BitLaundry - Reading Assignment

Privacy Coins - Ultimate Course
#102

1.Alice does not know Bobs real public address and Bob doesn’t know Alice’s private address.
2. in time you would see who did what if there arent too many other transactions between them or if they dont use bit laundry.
3.Repeat business .
4. they could steal your sats.

#103

  1. The sender is hidden for Alice and the receiver is hidden for Bob.

  2. well if its a public ledger Id say there’s at least a 30 min window to figure it out. don’t think they had smart contracts back then and that would mean someone was the centralized owner and they could do whatever they wanted.

  3. Their good name and return customers would be the incentive to be honest.

  4. We are talking about the very early days of crypto, so no there was much more reason to be dishonest just to get paid. There are so many crypto companies out there even today that I would never trust. Just like there’s a ’ know your customer’ rule the customer better dam well know their vendor as well.

#104
  1. 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’m able to determine by the info in the article, Alice knows Bob’s original address and could check that 30 minutes later to see that Bob received the funds sent. Bob wouldn’t readily know Alices original send address as it goes through another address and is sent out in batches. Until Bob receives his funds, he’s in the dark all the way around.
  2. Explain a situation where Alice’s and Bob’s privacy could be compromised? From what I can surmise, BitLaundry is a centralized exchange, thereby ultimately having control over funds. A centralized location can also be hacked exposing both Alice’s and Bob’s private information.
  3. What is BitLaundry’s incentive to be honest? They would want to foster a level of “trust” with repeat and referral business. At least for a period of time. However, once the operation had been going for awhile and lots of money made, they could easily vanish and take any pending funds with them. Especially if there were large amounts of value involved, in the millions for example.
  4. What is BitLaundry’s incentive to be dishonest? BitLaundry intentionally or unintentionally, could send the wrong amounts in the interest of profit. They could also dishonestly take advantage of fake arbitrage and slippage in prices always skewing to their own advantage, ultimately affecting the total of funds sent. Especially with the time lag of 30 minutes before sending funds out. We’ve all seen Bitcoin drop $500 easily in 30 minutes! And if laundry transaction addresses are deleted, there also is no proof of wrong doing.
#105
  1. Alice uses BitLaundry to send funds to Bob. What information is hidden for Alice: sender, receiver or amount? How about for Bob?
  • Alice = Receiver
  • Bob = Sender
  • The link between Alice’s address and Bob’s address is hidden from the public by sending it through the intermediary, BitLaundry.
  1. Explain a situation where Alice’s and Bob’s privacy could be compromised?
  1. What is BitLaundry’s incentive to be honest?
  • For the service to gain users, satisfied users will bring in more users of the service.
  1. What is BitLaundry’s incentive to be dishonest?
  • Transactions might be redirected to an address they themselves, BitLaundry creator, chose.
#106

[quote=“Grant_Hawkins, post:1, topic:13030”]

  • Alice uses BitLaundry to send funds to Bob. What information is hidden for Alice: sender, receiver or amount? How about for Bob?
    BitLaundry is acting as a middleman. The transaction IDs that could link Alice and Bob are hidden.

  • Explain a situation where Alice’s and Bob’s privacy could be compromised?
    If BitLaundry is on public domain, transaction history with clients can still be traced.

  • What is BitLaundry’s incentive to be honest?
    High income from their service. Transparency in a trustless blockchain.

  • What is BitLaundry’s incentive to be dishonest?
    Greed because privacy data is valuable and expensive if sold.
    The people who need this kind of privacy might not go public and ‘expose’ themselves if they have issues with BitLaundry. They will be taken advantage of.

#107

  1. Alice uses BitLaundry to send funds to Bob. What information is hidden for Alice: sender, receiver or amount? How about for Bob?
    Fór Alice Bos public key ís hidden. On the other síde Bob doesn´ t know the public key of the sender Alice.

  2. Explain a situation where Alice’s and Bob’s privacy could be compromised?
    Using BitLaundry ís only providing security, if :

  • there are enough transactions
  • the public keys of Bob and Alice are trashed by BilLaundry ás á 3. party , so that nobody can link them later.

  1. What is BitLaundry’s incentive to be honest?
    BitLaundry wants to earn money through fees. Ít ís important fór them not to demage people, and to ensure privacy . That ís the best advertisment.

  2. To ínvolve a 3. party means giving up the idea of trustlessness because of consus bý math and physics. Somebody of the company can steal and sell the datas or steel the transaction money.

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#108

1.Bob will not know the funds originate from the address of Alice (normally will know because generated a designated address for this transaction or the amount is unique) so Alice will be able to keep the origin address private from Bob and others regarding this transaction.
2.BITLAUNDRYS PRIVATE KEYS BEING COMPROMISED
3.KEEPING THEIR SERVICE IN USE RESULTING IN PROFIT
4. NOT RE SENDING MONEY TO BOB AND STEALING THE BTC SENT BY ALICE

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#109
  1. All for both
  2. If not enough people use the service Alice wil end up sending her own bitcoin to a great extent.
  3. Being paid to offer a service.
  4. They could take all btc if they want, but soon reputation will stop that.
1 Like
#110

1. Alice uses BitLaundry to send funds to Bob. What information is hidden for Alice: sender, receiver or amount? How about for Bob?
The addresses for both are hidden and therefore you are not able to see on the public blockchain that they made a transaction which each other. BitLaundry acts as an intermediary to mask the transaction.

2. Explain a situation where Alice’s and Bob’s privacy could be compromised?
If BitLaundy’s information is ever compromised then someone could gain access to the customers using the service.

3. What is BitLaundry’s incentive to be honest?
They receive a transaction fee for their service. If they cheated someone then word would quickly get out that it is a scam and to not use their service.

