Anonymity

[ Network Anonymity] - Want to Stay Anonymous?

While the Tor network is great for surfing the Internet anonymously, there may be better suited options depending upon your intended use. For example, the I2P anonymous network. I2P is an anonymous overlay network - a network within a network. It is intended to protect communication from dragnet surveillance and monitoring by third parties such as ISPs.

I2P is used by many people who care about their privacy: activists, oppressed people, journalists and whistleblowers, as well as gori gori pan fula sarkhi shan the average person. No network can be "perfectly anonymous". The continued goal of I2P is to make attacks more and more difficult to mount. Its anonymity will get stronger as the size of the network increases and with ongoing academic review.

I2P is available on desktops, embedded systems (like the Raspberry Pi) and Android phones. Check it out! To learn more about the I2P go to: https://geti2p.net

While using bitcoins is an excellent way to make your purchases, donations, and p2p payments, without losing money through inflated transaction fees, transactions are never truly anonymous. Buying Bitcoin you pass identification, Bitcoin transactions are stored publicly and permanently on the network, which means anyone can see the balance and transactions of any Bitcoin address. Bitcoin activities are recorded and available publicly via the blockchain, a comprehensive database which keeps a record of bitcoin transactions.

All exchanges require the user to scan ID documents, and large transactions must be reported to the proper governmental authority. When you use Bitcoin to pay for goods and services, you will of course need to provide your name and address to the seller for delivery purposes.

This means that a third party with an interest in tracking your activities can use your visible balance and ID information as a basis from which to track your future transactions or to study previous activity. In short, you have compromised your security and privacy.

Mixing service is used to avoid compromising of privacy and security. Mixing services provide to periodically exchange your bitcoins for different ones which cannot be associated with the original owner.

[ Bitcoin Anonymity] - Want to Stay Anonymous?

Anonymity is not a prominent design goal of Bitcoin. However, Bitcoin is often referred to as being anonymous because it is possible to send and receive bitcoins without giving any personally identifying information. However, achieving reasonable anonymity with Bitcoin can be quite complicated and perfect anonymity may be impossible.It is anonymous in the sense that you can hold a Bitcoin address without revealing anything about your identity in that address. One person could hold multiple addresses, and in theory, there would be nothing to link those addresses together, or to indicate that the person owned them.So far so good, but there is another side to Bitcoin. Everything that happens in the Bitcoin world is trackable. Thanks to the way that the algorithm is structured, every Bitcoin-based transaction is logged in the blockchain.If you publish your Bitcoin address on your website, then everyone in the world will be able to know what your bitcoin balance is!

By far the most effective way of preserving your anonymity when buying Bitcoin is to buy with cash using Localbitcoins

Mixing Services

A mixing service is an entity that offers to trade out your bitcoins for ones with a different history. To do this, they essential take your bitcoins and put them in a big pot with bitcoins from many other users. They then send back out the bitcoins randomly to make it impossible to tell which inputs connect to which outputs. While this is effective in theory, to do this with complete anonymity generally requires you to trust an anonymous third party to give you back your bitcoins and not keep records of the transactions that flow through them. There is nothing to keep a mixing service from running away with the coins.

Running your bitcoin-qt client behind a Tor Exit Node

If your running Tor, setting your bitcoin-qt client to communicate through the Tor proxy will help to obfuscate your computer's network IP address. Go to your network preferences and elect to run bitcoin-qt through the SOCKS5 proxy. I use port number 9150.

eWallets or Online Wallets

Web hosted wallets can be used as an effective way of masking the original owner of bitcoins. Many web-based wallet services will lump the bitcoins in their service together, thus often giving you different bitcoins when you withdraw. This only works if this is an active service with other active withdrawals and if you do not make up a significant portion (less than 10%) of the service’s Bitcoin balance. Most web wallets also maintain records of incoming and outgoing coins, so any anonymity gained is fully dependent upon the service provider.

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