@somedude5-snip-
Thank you very much for your understanding and serious reply of the subject.
I am new to the whole bitcoin world. And i was wondering what exactly do you mean by "other nodes that function as hidden service"?
Well you can access a site through Tor (e.g.
http://blockchain.info/ ) or use a hidden service (e.g.
https://blockchainbdgpzk.onion/ ) to visit the same site within the Tor network. Same for bitcoin nodes. They can use Tor to reach other bitcoin nodes with a clear net IP (e.g.
https://en.bitcoin.it/wiki/Fallback_Nodes#IPv4_Nodes ) or Tor nodes (
https://en.bitcoin.it/wiki/Fallback_Nodes#Tor_nodes )
If i would have the computer running bitcoin getting physical internet form another box that is routed completely through tor, does that qualifies as hidden service ?
Maybe. The question is not whether you have set up Tor or not, but whether you have a target within Tor (aka hidden service) or outside of the Tor network (everything else).
Or do i have to run a tor node myself and connect it through that node in order to be safe from attackers ?
or and can i configure this using the following option described in the software help :
--start code output of help bitcoin client --
-listenonion
Automatically create Tor hidden service (default: 1)
--end code output of help bitcoin client --
( i would really like to know what exactly this option does, i do not understand it completely )
I am very great full for any help regarding this security issue !
You can configure bitcoin core to use Tor to connect to other nodes outside of Tor or you can set it up in a way to only allow connections to other nodes that are within the Tor network.
On how to do it, I suggest this thread ->
https://bitcointalksearch.org/topic/how-to-guide-set-up-tor-on-linux-ubuntu-and-connect-bitcoin-1374919 as I have yet to find the time to do it myself.
@calkob What would be the reason for using the tor network for a bitcoin node? i am always abit weary when using tor anyway never mind in regards to my bitcoin
Same reason for using Tor for anything else. Anonymity. Bitcoin addresses and transactions can not easily be linked to an IP address, but its possible. If you are running bitcoin core as a hidden service and only connect to other nodes within the Tor network there is no IP that could be matched. There are also mobile wallets like Mycelium that support Tor.