Topic: Challenging Privacy in Bitcoin! (Read 429 times)

Mixers and CoinJoin is not enough...and ultimately if you are using a centralized exchange, there's no point in a lot of the measures you might take. There are some general principles you can follow to increase your chances of protecting your privacy:
- Ensure that your browser, network and system are privacy optimized. If you are leaking sensitive data, you will make a lot of your efforts redundant
- Ensure that your system is hardened. A weak system will open up vulnerabilities in regard to the latter, and to your general safety of funds.
- Mixers are one way to gain a level of privacy. Another is privacy focused protocols, like Monero. Or a combination of these if you want to go further.
- Using decentralized exchanges will prevent you from being stopped by KYC and other unfair checks that CEX'S constantly make.
- Using P2P services if you are interchanging fiat with crypto and vice versa. Platforms like AgoraDesk can enable this in a safe and escrowed environment.

First of all I personally think that bitcoin's decentralized system primarily protects privacy and anonymity. Here primarily a person can remain anonymous using Bitcoin if he can properly hide his privacy from others like Don't Reveal Bitcoin Address.
Moreover, Bitcoin Mixing Service plays a big role in remaining anonymous, it works much like erasing the footprint. Where transactions from one wallet to another are visible, the mixing tools provide a  veil on this. Things must be done in the right way because there are many mixers who have had their gateways seized due to money laundering. Moreover, I think these mixing tools can provide enough anonymity as per the current situation, but I would also say that there is no end to the improvement.

Maybe they seem to be the ones most aware of Privacy.  But there is no study to prove that more Privacy leads to more crime.  Studies about Monero and Bitcoin revealed there is not as much crime as it was thought to be among these Transactions.

Also it is not about hiding from something I am afraid I will be caught with.  Start learning about Privacy today and I guarantee you will be shocked to find out the things I did and will start being much more careful too.

You could have a contradictory argument with any body who is skeptical about my motives and it could last for hours with no end.  I always ask questions like Why do you close that bathroom door when you poop?  Are you snorting something behind the door or what is there to hide?  Why do you close your door when you are having sex if every thing you are doing is normal and moral?  Why do you not watch porn on loudspeaker, what is there to hide if you are watching legal porn?  And so on.  It could be infinite.  Many of the things we do, we like doing under our own Privacy.

In fact.  If we talk about Privacy then I will bring up this subject too.  Who is the bigger criminal, a Bitcoin user who hides their laundered thousands or Banks who are LEGAL institutions allowing TRILLIONS of suspicious Dollars to pass through?
https://www.cbsnews.com/news/bank-scandal-2020-2-trillion-transaction-suspected-illegal-activity-money-laundering/

They are using the illegal things they are doing against us all.  So even if I am innocent, I have to suffer.  The 'privileged' can however pass through Banks the money I would never be able to.

At first glance, maintaining privacy with bitcoin is easy. Don't associate your public addresses and transactions with your identity in any way and your privacy is guaranteed. How do they recognize who is behind that address, to whom and for what they sent a bitcoin. No way. But the problem is that in the process of receiving and purchasing bitcoin, one way or another, your personal information of one kind or another remains. Now it is impossible for an ordinary user (without expensive equipment) to mine bitcoin, that is, to directly receive bitcoin without intermediaries and become the original owner. One way or another, a money-to-bitcoin (or vice versa) transfer will be made. And this transition is the weak link.

At this stage, it seems to me that the privacy tools described above by OP should be quite sufficient (for now we have no alternatives). If only providers of services (these tools) for ensuring privacy don't accumulate, transfer, or lose data about their clients, which will nullify all their efforts to maintain their privacy.

Technologies don't stand still and I am sure that new tools will be created for this. It’s like the eternal struggle between shield and sword - ways of revealing the identity behind a specific address will progress, and ways of hiding this information will also progress.

It seems that you regularly do laundry, do you also open a laundry service? 

Quite interesting about the discussion of Privacy is a Human Right, as your account name "PrivacyG" emphasizes every data remains anonymous and there is no disclosure of Privacy by third parties.

Criminals seem to be most aware of privacy because their initial goal is to commit various crimes of fraud, money laundering, etc.
In theory, it looks perfect, but in reality, other people's data is used as protection for real privacy.

There is no perfect privacy today.
When we register at a bank, or register a phone number and the internet all of that requires detailed data.
But in the end, what is feared will happen is that a lot of data will be leaked that contains the identities of many people and even some are sold for the benefit of advertisers or some insurance offers.

It is impossible to achieve perfect privacy in today's digital age.

Very wrong you are here.  I have a high need for Privacy and I am not laundering any thing other than my clothes.  Nor am I doing any thing illegal that I am aware of.

This type of response is why we are here today.  Privacy is not for criminals.  Privacy is a human right we should all be offered.  In theory.  Because reality is different and people call others out for wanting to cover up and go unseen.

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I doubt any of us has perfect Privacy even with the best tools used.  I doubt even many of the Monero users have perfect Privacy and Monero is a private Blockchain focused on just that.  Offering close to perfect Privacy for who needs it.  What we are doing is IMPROVING our Privacy using the tools we have at hand.  If an Authority some how gets to untangle Coin Joins and Mixers, they could do that with no need to publicly say so.  We are under risk of having our identity unveiled at any time and we would not even notice.

But by taking enough care.  We can make it less likely to find out about at least a part of what we have and do.

