An Overview of Modern Tor ... - The Bitcoin News

In the news • [2016-09-03]US Dept. of Homeland Security to Create Bitcoin Deanonymization Tool

submitted by btcforumbot to BtcForum [link] [comments]

The importance of Fungibility, your future = your choice.

I took notice that there are more and more people interested in crypto and I would like to make them realize that this is a technology that can save us all or enslave us all. Or at least make some people think about fungibility and it’s importance in this “new world” they are being introduced to.
Short example posted above TLDR
First off, what is fungibility?
Taken from https://www.investopedia.com/terms/f/fungibility.asp
If Person A lends Person B a $50 bill, it does not matter to Person A if he is repaid with a different $50 bill, as it is mutually substitutable. In the same sense, Person A can be repaid with two $20 bills and one $10 bill and still be satisfied, since the total equals $50. Conversely, as an example of non-fungibility, if Person A lends Person B his car, it is not acceptable for Person B to return a different car, even if it is the same make and model as the original car lent by Person A. Cars are not fungible with respect to ownership, but the gasoline that powers the cars is fungible.
Hypothetical question:
You have money to buy one Bitcoin and are confronted with two options:
1) You buy it from a regulated reputable exchange. 2) You buy it from your friend who got it as payment from a recent extortion. 
Immediately you are faced with two fundamental problems:
1) Clean BTC should actually be more valuable then dirty BTC, since you would obviously want the BTC that can not be backtraced to any criminal activity. (Note that what China defines as criminal activities for instance may not be the case in another country) 2) BTC could be confiscated at any point in time since it’s origin can be traced, even when it hasn’t been blacklisted straight away. You could be facing serious consequences. 
We see this already today, addresses that hold coins related to criminal activities are closely being monitored. When they move, it gets noticed and all eyes are on them.
https://news.bitcoin.com/bitcoin-worth-282k-from-the-2016-bitfinex-hack-on-the-move/
If you buy OTC or through DEXes how will you know that your BTC is clean?
This is not a post to tell you criminals should get away with their activities because they shouldn’t, i’m trying to explain that you should never be in any position where your money can be confiscated because it suddenly gets tied to those activities. Your money being confiscated could actually be the least of your problems in such a situation anyway. Think about how easy it becomes to imprison someone that your government doesn’t like.
I’m sure the governments would love to fade out regular cash though, because obviously they can just block your account and take away your basic rights. It happens already to people all over the world who use digital money services like PayPall for instance. https://www.elliott.org/blog/banned-from-palpal-account-limitations/
For people like Snowden, or for Wikileaks bitcoin was their solution at that time. Today, there are better alternatives and everyone should think carefully about what world they want to live in.
To bitcoins defense, there are certain things you can do to make your transactions more private. Bitcoin mixing is a thing. Bitcoin's Lightning Network is expected to give users the option to make transactions that will not be recorded on the blockchain.
Optional privacy raises eyebrows though, authorities could be knocking on your door asking you why you made an optional private transaction. Privacy by default is what we need in the future we see in front of us.
You can find tons of information about deanonymization. This is something that China can “easily“ accomplish.
This is taken from here https://blockchain.princeton.edu/papers/2018-10-ben-kaiser.pdf
Deanonymization: Bitcoin is designed to preserve the pseudonymity of its users, meaning that their real-world identity cannot be linked to a Bitcoin address they have used to transact. However, in practice there are complications that make deanonymization attacks possible. China might seek to deanonymize users for two reasons. First, they may wish to enforce laws and regulations; for example, enforcing capital flight restrictions by identifying users purchasing foreign goods or exchanging Bitcoin into foreign currencies. They might also use a deanonymization attack for ideological (or political) ends: to publicly reveal malfeasance by subversives or political opponents or simply to demonstrate the superiority of centralized control as an ideology and discourage enthusiasm for decentralized systems. We identify four attacks that China could use to deanonymize specific users. First, they could use known research techniques to (a) heuristically cluster pseudonymous identities (e.g., connect multiple addresses to the same user) [31,44]. The simplest example of such a heuristic is to cluster addresses that appear as multiple inputs to the same transaction, as they presumably belong to the same user. The only required capabilities are access to the blockchain and marginal compute power to run the analytics, so these attacks are not unique to China; virtually anyone could commit them. Where China has an advantage over typical adversaries is in linking these pseudonyms to IP addresses. One approach would be to covertly (b) monitor Bitcoin network traffic and identify which IP addresses transactions originate from [4,27]. Because Bitcoin traffic is unencrypted, this can be done through deep packet inspection (DPI). China could also use (c) coercion or regulation to covertly compel service providers that deal in Bitcoin, such as merchants or exchanges, to identify their users. Further, it has been shown that when Bitcoin is used for online purchases, enough information is leaked to web trackers that they can uniquely identify the transaction on the blockchain and link it to any identifying information provided by the purchaser [21]. China could covertly (d) intercept this tracking information over the Internet (using DPI) to perform the same attack, compel domestic tracking companies to provide the information (also covertly), or inject their own trackers into Internet traffic to collect similar information themselves. Tracker injection could be detected by anyone specifically monitoring Internet traffic for such attacks, so we note that it would be overt. Finally, China could target users directly using (e) coercion or regulation to compel them to deanonymize themselves or their transaction partners. Again, as long as targets are compelled to keep quiet about orders to reveal information, this attack is covert.
For fungible coins these deanonymization attacks are probably not impossible but a hell of a lot harder.
Just to clarify i am not an expert on the matter. I just feel that to few people are aware about the importance and hope this post maybe sparkle some interesting opinions and conversations along the way.
If you made it this far I applaud you :-), now check how much balance this guy has in his wallet and see how much he earns every month :D
https://moneroblocks.info/search/4AdUndXHHZ6cfufTMvppY6JwXNouMBzSkbLYfpAV5Usx3skxNgYeYTRj5UzqtReoS44qo9mtmXCqY45DJ852K5Jv2684Rge
Example:
Imagine you want to buy a CAR, and your friend needs to sell his CAR. You did some digging in the market to find an agreement on the price and proceed with the transfer. It happens OTC because there is no need for a middleman, it’s your buddy right?! (For clarity, you both sign a contract to change ownership) You are super excited with your new cool ass CAR, never had one before :-) do some drinking and have an accident. You turn up in the hospital and while you pay for your way out you get arrested. Apparently the CAR was stolen and used in a kidnapping affair.
1st point: A lot of people can buy CARs, and since the CAR owners/transactions are all stored somewhere on a ledger... do you think the authorities will let you keep that CAR when they find out it was stolen or maybe something worse?
2nd point: a CAR is a non fungible asset, meaning that you can trace past owners/origin and could end up with a CAR that should actually be worth A LOT less than what you paid for (because it was obviously dirty)
Now go back to the beginning of the example and switch CAR with BTC, then you will know why fungibility matters.
TLDR; to fungible or not to fungible, that is the question and the answer will either save us all or enslave us all.
Edit: added short example
submitted by zwarbo to CryptoCurrency [link] [comments]

RiB Newsletter #13 – Stuck inside, hacking away

It was another month in 2020, like previous months in 2020. Stuck inside, hacking away.
We don’t see a consistent blockchain Rust theme to highlight this month, but interesting new Rust crypto and blockchain projects continue to be launched. They are noted in the “Interesting Things” section.
Oasis launched what will probably become their mainnet. Congrats to them!
Ethereum 2 keeps creeping closer, and it looks like Lighthouse, in Rust, might be the fastest implementation.
The Holochain team asked that we highlight the Holochain DevCamp, running until August 27th. Now is your opportunity to learn more about the project. There are a number of other online blockchain hackathons going on this summer, noted in our “Events” section. Could be a good way to spend time this summer instead of going to the beach.
Well, anyway, keep on hacking.

Thanks

This edition of RiB was produced with contributions from Darosior, James Waugh, Ken Shamir, Paulii Good, Taylor Lee, Brian Anderson, and Aimee Zhu. Thank you for your help!
RiB needs help to keep up with Rust blockchain projects. If you follow a particular project, or otherwise find information that is beneficial to the Rust & blockchain community, please contribute to the next issue. Either submit a PR to the #14 draft, or Tweet @rust_blockchain.

Project Spotlight

Each month we like to shine a light on a notable Rust blockchain project. This month that project is…
electrs.
electrs is a server for the Electrum Bitcoin wallet, written in Rust. Electrum is a light wallet that needs to connect to a server to transact with the Bitcoin network. Although there are public Electrum servers, and they are safe to transact with, they can deanonymize users, so it might be prudent to run one’s own Electrum server, like electrs , or bwt (also written in Rust).
As mentioned recently in a blog post, Blockstream, one of the primary Bitcoin developers, uses electrs in its block explorer, esplora, which is live at blockstream.info.

