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December 14, 2013, 06:04:22 PM |
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I was reading some papers about Bitcoin and one of the things I don't understand was about the way that coins are transmitted.
For example:
"Bitcoin Laundry twice sent us our own coins back, indicating that we were possibly their only customer at that time."
And:
"...by mixing the coins of multiple users making it harder to find a relation between input and output transactions in the transaction graph."
And:
"there needs to be enough users and bitcoins in the mix otherwise the same coins might get payed out that the user just payed in."
I do not understand what "coins" mean in this context. Transactions, as I understand it, transfer BTC from one person to another as depicted by the blockchain. How can the specific coins in these transactions be identified? How, for example, did the reearchers know that they received their own coins back?
I am far from an expert so please write in a simple way!
Thanks.
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