Anonymity of bitcoin payment how strong?

Anonymity of bitcoin payment how strong?

As a medium of payment, bitcoin since its inception, let the public have the anonymity and privacy of the strong impression of the. This currency was recognized by many celebrities, such as: German politician FranzSch ffler, investor AshtonKutcher?, a famous writer, economist DavidFriedman KevinO Leary, the financial master “.

Kutcher said: “I think you go to buy drugs and ammunition with bitcoin that embodies the currency itself has verified value.”

However, bitcoin is also due to the decline of people think they are just hidden in behind bitcoin traders.

The payment system is unable to track the privacy advocates dream

PanteraCapital RonaldA.Glantz said: “bitcoin is a consensus network, which allows the use of the new payment system and the full realization of the digital currency. It is the first user does not exist middlemen centralized or decentralized peer to peer network payment. From the user’s point of view, bitcoin can be seen as Internet cash.”

Glantz to explain his definition on the network protocol for how people through no physical form of digital currency transactions. Money, such as the definition and interpretation, is not regulated, no financial institutions can control the price, supply, risk, valuation method and distribution. A significant feature of bitcoin is not trust, which is determined by the dispersion of its decision, what is the reason for its trustworthy.

It sounds like a perfect anonymous payment, isn’t it? Not exactly.

Your bitcoin completely private?

Bitcoin is vulnerable to several different monitoring methods of supervision.

In the digital public ledger of each bitcoin payment record is called a block chain. Transfer block chain record bitcoin between users, and users and their transactions. Although bitcoin wallet encoding unique identifier, but it usually does not refer to the parties to the transaction status, only when the occurrence of certain transactions, the identity of people and their wallets will accurately together.

The main reason for using this system without privacy is bitcoin trading transparency. Once a transaction is recorded, it is available for anyone to see, but also easily can be traced back to a IP address.

MalteMoser of the University of Muenster spoke of “anonymous bitcoin transactions in his article”.

“But all transactions in the network will be stored in the open chain block, allowing anyone to check and analysis, the system will not have the real anonymous, they usually use pseudonyms.”

However, Moser only saw the concept in theory, there are 3 researchers are a step forward, and the hypotheses were tested. In their report on the bitcoin P2P network customer research “, AlexBiryukov, DmitryKhovratovic, IvanPustogarov (Luxemburg researchers) concluded that bitcoin transactions and the associated user personal information (including IP address, name, financial information, etc.) will reach 11% to 60% success rate.

3 researchers try to bypass the bitcoin users try to protect the NAT firewall using a general method to determine their transactions on the internet.

They did not stop the practice, studies also show that using the Tor anonymity service or other countermeasures can cut off the attack bitcoin network abuse.”

The researchers say the abuse of the bitcoin network against Dos attacks, usually crowded the whole block chain, through a large number of small transactions which prohibit other users to trade.

Similarly, in? Bitcointalk.orgforum forum moderators also mentioned the same problem:

Bitcoin is a tool with privacy, but the privacy from anonymous bitcoin address is fragile, and easily through the repeated use of leakage, such as “tainted” analysis, tracking payments, monitoring node IP address, network search and other mechanisms, etc.. Once leaked, will be expensive to restore.

Even the staunchest advocates and experts also deny this is secret money idea is to achieve anonymity of the network trading strategies. The founder of AdamLudwin, in his 2015 article concluded: whether bitcoin has a strong anonymity, ordinary users should also be aware of bitcoin certainly more initiative than cash.

Conclusion Ludwin can in daily life through the observation of using bitcoin and cash to verify. If I buy antidepressants from doctors, there is no evidence that I suffer from mental illness in a doctor’s prescription (this should be highly confidential information). If the block chain available I use bitcoin to buy the same drugs, this will let the world know that I am really crazy.

We now know that there are three ways to kill the bitcoin network anonymity:

1. because bitcoin is a peer-to-peer network (vulnerable to hackers), if hackers can use computers or nodes connected to the bitcoin network, so hackers can extract enough information to decrypt the transaction origin.

2. if a bitcoin wallet has been registered with the real personal information, that for hackers and cyber criminals, looking for bitcoin data breakthrough work will become easier.

3. blocks of the transaction chain transparency allows analysis, and can be associated with the promoters of a deal.

To ensure the security of bitcoin trading network

The tbiryukov might have been with a lot of evidence that bitcoin trading is not private or anonymous, but confusion still exists: how can we guarantee the anonymity in the bitcoin network?

Most of the researchers, advocates and solutions of bitcoin users advice is to change your bitcoin address, or use a pseudonym in every transaction. Windows, Mac and some mobile applications such as Mycelium, BitcoinWallet, CoPay, BitcoinCore and Armory allows the use of multiple aliases in their interface. You can choose to manually set it.

One aspect is that there is no research literature on the combination of the bitcoin network and VPN. Virtual private network, VPN, has a anonymity and privacy tool, it can ensure that even ISP does not know my online activities.

VPN tunnel when I will ensure that when the transaction is not visible in the network, and this encryption technology will ensure that all online data can be delivered between me and the VPN server. Dos will not work anymore, because I do not know the location of hackers and network address.

The way it works is the location of your VPN service area will be virtually according to what you have been connected to change. So if I connect to an VPN server in London, others on the network appear in my IP address will be located in the uk.

Let us suppose that a VPN server I connected to the British, of course I will never live in this country, and then create a false (temporary) e-mail address, and then open the TOR browser to use pseudonyms bitcoin wallet.

Now people can pay attention to me?

My personal data, and now rely on VPN to protect the (I am anonymous), false e-mail registration VictorVonLichtensteinllanbradach in British New South Wales, Caerphilly address, then I use TOR to buy stolen from hackers and scammers in the hands of credit card information. Now, technically I can empty the credit card and buy the game from the library like website, download the game and play, and not being dragged or chase concerns.

You may hate him, but you can never catch Lichtenstein doing business on the Internet, at least that is the theory.

However they can not use the same idea to use bitcoin to buy tangible goods, because the shipping address will solve all too dense bring monetary anonymity problems. Even if the use of TOR, VPN and bitcoin encryption will let you have some legal concerns.

Comments: anonymous anonymous or not?

Try to avoid the entity tracking your bitcoin transaction, then they will lose your discretion, it is possible that. However, bitcoin in technology can not reach the degree of anonymity.

Yes, bitcoin is anonymous, allowing rapid and free trade, will not disclose too much personal information. However, the digital world, or digital world “criminals” will catch up with you.

Buy digital products with bitcoin, such as software, books, white papers, reports, databases, or even illegal goods such as credit card information is undoubtedly a good way, but when you give it second times an e-mail address. It means that you should transform the position.

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