Interesting Things

News

Blog Posts

Papers

Projects

Videos


Read more: https://rustinblockchain.org/newsletters/2020-07-01-stuck-inside-hacking-away/
submitted by Aimeedeer to rust [link] [comments]

Cryptocurrency regulations of the future

Will China/USA/Europe ban the use of Bitcoin and traditional cryptocurrencies (including privacy coins) after they introduce their own state-controlled Central Bank Digital Currencies? Will they use fear, fake news of crime to justify this? They want to control money, they want data.
Will they first cripple these currencies by regulating the shit out of them, assigning different value to coins people they don't like owed at some point? Regulations already started, everyone owning crypto is deanonymized, exchange is heavily controlled, centralized exchanges steal money from people they don't like by "freezing" their accounts.
If big cuntries ban real cryptocurrencies, when 25%/50%/75% of all users loose access, how will that fuck with the price?
Will people use decentralized networks -- like Tor and I2P -- to have access to crypto? China already bans Tor, and makes it almost impossible to access the network. Hardware and software spies on all of us. China banned the real internet, now Russia wants to follow. Australia tries to ban cryptography, now USA wants to follow, again. What will we do when other cuntries start banning privacy networks?
Support decentralization, support free software. Don't let propaganda influence you, don't accept regulations.
-gen_server | post signed | pgp:F778933194DC122F8AD860FE3258E0996EC21CBD |
submitted by gen_server to CryptoCurrency [link] [comments]

Monero vs. Taproot

A friend and I are considering whether or not to make a sizeable investment in XMR. Both of us are BTC maximalists up till now. I lean a little more to the XMR side, his issue is that the Schnorr signatures/Taproot update will obviate the need for XMR for the vast majority of users (i.e. privacy from all attackers short of intelligence agencies, which can track anything over clear web anyway). We are trying to get a better idea of what exactly XMR can do that the Bitcoin update cannot.
  1. From what I understand, a trustless CoinJoin in Bitcoin will work as follows: People will send their coins to 1-of-1000 multisig addresses. When they want to spend those coins, they can publish their own signature without revealing the other 999 conditions for spending from that address. This sig will allow them to spend <= the amount of their own balance only. Am I getting this exactly right?
  2. If so, as more and more people spend from the same address, won't it be obvious that it's a CoinJoin? Or, will a new sig scheme and new address be generated with the remaining 999 conditions, each time 1 of the individual balances is spent? Or, is the idea to have lots of rounds that mix a few inputs at a time?
  3. Since the update is a soft fork, won't (aggregated) balances, outputs and addresses remain public? Making timing / pattern based deanonymization fairly trivial for the vast majority of users.
  4. Won't implementation be similar to Zcash, where privacy is not default? Seems it will take a very long time to catch on if so.
Appreciate any input, and apologies if the questions are less than informed as I do not have a deep technical understanding of either protocol.
submitted by nearly-human to Monero [link] [comments]

Huge Child Porn Ring Busted as Authorities Cite Ability to Crack Bitcoin Privacy

This is the best tl;dr I could make, original reduced by 31%. (I'm a bot)
Federal authorities in the U.S. have unsealed charges against the South Korean operator of a child porn ring that's been billed as the world's "Largest dark web child porn marketplace." The child porn site, known as Welcome to Video, charged some users in Bitcoin and authorities say they successfully unmasked those Bitcoin transactions in order to catch the perpetrators.
Welcome to Video contained over 200,000 videos of child sexual abuse and had users from countries like the U.S., UK, Germany, Saudi Arabia, Canada, Ireland, Spain, Brazil, and Australia, according to the indictment, which was uploaded by NBC News reporter Cyrus Farivar.
Users could download videos through a system of credits that could be gained by referring new users or by buying those credits with Bitcoin.
Undercover agents in Washington D.C. monitored the site, filled with images of child rape, and were able to deanonymize the Bitcoin transactions, something that average users often believe is impossible.
The investigation uncovered at least two former federal law enforcement officials allegedly involved in the child porn site, a 35-year-old U.S. Border Patrol Agent from Texas, and a former HSI special agent, also from Texas.
"This Administration will not allow child predators to use lawless online spaces as a shield. Today's announcement demonstrates that the Department of Justice remains firmly committed to working closely with our partners in South Korea and around the world to rescue child victims and bring to justice the perpetrators of these abhorrent crimes."
Summary Source | FAQ | Feedback | Top keywords: child#1 site#2 Video#3 Bitcoin#4 users#5
Post found in /technology and /Bitcoin.
NOTICE: This thread is for discussing the submission topic. Please do not discuss the concept of the autotldr bot here.
submitted by autotldr to autotldr [link] [comments]

Encryption is No Longer an Option - Ways to Restore Your Natural Right to Privacy

