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Author Topic: Bitcoin censorship for Russian addresses?  (Read 540 times)
o_e_l_e_o
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March 13, 2022, 03:55:52 PM
Merited by pooya87 (2)
 #41

Talking about "illicit activity". Imagine you are buying BTC in a P2P trade. You have no way to know (unless you go and do some extensive research with free or paid tools available. Even if you have I do not think none of us spend time of researching) the coins those are coming from a blacklisted address. This always worries me but still lucky that I did not fall for this trap yet.
I trade peer to peer exclusively and have done for years. I am certain I have had in my possession on many occasions coins which were blacklisted from various exchanges or otherwise deemed as tainted. I have never once had a problem using or spending these coins, exactly because I avoid such centralized exchanges or services which make arbitrary and nonsense decisions as to which coins are tainted or not. If this is a concern of yours, then just mix or coinjoin the coins after you receive them.

You run your own full node.
I fail to see how running your own node protects you against exchanges arbitrarily labeling some coins as "tainted".
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March 13, 2022, 06:11:58 PM
 #42

I fail to see how running your own node protects you against exchanges arbitrarily labeling some coins as "tainted".
It doesn't protect you against this taint, but it allows you to use Bitcoin non-custodially, which was my point. If both you and me run individually our own nodes, then we don't trust anyone to hold our money. This can be done simply by connecting to an SPV server too, but I suppose that you can't have a trustless trade without involving things such as HTLCs which, as a consequence, require you to verify everything.

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o_e_l_e_o
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March 13, 2022, 08:08:09 PM
 #43

It doesn't protect you against this taint, but it allows you to use Bitcoin non-custodially, which was my point. If both you and me run individually our own nodes, then we don't trust anyone to hold our money.
There are many ways to hold your own keys and coins which don't involve running a full node though.

This can be done simply by connecting to an SPV server too, but I suppose that you can't have a trustless trade without involving things such as HTLCs which, as a consequence, require you to verify everything.
I suppose there are different entities who need to be trusted. You can't trade with another person completely trustlessly without running your full node, since you wouldn't be able to tell if your transaction or their transaction has actually confirmed without trusting that the SPV server or block explorer you are using is showing you the correct information. But I suppose you could argue you could still trade trustlessly when only considering the trust between you and the party you are trading with, for example by using Bisq's 2-of-2 escrow set up.
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