16

Technically it is possible to blacklist addresses, and it needs just the majority of the mining power to agree. The problem is arriving at the agreement: Nobody stands to gain from witch-hunts, so a consensus to block an address would have to be carefully built on solid proof, which is hard when there is no central organs with jurisdiction, nor a way to get ...


9

The term "Tainted Coins" is often misinterpreted as a measure of provenance. That's understandable considering the traditional definition of the word "tainted" coupled with the reality that many Bitcoins actually have been used for what would be considered nefarious purposes by standard societal norms. In fact, it is a common occurrence to be holding or ...


7

The protocol doesn't include a way to reject transactions, for a variety of reasons (the protocol doesn't know which output is real and which is change; blocks can't be changed after being mined; etc) but it is possible to do something similar. Accept payment, then return it Pick one of the funding addresses at random, then send the coins back to that ...


5

There are a number of reasons why this kind of blacklisting is problematic in practice, but take it with a grain of salt, because I'm the creator of Wasabi, so I am biased. This Elliptic report identifies 0.65% of all Bitcoin transactions are mixing transactions. This means, if that kind of blacklisting would happen, they would have to blacklist most ...


5

Is this the research article you are thinking about? It's blockchain.com wallet fingerprinting mostly on the basis of feerates by 0xB10C.


4

The “taint” of a Bitcoin transaction evaluates the association between an address and earlier transaction addresses. The more “‘taint” the stronger the link between the two addresses. https://bitcoin-class.weebly.com/taint-analysis.html


4

I think I have an answer. It's not clear if this is how blockchain.info does it, but I'm not sure it matters, either. Taint is very similar to the everyday experience of diluting a liquid. Imagine starting with three glasses. One glass contains orange juice. The second contains water. The third is empty. Pouring some or all of the orange juice into the ...


3

Using a mixer helps preserve your financial privacy. The question is: who are you protecting your privacy from? Bitcoin transactions are public record, so anybody can view any historical transaction at their leisure. So when considering your privacy, there are a few different situations worth exploring, for example: An unrelated third party is looking at ...


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 ...


3

Fraud and money laundering are two different things. Fraud, or accepting or spending money under false pretenses, would be very difficult to detect on the blockchain because it requires outside knowledge. The way banks detect fraud is by using the context of what was purchased, and where. The blockchain doesn't contain that information, so supplemental ...


3

No and active work is being done to make this even harder as we speak. Fungibility is a necessity of a currency, black lists are not compatible with that.


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

This article on Coin Telegraph claims that this is the transaction spending the 7074 BTC. You can follow the amounts from there. Here is a tree chart: https://www.blockchain.com/btc/tree/444776063


1

Mining pools as well as miners using them are recognized as playing the role of banks (processing transactions) in the traditional system and therefore are not only required to not mine transactions from specific addresses but also to reject blocks directly containing or referring past blocks containing such transactions. With the existing laws, in many ...


1

Source: https://www.theguardian.com/technology/2013/dec/09/recovering-stolen-bitcoin-sheep-marketplace-trading-digital-currency-money I think it just means that some users discovered this address: 1Eg8WSxvfeZaKmqhNZrECTUb58x3y1AWYN and maybe few others involved in their past transactions to the darknet market. They tried to send small amounts to these ...


1

AFAIK Coinbase looks for a five hops before / after incoming / outgoing TX. So adding extra hops will be enough for now. It can be automated with Samourai Wallet's Ricochet or my scripts for bitcoin-qt.


1

HD wallets help avoid reusing addresses when receiving payments because you can generate a new address each time. HD wallets also make backup of many addresses much easier: https://en.bitcoin.it/wiki/Deterministic_wallet You are correct that when you send a payment from an HD wallet that needs to combine Bitcoin from several addresses (because no single ...


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