DASH - Reading Assignment

Privacy Coins - Ultimate Course
#101

It conceals the origin of funds. :slight_smile:

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#102

  1. What information does PrivateSend conceal, and by what method?
    PrivateSend adds difficulty in collecting the details of transactions. Mixing inputs adds difficulty to tracking transactions.

  2. How do masternodes improve on the initial CoinJoin proposal?
    By automating the the mixing process.

  3. Alice sends some DASH to Bob using PrivateSend. Describe how an attacker could link their addresses.
    if a master node(s) has been compromised by an entity then it’s entirely possible for the entity to reverse engineer PrivateSend transactions and link the trail of addresses.

  4. In what way could PrivateSend be more risky than a normal Bitcoin Transaction?
    The master nodes are a third party that could be compromised and used to track transactions.

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#103

  1. PrivateSend gives true financial privacy by obscuring the origin of your funds. Your “inputs” are mixed with inputs from at least two other people.

  2. You send a transaction to masternodes, the masternodes will take the transactions of people who have similar denominations to you. They will mix this up and you can use the money that you have mixed.

  3. If a masternode is compromised, they can find out the sender and receiver addresses in the PrivateSend transactions.

  4. Masternodes can be run by anyone with 1000 DASH. Government, corporations, people with bad motives can have access to this information.

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#104
  1. What information does PrivateSend conceal, and by what method?
    the privateSend conceals “who” is the one sending the funds, by waiting two other guys who also need hide the same denomination and only then starting to process the mixing of the coins back into the same wallet but to a different address
  2. How do masternodes improve on the initial CoinJoin proposal?
    This is done anutomatically, it happens on the “background” of dash network, so you dont have to wait other people to want to join the process.
  3. Alice send some DASH to Bob using PrivateSend. Describe how an attacker could link their addresses.I dont know, its not described in the article, but I just copied the guy before me :slight_smile:

If a masternode is compromised, they can find out the sender and receiver addresses in the PrivateSend transactions.

  1. In what way could PrivateSend be more risky than a normal Bitcoin Transaction?
    I dont know either… great deduction by the guy before me!! @matty.t

Masternodes can be run by anyone with 1000 DASH. Government, corporations, people with bad motives can have access to this information.

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#105

Dash utilizes a very clever manner to mix coins in a very decentralized manner, by using masternodes to mix the coins and resend the laundered coins back to the original owners in the form a newly created address. The way the technolgy is able to obfuscate sender from receiver and also obfuscate the actual amounts in the transactions is achieved through a complex process of mixing denominations. This, coup;led with constant new adress creation further darkens the trail for forensic blockchain analysis to reveal any connection between addresses. In the construct of the process, Dash uses its private Send feature which breaks down all transactions into collections of standard denominations. Think of it as breaking down a hundred dollar bill in tens twenties ones and fives, maybe even some quarters dimes and nickles too. Then trough an algorithmic match of demonination swaps, the protocol interchanges the same amount in denominations with other users and gives the new Dashback to its original owner in the form of a new address. The masternodes become a collection of intellectual property for improvement and infrastructure, and are financially compensated by block rewards as well as a large chunk of the transaction fees.
Perhaps there is less security because the number of users on dash is fewer, the transaction volume is fewer, and the adresses that use Private Send might be targeted because the blockchain is public, all of this would reduce the Anonymity set dramatically.
At the end of the day, the masternodes are still able to connect the senders and receivers of all transactions with the amounts. If the masternodes were to corrupt or become corrupted, a history could be established.

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#106

1.conceals coin ownership via coinjoin
2. masternodes construct the transaction
3.hacking the masternode
4.The trust is put in the masternode they may have nefarious intentions

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#107

  1. The originating address by method of mixing.

  2. They don’t know who I am.

  3. Alice’s return address will be linked to Bob’s public address.

  4. The masternode can screw you over.

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#108

1.)
PrivateSend uses an innovative process to mix your inputs with the inputs of at least
two other people in a single transaction.
This mixing process happens in the background without any intervention on your part.
This process makes it difficult to determine where the Dash originally came from.

2.)
When two other people send similar messages, indicating that they wish to mix the same denomination, a mixing session begins. The masternode mixes up the inputs and instructs all three users wallets to pay the now-transformed input back to themselves.

3.)
Dash users must trust the masternodes with their privacy.
The mixing masternodes can link the sending and receiving addresses together and they know exactly which coins are going where.
If these masternodes are run by spies or share their information with spies (on purpose or by accident), the Dash users gain less than nothing: They don’t have privacy, while revealing that they would have liked to have privacy.

4.)
The danger is, that your clean coins could be mixed with dirty coins.
That’s why i am not a big fan of coinmixing.
If you don’t do something illegal, you should avoid coinmixing.
If you do something illegal, you shouldn’t do it with Dash, for the above reasons.

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#109

1.obscuring origin of your funds by coinjoin method.
2.they adding extra privacy.
3.if attacker spies on mawsternodes then reverse PS Tx to see origin an destination.

4.In a PrivateSend transaction, the sending and recipient addresses are always transparent, as is the amount sent. Furthermore, PrivateSend transactions can be analyzed, and although an individual transaction’s origins can only be identified with probabilities, patterns over time can be determined and incorporated into risk scoring models just like in Bitcoin, in fact, in the same exact manner as Bitcoin.

