Why are Bitcoin transactions stored ?

[X-ray]

The point of crypto currency creation was for the reason of privacy, which was coated as the word decentralized network, where there's no third party in-between, just the sender and the receiver. Them why are transactions history store and made public, so there can be traceable? Because with this it doesn't feel private to me.

Bitcoin wasn't created for privacy, it was created as a decentralized currency that can be used freely by everyone. it wasn't meant to be a privacy coin, and it's not meant to be a privacy coin even this day. The ones who love privacy know how to use third party services to enhance the privacy of their coins but Bitcoin on its own isn't a privacy centered coin but a decentralized coin.

All transaction history is visible to everyone via Blockchain, and that's why if your main purpose is to use a coin that's created for privacy then use a privacy coin instead of Bitcoin. However, if you want to use a coin that's free from centralized system and can be used freely by anyone, then you can use Bitcoin, but still it's someone's own choice.

It was more of breaking free from centralized control by creating a system that is decentralized, a system that is based on consensus instead of centralized decision making and bitcoin excels at that with current hashrate that is ultra difficult to replicate.

The anonymity i'd like to think of it as a bonus, since everybody can generate their own address, as long as nobody know the owner of the address it's pretty much anonymous.

Or simply use those privacy tools if someone ought to really need privacy.

[Satofan44]

The CEX you use is what sells your data and link your wallet to your transactions. If you avoid centralised exchanges you can stay private for as long as you use DEX or send your coin directly to the receiver without using any third-party agent. The idea of privacy isn't defeated it's our usage that stained the original idea.

Stop spamming this incorrect nonsense, that is pseudo-anonymity and not privacy. There is no privacy in Bitcoin.

If our personal life is not connected to the wallet address then no one can find out if it belongs to us or not. That's how it provide us privacy. Public record was necessary.

We both are right in our contexts, but there is an addition of "if", like, if someone's wallet address is connected to them via KYC or centralized exchanges or someone knows that this is satofan44's wallet address then the privacy is gone.

No, we are not "both right". You are spamming nonsense because you are a 3rd world shitposting retard, Bitcoin does not provide any privacy at all. It can not provide you with privacy, because that is not how it is designed to work.

Unfortunately, Bitcoin is not anonymous; it is pseudonymous.

What do you mean "unfortunately"? It is not as if this was a side effect of some other decisions or due to a technological inability to make it anonymous and private. This was done by design, and this is the only path through which Bitcoin could get the regulation, institutional acceptance and widespread usage that it has now. Privacy coins like Monero are banned from most of these things. Sure, it would be better if Monero was more used in P2P but the point is that you can't have it all. Either you will have anonymity and or privacy, or you will have compliance and widespread acceptance. Both at the same time are not possible. This is where those people who criticize Bitcoin on these matters are completely delusional demagogues. Even with Bitcoin being the way it is, it is going to be extremely hard to get to a world that is full on the Bitcoin standard. Were it more like Monero, it would practically have 0% chance. The world is addicted to these things, and fully changing it is near impossible.

The anonymity i'd like to think of it as a bonus, since everybody can generate their own address, as long as nobody know the owner of the address it's pretty much anonymous.

Literally the post before you says that Bitcoin is not anonymous, and you write that it is.  

[Pablo-wood]

The CEX you use is what sells your data and link your wallet to your transactions. If you avoid centralised exchanges you can stay private for as long as you use DEX or send your coin directly to the receiver without using any third-party agent. The idea of privacy isn't defeated it's our usage that stained the original idea.

Stop spamming this incorrect nonsense, that is pseudo-anonymity and not privacy. There is no privacy in Bitcoin.

You are such a clown abusing the trust system. I doubt you read what I replied. I never mentioned anonymity I only stated privacy for a wallet that hasn't interacted with a CEX. Yes such address maintains a high level of privacy even though they are not anonymous. Learn to read before replying and stop spamming as well.

N/B: Privacy  != anonymity

[MaxLevCoin]

The point of crypto currency creation was for the reason of privacy, which was coated as the word decentralized network, where there's no third party in-between, just the sender and the receiver. Them why are transactions history store and made public, so there can be traceable? Because with this it doesn't feel private to me.

Yes, that's probably for security reasons or the total transparency of the blockchain system. I believe such a system would enhance security for Bitcoin and other crypto users. Furthermore, when it comes to privacy,, I understand that even though all transactions on the blockchain are recorded, user privacy remains secure and anonymized. Therefore, your privacy remains secure, and you don't need to worry. Therefore, you don't need to worry about this anymore, as only the transaction history is published, not personal data...

