How to use bitcoin anonymously? Since January, experts have tightened the fight against anonymous payments with the help of Bitcoin. And venture capitalist Mark Andressen, on the contrary, asserts that the full potential of the bitcoins will be revealed only if the restrictions on anonymous payments are lifted. Some market participants and state regulators consider these start-ups as a way of laundering dirty money. Others are a threat to the traditional services of Internet banking and electronic payments.
Table of content:
- 5 ways to anonymize Bitcoin payments
- 2Simple methods of buying Bitcoins anonymously
- How to work with bitcoin anonymously – wallets and addresses
5 ways to anonymize Bitcoin payments
- The project of Cody Wilson and Amir Taaki, with the support of anarchists from the unSystem, started last Thursday. Uses two methods to protect the identifiers of user wallets.
- How to get bitcoins anonymously? When making a payment through Dark Wallet, the program combines data with simultaneous transactions of two different users. It is impossible to recognize which transaction belongs to whom. The developers plan to unite three or more users in one transaction to make the protection even more reliable.
- In addition to the above protection for senders, the project provides protection for the recipients. These are stealth addresses that are sent to the recipient’s mail, and only after deciphering such a stealth address, you can access the code to enroll bitcoins on your wallet. In stealth addresses, chains of encrypted data are used that cannot be directly linked to the sender.
- Service for making payments for up to 50 bitcoins using a similar DarkCoin protection scheme. However, here the encryption scheme is activated manually, by default it is disabled.
- Transaction logs on startup servers are not stored: short-term caching in memory is used for this. Here, for protection, data is mixed not with two, but with ten or more transactions.
- In this service, you can also select the number of repeated transactions between dummy addresses before they reach the purse of the recipient. Each such re-translation costs 0.0005 bitcoins.
- This startup offers the most secure way to transfer cryptocurrency between Internet users. In fact, it is not Bitcoin, but an additional crypto currency, which has already issued an amount of 4.1 million units worth $ 1.40 per unit.
- It uses the same algorithm and security mechanism code-named CoinJoin, as the previous two services. For additional protection, a network of distributed servers with a randomized activation mechanism is used.
- Some servers are used to generate a new crypto currency, and some are used to transfer payments between users of purses. The order and nature of the servers is random.
- Payout provides 10% of the new darks, which this crypto-currency system generates. The main developer of the startup lives in Arizona, his name is Evan Duffield, and he is 32 years old.
Integration with Tor
How to make bitcoin transaction anonymous? Services based on tracing by IP-addresses are still relevant. The use of Tor as an additional tool for encryption of crypto-currencies and operations with them has already been introduced into Blockchain.info. Dark Wallet also plans in the near future to launch integration of its wallets with Tor.
It is worth remembering:
- One of the key developers in the bitcoin payment system, Mike Hearn says he has already developed special software for integrating with Tor such popular digital bitcoin-purses as Hive, Multibit and Android Wallet.
- The program is based on bitcoin and will represent an improved version of client encryption for operations with bitcoins. To protect the impenetrable for the National Security Agency is unlikely, but to monitor and interrupt such transactions will certainly be many times more difficult.
Simple methods of buying Bitcoins anonymously
- Bitcoin can rightly be considered one of the best means of payment. Fast, for a few seconds transfer to another address anywhere in the world, a minimum commission, anonymity and lack of external control.
- To make a bitcoin-purse with an arbitrary number of addresses, you do not need to show your passport, name your name, or specify any information about yourself. And no one – neither the bank nor the government – will be able to track or block your transactions.
Finally, the price of bitcoin grows at a fantastic pace.
- This cryptocurrency appeared in 2009, when Satoshi Nakamoto laid out an open-source client program that allows creating addresses to which payments are received and sent over the network in virtual units – bitcoins.
- The transactions themselves are handled by servers owned by individuals and located in all corners of the planet.
- Participation is voluntary, servers are paid again in bitcoins, i.е. The system is completely decentralized. The owner of any server can exit the project at any time, or he will be forced to stop working (including state agencies or special services) – the computing load will be redistributed to other machines and the system will continue to work.
How to work with bitcoin anonymously – wallets and addresses
How to anonymously buy bitcoin? Initially, for operations with crypto currency, it was required to install one of the client programs on the computer and create its first bitcoin address, which is often called a purse.
There is a certain functional similarity between them, because it is money that comes to the address, from which you are spending these funds. It would seem – an ordinary electronic wallet, like Webmoney or Qiwi, but the addresses of bitcoin have their own specificity.
- There is no so-called personal cabinet with mandatory authorization, which is a key source of threat, both in terms of theft of funds, and identification of the user, tracking and blocking his transactions.
- At the same time, the address is not tied to anything – it does not need to enter a name, a surname, or any other data. Even access to the Web is not necessary, the program simply generates public and private keys.
- The first is used to create an address to which another user of the bitcoin system can transfer funds, and the closed one is needed to spend the bitcoin lying on the address.
- In this case, the private key is the only way to spend the bitcoins located at a particular address. Neither the developer community nor the owners of the mining pools, whose servers process the translations, no one else can translate from the address without knowing the key.
The main thing for the address owner is to not lose this key and not forget it. After all, since there is no authorization in bitcoin, there is no possibility to restore access in many other services. And the lost key means the irretrievable loss of all the bitcoins at this address.
But the generation of an arbitrary number of addresses virtually eliminates the ability to track transactions using bitcoin. Even if someone finds out that you own a certain bitcoin address, you can at any time transfer the funds to one, two, hundreds of other addresses created by you again, and although information about all translations lies on the web is open, no one will know your they are either other people whose products and services you paid with bitcoin.
- At the moment, there are many online exchange points that transfer money in a large amount of direction, including from the crypto currency in regular money and back. More details about this are written in our article devoted specifically to this topic.
- In addition, now services are gaining popularity, in addition to standard operations – creating addresses, receiving funds, paying for goods and services, allowing you to buy or sell bitcoin for ordinary money or using an electronic wallet.
- To start work with bitcoin-purse, you need to register, but you do not need to enter a first and last name, so the anonymity of the addresses you create will not be violated. Everyone will see that transactions are made on them, but no one will know that they belong to you. Nobody will block your wallet, does not prevent its use.
- Finally, the service provides a simple and convenient way to withdraw earned, received from the sale of goods or as a donation of funds from bitcoin to a bank card tied to a wallet.
- However, it is much more profitable to buy bitcoins for fiat money for further transactions, or as a means of preserving, and even investing. By transferring a certain amount to a specific address, you can write the key to a USB flash drive, a piece of paper, any other medium, and then hide it and erase the data in the computer.
How to use bitcoin anonymously? Use anonymous bitcoin wallets, which will not allow you to track the number of bitcoins you have.