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#110

  1. PrivateSend conceal the origins of the coins by mixing your funds with others’s. When you want to do a transaction, your wallet will send the message to masternodes that will search for at least 2 other individuals with the same request.

  2. No identifiable informations are sent to the masternodes and the process is done automatically.

  3. The Masternodes have informations so if someone can access these informations by hacking or spying on a Masternode.

  4. The fact that you use a privacy features makes you suspect of having something to hide.

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#111

  1. it obscures the origins of your funds. it achieves this innovative process by mixing your inputs with the inputs of at least two other people in a single transaction, so the value in Dash never leaves your wallet. You retain control of your money at all times.

  2. masternodes collects the coins, mixes them and then distributes them to the newly generated addresses

  3. running/hacking a masternode gives the user access to information of transactions.

  4. masternodes can be operated by malicious entities, governments or other third parties.

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#112

  1. What information does PrivateSend conceal, and by what method?
    it mixes the tx with the tx of other two user sending then back to new addresses

  2. How do masternodes improve on the initial CoinJoin proposal?
    they “organize” the mixes between users so they don’t need to arrange them together

  3. Alice send some DASH to Bob using PrivateSend. Describe how an attacker could link their addresses.
    a masternode has the info on amount and receiver, so if this is attack there could be a leak of these info

  4. In what way could PrivateSend be more risky than a normal Bitcoin Transaction?
    privatesend tx can be distinguished by normal tx so this gives info that coinjoin with btc doesn’t give

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#113

1.) What information does PrivateSend conceal, and by what method?
It obscures the origin of your funds by an innovative process to mix your inputs with the inputs of at least two other people in a single transaction.

2.) How do masternodes improve on the initial CoinJoin proposal?
A masternode mixes up the input and instructs of at least three users’ wallets.

3.) Alice send some DASH to Bob using PrivateSend. Describe how an attacker could link their addresses.
If a single entity has the ability to control or spy on a portion of masternodes but of course it is still difficult to determine anything.

4.) In what way could PrivateSend be more risky than a normal Bitcoin Transaction?
PrivateSend could be more risky than a normal Bitcoin transaction through the possible reveal that your now-visible transaction was preferred to be private, which is in a way outing yourself out.

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#114

  1. PrivateSend conceals the origins of funds by mixing the inputs with the inputs of at least two other people in a single transaction

  2. Masternodes improve on CoinJoin by automatically mixing the inputs in the background without any user intervention then instructs the wallets to pay the denominations back to themselves but in different addresses

  3. If a masternode is hacked then the addresses can be linked

  4. PrivateSend can be more risky than a normal Bitcoin transaction because it requires trusting masternodes

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#115
  1. Masternodes apply the CoinJoin principle and guarantee ownership of coins.
  2. Masternodes combines several transactions to make a distinction.
  3. If an attacker operates a MN, he would have access to the addresses of the involved parties.
  4. Requires a high level of trust in the person who operates a MN.
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#116

1.- The amount we want to send it is divided in different amounts and assign to its own address. Then the wallet select a node and this one join to other master nodes to mix the TXs together and send them to new generated addresses, the amount of times the nodes do the mixing process it’s call rounds, they could do even 8 rounds.

2.- It improves the CoinJoin becase its part of the protocol, so it keeps safer the coins, the wallet it creates new subdivision before using the nodes to the mix and the node do the mixing with others. 2 parts of the process in different places.

3.- An attacker could hacked the nodes and track and link the origin and end of many TXs.

4.- If someone hacks the node, could get the information of the process of mixing, lots of addresses register in the nodes could be exposure to identification.

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#117

Dash

  • What information does PrivateSend conceal, and by what method?
    • The origins of your funds by mixing your inputs with at least two other people in a single transaction.
  • How do masternodes improve on the initial CoinJoin proposal?
    • Like CoinJoin, Private Send require someone to construct the Tx but in this case this is done by the nodes that can’t steal the coins.
  • Alice send some DASH to Bob using PrivateSend. Describe how an attacker could link their addresses.
    • Spying on the nodes that are going to mix their transaction, that would reveal not just that alice is sending value to bob, but also the fact that they wanted to keep it private.
  • In what way could PrivateSend be more risky than a normal Bitcoin Transaction?
    • Revealing the fact that the 2 parties wanted to keep a Tx private, making this result more suspicious at the eyes of the “spy”.
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#118

1 PrivateSend, released as DarkSend in 0.9-RC4 of the DarkCoin client and rebranded to PrivateSend in May 2016, is a trustless method of running a sequence of transactions (known as “mixing”) such that an external observer is unable to determine the source of funding when a PrivateSend transaction is created.
By splitting your funds into fixed denominations (as changing $5 into smaller bills & coins) the wallet communicates with masternodes to perform an shuffling of coins and redistributes them to a new wallet (of your possession). This works like the CoinJoin process, making it harder to backtrack the funds held in any of your (DASH)wallets.
2 By using an automated feature in the wallet, you may select the numbers of mixing (up to 16) and by the change into fixed denominations, the anonymity will increase exponentially.
3 By monitoring the mixing process, ie having control over a master nodes used by Alice and Bob.
4 The master of the master node must be benevolent.

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#119

You can’t steal coins in a coinjoin tx, it just makes it easier by automating the process and doesn’t require a coordinated effort to construct such a tx. :slight_smile:

#120

The ownership of the coins by using the coinjoin method.

A master node joins several transactions so that they cannot be distinguished.

By hacking the masternode.

You must trust the person who runs the mastenode.

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