30

Fungibility. Money needs to be fungible, otherwise it's not money at all. Blacklists allow censorship and confiscation of wealth by centralized/powerful players (like governments) which will be abused to screw over innocent people Or (hopefully) scare those people away from Bitcoin in the first place: why would you invest in Bitcoin if you know you could ...


18

It wouldn't work. Imagine if you get to a grocery store and try to pay in cash and they say, "Sorry, your dollars are no good, their serial numbers are on a list of bills that have been stolen". You might have gotten those dollars in change yesterday from that very same grocery store because that's where the thief spent them before they got on the list. ...


6

It really isn't possible to create a blacklist of stolen bitcoins. While it is possible to easily trace stolen bitcoins, thieves can utilize a number of services, such as bitcoin mixing services, that mix stolen bitcoins with other (sometimes even freshly mined) bitcoins before redistributing the bitcoins to new wallet addresses. Because wallets are ...


5

Bitcoin is decentralized. There is no "we" to appeal to even if we wanted. You may be able to convince a miner to not include txs that go to certain addresses. That is their right. But that certainly won't prevent dealings that are unethical or wrong. That's like saying "why can't merchants not accept stolen $100 bills?" There is a huge tax for everyone if ...


3

I am not sure if I get your question right. Please tell me if not and I shall iterate on my answer. First of all the lightning network indeed has a different privacy model only opening and closing of channels is stored to the redundant public ledger called blockchain. Once the channel is open even when routing is applied the payment itself is pretty private....


3

The tool for complete history of all bitcoin minted already exist and its called blockchain. You can see all history here (random transaction selected) https://blockchain.info/tx/ff698f3e5321448d4d889fcd3c91f9e5f5767542d2f0fd7e4aa41a83abec3ab7 There is a term taint and it's meaning how two addresses are connected. It partially explained here What are ...


2

Actually, yes, this is possible. However, your payment output might get split or combined with other payment outputs in later payments. Therefore, the graph will be less linear than you suggest: C ↴ ↱ H A → B → D → E → G ↳ F So, A would be sent to B, then B + C would produce D, D would be split up to E and F, E would further be split ...


2

Pieter Wuille posted an answer earlier today that covers some of what is already being explored in the pipeline for additional privacy. ... but improvements are continuously being worked on (search for things like MAST, TumbleBit, Layer-2 payments, Taproot, signature aggregation, scriptless scripts, confidential transactions, ...) In addition, further ...


2

What is NFT? Non-Fungible Token. Tokens that are unique and used for something special. Is it something new and useful? No its not a new concept IMO. Can be useful in some cases and off-chain tokens used in games like Lightnite for skins makes sense. They are trending for now and there will be lot of people trying to make money from such online trends. Some ...


2

Bitcoins themselves are fungible, but the transaction graph is not. This is a small but important nuance: with properly crafted transactions, bitcoin users can gain privacy, without needing to implement more complicated cryptographic constructions. This is currently an ongoing area of research, for more information you could look into techniques such as ...


2

They are trying to add new features that would help with privacy! There is an upgrade proposal known as Taproot that would come with features to enable additional transaction privacy in Bitcoin. Note, however, that major changes like this to Bitcoin are much more difficult than they are in smaller altcoins, simply because a significant amount of ...


2

There is only way way to acquire Bitcoin without a previous utxo associated with them: Mine them. You could pay a miner to mine directly to an address that you control, if you don't have the hashpower yourself. If you pay someone else who transfers such coins to you, you've already destroyed the value as the act of transferring them will move then from the ...


1

Generally, there is no information in a bitcoin transaction which indicates the amount being transacted between two parties. An outside observer can view the value of inputs and outputs, but the ownership of each output will be unknown to them. More specifically, the change output is often indistinguishable from the other outputs, so an outside observer may ...


1

With money, privacy implies fungibility. If all transactions that take place using a particular currency is public, then people will know whether some money that someone is sending them was part of an illegal transaction in the past. This means that they can choose to not accept the money because of its link to illegal activities. This violates fungibility ...


1

I can tell you how people's privacy is revealed, so that scammers can be traced often. By considering all points you maximize your privacy while using bitcoin: connect your wallet to your own Bitcoin node, not to unknown nodes never re-use addresses Stay in the Bitcoin world, so never use central exchanges to buy or sell bitcoin Use mixers which are open ...


1

yeah, a lot of requirements, where comparison to reality doesn't match. But at first: the question is probably not the right one for this forum - mostly opinion based... IMHO it would find a better home in a discussion board, where it can be discussed back and forth. Bitcointalk.org would be a good candidate. But I can't resist, it's too fascinating! Btw: in ...


1

More concreteley than the existing answers, and expanding on the point made by @Navin in the comments, the reason is because this would happen: Imagine you're a merchant selling goods by bitcoin. You have a list of hacked accounts, and refuse to accept payments from those accounts. But not everybody does this, of course, and even people who do may well ...


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