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Author Topic: MtGox database leak: why you should always mix your coins.  (Read 4568 times)
Rampion (OP)
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March 11, 2014, 04:39:51 PM
 #21

After the Gox dabatase leak the names and home addresses of pretty much everybody involved in BTC are now public, at least among the criminal community.

Those singing the song that goes "I don't mix my coins because I have nothing to hide" are either:

a) totally brainwashed/incredibly naive
b) just stupid.

Even if you mined the vast majority of your coins and used an exchange just to cash out a minor part of your holdings, your total BTC balance can be discovered by trivial blockchain analysis, following the links with just one deposit/withdrawal address.

Morale of the story: Everybody should ALWAYS mix their coins and use Tor for BTC related activities. Information is power. Never give it away.

LOL, yeah but, didn't those same users just lose their ass and are now broke?

Not at all. Only a minority of Gox customers had still positive balances, the majority had already left Gox for good in the past, I'd say that an "orderly stampede" started to happen after the many red flags that were blatantly obvious since at least April, 2013 - just check the leaked info, the accounts with positive balances are just a fraction of the total Gox userbase.

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March 11, 2014, 04:41:20 PM
 #22

...
Also using the centralized (VPN, mixer, tumbler, laundry) identifies you as someone that deserves extra monitoring by the authorities.
...

NSA views encryption as evidence of suspicion and will target those who use it:

https://bitcointalk.org/index.php?topic=511198.0

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March 11, 2014, 04:45:33 PM
 #23

I don't see how mixing coins is supposed to protect my identity.

What is the argument?

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March 11, 2014, 04:45:56 PM
 #24

True... As of recent a lot of people have been saying watch out for criminal activity/community/etc.   Who has been approached/affected/threatened?

promoJo
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March 11, 2014, 04:53:30 PM
 #25

...
Also using the centralized (VPN, mixer, tumbler, laundry) identifies you as someone that deserves extra monitoring by the authorities.
...

NSA views encryption as evidence of suspicion and will target those who use it:

https://bitcointalk.org/index.php?topic=511198.0

A certain three letter agency should turn their all-seeing digital spotlight on themselves with that same air of moral heroism.

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Rampion (OP)
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March 11, 2014, 05:04:31 PM
Last edit: March 11, 2014, 05:27:56 PM by Rampion
 #26

...
Also using the centralized (VPN, mixer, tumbler, laundry) identifies you as someone that deserves extra monitoring by the authorities.
...

NSA views encryption as evidence of suspicion and will target those who use it:

https://bitcointalk.org/index.php?topic=511198.0

That's why everybody should use encryption by default. Its years I'm using the Tor Browser Bundle for +50% of my browsing, basically for everything that is not linked with my real identity (banking stuff and such), and also for my QT instances, Bitmessage, IRC and so on. I also use PGP to sign (and sometimes to also encrypt) important work communications. I may be putting a red target on my back, but I confess I'm not worried about it. If they decide to look into me they will just lose their time as I'm not doing anything illegal, for me end to end encryption and onion routing for standard browsing are just healthy safety procedures that everybody should use. If I'd be doing something illegal, which I'm not, I would use Tor/encryption in a very different way: firstly and foremost I would have a dedicated machine in which I would run throwaway VM instances connecting through chained VPNs with very strict firewall rules, with Tor at the very end of such chain - and I would obviously never connect for such activities from any network used also for my non-illegal activity. I'd say that is just common sense - and wildly offtopic: the OP is about using easy procedures to avoid being an easy target for script kiddies and/or meatspace criminals targeting "bitcoin users" as a whole.

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March 11, 2014, 05:19:10 PM
Last edit: March 11, 2014, 05:49:40 PM by Rampion
 #27

I don't see how mixing coins is supposed to protect my identity.

What is the argument?

Bitcoin is pseudoanonymous: as soon as someone links one of your addresses to you (because you made a payment to him, or because a database of a service such as Gox is leaked) then he can learn your total BTC balance - or at least the total BTC balance of the wallet to which that address belongs - with trivial blockchain analysis.

By mixing your coins you make that task much more difficult, and thus you eliminate yourself from the list of easy targets in a situation as per the Gox database leak.

Said with other words: by not mixing your coins you are revealing your whole balance to the recipient of every transaction you make... And that is an important privacy breach.

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March 11, 2014, 05:32:31 PM
 #28

Information is power. Never give it away.
The internet & cryptocurrency are the beginnings of a world where this paradigm no longer holds sway. That is the world I want to live in.

"As the Americans learned so painfully in Earth's final century, free flow of information is the only safeguard against tyranny. The once-chained people whose leaders at last lose their grip on information flow will soon burst with freedom and vitality, but the free nation gradually constricting its grip on public discourse has begun its rapid slide into despotism. Beware of he who would deny you access to information, for in his heart he dreams himself your master."