Encryption is No Longer an Option
“If the State’s going to move against you, it’s going to move against you. Now, that doesn’t mean you need to be reckless of course. I’m awful careful you guys, and even my degree of care and control ultimately won’t be enough if they get mad enough. There will always be something…I’ve done what I hope is the best any man can do. So…I hope when they finally do get me, it’s obvious that they just made it up. I don’t go out of my way to make it easy.” – Cody Wilson
For all Anarchists our love for freedom unites us and guides us. I recently had a conversation with a mutual friend that Cody and I have in common and he stated something very insightful:
CryptoAnarchy is like the Lord of the Rings. You have to cooperate with people that you don’t know where they are or what they’re up to. That is, you just know that we are all figuring out at the same time on how to take down Sauron.
Anarchy is guided by the natural instinct for self-preservation. You can trust that others are also actively working in keeping us all free.
For us all to move into more synergistic cooperation we need more motivation. Nothing is more motivating than our movement away from an impending harmful evil. The persecution that Cody Wilson has gone through since he started his activism is testament to the evil that awaits the entire world if we do not fight against the impending digital global prison. Just note how easy it was to find Cody. Government indoctrinated brownshirts and surveillance are everywhere.
As Jeff recently said in London, “CryptoAnarchy is about the cryptography.” Cryptocurrency is only possible due to the privacy offered by cryptography. A true cryptocurrency is completely fungible, anonymous, and private. Blockchains without on-chain privacy set by default, are dangerous and offer nothing other than accurate surveillance.
That is, the moment you destroy a coin’s fungibility you corrupt its incentive structure. This is because you would then have two classes of the same coin within a transparent blockchain; these are coins that are “tainted” or “untainted” according to government. This differentiation created by blockchain surveillance leads “tainted” coins to be priced differently from “untainted” coins. Once this happens you destroy the functionality of a currency as a medium of exchange.
Imagine the headache of retailers in having to tell clients that they only accept “untainted” bitcoins. The result of not having a fungible medium of exchange is that you destroy the incentive structure of the network effect of a coin. You simply end up with a useless and unwanted network where value is supposed to be exchanged. If the units within the medium of exchange do not themselves contain the same value in the market, the utility of the network effect is destroyed.
The economic ramifications of non-fungible SurveillanceCoins are so bad that they make fiat currencies of central banks look good. In spite of their centralized proof of government violence, fiat currencies are more fungible and private than a coin based on a transparent blockchain.
For much time within crypto we would call the majority of blockchains as “pseudo-anonymous” because we knew the importance of fungibility. At that time blockchain analysis had not caught up to our technology. Now companies like Elliptic and Chainalysis have made the vast majority of blockchains in the market transparent.
Sadly, most blockchain communities have not upgraded their privacy to be on chain by default- making them transparent. However, some more intelligent communities- like Monero- are at the same time growing because they understand the importance of fungibility.
Please understand that we at TDV are ahead of the pack in understanding where all of this is going. The vast majority of people won’t tell you these harsh truths about the Blockchain space, but it is our moral imperative to inform you as best as possible.
As time goes on, we will continue to champion actual fungible CryptoCurrencies and we will continue to make clear distinctions between a SurveillanceCoin and an actual CryptoCurrency.
It is important that we take a step back from CryptoCurrencies and focus on just cryptography. You can never be too careful. Throughout our groups we have had various requests as to how to better use different wallets.
Yes, we will cover all of that in our upcoming surprise for our community, but what is most important is that you protect yourself at the network layer, your identity, and your communication.
CryptoAnarchy began way before Bitcoin. If you want to know what will be happening to CryptoCurrencies and CryptoAnarchy in the near future, you need to read Timothy C. May’s 1992 prophetic Crypto Anarchist Manifesto.
On reading this, you cannot afford to be idle regarding your privacy. This is not the time for you to easily give up what is most personal about you; your thoughts and identity. Your privacy is sacred. You need to protect your privacy as much as possible at all times. Don’t give into the defeatist notions of future technology being capable of deanonymizing any cryptography you currently use. Your goal is to be private right now in the present moment.
You are up against a global digital tyranny- that is already here!
...Cazes was not a US citizen and the Alphabay servers and Cazes were not caught on US soil. Just because crimes involving narcotic deals took place in America, weirdly enough, the US seemingly has the right above anyone to seize Cazes’ property, and charge him and his accomplices in US trials...
Use Secure Hardware That Protects You
Be paranoid. Stay paranoid. The more paranoid you are the better. Currently the five eyes are moving to strip away all of your privacy. They are on the direct path to force all companies to hand over back doors to software and hardware encryption.
This is a new breach on individual rights. The backdoors in hardware have existed since the 90’s via Trusted Computing and Digital Rights Management (DRM). The difference is that now companies will be fined and forced by governments (all governments) to open up backdoors for the surveillance of all- in both software and hardware. Australia is leading the charge since they are the only ones within the five eyes without a Bill of Rights.
If you really want to be secure, then you need to start with your hardware. Almost all laptops and hardware chips are engineered with unsafe software. These chips can transmit voice, your networking, pictures, and even video signals. Many of these chips are used to install spyware, malware and viruses.
The market has provided us with two easy plug-and-play hardware solutions.
Purism is a CryptoAnarchist company dedicated in offering us the safest computers in the market. Purism’s line of Librem Laptops is manufactured with software and hardware built from the ground up, where you can be at ease knowing there are no back doors built within it. They work with hardware component suppliers and the Free software community in making hardware that respects and protects your security. Every chip is individually selected with emphasis on respecting freedom. (Purism Librem laptops have built in Kill-Switches for your microphone/camera and wireless/Bluetooth)
All of the necessary components that you would have to bundle up together- by yourself- from a community vetted place like Prism-Break are already installed and ready to go within Librem laptops. Even if you were to install all of the necessary open-source encrypted alternatives, you still would not be able to 100% trust your current computer’s hardware.
Purism Librem laptops come with their own PureOS (operating system). Purism also offers compatibility with Qubes OS in a flash-drive (similar to Tails) to give you even another layer of protection on top of PureOS. Qubes OS is what Edward Snowden uses. PureOs is a derivative of Debian GNU/Linux. Qubes is free and open-source software (FOSS).
Purism is currently having a pre-sale for their first phone the Librem 5.
Another popular safe hardware computer market alternative is ORWL. ORWL is a desktop PC. ORWL comes with a physical encryption key that looks like a keychain. If anyone ever tries to physically tamper with the ORWL computer, sensors will automatically detect the intrusion and erase everything. ORWL comes with the operating system options of Qubes OS, Ubuntu, or Windows.
ORWL does not receive payment for their products in Crypto. Purism on the other hand accepts payment in BitcoinCore, BitcoinCash, Litecoin, Ethereum, Decred, Dogecoin, and Monero.
ORWL is a good alternative for more computer savvy people. If you are not the most competent person with computers, Purism is the way to go. With Purism everything is ready to go.
Once you get good hardware don’t use this new computer for anything other than crypto stuff. That is, don’t use it with anything that requires your slave identity. Don’t access social media with your name, don’t access bank accounts, don’t access crypto exchanges, don’t access old email accounts, definitely don’t access anything that requires KYC and AML, and don’t access any identifying log-in that is related to any of your previous internet identities. Create new identities from scratch for this new computer.
Watch this video and learn about the basics on operational security (OPSEC). Take everything written here, and spoken at the conference in the video above, as barely the preliminary basic requirements of OPSEC. You should definitely continue your own research upon getting your new secure hardware computer.
(It would be best if you purchased this computer using crypto- Monero preferably- and have it mailed to a mailing address not associated with any of your addresses; think along the lines of JJ Luna).
Encrypt Your Communication
“This generation being born now... is the last free generation.You are born and either immediately or within say a year you are known globally. Your identity in one form or another –coming as a result of your idiotic parents plastering your name and photos all over Facebook or as a result of insurance applications or passport applications– is known to all major world powers.” – Julian Assange
The vast majority of our community uses Facebook. Unfortunately its network effect is something we all rely on to some degree. Fortunately for us a friend of our community created FaceMask. Through FaceMask we can still use Facebook in complete privacy- away from Zuckerberg's prying eyes. In the near future we will implement FaceMask into our TDV groups as optional privacy for our posts. We will provide our subscribers with the keys necessary to encrypt and decrypt the messages and posts. Again, this is optional. For now please go to the link above and familiarize yourself with Facemask and its technology.
Don’t use Google. If you are using Google start transitioning out of it. If you are using Gmail, start moving towards encrypted services like ProtonMail or TutaNota. They both offer a free option, try them both out and choose your favorite. Use two factor authentication on everything that requires you to log-in that allows for the use of two factor authentication. Most people use Google Authenticator and Authy. I personally prefer the open source options of FreeOTP & andOTP. Use the one that you find best suited for you. Using one is paramount for security nowadays.
If you are one that uses Google Docs with your team, move instead to CryptPad. The more you use CryptPad the more addicting it becomes; your collaborated work is encrypted and private. You no longer will have to worry about knowing that Google is capturing all of your collaborated work. You can also start using CryptPad for free.
If you are using Skype for conference calls, switch to Jitsi. Jitsi is even easier to use than Skype. If you use their MeetJitsi feature you can just access the encrypted conferencing via any browser by agreeing with your other party on the same predetermined passphrase.
Don’t use regular text messaging. Rather, use Signal, Wickr, Keybase, or Telegram.
Use a VPN
A VPN (virtual private network) encrypts all of your traffic via a private network of servers scattered throughout the world. This process anonymizes your IP address. Make sure you don’t use your identity when using a VPN- that would just give away your identity as being connected with the VPN servers you are using.
Many VPN providers register your activity and can hand it over to government if they so demand it. They break their promises to their clients all the time. Let’s minimize risk by staying away from the most draconian of jurisdictions.
To lessen this issue, do not ever use a VPN that is based out of any of the 5 eyes:
-United Kingdom
-United States
-Australia
-Canada
-New Zealand
Furthermore, avoid VPNs based out of the following nine countries, that combined with the first 5 make up the 14 eyes:
-Denmark
-France
-The Netherlands
-Norway
-Germany
-Belgium
-Italy
-Spain
-Sweden
No VPN is a complete safeguard. In spite of this, it is still best to use one. We recommend you ONLY use it (turn it on) when doing crypto-related things and only crypto-related things on your regular computer. For your new encrypted hardware computer have it on at all times. If you use it to access an actual bank account, or another personal account (including crypto accounts that require your personal information; read coinbase, or any other exchange) — then, again, the use of the VPN use becomes trite.
Here are six VPN options outside of the 14 eyes that we recommend you research further and use at your own discretion:
NordVPN (Panama)
CyberGhost (Romania)
HideMe (Malaysia)
Astrill (Seychelles)
TrustZone (Seychelles)
iVPN (Gibralter)
Like all things in the market now, some VPNs take Crypto as payment—others do not. It is best if you bought your VPN with crypto not not your credit card, debit card, or paypal.
TOR (The Onion Router)
The Onion Router is software that you use as a browser. It protects you by bouncing your communications around a distributed network- throughout the world- of relays runned by volunteers. This prevents evesdroppers from learning your IP address, spying on you, and disclosing your physical location. TOR also allows you to access sites that are blocked.
You can use TOR and a VPN simultaneously. If you are new to all of this, it is best that you just learn how to use the features of your new computer coupled with your preferred VPN. The use of TOR is a little more complicated and you will have to configure it according the specifications of your preferred VPN. As you begin this process, as long as you are using your VPN correctly you should be fine.
Fincen and crypto-exchanges
ShapeShift is now stuck having to require its users to deanonymize their transactions in order to meet KYC and AML requirements; it pretty clear that they got ShapeShift under the Bank Secrecy Act. Stay away from Shapeshift (sorry @erikvorhees).
“Very disappointed that @ShapeShift_io is implementing KYC. Just goes to show that any centralized entity will be pushed in that direction, which is why LN, atomic swaps and Decentralized Exchanges are the only way to resist a surveillance economics.” - Andreas Antonopoulos
As the news of ShapeShift broke out, the market was quick to answer with alternatives. Among the private centric alternatives to ShapeShift we find Godex, ChangeHero, XMR.TO, and Bisq.
ChangeHero and Godex are pretty much the same business concept as ShapeShift. The only difference is that they do not require you to become transparent. XMR.TO allows you to make BTC payments by using Monero.
That is, by using Monero together with XMR.TO you can pay any BTC address in the world while protecting your privacy.
Bisq is the Best Option
The most important to focus on is Bisq. Bisq is a complete decentralized exchange. Bisq is instantly accessible- there is no need for registration or approval from a central authority. The system is decentralized peer-to-peer and trading cannot be stopped or censored.
Bisq is safe. Unlike MtGox and the rest of centralized exchanges, Bisq never holds your funds. Bisq provides a system of decentralized arbitration with security deposits that protect traders. The privacy is set where no one except trading partners exchange personal identifying information. All personal data is stored locally.
All communication on Bisq is end-to-end encrypted routed over Tor. Upon downloading and running Bisq TOR runs on Bisq automatically. Every aspect of the development of Bisq is open source.
Bisq is easy to use. If you are accustomed to centralized exchanges, you might find Bisq a little different. If you want anonymity and privacy, this is the best crypto exchange we have. Tell your friends about Bisq. Just download Bisq and take it for a test drive, you will feel fresh freedom of entering into peaceful voluntary exchange with your fellow man. Do it, it’s good for the soul.
On Cody
I would like to personally thank all of our subscribers for generously donating to Defense Distributed on our last issue. At the moment of us putting out our last newsletter, DefDist had raised less than 100k USD. After our Newsletter got out, his donations went past 300k USD.
Thank you very much for helping out our friends in their continual fight for freedom!
Please pray for Cody, his friends, and his family.
I once asked Cody what his background was- because idk his mannerisms have always been interesting to me. He answered; “I am Romani- I am a Gypsy.”
Thank you for helping out our Gypsy friend and his band of rebels! They will very much be using your generous donations now that things got much more serious.
If you haven’t donated, please consider donating. Blessings!
By Rafael LaVerde
Excerpt taken from The Dollar Vigilante September 2018 Issue
https://dollarvigilante.com/wp-content/uploads/2018/09/TDV-September-2018-Issue.pdf
submitted by 2012ronpaul2012 to C_S_T [link] [comments]

Does Lightning Network Onion Routing provide TOR-like privacy?

No.

In fact, LN doesn't claim to be anything like TOR. The closest association I've found is LN claims to use a "mix-net like packet". Still, some LN proponents use this comparison to "shore-up" their arguments for LN privacy.
However, there are important caveats missing from LNs stated privacy claims which clearly invalidate any similarity between the two networks.

Persistent LN channel open/close/capacity information provides a data-point which can be used to derive information about route participants.
TOR specifically avoids a similar type of information leak by negotiating bandwidth offsets on a per-circuit basis to avoid fingerprinting by observation of net-flow.
LN payments are not and will never be as private/anonymous as communications on the TOR anonymity network) as long as channel open capacities are known to network participants.

The LN onion readme (archive) states;
...by encoding payment routes within a mix-net like packet, we are able to achieve the following security and privacy features:
  1. Participants in a route don't know their exact position within the route
  2. Participants within a route don't know the source of the payment, nor the ultimate destination of the payment
  3. Participants within a route aren't aware exactly how many other participants were involved in the payment route
  4. Each new payment route is computationally indistinguishable from any other payment route

Statements 1,2,3 are invalid during common routings.
Statement 4. I dunno...

Sample Route: nodeA -> nodeB -> nodeC -> nodeD

Statement 1 is invalidated; If nodeA (originator) has no other open channels than with a forwarding nodeB.
In this case, nodeB can know that it is the second hop in the route; it can be aware of its exact position in the route.

Statement 2 is invalidated; If nodeB knows that it is the second hop, it also knows nodeA is the source of the payment.
These caveats apply to the destination if destination nodeD has no other channels except with forwarding nodeC.
(Bonus: Statement 3 is invalid if there is any "collusion" between nodeB and nodeC.)