4. What is BitLaundry’s incentive to be dishonest?
They may look for an exit with a big amount as their last payment. It is always possible when they are handling large transactions.

#111
  1. Alice uses BitLaundry to send funds to Bob. What information is hidden for Alice: sender, receiver or amount? How about for Bob?
  • Alice enters Bob’s public address and the amount to send in BitLaundry form. That amount is sent from Alice to some address of BitLaundry.
  • BitLaundry keeps Alice’s bitcoin, but sends other bitcoin to Bob’s public address.
  • Bob sees the amount he received. He doesn’t know where it came from, as it was some address of BitLaundry.
  1. Explain a situation where Alice’s and Bob’s privacy could be compromised?
  • If there are few users of the service, there is a big chance that BitLaundry will take Alice’s bitcoin and just send the same bitcoin to Bob.
  • If the transaction amount is significantly greater than other UTXOs in BitLaundry, there is a great chance that Bob will receive some of Alice’s bitcoin.
  • The chance of linkability increases every time Alice and Bob transact, unless BitLaundry frequently generates new addresses and dumps the old ones.
  • BitLaundry knows everything.
  1. What is BitLaundry’s incentive to be honest?
  • Like any service, they need customers. Any scam would soon be on all the major crypto news.
  1. What is BitLaundry’s incentive to be dishonest?
  • Keeping bitcoin of their customers. That could be an exit strategy - accumulate bitcoin, delay sending out as long as possible, and then close the service. This could work especially if it was not specified how long a transaction should take - customers wouldn’t become suspicious for a long time.
  • If BitLaundry was a registered company, they could be forced by government to hand in transaction history, like KYC exchanges. That, though, is not an incentive, but enforcement.
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#112

1. Alice uses BitLaundry to send funds to Bob. What information is hidden for Alice: sender, receiver, or amount? How about Bob?
The information of the sender and amount, in the case of Bob who has nothing to hide.
2. Explain a situation where Alice’s and Bob’s privacy could be compromised?
Ambos of them should get the address from Bitlandury.

#113

1. Alice uses BitLaundry to send funds to Bob. What information is hidden for Alice: sender, receiver or amount? How about for Bob?
The person to whom Alice wants to send the money will be private; in this case Bob, since the transactions will be mixed up in a pool of other transactions and then finally sent to Bob.

2. Explain a situation where Alice’s and Bob’s privacy could be compromised?
The public keys might be compromised if no other transactions take place over a period of time.

3. What is BitLaundry’s incentive to be honest?
Build their reputation and ultimately result in more customers and more revenue.

4. What is BitLaundry’s incentive to be dishonest?
If the amount of BTC is ‘life changing’ there might be an incentive to steal it.

1 Like
#114
  1. The hidden information for Alice is the receiver. For Bob it will be the sender.
  2. Decentralisation is one of the main premises behind Bitcoin. Bit Laundry’s insertion as a middleman provides a single point of weakness for hackers or state agencies. If a state agency were to apply pressure on Bitlaundry’s owner, they might find and be able to link payments made and received.
  3. It’s a good passive income business that provides a service that many might like the sound of and consequently use.
  4. If people are wanting to hide their transactions, would they report Bit laundry to Authorities if fund were diverted to the owner’s account?
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#115

1.reciever is hidden for alice while the sender is hidden for bob

  1. the situation would if bitlaundry saved the transactions address which links alice and bob together.

  2. transaction fee anf good reputation of the service.

  3. The transaction can be deleted noone can know whether the money was actually send. or recieved so they can steal money without anyone finding out.

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#116

1- Their Addresses aren’t directly linked within the BitLaundry service. Bob will not know Alice public address.

2- If bitlaundry servers are comprised or shares their logs.

  1. To create a trusted reliable service and make profit.

4- Sell information to chainanalysis companies, collaborate with or coerced by goverments or steal funds.

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#117
  1. Alice uses BitLaundry to send funds to Bob. What information is hidden for Alice: sender, receiver or amount? How about for Bob? Alice would rather not have anyone that Bob is disliked.
  2. Explain a situation where Alice’s and Bob’s privacy could be compromised? When Alice puts Bob’s address in the form at BitLaundry. BitLaundry is in open beta right now.
  3. What is BitLaundry’s incentive to be honest? Earning 0.02% of of transaction.
  4. What is BitLaundry’s incentive to be dishonest? Earning 0.5% up to 1BTC of the transaction.
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#118

Alice knows Bobs address since she must send the funds, but Bob is unable to know Alices address.

It could also just close the doors at some point and take the funds that are in the laundry atm :slight_smile:

2 Likes
#119

Thank you @Alko89! :grin:

#120

  1. Alice uses BitLaundry to send funds to Bob. What information is hidden for Alice: sender, receiver or amount? How about for Bob?
    Alice knows it all. Bob can’t see the sender

  2. Explain a situation where Alice’s and Bob’s privacy could be compromised?
    if someone would track the amount inputs and registers the amount outputs of the bitlaundrey account

  3. What is BitLaundry’s incentive to be honest?
    I’t a paid service that earns them BTC

  4. What is BitLaundry’s incentive to be dishonest?
    Large transactions could be redirected to own wallet. And Alice would have trouble claiming since she’s trying to hide something

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#121
  1. Only information that can be seen is Alice sending money to BitLaundry and Bob receiving money from BitLaundry.
  2. Check the “amount” of transaction sent and the person receiving similar amounts. BitLaundry would need a lot of users to use their service so it would be harder for people to find Alice’s and Bob’s address.
  3. To earn fees from people using their service
  4. BitLaundry can steal the funds if they wanted to. We would need to “trust” BitLaundry.
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