25 Nov '14, 4pm

Bitcoin And Anonymity: User's Identity Can Be Revealed Much Easier Than ... - Science 2.0

Bitcoin And Anonymity: User's Identity Can Be Revealed Much Easier Than ... - Science 2.0

Bitcoin calls itself the new money and says it can be minted and exchanged on the Internet, faster and cheaper than a bank. It's gotten a lot of attention but how anonymous is it? Not very, if you have computers and about $1,500. Several groups worldwide have shown that it is possible to find out which transactions belong together, even if the client uses different pseudonyms but it has only recently become clear that it is also possible to reveal the IP address behind each transaction. The Bitcoin system is not managed by a central authority, but relies on a peer-to-peer network on the Internet. Anyone can join the network as a user or provide computing capacity to process the transactions. In the network, the user's identity is hidden behind a cryptographic pseudonym, which can be changed as often as is wanted. Transactions are signed with this pseudonym and broadcast to...

Full article: http://www.science20.com/news_articles/bitcoin_and_anonym...

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