Sample Route: nodeX -> nodeY -> nodeZ

Statement 3 is invalidated; If nodeX and nodeZ have no other open channels, nodeY can know that it is the second hop in the route, the final hop in the route and that the route had exactly 3 participants.

TLDR;
The LN Onion Readme is missing important caveats and is misleading in its current state.
Any positive association of LN privacy to TOR privacy is a false equivalency.

EDIT:
I've been provided with additional references! Thanks!
https://np.reddit.com/Bitcoin/comments/7rrjp3/is_onion_routing_appropriate_for_lightning_network/
https://np.reddit.com/Bitcoin/comments/7t1q5x/deanonymization_risks_on_lightning_network/
submitted by deepechain to btc [link] [comments]

r/Bitcoin recap - April 2018

Hi Bitcoiners!
I’m back with the sixteenth monthly Bitcoin news recap.
It's easy for news and developments to get drowned out by price talk, so each day I pick out the most popularelevant/interesting stories in Bitcoin and save them. At the end of the month I release them in one batch, to give you a quick (but not necessarily the best) overview of what happened in Bitcoin over the past month. Lots of gems this time around!
You can see recaps of the previous months on Bitcoinsnippets.com
A recap of Bitcoin in April 2018
submitted by SamWouters to Bitcoin [link] [comments]

Encryption is No Longer an Option - Ways to Restore Your Natural Right to Privacy

Encryption is No Longer an Option
“If the State’s going to move against you, it’s going to move against you. Now, that doesn’t mean you need to be reckless of course. I’m awful careful you guys, and even my degree of care and control ultimately won’t be enough if they get mad enough. There will always be something…I’ve done what I hope is the best any man can do. So…I hope when they finally do get me, it’s obvious that they just made it up. I don’t go out of my way to make it easy.” – Cody Wilson
For all Anarchists our love for freedom unites us and guides us. I recently had a conversation with a mutual friend that Cody and I have in common and he stated something very insightful:
CryptoAnarchy is like the Lord of the Rings. You have to cooperate with people that you don’t know where they are or what they’re up to. That is, you just know that we are all figuring out at the same time on how to take down Sauron.
Anarchy is guided by the natural instinct for self-preservation. You can trust that others are also actively working in keeping us all free.
For us all to move into more synergistic cooperation we need more motivation. Nothing is more motivating than our movement away from an impending harmful evil. The persecution that Cody Wilson has gone through since he started his activism is testament to the evil that awaits the entire world if we do not fight against the impending digital global prison. Just note how easy it was to find Cody. Government indoctrinated brownshirts and surveillance are everywhere.
As Jeff recently said in London, “CryptoAnarchy is about the cryptography.” Cryptocurrency is only possible due to the privacy offered by cryptography. A true cryptocurrency is completely fungible, anonymous, and private. Blockchains without on-chain privacy set by default, are dangerous and offer nothing other than accurate surveillance.
That is, the moment you destroy a coin’s fungibility you corrupt its incentive structure. This is because you would then have two classes of the same coin within a transparent blockchain; these are coins that are “tainted” or “untainted” according to government. This differentiation created by blockchain surveillance leads “tainted” coins to be priced differently from “untainted” coins. Once this happens you destroy the functionality of a currency as a medium of exchange.
Imagine the headache of retailers in having to tell clients that they only accept “untainted” bitcoins. The result of not having a fungible medium of exchange is that you destroy the incentive structure of the network effect of a coin. You simply end up with a useless and unwanted network where value is supposed to be exchanged. If the units within the medium of exchange do not themselves contain the same value in the market, the utility of the network effect is destroyed.
The economic ramifications of non-fungible SurveillanceCoins are so bad that they make fiat currencies of central banks look good. In spite of their centralized proof of government violence, fiat currencies are more fungible and private than a coin based on a transparent blockchain.
For much time within crypto we would call the majority of blockchains as “pseudo-anonymous” because we knew the importance of fungibility. At that time blockchain analysis had not caught up to our technology. Now companies like Elliptic and Chainalysis have made the vast majority of blockchains in the market transparent.
Sadly, most blockchain communities have not upgraded their privacy to be on chain by default- making them transparent. However, some more intelligent communities- like Monero- are at the same time growing because they understand the importance of fungibility.
Please understand that we at TDV are ahead of the pack in understanding where all of this is going. The vast majority of people won’t tell you these harsh truths about the Blockchain space, but it is our moral imperative to inform you as best as possible.
As time goes on, we will continue to champion actual fungible CryptoCurrencies and we will continue to make clear distinctions between a SurveillanceCoin and an actual CryptoCurrency.
It is important that we take a step back from CryptoCurrencies and focus on just cryptography. You can never be too careful. Throughout our groups we have had various requests as to how to better use different wallets.
Yes, we will cover all of that in our upcoming surprise for our community, but what is most important is that you protect yourself at the network layer, your identity, and your communication.
CryptoAnarchy began way before Bitcoin. If you want to know what will be happening to CryptoCurrencies and CryptoAnarchy in the near future, you need to read Timothy C. May’s 1992 prophetic Crypto Anarchist Manifesto.
On reading this, you cannot afford to be idle regarding your privacy. This is not the time for you to easily give up what is most personal about you; your thoughts and identity. Your privacy is sacred. You need to protect your privacy as much as possible at all times. Don’t give into the defeatist notions of future technology being capable of deanonymizing any cryptography you currently use. Your goal is to be private right now in the present moment.
You are up against a global digital tyranny- that is already here!
...Cazes was not a US citizen and the Alphabay servers and Cazes were not caught on US soil. Just because crimes involving narcotic deals took place in America, weirdly enough, the US seemingly has the right above anyone to seize Cazes’ property, and charge him and his accomplices in US trials...
Use Secure Hardware That Protects You
Be paranoid. Stay paranoid. The more paranoid you are the better. Currently the five eyes are moving to strip away all of your privacy. They are on the direct path to force all companies to hand over back doors to software and hardware encryption.
This is a new breach on individual rights. The backdoors in hardware have existed since the 90’s via Trusted Computing and Digital Rights Management (DRM). The difference is that now companies will be fined and forced by governments (all governments) to open up backdoors for the surveillance of all- in both software and hardware. Australia is leading the charge since they are the only ones within the five eyes without a Bill of Rights.
If you really want to be secure, then you need to start with your hardware. Almost all laptops and hardware chips are engineered with unsafe software. These chips can transmit voice, your networking, pictures, and even video signals. Many of these chips are used to install spyware, malware and viruses.
The market has provided us with two easy plug-and-play hardware solutions.
Purism is a CryptoAnarchist company dedicated in offering us the safest computers in the market. Purism’s line of Librem Laptops is manufactured with software and hardware built from the ground up, where you can be at ease knowing there are no back doors built within it. They work with hardware component suppliers and the Free software community in making hardware that respects and protects your security. Every chip is individually selected with emphasis on respecting freedom. (Purism Librem laptops have built in Kill-Switches for your microphone/camera and wireless/Bluetooth)
All of the necessary components that you would have to bundle up together- by yourself- from a community vetted place like Prism-Break are already installed and ready to go within Librem laptops. Even if you were to install all of the necessary open-source encrypted alternatives, you still would not be able to 100% trust your current computer’s hardware.
Purism Librem laptops come with their own PureOS (operating system). Purism also offers compatibility with Qubes OS in a flash-drive (similar to Tails) to give you even another layer of protection on top of PureOS. Qubes OS is what Edward Snowden uses. PureOs is a derivative of Debian GNU/Linux. Qubes is free and open-source software (FOSS).
Purism is currently having a pre-sale for their first phone the Librem 5.
Another popular safe hardware computer market alternative is ORWL. ORWL is a desktop PC. ORWL comes with a physical encryption key that looks like a keychain. If anyone ever tries to physically tamper with the ORWL computer, sensors will automatically detect the intrusion and erase everything. ORWL comes with the operating system options of Qubes OS, Ubuntu, or Windows.
ORWL does not receive payment for their products in Crypto. Purism on the other hand accepts payment in BitcoinCore, BitcoinCash, Litecoin, Ethereum, Decred, Dogecoin, and Monero.
ORWL is a good alternative for more computer savvy people. If you are not the most competent person with computers, Purism is the way to go. With Purism everything is ready to go.
Once you get good hardware don’t use this new computer for anything other than crypto stuff. That is, don’t use it with anything that requires your slave identity. Don’t access social media with your name, don’t access bank accounts, don’t access crypto exchanges, don’t access old email accounts, definitely don’t access anything that requires KYC and AML, and don’t access any identifying log-in that is related to any of your previous internet identities. Create new identities from scratch for this new computer.
Watch this video and learn about the basics on operational security (OPSEC). Take everything written here, and spoken at the conference in the video above, as barely the preliminary basic requirements of OPSEC. You should definitely continue your own research upon getting your new secure hardware computer.
(It would be best if you purchased this computer using crypto- Monero preferably- and have it mailed to a mailing address not associated with any of your addresses; think along the lines of JJ Luna).
Encrypt Your Communication
“This generation being born now... is the last free generation.You are born and either immediately or within say a year you are known globally. Your identity in one form or another –coming as a result of your idiotic parents plastering your name and photos all over Facebook or as a result of insurance applications or passport applications– is known to all major world powers.” – Julian Assange
The vast majority of our community uses Facebook. Unfortunately its network effect is something we all rely on to some degree. Fortunately for us a friend of our community created FaceMask. Through FaceMask we can still use Facebook in complete privacy- away from Zuckerberg's prying eyes. In the near future we will implement FaceMask into our TDV groups as optional privacy for our posts. We will provide our subscribers with the keys necessary to encrypt and decrypt the messages and posts. Again, this is optional. For now please go to the link above and familiarize yourself with Facemask and its technology.
Don’t use Google. If you are using Google start transitioning out of it. If you are using Gmail, start moving towards encrypted services like ProtonMail or TutaNota. They both offer a free option, try them both out and choose your favorite. Use two factor authentication on everything that requires you to log-in that allows for the use of two factor authentication. Most people use Google Authenticator and Authy. I personally prefer the open source options of FreeOTP & andOTP. Use the one that you find best suited for you. Using one is paramount for security nowadays.
If you are one that uses Google Docs with your team, move instead to CryptPad. The more you use CryptPad the more addicting it becomes; your collaborated work is encrypted and private. You no longer will have to worry about knowing that Google is capturing all of your collaborated work. You can also start using CryptPad for free.
If you are using Skype for conference calls, switch to Jitsi. Jitsi is even easier to use than Skype. If you use their MeetJitsi feature you can just access the encrypted conferencing via any browser by agreeing with your other party on the same predetermined passphrase.
Don’t use regular text messaging. Rather, use Signal, Wickr, Keybase, or Telegram.
Use a VPN
A VPN (virtual private network) encrypts all of your traffic via a private network of servers scattered throughout the world. This process anonymizes your IP address. Make sure you don’t use your identity when using a VPN- that would just give away your identity as being connected with the VPN servers you are using.
Many VPN providers register your activity and can hand it over to government if they so demand it. They break their promises to their clients all the time. Let’s minimize risk by staying away from the most draconian of jurisdictions.
To lessen this issue, do not ever use a VPN that is based out of any of the 5 eyes:
-United Kingdom
-United States
-Australia
-Canada
-New Zealand
Furthermore, avoid VPNs based out of the following nine countries, that combined with the first 5 make up the 14 eyes:
-Denmark
-France
-The Netherlands
-Norway
-Germany
-Belgium
-Italy
-Spain
-Sweden
No VPN is a complete safeguard. In spite of this, it is still best to use one. We recommend you ONLY use it (turn it on) when doing crypto-related things and only crypto-related things on your regular computer. For your new encrypted hardware computer have it on at all times. If you use it to access an actual bank account, or another personal account (including crypto accounts that require your personal information; read coinbase, or any other exchange) — then, again, the use of the VPN use becomes trite.
Here are six VPN options outside of the 14 eyes that we recommend you research further and use at your own discretion:
NordVPN (Panama)
CyberGhost (Romania)
HideMe (Malaysia)
Astrill (Seychelles)
TrustZone (Seychelles)
iVPN (Gibralter)
Like all things in the market now, some VPNs take Crypto as payment—others do not. It is best if you bought your VPN with crypto not not your credit card, debit card, or paypal.
TOR (The Onion Router)
The Onion Router is software that you use as a browser. It protects you by bouncing your communications around a distributed network- throughout the world- of relays runned by volunteers. This prevents evesdroppers from learning your IP address, spying on you, and disclosing your physical location. TOR also allows you to access sites that are blocked.
You can use TOR and a VPN simultaneously. If you are new to all of this, it is best that you just learn how to use the features of your new computer coupled with your preferred VPN. The use of TOR is a little more complicated and you will have to configure it according the specifications of your preferred VPN. As you begin this process, as long as you are using your VPN correctly you should be fine.
Fincen and crypto-exchanges
ShapeShift is now stuck having to require its users to deanonymize their transactions in order to meet KYC and AML requirements; it pretty clear that they got ShapeShift under the Bank Secrecy Act. Stay away from Shapeshift (sorry @erikvorhees).
“Very disappointed that @ShapeShift_io is implementing KYC. Just goes to show that any centralized entity will be pushed in that direction, which is why LN, atomic swaps and Decentralized Exchanges are the only way to resist a surveillance economics.” - Andreas Antonopoulos
As the news of ShapeShift broke out, the market was quick to answer with alternatives. Among the private centric alternatives to ShapeShift we find Godex, ChangeHero, XMR.TO, and Bisq.
ChangeHero and Godex are pretty much the same business concept as ShapeShift. The only difference is that they do not require you to become transparent. XMR.TO allows you to make BTC payments by using Monero.
That is, by using Monero together with XMR.TO you can pay any BTC address in the world while protecting your privacy.
Bisq is the Best Option
The most important to focus on is Bisq. Bisq is a complete decentralized exchange. Bisq is instantly accessible- there is no need for registration or approval from a central authority. The system is decentralized peer-to-peer and trading cannot be stopped or censored.
Bisq is safe. Unlike MtGox and the rest of centralized exchanges, Bisq never holds your funds. Bisq provides a system of decentralized arbitration with security deposits that protect traders. The privacy is set where no one except trading partners exchange personal identifying information. All personal data is stored locally.
All communication on Bisq is end-to-end encrypted routed over Tor. Upon downloading and running Bisq TOR runs on Bisq automatically. Every aspect of the development of Bisq is open source.
Bisq is easy to use. If you are accustomed to centralized exchanges, you might find Bisq a little different. If you want anonymity and privacy, this is the best crypto exchange we have. Tell your friends about Bisq. Just download Bisq and take it for a test drive, you will feel fresh freedom of entering into peaceful voluntary exchange with your fellow man. Do it, it’s good for the soul.
On Cody
I would like to personally thank all of our subscribers for generously donating to Defense Distributed on our last issue. At the moment of us putting out our last newsletter, DefDist had raised less than 100k USD. After our Newsletter got out, his donations went past 300k USD.
Thank you very much for helping out our friends in their continual fight for freedom!
Please pray for Cody, his friends, and his family.
I once asked Cody what his background was- because idk his mannerisms have always been interesting to me. He answered; “I am Romani- I am a Gypsy.”
Thank you for helping out our Gypsy friend and his band of rebels! They will very much be using your generous donations now that things got much more serious.
If you haven’t donated, please consider donating. Blessings!
By Rafael LaVerde
Excerpt taken from The Dollar Vigilante September 2018 Issue
https://dollarvigilante.com/wp-content/uploads/2018/09/TDV-September-2018-Issue.pdf
submitted by 2012ronpaul2012 to conspiracy [link] [comments]