But it's different if your personal information leaked through your government because there's no link you're a Bitcoin enthusiast (except you use CEX or leaving a trace you're a Bitcoin enthusiast), with your identity leaked through CEX where they know your face, location and how much coins you have.

I believe everyone care with their privacy including people who flex their wealth, mostly they do that for personal branding or work, so they don't have a choice.

It's not bothering me since if we care about our identity, if it's going to be leaked, the number one source would be the government, since they all have our data.

There's no need to be alarm unless you're transferring a laundered money, or anything illegal. Also, there's a lot of transactions happening in the Blockchain and I doubt not every single of them will be monitored by a hacker or someone who wants to stole our identity. You can't even tell who's the owner of a certain wallet address unless you accidentally connected some personal information of yours somewhere in the internet.

Nothing guarantees anonymity, meaning there is always a risk and using a mixer service we have to trust someone because a mixer service has an owner who runs it.
In certain processes, working offline and using tools such as Tor to hide a computer's IP address are efforts to maintain a level of privacy.
Study again what I said, don't be mistaken.

While Mixer and CoinJoin contribute to increasing privacy in cryptocurrency transactions, it is crucial to acknowledge their limitations. Blockchain analytics techniques are constantly evolving, and complete anonymity cannot be guaranteed. Achieving complete privacy on a transparent blockchain poses significant challenges, emphasizing the importance of additional steps such as blending anonymization techniques into Bitcoin transactions. It is important to take care when using Bitcoin and contribute to preserving privacy. If you stay with these precautions and advanced technology in controversial situations, you may be able to preserve the privacy of your personal information and transactions.

To understand common detection process of centralized exchanges to analyze on chain transactions, traces and discover tainted coins, OP can watch this Youtube video from Andreas Antonopoulos.

Bitcoin Q&A: Blacklists, Taint, and Wallet Fingerprinting

Use change address, use CoinJoin, mixers for transactions or privacy coins to enhance privacy of on chain transactions.

Some good decentralized exchanges, no KYC, can be used for privacy achievement too.
https://kycnot.me/

By he, do you mean the quoted user above? Then yes. He mentioned using different seed/wallet to make transactions and a mixer to bridge one to the other. Personally, I don't think that will guarantee that any chain analysis company won't be able to break down the link, but it should take some time unless they use a terrible mixer. You should not expect privacy if you use any KYC-ed platform to begin with.

This means that through transactions they can reach a person in the form of tracking? He thought that he was very anonymous and that was what really worried the federal agencies, legal entities, not being able to find who did the ''theft''

There was this time in the past when I had some tradable altcoin in my wallet and those coins were trading on a decentralized exchange, so I had to swap the coins for USDT. After I did that, I deposited those USDTs on one centralized exchange that doesn't require KYC. I bought some bitcoin from that exchange and repaid it back to my wallet.

From what I have explained so far, I don't really think I can be tracked to my identity as the owner of those bitcoins I purchased because I did not pass KYC on that exchange. You have talked about mixers and coinjoin, and I don't think there should be any other tool needed to be developed for privacy.

Mixers are useful for making the money trail harder to follow, so people can't easily see where the cash originally came from.  But you gotta be realistic - these don't make you completely invisible.  If someone tries really hard or the tool has some kinda flaw, your identity might come out.  For better privacy, think about using the mixer along with other stuff focused on privacy, like using privacy-focused coins.

If you are careful enough with your transactions and you care about your privacy as well, there is no way someone can find you just from your Bitcoin address. The problem is we use centralized services and we share our personal information in casinos, exchanges and other services. You have to keep them secret if you have never shared it online.

Never end up putting your crypto or bitcoin in centralized exchanges. Mixer and Coinjoin is already enough for people who cares about their privacy. I do not see any way to catch someone just from their Bitcoin address.

Achieving privacy becomes possible if we avoid services that demand KYC requirements. Keep in mind, with blockchain, once a record is written, it's permanently public. So, if we maintain anonymity and refrain from complying with KYC, even if others see our address, they won't know who it belongs to.

The problem arises when we do go through KYC. If we still want to keep our anonymity, which is already challenging, our only option is to use a mixer to blend our transactions, making it tough to trace. However, take note that while mixers make it difficult, it doesn't make it impossible to discover transaction origins. Therefore, it seems avoiding the KYC route is the most effective way to preserve our privacy in this context.

Nothing i said in my post is incorrect, and so much for taking a single line out of context without reading the entire post, just so you could use the word 'incorrect'. Privacy tools help to achieve a high level of privacy, but in addition with the other points i made in my post above, please read them. The privacy tools people decide to use is discussion for another topic and i can't spoon-feed people enough to always mention 'do your own research' before using a particular privacy tool.

incorrect

something advertising buzzword "privacy" does not mean it achieves a high standard of anything
i can say i can offer you privacy and just shuv a box over your head

using a service just because it mentions the word "privacy" does not prove it achieves privacy

Make use of a mixer if you needed a privacy, secondly you can make use of bitcoincore to run your own node, download it's software over Tor, privacy is very important in dealing with bitcoin transaction and as long as you're not using a centralized exchange.


Yes, that's bitcoin privacy as well, the bitcoin network is know as a p2p network, there's more of anonymity in this regarding privacy and the kind of wallet you're using, you have the decision with yourself to anonymize your bitcoin or not