Silk Road forums
Discussion => Philosophy, Economics and Justice => Topic started by: PerPETualMOtion on May 03, 2013, 04:42 pm
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Um... if everyone makes their transaction amounts with the same frequency and the same denomination: say 1, 2, 5, 10, 20, 50 BTC, then it will be as untraceable as cash.... How can repetitive patterns of exchanges through privately owned mining operations--the same miners that are heavily involve in Tor, anonymity, and Silk Road--be sorted out for legal purposes?
This is simply another option in a sea of probability.
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That's mostly the idea. You can only prove something in any transaction if you have proof of identity of both the sender and recipient; being able to effectively anonymously control bitcoin wallets makes them so easily evade-able at the moment. Like cash changing hands, only in the direct transaction is there any visibility, and even then it can be masked by tumblers / laundering techniques.
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If your identity is known at the exchange, then it doesn't matter what denominations you send the coins in, they can be linked to you.
Zerocoin looks very promising, because
1. It offers true anonymity by design, where it is possible for you to be the only person in the world who knows that 2 txns / coins are linked. Current mixing services offer security by policy, where they promise to delete the accounting details linking coins going in and coins coming out of their wallets.
2. It will be cheap. Currently, anonymizing coins can take anywhere from 1.5% to over 10% in overhead fees. Presumably, because Zerocoin transactions are larger than normal Bitcoin transactions, miners will demand a higher fee, but it might be something like .005 BTC instead of the standard .0005 BTC. So you will be able to anonymize any amount of money for 50 cents.
For a detailed explanation of Zerocoin, see this thread: http://dkn255hz262ypmii.onion/index.php?topic=152682.msg1057894#msg1057894
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If your identity is known at the exchange, then it doesn't matter what denominations you send the coins in, they can be linked to you.
Zerocoin looks very promising, because
1. It offers true anonymity by design, where it is possible for you to be the only person in the world who knows that 2 txns / coins are linked. Current mixing services offer security by policy, where they promise to delete the accounting details linking coins going in and coins coming out of their wallets.
2. It will be cheap. Currently, anonymizing coins can take anywhere from 1.5% to over 10% in overhead fees. Presumably, because Zerocoin transactions are larger than normal Bitcoin transactions, miners will demand a higher fee, but it might be something like .005 BTC instead of the standard .0005 BTC. So you will be able to anonymize any amount of money for 50 cents.
For a detailed explanation of Zerocoin, see this thread: http://dkn255hz262ypmii.onion/index.php?topic=152682.msg1057894#msg1057894
+1
How easy is it to follow the hash accounts, though? in order to connect them to IP and personal identity... A verified account at Mt. Gox, for example sends out a specified sum of coins to another hash address, a few times... and each time, a new and random hash is created for each new transaction... At a glance, this seems like an accounting nightmare, not worth pursuing...
I sent them to a charity. It was a donation.
I dunno... I've been up for three days and I'm just waiting for dopamine to take me to dreamland.