Wasabi Wallet Founder: Bitcoin Fees Will "Price Out" On-Chain Privacy

The founder of the Wasabi privacy Bitcoin wallet admits that growing fees will soon “price out” privacy from the main chain.
In a recent Twitter exchange on the relative price stagnation of the various privacy-focused cryptocurrencies relative to Bitcoin, Adam Ficsor, the co-founder and CTO of privacy development group zkSNACKS responsible for the popular Wasabi privacy wallet, weighed in on the viability for advanced privacy solutions for the future of Bitcoin. According to Ficsor, specific privacy coins still have a role, as he believes that solutions offering greater “privacy will be priced out of Bitcoin’s main chain” due to increasingly high transaction fees, and that solutions such as Wasabi are a “temporary hack” for the problems caused by the chain’s inherent transparency. Wasabi uses a variant of CoinJoin and mixes the funds from several participants in order to obscure the identity of any one sender.
Coin mixing services require multiple transactions and as such are not suitable for currencies with extremely high fees, which has been a historical problem for Bitcoin. According to data from BitInfoCharts, the current median transaction fee is not particularly obscene at about $0.70, however as recently as 11 days ago it was about $3.72. The highest recorded median fee was over $34 at the height of transaction congestion and the market surge in late 2017.
Recent popular mixing implementations attempt to emulate Bitcoin’s more private competitors
Recently-implemented coin mixing apps have been added to both the Bitcoin and Bitcoin Cash ecosystems to offer advanced privacy features not native in either chain, aiming to approximate the offerings of coins such as Dash which have privacy-specific features built-in. This includes the Wasabi wallet as well as CashShuffle for Bitcoin Cash, both of which use a coin mixing technique similar to Dash’s PrivateSend. In contrast, however, both rely on single servers (multiple choices may be available for CashShuffle) to perform the mixing, rather than Dash’s decentralized network of nearly 5,000 masternodes, and typically mix in a single round rather than through multiple rounds, offering less protection from deanonymization attacks.
Dash’s latest version has made privacy mixing significantly faster
The recent upgrade to the Dash network has significantly improvement the speed for mixing balances for PrivateSend transactions. In the recently-released version 0.14, all transactions are now both InstantSend (meaning instantly confirmed), as well as able to be immediately re-spent. This has the effect of speeding up the process of mixing balances, improving the experience for the end user.
submitted by VoltzUK to u/VoltzUK [link] [comments]

Copyright Registrations Do Not Recognize Craig Wright as Satoshi Nakamoto

Copyright Registrations Do Not Recognize Craig Wright as Satoshi Nakamoto
https://preview.redd.it/44nmd6u43wz21.png?width=1024&format=png&auto=webp&s=d1b586c8f1c5c51b1338fd69a1bb130c9a824087
Copyright enlistments for the Bitcoin white paper and the bitcoin (BTC) source code by the United States Copyright Office don't imply that Australian PC researcher Craig Wright is perceived as Satoshi Nakamoto by the legislature, the Financial Times provided details regarding May 22.

The advancement pursues news that Wright documented copyright enlistments for the Bitcoin white paper composed under the alias Nakamoto. A news discharge from May 21 asserts that U.S. authorities got affirmation that Wright is in fact Satoshi Nakamoto, however the news has been met with distrust from the crypto network.

A representative for Wright told the Financial Times that "the enrollments issued by the U.S. Copyright Office perceive Wright as the creator — under the nom de plume Nakamoto — of both the white paper and code," asserting the Office to be the main government office that perceives Wright as the maker of the main computerized money.

Be that as it may, the case has no premise in all actuality as when the Copyright Office gets an application for enrollment, it doesn't examine reality of any announcement made in that application, nor the characters of individuals enlisting for copyright. The Office told the Financial Times:

"For a situation where a work is enrolled under a pen name, Copyright Office does not examine whether there is a provable association between the inquirer and the pseudonymous creator."