Thats true and I think this is also why bitcoin is often described as transparent rather than fully private. The network needs transaction history to let everyone verify that the same coins are not spent twice and that balance remain correct without needing a central authority. What stays private is the person behind the address, unless someone links that address to real identity outside the blockchain.

[KiaKia]

The point of crypto currency creation was for the reason of privacy, which was coated as the word decentralized network, where there's no third party in-between, just the sender and the receiver. Them why are transactions history store and made public, so there can be traceable? Because with this it doesn't feel private to me.

The point of crypto currency creation is not for privacy but for many utilities that can do good of man kind, you as someone who have interest will do the picking, choose the one that suits your needs.

Privacy isn't everything in cryptospace, Monero and Dash are good ones for privacy but not Bitcoin, decentralisation is the only thing that Bitcoin offers that's close to privacy but not privacy.

Having full control over your money is the best part of Bitcoin, anything else is a plus, there are thousands of coins out there with different use cases, which one do you need the most? Make your choice, Monero will serves you right if privacy is all you want, not Bitcoin.

[Omj1014]

It's important to remember that Bitcoin is pseudonymous, not anonymous. The public history is a security feature, not a bug. If you want privacy on BTC, you have to work for it by running your own node over Tor and being careful with UTXO management. It’s a trade off, you get the most secure network in the world, but you lose the shroud of traditional banking.

[CryptSafe]

OP, I you really understand the blockchain concept, you will not be asking this question. Blockchain is all about transparency and privacy without any third-party interference in the transaction hence you see the blockchain ledger and from there you could see confirmed transactions and I want to ask you a question, do you know the owner's of such transactions you see on the ledger? I believe you will say no. It is only when someone knows your wallet or you make your wallet address public that is only when it's been traceable
 With respect to storage of transactions, if you don't store your transactions how do you keep track of your expenses? Even the bank which runs on the fiat system store their transactions records. So of Bitcoin transactions are stored, it is not bad but rather for your own benefit.

[vanesha]

A wallet doesn't reveal your true identity. It's just a code that starts with the same header for a specific coin. You can never be sure that wallet A belongs to A; that's impossible. The function of decentralization here is that it has its own control without being controlled by anyone. Transparent transactions are a hallmark of decentralized wallets. You could say your privacy is compromised if your coins have entered an exchange. There, KYC is required, and that's where your true identity data is revealed.

[Satofan44]

You are such a clown abusing the trust system. I doubt you read what I replied. I never mentioned anonymity I only stated privacy for a wallet that hasn't interacted with a CEX. Yes such address maintains a high level of privacy even though they are not anonymous. Learn to read before replying and stop spamming as well.

N/B: Privacy  != anonymity

Yet you confirmed with this statement that your original statement was false. What you have written has nothing to do with privacy, you have no privacy with your wallet. There is not a single address in Bitcoin that has any privacy. At least you are getting paid for that shitpost. 

Thats true and I think this is also why bitcoin is often described as transparent rather than fully private. The network needs transaction history to let everyone verify that the same coins are not spent twice and that balance remain correct without needing a central authority. What stays private is the person behind the address, unless someone links that address to real identity outside the blockchain.

There is no formal need to keep everyone's transaction history in order to be able to create a system like Bitcoin without a central authority, this is a misunderstanding. While it may have been easier to design Bitcoin this way at the time, or some advanced alternatives were not present at the time of its conception -- this is definitely not true. It is possible to design a system where transaction history can not be viewed, Monero is such. It comes with different trade offs and risks, but that is how everything works.

Blockchain is all about transparency and privacy without any third-party interference in the transaction hence you see the blockchain ledger

Blockchain is neither about transparency nor about privacy.

[AmoreJaz]

It's important to remember that Bitcoin is pseudonymous, not anonymous. The public history is a security feature, not a bug. If you want privacy on BTC, you have to work for it by running your own node over Tor and being careful with UTXO management. It’s a trade off, you get the most secure network in the world, but you lose the shroud of traditional banking.

It will be your strategy to secure that you are taking care of your privacy. Because only the teansactions are being broadcasted by the network not the psrsonal details/identity. So privacy is still preserved so long you know how to manage your online transactions

[Anik_Elft]

I think this is a common misunderstanding, bitcoin was never meant to be fully "private", but rather transparent.

Transactions are stored and public for a reason. First it allows everyone to verify the system, anyone can check if coins are real, if they were already spend, and if the rules are being followed. This removes the need for a third party. Second, it prevents double spending, if transactions weren't recorded publicly, someone could try to spend the same bitcoin twice without anyone noticing it.

