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When Bitcoin was invented, Blockchain analysis was not as advanced as it was today and pseudonymous transactions were believed to be closer to anonymous than they are with Bitcoin today. Under the current Bitcoin system, privacy can be greatly improved by avoiding fiat entry/exit ramps connected to your identity and by avoiding reusing BTC addresses. Yes ...


6

If an entity runs a large amount of relay nodes on the network, they could figure out which of their nodes was the first to see a transaction, and which peer that transaction came from. That does not necessarily tell them the originating IP, as it could have been a a node relaying a transaction rather than sending one. This leaves a large amount of ...


5

Is there a way for companies like chainalysis to see if your on the lightning network? Not really. Funding a channel will look just like sending coins to a P2WSH address. Closing a channel cooperatively also just looks like that P2WSH address sending to two addresses. This does not tell any outside observer that you are actually using the Lightning Network. ...


5

The ledger has to be public in order for Bitcoin to be decentralized. The designers of Bitcoin didn't want to need anyone to play the role of a "bank" who keeps all the records, and whom everyone else has to trust to do that properly. For instance, when you keep a bank account, you are trusting your bank to keep your money and give it back to you on ...


4

There are two parts to your question: Blocking: Blocking would entail either nodes refusing to relay transactions paying the crooks, or miners not confirming such transactions. Even if the criminal's address is public and unchanging, which is unlikely due to most wallets generating a new address for each payment, it would require a change to Bitcoin's ...


4

I find that claim (tracing the IP address of a transaction) highly suspect as transactions don't have an IP address associated with them. Once a transaction has been broadcast, it is incredibly difficult to figure out what IP address first sent the address. To do so requires that you have a connection to every single node and wallet and determine the IP ...


3

No, there's no way for an individual to tie an arbitrary address to a specific person. However, it is sometimes possible for companies or governments to do so if the person went through a KYC/AML or identity verification flow on a centralized exchange site (i.e. Coinbase). This is how the IRS was able to track people with large returns down for tax ...


2

I asked them in an email and they provided me with the following response: ... we use a Volume-Weighted Average Price (VWAP) over multiple exchanges (not CoinJar though as the Wikipedia article said) to get an average rate that reflects most of the BTC exchange rate market. https://en.wikipedia.org/wiki/Volume-weighted_average_price and ...each ...


2

Yes, it is possible to track addresses used for ransoms, however, it's not quite that simple. Bitcoin is designed to be "censorship resistant", meaning that it is very hard for a third party to block a transaction done willingly between two participants. Exchanges could all agree to not exchange bitcoin from these addresses into fiat, but that's easy ...


2

I forget who once said this, "If you think you need to use BlockChain technology, you almost certainly don't." BlockChain technology is designed to show proof of ownership via a proof of work mechanism that ties an expensive-to-run algorithm to a cryptographically secure chain of transactions. If your system seeks to track ownership of objects where ...


1

Blockchain.com is an explorer, and like most explorers, it will show any transactions that spend from that address as well. If there are no such transactions, then the received coins have not been spent yet. Note that even if such transactions are visible, it is not guaranteed that you will be able to identify where the coins were sent. Addresses are ...


1

how can I track the transaction or the newest block on my computer. You can run a full-node Bitcoin client such as Bitcoin core. It will collect the full blockchain - it can take a long time (weeks) to download the full blockchain, but you should be able to examine early blocks and transactions without waiting. In the case of Bitcoin Core, you can use the ...


1

Maybe a more specific example would help: Senator Doe buys 100 BTC at Ed's Exchange, where his ID is required. He then withdraws those coins to his own address 1qwerty. Wearing a trench coat and dark glasses, he uses those 100 BTC to make a purchase at Frank's Embarrassing Merchandise Emporium, sending them to Frank's freshly generated address 1abcxyz. ...


1

I (as attacker) already know the owner of address B, don't I? why I need trap site? You're right, if you sold the bitcoin and sent it to an address, and you know the identity of the person to whom it was sold (from KYC, for example), then you can associate that person that address. Since it is publicly verifiable on the blockchain, you don't need a trap ...


1

I see this as a non-issue. By using Tor the IP address of the originator is sufficiently obfuscated. See my two other posts for some discussion and related resources: How can I setup Bitcoin to be anonymous with Tor? What are main advantages of Bitcoin over Monero?


1

You usually cannot. Bitcoin addresses are not explicitly linked to companies or people, unless they decide to publicize that they own an address (or receive funds from it via a third-party custodian). There is no directory or listing of who owns which address, although some companies and explorers try to tag major addresses to exchanges etc. You can ...


1

"Can I track all trades on an exchange, not just my own" yes. visit https://docs.gdax.com/#get-trades for additional information. this trades are afaik anonymous so you can not track who did which trade.


1

There's a core of truth in your question. Indeed, eventually it will reach a point where you can trace it. But there might have been a lot of transactions/hops before that happens. If it has switched that many hands, how can you be sure that it is still in the hands of the cybercriminals? The money might have been yours but it has been used in quite a few ...


1

This is possible. It also may sound good on paper, but the implications are horrible. Think of it. 100 thousand bitcoin. 0.5% of all coins will be rejected. This is out of 21 million. Out of the current 15 million, maybe 0.65%. That's hugel If a hacker also wanted, he could move the coins into multiple mixers and deposit them in and out of Exchanges, as ...


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