Also, the enrolling the source code does not secure the protected innovation of bitcoin as a creation.

The Copyright Office can drop an enrollment application in the event that it is sure that exhibited data is a bogus case and the individual professing to be the creator of a work is in undeniable reality not who they guarantee they are.

As of late, an embarrassment around bitcoin SV (BSV) — the altcoin sponsored by Wright — put Wright at the focal point of universal consideration when digital currency trades started delisting the coin in the midst of Wright's battle to deanonymize one of his faultfinders, purported Hodlonaut.

Hodlonaut focused on the Australian specialist with hostile tweets, calling him "a miserable and pitiful con artist. Obviously rationally sick," and supposedly took an interest in making the #CraigWrightIsAFraud hashtag.
submitted by Rajladumor1 to omgfin [link] [comments]

Deanonymization Risks on Lightning Network

A few days ago I posted about how the differences betweenTor and Lightning Network topologies might undermine the privacy that users are able to achieve with the Lightning implemenation of onion routing. Despite many disparaging remarks about my intentions, both Adam Back (u/adam3us) and Rusty Russell (u/rustyreddit) have replied and indicated that there is at least some validity to the concerns raised. Additional discussion of this topic in various comment threads has inevitably led to questions about what is at risk and what users can to do minimize those risks. I’ve had time to formulate the beginnings of a response to the former, which is a necessary precursor to eventually answering the latter. It may not be very satisfying to get the answers in this order, but it is the natural result of posting this work as it evolves. So let’s get right down to it and explore some of the risk areas I’ve been able to identify for Lightning Network operators.
Lightning Network results in many opportunities for an analyst to correlate data across several domains and tie them back to a single pseudonym. Let’s call this single identity the operator’s nym. For purposes of this post, the nym represents the complete anonymous persona of its associated operator - every Lightning operator has only one nym. An analyst may end up identifying multiple sub-nyms until they’re able to link them to a single operator.
The primary sub-nym on Lightning Network is the node. Nodes have many properties which can uniquely identify them over time and space. This is necessary to ensure you're transacting with whom you intend, even if you don't know their real identity. Long-term node identities are also a requirement for payment channels. Because these properties cover different domains but all link back to the same node identity, deanonymization in one domain affects activity across all domains that can be associated with the node. These properties can also be leveraged by an analyst to associate sub-nyms with their operator’s nym.
So what makes up a node identity?
Node ID. The most obvious identifier for a node is its node_id, the public key the node uses when signing messages on the network. A node’s node_id is known by all of its peers. It is not necessary for a transaction sender to expose their node_id, however, the sender must know the receiver’s. A node desiring to service third-party transactions must broadcast channel_announcement messages for the channels which can be used for routing, which exposes the node_id to the whole network.
IP addresses. While the node_id is certainly the strongest node identifier, it is not the only property that could identify a node or link multiple nodes to a nym. Lightning transactions are active, requiring bi-directional communication to complete. To communicate with peers on the internet, nodes require an IP address. At a minimum, this IP address is known to a node’s peers and, if the operator wants to invite other nodes to open channels, it may be broadcast to the network in node_announcement messages. Although IP addresses do not prove who is behind them, they can provide a lot of information about the operator’s identity and link multiple nodes to a single nym. Connecting to Lightning over anonymizing solutions such as VPNs and Tor can assist in disassociating the IP addresses from the operator, but also introduce new correlation data for observers of those domains.
Node customizations. The node_announcement messages carry some customizable fields (alias, rgb_color, features) which are not unique, but could still serve to fingerprint nodes if an operator regularly uses a unique or identifiable combination.
Channels. Nodes can be uniquely identified by their set of channels. Channels which are open at the same time are obvious correlation points; less obvious is the fact that channel relationships are transitive. For instance, if a node initially opens chA and chB, an analyst can easily identified them as belonging to the same node. chA isn’t very reliable so the operator closes that channel and some time later opens chC. The analyst, who has been observing the network, can now associate chC with chA through their shared concurrent channel, chB. If the operator then closes chB and later opens chD, the analyst can link all four channels to the single node thanks to this transitive nature, even though chA and chD were never open at the same time nor share any concurrent channels.
On-chain transactions. Each channel a node participates in will have several addresses which may associate back to the operator’s nym. Inputs to the funding transaction and outputs from the commitment transaction are implicitly transitive; there can be some doubt as to the ownership of an output, but there is a known relationship. An analyst monitoring the blockchain activities of a node may be able to use the inputs and outputs to reliably associate channels opened using the proceeds from previously closed channels, even when the channels are associated with different nodes. This is another way in which an analyst might link multiple sub-nyms to a single nym.
Lightning Transactions. A major trade-off that operators make by transacting over Lightning Network instead of on-chain is that of transaction privacy. In exchange for the promise of keeping their transactions off of the blockchain, Lightning imposes higher risk of transaction correlation. If the privacy guarantees that Lightning provides are breached, deanonymizing the sending and receiving nodes, all exposed transactions can be used by an analyst in an attempt to correlate them to a single nym or operator.
submitted by tripledogdareya to Bitcoin [link] [comments]

Encryption is No Longer an Option - Ways to Restore Your Natural Right to Privacy