Now about privacy, bitcoin is actually pseudonymous, not anonymous, your name isn't shown, but your wallet address and activity are visible.

In my opinion, this is the tradeoff, you get a system that is open and secure, but not fully private by default.

If someone wants stronger privacy, they have to use it carefully, like not reusing addresses, not rely on bitcoin alone to hide everything.

[Ucy]

Four main reasons for this:

1. if you want to convince governments, as an independent or a stateless entity operating in their areas of jurisdictions, that you mean no harm, you have to be very open/transparent, or they'll refuse to trust you and insist on controlling/regulating you to feel safe. Being very transparent can be a simple evidence that you mean no harm nor have bad intentions


2. Transparent transactions can be the best substitute to being completely anonymous on anonymity-friendly Marketplace or Network like Bitcoin. This is in contrast with  physical world or less anonymity-friendly online platforms, marketplaces or shops where you are seen or known.

3. The idea behind having immutable records of transparent activities/transactions is to aid in the monitoring and regulation of an autonomous system by its community, if something goes wrong or there is a dispute, it would be easy for members to openly do the verification. A less favorable alternative would be centralized authority keeping the records secretly and doing the monitoring/regulation by itself. Besides we can't trust this approach since records can be altered without a right means of verifying their integrity.

4. The transparency is compatible with decentralized, public, trustless, permissionless nature of Bitcoin where community rather than individual or centralized entity are involved in running the network. If it's individually owned or controlled, it becomes challenging to the individual to open things up to everyone to be part of, see and verify

[Satofan44]

It will be your strategy to secure that you are taking care of your privacy. Because only the teansactions are being broadcasted by the network not the psrsonal details/identity. So privacy is still preserved so long you know how to manage your online transactions

Wrong, Bitcoin transactions do not have any privacy. You are shitposting here without even understanding the most basic definition of transaction privacy. The definition is not whatever you normie idiots come up with.

Now about privacy, bitcoin is actually pseudonymous, not anonymous, your name isn't shown, but your wallet address and activity are visible.

Anonymity and privacy have nothing to do with each other.

If someone wants stronger privacy, they have to use it carefully, like not reusing addresses, not rely on bitcoin alone to hide everything.

That does not give you any privacy, there is no privacy with Bitcoin transactions.

1. if you want to convince governments, as an independent or a stateless entity operating in their areas of jurisdictions, that you mean no harm, you have to be very open/transparent, or they'll refuse to trust you and insist on controlling/regulating you to feel safe. Being very transparent can be a simple evidence that you mean no harm nor have bad intentions

Wrong, neither is this necessary nor was this the reason for which Bitcoin is transparent or for which transactions are stored.

2. Transparent transactions can be the best substitute to being completely anonymous on anonymity-friendly Marketplace or Network like Bitcoin. This is in contrast with  physical world or less anonymity-friendly online platforms, marketplaces or shops where you are seen or known.

Wrong, transparent transactions by definition can not be a substitute to anonymity.

3. The idea behind having immutable records of transparent activities/transactions is to aid in the monitoring and regulation of an autonomous system by its community, if something goes wrong or there is a dispute, it would be easy for members to openly do the verification. A less favorable alternative would be centralized authority keeping the records secretly and doing the monitoring/regulation by itself. Besides we can't trust this approach since records can be altered without a right means of verifying their integrity.

Bitcoin does not have immutable records. Furthermore, the "community" is not doing anything at all nor does it get involved in any "disputes". Only Bitcoin nodes are those that are doing verification and resolution of "disputes".

4. The transparency is compatible with decentralized, public, trustless, permissionless nature of Bitcoin where community rather than individual or centralized entity are involved in running the network. If it's individually owned or controlled, it becomes challenging to the individual to open things up to everyone to be part of, see and verify

This is completely unrelated to transparency or the storing of transactions. Monero does not store transaction details like Bitcoin, it is completely in-transparent and it works without issues. Don't write whatever generic shit you come up with your AI slop.

[Asuspawer09]

I guess it wasn't really the thing for privacy and cryptocurrency wasn't made for the reason of privacy in the first place, for example we have Bitcoin, it's more like a digital currency I mean as a digital money overall, tranparency every transactions was transparent and you could check on the blockchain that all the transactions are all legitimate transaction and cannot be changed. Bitcoin was more like the goal of a decentralization with that it wasn't going to have full privacy, because you cannot see the transactions that is going on if it were private, every investor or people can easily check it, and all of them are real transactions and cannot be like edited. I think it is one of the thing why investors trust Bitcoin because of its structure, which is decentralized, everything is just open and you could verify it yourself.