Free flow of information. Wikipedia. Torrents. Cryptocurrency. Our technology is taking us in a direction away from centralization of power. Away from dictators and sociopaths running our world.

Mankind's age of empires is over. The future is about decentralization, cooperation, openness, transparency, and truth.

Remember Aaron Swartz, a 26 year old computer scientist who died defending the free flow of information.
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March 11, 2014, 05:46:37 PM
 #29

Information is power. Never give it away.
The internet & cryptocurrency are the beginnings of a world where this paradigm no longer holds sway. That is the world I want to live in.

"As the Americans learned so painfully in Earth's final century, free flow of information is the only safeguard against tyranny. The once-chained people whose leaders at last lose their grip on information flow will soon burst with freedom and vitality, but the free nation gradually constricting its grip on public discourse has begun its rapid slide into despotism. Beware of he who would deny you access to information, for in his heart he dreams himself your master."

Free flow of information. Wikipedia. Torrents. Cryptocurrency. Our technology is taking us in a direction away from centralization of power. Away from dictators and sociopaths running our world.

Mankind's age of empires is over. The future is about decentralization, cooperation, openness, transparency, and truth.

Well said sir.  I too want to live in that world.
Beliathon
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March 11, 2014, 06:01:01 PM
 #30

Information is power. Never give it away.
The internet & cryptocurrency are the beginnings of a world where this paradigm no longer holds sway. That is the world I want to live in.

"As the Americans learned so painfully in Earth's final century, free flow of information is the only safeguard against tyranny. The once-chained people whose leaders at last lose their grip on information flow will soon burst with freedom and vitality, but the free nation gradually constricting its grip on public discourse has begun its rapid slide into despotism. Beware of he who would deny you access to information, for in his heart he dreams himself your master."

Free flow of information. Wikipedia. Torrents. Cryptocurrency. Our technology is taking us in a direction away from centralization of power. Away from dictators and sociopaths running our world.

Mankind's age of empires is over. The future is about decentralization, cooperation, openness, transparency, and truth.

Well said sir.  I too want to live in that world.
We are building it together, my friend. Right now.

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March 12, 2014, 04:37:17 AM
Last edit: March 12, 2014, 06:51:40 AM by AnonyMint
 #31

Remember what I was writing about CoinJoin upthread:

And here is our friendly Bitcoin csore developer...

...

Well I got another reply from CORE BITCOIN DEVELOPER gmaxell and here is my rebuttal...posting here in case he deletes my post there as he has threatened me in a private message (which I also publish below)...

https://bitcointalk.org/index.php?topic=279249.msg5653238#msg5653238

I see those (other than gmaxwell who is not very ad hominem in his response, other than the slight "over and over" which is irrelevant to the technical response) who posted while I was sleeping have relished in their boastful snobbery.

Now let's deal with the humbling facts.

And my post to which you are replying is in fact explaining the DOS (denial-of-service) is insoluble if you can't identify the participants in order to rate-limit them.

And again in that post you admit there is a DOS problem. You didn't solve it. And you can't solve it in a decentralized setting unless you have non-ephemeral identification of the participants. Which is precisely the point of my prior post to which you are replying

You are asserting it, (over and over again) but it doesn't make it true. It was explained in adequate detail previously enough for other people to understand it and implement tools that address it.

Quote
Incorrect. What I wrote is functionally equivalent to what you described. The point is the transaction can be jammed in the final round.

It's actually not, since it's not actually possible in the Bitcoin protocol to do what (it sounds like) you're describing, but more importantly performing the operation in that order defeats the anti-dos. If you lead with the inputs they provide a trivial anti-dos mechanism.

And precisely how do you identify which input is the adversary when the correlation of the inputs and the outputs is necessarily cryptographically blinded?

As far as I can see, you can't.

I am confident that now you see the functionally w.r.t. to anti-DOS of what I described and what you described are equivalent, i.e. any one who is the least bit mathematical can see that the salient mathematical foundation of CoinJoin is that the correlation between the inputs and outputs must be cryptographically blinded, thus it makes no difference mathematically for anti-DOS whether the inputs or outputs are specified in the first round of the protocol.

As for whether my proposed protocol of putting the outputs in the first round is implementable on the Bitcoin blockchain, it is irrelevant since we are talking about a general protocol here and an altcoin could be designed to allow a transaction where outputs and inputs can be signed to point to the transaction nonce (a hash of any number) plus the addresses of the inputs OR outputs. I didn't bother to check how Bitcoin signs the transactions, because it is conceptually irrelevant to our discussion. Perhaps in Bitcoin the signature of the transaction must include all the inputs AND outputs. The reason I presented my formulation (in fact I mentioned the ring signatures idea from Adam Back in the Zerocoin thread months ago in this thread) is because it is more powerful conceptually than one gmaxell described. I thought gmaxell would appreciate that since I think he is a math guy.