Encryption is No Longer an Option
“If the State’s going to move against you, it’s going to move against you. Now, that doesn’t mean you need to be reckless of course. I’m awful careful you guys, and even my degree of care and control ultimately won’t be enough if they get mad enough. There will always be something…I’ve done what I hope is the best any man can do. So…I hope when they finally do get me, it’s obvious that they just made it up. I don’t go out of my way to make it easy.” – Cody Wilson
For all Anarchists our love for freedom unites us and guides us. I recently had a conversation with a mutual friend that Cody and I have in common and he stated something very insightful:
CryptoAnarchy is like the Lord of the Rings. You have to cooperate with people that you don’t know where they are or what they’re up to. That is, you just know that we are all figuring out at the same time on how to take down Sauron.
Anarchy is guided by the natural instinct for self-preservation. You can trust that others are also actively working in keeping us all free.
For us all to move into more synergistic cooperation we need more motivation. Nothing is more motivating than our movement away from an impending harmful evil. The persecution that Cody Wilson has gone through since he started his activism is testament to the evil that awaits the entire world if we do not fight against the impending digital global prison. Just note how easy it was to find Cody. Government indoctrinated brownshirts and surveillance are everywhere.
As Jeff recently said in London, “CryptoAnarchy is about the cryptography.” Cryptocurrency is only possible due to the privacy offered by cryptography. A true cryptocurrency is completely fungible, anonymous, and private. Blockchains without on-chain privacy set by default, are dangerous and offer nothing other than accurate surveillance.
That is, the moment you destroy a coin’s fungibility you corrupt its incentive structure. This is because you would then have two classes of the same coin within a transparent blockchain; these are coins that are “tainted” or “untainted” according to government. This differentiation created by blockchain surveillance leads “tainted” coins to be priced differently from “untainted” coins. Once this happens you destroy the functionality of a currency as a medium of exchange.
Imagine the headache of retailers in having to tell clients that they only accept “untainted” bitcoins. The result of not having a fungible medium of exchange is that you destroy the incentive structure of the network effect of a coin. You simply end up with a useless and unwanted network where value is supposed to be exchanged. If the units within the medium of exchange do not themselves contain the same value in the market, the utility of the network effect is destroyed.
The economic ramifications of non-fungible SurveillanceCoins are so bad that they make fiat currencies of central banks look good. In spite of their centralized proof of government violence, fiat currencies are more fungible and private than a coin based on a transparent blockchain.
For much time within crypto we would call the majority of blockchains as “pseudo-anonymous” because we knew the importance of fungibility. At that time blockchain analysis had not caught up to our technology. Now companies like Elliptic and Chainalysis have made the vast majority of blockchains in the market transparent.
Sadly, most blockchain communities have not upgraded their privacy to be on chain by default- making them transparent. However, some more intelligent communities- like Monero- are at the same time growing because they understand the importance of fungibility.
Please understand that we at TDV are ahead of the pack in understanding where all of this is going. The vast majority of people won’t tell you these harsh truths about the Blockchain space, but it is our moral imperative to inform you as best as possible.
As time goes on, we will continue to champion actual fungible CryptoCurrencies and we will continue to make clear distinctions between a SurveillanceCoin and an actual CryptoCurrency.
It is important that we take a step back from CryptoCurrencies and focus on just cryptography. You can never be too careful. Throughout our groups we have had various requests as to how to better use different wallets.
Yes, we will cover all of that in our upcoming surprise for our community, but what is most important is that you protect yourself at the network layer, your identity, and your communication.
CryptoAnarchy began way before Bitcoin. If you want to know what will be happening to CryptoCurrencies and CryptoAnarchy in the near future, you need to read Timothy C. May’s 1992 prophetic Crypto Anarchist Manifesto.
On reading this, you cannot afford to be idle regarding your privacy. This is not the time for you to easily give up what is most personal about you; your thoughts and identity. Your privacy is sacred. You need to protect your privacy as much as possible at all times. Don’t give into the defeatist notions of future technology being capable of deanonymizing any cryptography you currently use. Your goal is to be private right now in the present moment.
You are up against a global digital tyranny- that is already here!
...Cazes was not a US citizen and the Alphabay servers and Cazes were not caught on US soil. Just because crimes involving narcotic deals took place in America, weirdly enough, the US seemingly has the right above anyone to seize Cazes’ property, and charge him and his accomplices in US trials...
Use Secure Hardware That Protects You
Be paranoid. Stay paranoid. The more paranoid you are the better. Currently the five eyes are moving to strip away all of your privacy. They are on the direct path to force all companies to hand over back doors to software and hardware encryption.
This is a new breach on individual rights. The backdoors in hardware have existed since the 90’s via Trusted Computing and Digital Rights Management (DRM). The difference is that now companies will be fined and forced by governments (all governments) to open up backdoors for the surveillance of all- in both software and hardware. Australia is leading the charge since they are the only ones within the five eyes without a Bill of Rights.
If you really want to be secure, then you need to start with your hardware. Almost all laptops and hardware chips are engineered with unsafe software. These chips can transmit voice, your networking, pictures, and even video signals. Many of these chips are used to install spyware, malware and viruses.
The market has provided us with two easy plug-and-play hardware solutions.
Purism is a CryptoAnarchist company dedicated in offering us the safest computers in the market. Purism’s line of Librem Laptops is manufactured with software and hardware built from the ground up, where you can be at ease knowing there are no back doors built within it. They work with hardware component suppliers and the Free software community in making hardware that respects and protects your security. Every chip is individually selected with emphasis on respecting freedom. (Purism Librem laptops have built in Kill-Switches for your microphone/camera and wireless/Bluetooth)
All of the necessary components that you would have to bundle up together- by yourself- from a community vetted place like Prism-Break are already installed and ready to go within Librem laptops. Even if you were to install all of the necessary open-source encrypted alternatives, you still would not be able to 100% trust your current computer’s hardware.
Purism Librem laptops come with their own PureOS (operating system). Purism also offers compatibility with Qubes OS in a flash-drive (similar to Tails) to give you even another layer of protection on top of PureOS. Qubes OS is what Edward Snowden uses. PureOs is a derivative of Debian GNU/Linux. Qubes is free and open-source software (FOSS).
Purism is currently having a pre-sale for their first phone the Librem 5.
Another popular safe hardware computer market alternative is ORWL. ORWL is a desktop PC. ORWL comes with a physical encryption key that looks like a keychain. If anyone ever tries to physically tamper with the ORWL computer, sensors will automatically detect the intrusion and erase everything. ORWL comes with the operating system options of Qubes OS, Ubuntu, or Windows.
ORWL does not receive payment for their products in Crypto. Purism on the other hand accepts payment in BitcoinCore, BitcoinCash, Litecoin, Ethereum, Decred, Dogecoin, and Monero.
ORWL is a good alternative for more computer savvy people. If you are not the most competent person with computers, Purism is the way to go. With Purism everything is ready to go.
Once you get good hardware don’t use this new computer for anything other than crypto stuff. That is, don’t use it with anything that requires your slave identity. Don’t access social media with your name, don’t access bank accounts, don’t access crypto exchanges, don’t access old email accounts, definitely don’t access anything that requires KYC and AML, and don’t access any identifying log-in that is related to any of your previous internet identities. Create new identities from scratch for this new computer.
Watch this video and learn about the basics on operational security (OPSEC). Take everything written here, and spoken at the conference in the video above, as barely the preliminary basic requirements of OPSEC. You should definitely continue your own research upon getting your new secure hardware computer.
(It would be best if you purchased this computer using crypto- Monero preferably- and have it mailed to a mailing address not associated with any of your addresses; think along the lines of JJ Luna).
Encrypt Your Communication
“This generation being born now... is the last free generation.You are born and either immediately or within say a year you are known globally. Your identity in one form or another –coming as a result of your idiotic parents plastering your name and photos all over Facebook or as a result of insurance applications or passport applications– is known to all major world powers.” – Julian Assange
The vast majority of our community uses Facebook. Unfortunately its network effect is something we all rely on to some degree. Fortunately for us a friend of our community created FaceMask. Through FaceMask we can still use Facebook in complete privacy- away from Zuckerberg's prying eyes. In the near future we will implement FaceMask into our TDV groups as optional privacy for our posts. We will provide our subscribers with the keys necessary to encrypt and decrypt the messages and posts. Again, this is optional. For now please go to the link above and familiarize yourself with Facemask and its technology.
Don’t use Google. If you are using Google start transitioning out of it. If you are using Gmail, start moving towards encrypted services like ProtonMail or TutaNota. They both offer a free option, try them both out and choose your favorite. Use two factor authentication on everything that requires you to log-in that allows for the use of two factor authentication. Most people use Google Authenticator and Authy. I personally prefer the open source options of FreeOTP & andOTP. Use the one that you find best suited for you. Using one is paramount for security nowadays.
If you are one that uses Google Docs with your team, move instead to CryptPad. The more you use CryptPad the more addicting it becomes; your collaborated work is encrypted and private. You no longer will have to worry about knowing that Google is capturing all of your collaborated work. You can also start using CryptPad for free.
If you are using Skype for conference calls, switch to Jitsi. Jitsi is even easier to use than Skype. If you use their MeetJitsi feature you can just access the encrypted conferencing via any browser by agreeing with your other party on the same predetermined passphrase.
Don’t use regular text messaging. Rather, use Signal, Wickr, Keybase, or Telegram.
Use a VPN
A VPN (virtual private network) encrypts all of your traffic via a private network of servers scattered throughout the world. This process anonymizes your IP address. Make sure you don’t use your identity when using a VPN- that would just give away your identity as being connected with the VPN servers you are using.
Many VPN providers register your activity and can hand it over to government if they so demand it. They break their promises to their clients all the time. Let’s minimize risk by staying away from the most draconian of jurisdictions.
To lessen this issue, do not ever use a VPN that is based out of any of the 5 eyes:
-United Kingdom
-United States
-Australia
-Canada
-New Zealand
Furthermore, avoid VPNs based out of the following nine countries, that combined with the first 5 make up the 14 eyes:
-Denmark
-France
-The Netherlands
-Norway
-Germany
-Belgium
-Italy
-Spain
-Sweden
No VPN is a complete safeguard. In spite of this, it is still best to use one. We recommend you ONLY use it (turn it on) when doing crypto-related things and only crypto-related things on your regular computer. For your new encrypted hardware computer have it on at all times. If you use it to access an actual bank account, or another personal account (including crypto accounts that require your personal information; read coinbase, or any other exchange) — then, again, the use of the VPN use becomes trite.
Here are six VPN options outside of the 14 eyes that we recommend you research further and use at your own discretion:
NordVPN (Panama)
CyberGhost (Romania)
HideMe (Malaysia)
Astrill (Seychelles)
TrustZone (Seychelles)
iVPN (Gibralter)
Like all things in the market now, some VPNs take Crypto as payment—others do not. It is best if you bought your VPN with crypto not not your credit card, debit card, or paypal.
TOR (The Onion Router)
The Onion Router is software that you use as a browser. It protects you by bouncing your communications around a distributed network- throughout the world- of relays runned by volunteers. This prevents evesdroppers from learning your IP address, spying on you, and disclosing your physical location. TOR also allows you to access sites that are blocked.
You can use TOR and a VPN simultaneously. If you are new to all of this, it is best that you just learn how to use the features of your new computer coupled with your preferred VPN. The use of TOR is a little more complicated and you will have to configure it according the specifications of your preferred VPN. As you begin this process, as long as you are using your VPN correctly you should be fine.
Fincen and crypto-exchanges
ShapeShift is now stuck having to require its users to deanonymize their transactions in order to meet KYC and AML requirements; it pretty clear that they got ShapeShift under the Bank Secrecy Act. Stay away from Shapeshift (sorry @erikvorhees).
“Very disappointed that @ShapeShift_io is implementing KYC. Just goes to show that any centralized entity will be pushed in that direction, which is why LN, atomic swaps and Decentralized Exchanges are the only way to resist a surveillance economics.” - Andreas Antonopoulos
As the news of ShapeShift broke out, the market was quick to answer with alternatives. Among the private centric alternatives to ShapeShift we find Godex, ChangeHero, XMR.TO, and Bisq.
ChangeHero and Godex are pretty much the same business concept as ShapeShift. The only difference is that they do not require you to become transparent. XMR.TO allows you to make BTC payments by using Monero.
That is, by using Monero together with XMR.TO you can pay any BTC address in the world while protecting your privacy.
Bisq is the Best Option
The most important to focus on is Bisq. Bisq is a complete decentralized exchange. Bisq is instantly accessible- there is no need for registration or approval from a central authority. The system is decentralized peer-to-peer and trading cannot be stopped or censored.
Bisq is safe. Unlike MtGox and the rest of centralized exchanges, Bisq never holds your funds. Bisq provides a system of decentralized arbitration with security deposits that protect traders. The privacy is set where no one except trading partners exchange personal identifying information. All personal data is stored locally.
All communication on Bisq is end-to-end encrypted routed over Tor. Upon downloading and running Bisq TOR runs on Bisq automatically. Every aspect of the development of Bisq is open source.
Bisq is easy to use. If you are accustomed to centralized exchanges, you might find Bisq a little different. If you want anonymity and privacy, this is the best crypto exchange we have. Tell your friends about Bisq. Just download Bisq and take it for a test drive, you will feel fresh freedom of entering into peaceful voluntary exchange with your fellow man. Do it, it’s good for the soul.
On Cody
I would like to personally thank all of our subscribers for generously donating to Defense Distributed on our last issue. At the moment of us putting out our last newsletter, DefDist had raised less than 100k USD. After our Newsletter got out, his donations went past 300k USD.
Thank you very much for helping out our friends in their continual fight for freedom!
Please pray for Cody, his friends, and his family.
I once asked Cody what his background was- because idk his mannerisms have always been interesting to me. He answered; “I am Romani- I am a Gypsy.”
Thank you for helping out our Gypsy friend and his band of rebels! They will very much be using your generous donations now that things got much more serious.
If you haven’t donated, please consider donating. Blessings!
By Rafael LaVerde
Excerpt taken from The Dollar Vigilante September 2018 Issue
https://dollarvigilante.com/wp-content/uploads/2018/09/TDV-September-2018-Issue.pdf
submitted by 2012ronpaul2012 to conspiracyundone [link] [comments]

