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Who exactly is my IP exposed to when sending transactions in Electrum. I'm assuming the server operators can see it every time I connect (to query the servers about my balances).

When I make a transaction, is my IP recorded and logged into blockchain.info (or is it the IP of the server who relays the transaction).

If so, does this make Electrum unsafe to use with larger balances? i.e tying large amounts to a single IP?

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Your IP is exposed to the Electrum server(s) you communicate with. Since anyone can run an Electrum server, you should consider this to be public exposure. These servers could record your IP if they wish to, and use it for any purpose. This is more exposed than running an ordinary full client: in that case, your IP is exposed to your peers, but even your immediate peers don't know it was you who created a given transaction. In either case, someone could record the IP they first saw the transaction from, which would often be geographically near you (maybe even your IP).

This does not make it unsafe in the "people can digitally steal my coins" sense, but it does reduce anonymity. This might make it unsafe in the senses of: "people can more easily find me and beat me until I tell them my password so they can steal my coins" or "people can arrest me for my actions" (if you're doing something illegal).

If you're concerned about that, you could run through Tor to hide your IP.

  • In addition to using Tor there are some servers that run as hidden services .onion – rdymac Mar 14 '14 at 22:37

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