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And exactly how do you propose to identify that adversary in a decentralized setting?  Wink My point is you can't, at least not without breaking anonymity, and anonymity was the entire point of mixing.

Because they fail to sign. There is no need to identify them beyond identifying their input coins to achieve rate limiting, and no need to identify the input/output correspondence.

I'll repeat it, since maybe other people are having problems following the link:

I will quote from your more detailed description upthread.

This is an extremely interesting idea.  Could you elaborate on how the Zerocoin transaction stages map to the stages of CoinJoin transaction creation?

For non-decenteralized coincoin, you simply pass around a transaction and sign it. It's a single sequence and an atomic transaction, you'd make two loops through the users, one to discover the inputs and outputs, and another to sign them. There really aren't stages to it.

Making a decenteralized CoinJoin secure, private, and resistant to DOS attack (people refusing to sign in order to make it fail) is trickier... for the privacy and dos attack resistance you can use ZC:

Presume the participants for a transaction are sharing some multicast medium and can all communicate.  They need to accomplish the task of offering up inputs (txid:vout) for inclusion in the transaction and then, in an unlinkable way, providing outputs to receive their coins.

Each participant connects and names bitcoin input(s), an address for change (if needed), and the result of performing a ZC mint transaction to add to the ZC accumulator. They sign all this with the keys for the corresponding inputs proving its theirs to spend.

Then all the parties connect again anonymously and provide ZC redeem transactions which specify where the resulting bitcoins should go.

Zerocoin (ZC) requires a trusted party to generate the parameters, thus it is the antithesis of decentralized, so you have a logical error above.

https://github.com/Zerocoin/libzerocoin/wiki/Generating-Zerocoin-parameters

This isn't the only way to do this in a decentralized manner, the way to do it with blind signatures is fairly similar:

Each participant connects, names Bitcoin input(s), an address for change (if needed), a key for blind signing, and a blinded hash of the address they want paid. They sign all this with the keys for the corresponding inputs proving its theirs to spend.

Each participant then blind signs the blinded hashes of all participants (including themselves).

And so how can you correlate which input is the one who didn't blind sign all?

As far as I can see, you can't.

I've dug very deep (into cryptography research papers) lately into trying to find a way to delink inputs from outputs without a trusted party, and I have realized that mathematically it can't be done. It is a fundamental conceptualization.

The only way to delink without anti-DOS is to use an accumulator commitment scheme with common NP-hard parameters that can be presented in an NIZKP (non-interactive zero knowledge proof) which will always require a trusted party to generate the common parameters for the trapdoor math.

This is just one example of a way to address this. There are several other ones possible— and discussed early on in this thread.  Other ones include publishing commitments and then if the process fails having everyone reveal their intended outputs (which they then discard and never use) in order to avoid being banned, or using an anonymous accumulator instead of blind signing to control access.

That isn't anti-DOS.

Each spender commits a hash of his intended output. Then everyone does the blinded protocol. If the blinded protocol fails, everyone including the adversary reveals the link between inputs and outputs, because by definition the output key must be an abundant resource so that it is not costly to reveal it and generate a new one to try again.

, or using an anonymous accumulator instead of blind signing to control access.

A ZKP + accumulator isn't decentralized as I explained above.

Tada!  Tongue


Here is the private message he sent me and my response to him... (bold emphasis is mine)

Go read my post in his thread from yesterday. It wasn't belligerent. It was a discussion of the technical issues and asked for technical comments. How is discussing technical facts belligerent?

Looks to me like below he is trying to justify an imminent abuse his authority...

Note about the veracity and quality of my technical arguments, perhaps this one by me about the quantum computing threat qualifies.

Eat humble pie. See my reply in the CoinJoin thread.

You are an ego maniac.

AnonMint, Every post you've made here has been error and confusion.
Keep your ad hominem attacks out of it please. I asked kindly for technical comments.

It wasn't an ad hominem— I'm not expressing any opinion about your character. I can only assume that if you treat other people like you do people on the forum that you'd be starving in the streets or incarcerated, so presumably you're actually a nice person when you're not hiding behind a pseudonym on a Bitcoin forum...

Regardless, Your behavior in the technical subform is not very productive.  I have warned you previously.  Your responses come across as universally belligerent which is particularly aggravating to people because they are often confused in the technical details. Whatever approach you are using is not effectively communicating to people and not getting you useful answers because many people have you on ignore.

Your posts have been cited as an example by technical experts as to why they no longer participate in the forum... and I've certainly experienced it myself.

If you do not adopt a style which is less aggressive or up your level of technical mastery to the nearly flawless state which would be required to justify your aggressiveness I will exclude you from the technical subforum.

Cheers.  

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March 12, 2014, 12:53:11 PM
 #32

Why is it often people from eastern Europe or Russia that hacks people for profit?
Don't they have any ethics at all?

I know some good hackers, they hack for fun but they never do it to hurt innocent people.
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