out of business very fast
#101

  1. Alice uses BitLaundry to send funds to Bob. What information is hidden for Alice: sender, receiver or amount? How about for Bob?
    For Alice it is hidden that She send money to Bob. There is no link between Bob and Alice.

  2. Explain a situation where Alice’s and Bob’s privacy could be compromised?
    If the bitlaundry is hacked and ip addresses are visible.

  3. What is BitLaundry’s incentive to be honest?
    Receive a small fee for every transaction based on the amount of the transaction

  4. What is BitLaundry’s incentive to be dishonest?
    Maybe to run away if a large transaction needs to be handled.