13 Mar '13, 5pm

Bitcoin add-on makes your virtual purchases private

Hal Hodson, technology reporter Bitcoin is the perfect currency in many ways. The distributed network that governs the creation and distribution of this digital money means there's no need for central banks, no centralised control, nothing to come between you and your cash. But it does have a privacy problem . The lack of need for a bank or any central authority is derived through the distributed Bitcoin network, which verifies all transfers across multiple nodes to ensure that no coin is spent twice. This means a record is kept of all transactions between accounts, known as wallets. Although there's nothing that immediately links these accounts with real people, it's relatively easy to link purchases and figure out who's spending what. Researchers at Johns Hopkins University in Baltimore, Maryland, have come up with a way around this problem. Called Zerocoin, it's a crypt...

Full article: http://www.newscientist.com/blogs/onepercent/2013/03/bitc...

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