So it is just normal for sure to feel like that, because It wasn't really private in the first place, it wasn't anonymous just like what they are saying it is, everything was also traceable since it's public but I guess some have some kind of tricks like doing mixers, transactions are all public but it wasn't like your actual name of something, I mean if you compared it to something like banks where you need a KYC it was still better.

[Byebyebtc]

Do not misunderstand the advantage of Bitcoin over fait

Now with Bitcoin transactions, there will be no third party yes, but your transactions will still be visible because of trust, proofs and security reasons,

If there all transactions are done without open transactions, there will be more risk attached to the existence of Bitcoin, incase of any misunderstanding between to people involved in transactions, the proofs can be opened for a settle

[ZAINmalik75]

The point of crypto currency creation was for the reason of privacy, which was coated as the word decentralized network, where there's no third party in-between, just the sender and the receiver. Them why are transactions history store and made public, so there can be traceable? Because with this it doesn't feel private to me.

Satoshi addresses this directly in the original Whitepaper. The privacy model is based on pseudonymity rather than anonymity. Meaning transactions are public but the identities on the network are not automatically revealed unless you make it public, like MSTR have made their address public, Satoshi has made his one of the addresses public and he owned more than 1 Million coins in it.

Bigger companies can now track a lot of transactions back to their origin easily like chainanalysis, and can find the real owner if the addresses are linked to someone's liefe publiclly on internet or of they have done KYC.
For extreme privacy we have XMR and Zcash, the transactions are not even public.

[Bitcoin_people]

The point of crypto currency creation was for the reason of privacy, which was coated as the word decentralized network, where there's no third party in-between, just the sender and the receiver. Them why are transactions history store and made public, so there can be traceable? Because with this it doesn't feel private to me.

Basically, we know that Bitcoin was created to protect personal privacy and it is great for making transactions very easily. Although we know that there is no third party in Bitcoin transactions, its transaction history can be seen, so that everyone can verify it. And if the transaction history could not be seen, then people would not trust Bitcoin, so it is not hidden, but everyone can see it. But we do not need to be very educated to understand this little thing because when you make a transaction in Bitcoin, your name and your identity will not be there. You just send it from one wall to another address, then it will be very easy to make a transaction, but no one can track you, this is the privacy.

[Satofan44]

Bitcoin was more like the goal of a decentralization with that it wasn't going to have full privacy, because you cannot see the transactions that is going on if it were private, every investor or people can easily check it, and all of them are real transactions and cannot be like edited.

Wrong, you do not need transparency to be able to confirm that transactions are valid, that they are not edited and so forth. That was not the reason for which Bitcoin was made transparent.

Now with Bitcoin transactions, there will be no third party yes, but your transactions will still be visible because of trust, proofs and security reasons,

Wrong, transparency is not needed in order to have transaction validity.

If there all transactions are done without open transactions, there will be more risk attached to the existence of Bitcoin, incase of any misunderstanding between to people involved in transactions, the proofs can be opened for a settle

Models that do not have transparent transactions indeed come with different risk and security tradeoffs, but not for reason that you have written. You do not know why that is, so don't pretend that you do with generic posts about it.

Satoshi addresses this directly in the original Whitepaper.

Wrong, there are no Satoshi addresses in the whitepaper.

The privacy model is based on pseudonymity rather than anonymity.

Wrong, privacy models are not based on these things. They are entirely different concepts, at least read the definitions before you write some nonsense about it.

Satoshi has made his one of the addresses public and he owned more than 1 Million coins in it.

He has done no such thing. The ownership of 1 million coins is primarily speculative, there is no proof for this.

[Johnlomape]

OP, I you really understand the blockchain concept, you will not be asking this question. Blockchain is all about transparency and privacy without any third-party interference in the transaction hence you see the blockchain ledger and from there you could see confirmed transactions and I want to ask you a question, do you know the owner's of such transactions you see on the ledger? I believe you will say no. It is only when someone knows your wallet or you make your wallet address public that is only when it's been traceable
 With respect to storage of transactions, if you don't store your transactions how do you keep track of your expenses? Even the bank which runs on the fiat system store their transactions records. So of Bitcoin transactions are stored, it is not bad but rather for your own benefit.

I know this question can be asked on Google and it's not really bad if he wants to get clarity in the Bitcoin community.
Sometime when you have an answer to an information, you might be skeptical if your answer is still correct in the eyes of others or if their are smiple ways to break the answer down that will be more easier for you to comprehend. No one is an island of knowledge and it's good for us to communicate as a community to learn more from people that have been in the Bitcoin network for years years organizing things.