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141  Bitcoin / Bitcoin Discussion / Anonymity and Traceability Review on: July 29, 2010, 04:45:16 PM
I've been generating BTC for a week or so now, and I'm enjoying myself very much.

One thing I've been wondering about is the anonymity of the system, and I can't find all the documentation I need to understand.

What I'm wondering about is total anonymity as far as origination of Bitcoins.

The question is analogous to the US government's current laws that any money transferred to terrorists by however long a chain implies criminal liability for the original transferer of the money offshore.

Now, I don't like sending terrorists money at all, whether or not our government approves of them, so I don't wish to do such a thing.

However, as I understand the protocol right now, this sort of chain of payment checking is quite easy in bitcoin land if the bitcoin address scheme is used to transfer money.

Does the IP transfer option mitigate this? My current best practice for completely breaking the chain of who-sent-the-bitcoins-to-whom is:

1) Receiver sets up a listener at 8333 at some IP online, presumably with some tor-based login scheme.
2) Sender, using Tor sends to that IP, say 100 BTC
3) Receiver receives BTC, waits for confirmation from the network.
4) Receiver copies wallet.dat file to real location over Tor
5) Receiver sends money from wallet.dat to 'main' wallet using newly generated Bitcoin address
6) BTC 'laundered'.

Is this the approved method of breaking the chain of payments?

Comments on attacks or other methods?

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