Why Cryptocurrency Should be Banned

Hello,
some of you might have taken note of my recent postings on here. I have a twitter account as well: https://twitter.com/BlueMeanie4
I am no longer involved in the crypto currency world. I had a brief stint in crypto(a month or two) had such a horrible experience I left for good. This was long before things really began to stink badly. I've worked in Finance, have a background in CS so these ideas captivated me for a time. I had also worked in Digital Currencies before Bitcoin emerged. Lately I've been inspired to write, this is getting some people very angry, because my writings might actually result in punitive legal actions- yes this is serious stuff, so listen up :). I'm not your average crypto 'reporter' who is simply paid in crypto to say positive things about some coin or another. Ive never been paid to say anything, ever. I am an engineer by education, training, and profession. I live a pretty quiet, simple life really. I dont look 'big' in crypto because I don't take payment to endorse coins.
I followed Buttcoin for a while, I thought it was funny. I tend to think that a lot of these expose writings are going to start flooding in here because its clear that the party is over for good. I've noticed a lot of long time pumper people suddenly want to look like the Ralph Nader of Crypto.
WHAT IS CRYPTO?
You all seem to know the buzzwords- DECENTRALIZATION, GAME THEORETIC, BLOCK CHAIN, SMART CONTRACT etc.
All this stuff is meaningless shit, mostly spouted by 20-somethings with dreams of hitting it big or conference circuit people who've never built a working system in their life. Cryptocurrency has one key feature- ANONYMOUS OWNERSHIP. Mostly treatment of the subject glosses over this aspect and doesn't cover its implications. These technologies allow for people to own and issue something akin to a money note without any legal identification. There are ways to deanonymize crypto accounts in most systems but for the most part, anonymity is strong enough for many uses. Some newer crypto make other features like 'smart contracts', which partly are relevant ideas but partly marketing nonsense. There is NOTHING offered in crypto that is intrinsically new, they take existing financial ideas and allow for anonymity on top of that. Often times they make claims to having some unique quality because part of the program is looking like something OTHER than a money laundering system. So when Ethereum talks about 'Smart Contracts'- they don't do anything regular contracts cant do, actually they are laughably inadequate if you can even accept it's a working concept at all. What they do allow is to execute them ANONYMOUSLY.
WHY IS ANONYMITY IMPORTANT?
Anon is the key thing really. Its how they play the whole game. They generate these tokens, pretend as though they are distributed through the community, manipulate and fake prices with one hand, and then dump with the other hand behind their back. For most here, this isn't new, they know all about it. Most of these coins have sophisticated marketing wings that dominate twitter, reddit, forums, you name it[1]. They are extremely effective at creating the illusion that there are entire communities of people interested in these technologies. One reason why these operations are so potent and successful is because of the crypto itself. They use the crypto to fund the marketing, which pumps the coin, in turn enriches the coin owners, they dump it and repeat the process many times. People have been caught marketing logins on bitcointalk, reddit, you name it- everything is up for sale, and thats the info and 'news' the average person soaks up into their brain, which in turn shapes their judgement and results in adoption, purchase, etc. All these aspects are extensively metered and optimized. Here on Buttcoin they point out daily the shoddy and retarded marketing efforts of low rate agents who laughably screw up their pathetic jobs. It is funny as hell but it is not cure for the disease.
Buttcoin is great because its a group of people who caught on as to how ridiculous all this is. And they're 100% right. This action of crypto-issuance to PR budgets is so effective it bends reality itself, that is until it no longer resembles anything you or I consider to be realistic. Of course Social Media Marketing has been around for a while. Of course Ponzi Schemes and penny stocks have been around for a while, but when you add those two together and streamline it you get something extremely potent. Most people are caught off guard. It works. Bitcoin has absolutely ZERO use value, however people buy it, people believe, people hodl, and people invest(and notably rarely ever USE the coins for anything). Of course this has been in the process of breakdown for some time. You'll notice that a coin's level of appeal to a group is directly proportional to their tendency to use and value social media.
The sheer potency of these ponzi schemes is why they need to be banned.
AND?????
Well this stuff gets dangerous and I want to tell you why. There is no law in crypto. It seems like a fun thing that payments are invisible and anonymous, until someone pays someone else to kill someone, to write slander about someone, to harass someone, all these things have happened in crypto. There are entire pump and dump magazines online whose entire staff is imbursed in crypto coins and they have zero real legal presence(Cointelegraph). The technology is fueling this activity, making it accessible, and even generating an ethos that validates it in the eyes of society. One need not go far to see writings on the glory of Ross Ulbricht and his "risk preventing" billion dollar online drug and weapons market. This absurd viewpoint, which is miles away from the judicial ruling, actually appears to be pervasive and dominant in this topsy turvy media enterprise run by the crypto-whales of Bitcoin. I've even heard younger impressionable people reiterate these views.
The information media for crypto is a utter circus because there are no limiters. In THE REAL WORLD there are quite a number of rules regarding disclosure and 'financial advice', as well as a very sophisticated licensing system, why? because these aspects to market information can be exploited in such a way that it actually destroys the market itself and has a number of other negative collateral effects. This is a well recognized fact that we've known for a long time. You'll notice that most crypto people dont have a background in finance. If they did they would know how ridiculous and broken the world of crypto actually is. Some of these minor players believe they are quite clever for creating blogs and shows about various crypto- taking payments from the issuers in return for favorable reviews, and churning out a seemingly endless stream of blurbs about these totally pointless cryptocoins. From their perspective they're doing nothing wrong, but they fail to see the forest for the trees. Of course a little white lie here and a little sock puppet post there is ok, a man's gotta make a living, right? Ultimately the money in crypto has to come from somewhere, and that somewhere are the clueless suckers who can't discern a cryptocurrency from something that actually has value. Without a steady stream of these people, the crypto world will die. It is the governments responsibility to protect these consumers and innocent bystanders. There are also a significant portion of users who REQUIRE this feature of anonymity ie. CRIMINALS, who make up the Cryptocurrency user base. The coin marketers invariably suppress the visibility of this group. There is a whole spectrum of criminal activity in which Cryptocurrency is instrumental.
The scene is just getting worse. I think were on the cusp of the Feds really cracking down and making it mostly illegal to do the things we see in crypto every day, because they are a hazard to a safe and stable life. Crypto is quickly converting our nice 1st world civilization into something like Colombia. Actually some major names in Bitcoin seem to prefer these locales over 1st world nations like the USA. I think the Garza thing is just the beginning. The SEC and Fincen have limited budgets so they are choosy with who they go after. Word of advice: don't stick your head out, ideally don't even hang around these projects. Dont use crypto, don't buy it, don't trade in it. Just being around them is a hazard. Believe me, I know.
I support the total outlaw of cryptocurrency. This technology has not improved commerce, society, or technological progress. It has caused crime, social pathology, and has cost everyone far more than anything it has ever claimed to benefit society. It is a MENACE. The Feds should treat it as such. My thoughts are that Crypto should be criminalized as far as is possible, to drive out normal law abiding citizens and put a stigma on it's use. This is the only path I see that might counteract the problems that this technology has caused us all. By simply classifying a cryptocoin as a security- which it is, then probably the vast bulk of the problems would be mitigated.
Thanks and have a great day!
[1] you'll notice that they stay off Facebook and Google because FB has extensive tracking technology, and the feds could identify and locate them very easily.
submitted by BLUEMEANIE4 to Buttcoin [link] [comments]

Monero. Overview

Monero. Overview

https://preview.redd.it/bcgzjh51cpi11.png?width=720&format=png&auto=webp&s=0a5995c852e67caccecdb138b1b475e84d8fab8d
Cryptoindex is a tool for exposure to the cryptomarket and serves as a smart benchmark for all cryptocurrencies. The AI-based Cryptoindex algorithm is continuously analyzing more than 1000 coins applying over 170 factors, processing more than 1 million signals per second to provide a highly sophisticated index of the top 100 coins.
You can find our previous reviews here:
Dash. Review - August 2018. Binance Coin. Review IOTA. Review. August - 2018 NEM.Overview Ethereum Classic.Review TRON overview. Cardano - review. Future plans. Ripple - review. Further Perspectives Litecoin. June'18 overview The Dow Jones index. From where did it come to us? Bitcoin Cash. June 2018 overview Are cryptocurrency indices a new crypto market trend? EOS. End of May'18 overview Ethereum. May 2018 overview
Here on our Cryptoindex blog, we will be posting 100 articles about each of the top performing coins selected by our powerful AI algorithm#CIX100coinreview.
Today’s review: Monero
What is Monero?
This name cryptocurrency has received from the word "coin" in the language of Esperanto. Cryptocurrency appeared on April 18, 2014, as Bytecoin fork (not Bitcoin). The release of the coin caused increased interest from the crypto community after announcing by the developers the Roadmap and the Whitepaper. The essence of the project was to make the cryptocurrency anonymous.
But on the other hand, the creation of such cryptocurrency attracted the attention of law enforcement agencies, including Europol. As an argument that was brought to the attention of developers, it was that Monero could become a good means of payment on the black market for drugs trade.
The FBI also speaks with the same statement, pointing out that Monero is in the TOP of the crypto-currency on the black market:
  1. Bitcoin
  2. Litecoin
  3. Monero.
The level of Monero anonymity is sometimes questioned, in particular, Edward Snowden called it "amateur cryptocurrency."
At the time of writing, Monero is ranked 11th by the capitalization in Coinmarketcap.com
How does it work?
Monero is mostly an open source software that uses the principle of proof-of-work. But unlike Bitcoin, Monero emission is not limited. That's why the developers did it so that the miners would ensure the system's operation even after the emission was completed.

https://i.redd.it/nzcpy6u3cpi11.gif
The developers of Monero have made a lot of efforts to make their cryptocurrency secure. To achieve a high result, special measures were taken:
  • Use of "Annular signatures". This technology allows you to "shuffle" all the public keys, thus eliminating the possibility of identifying any of the participants in the system.
  • Monero uses a unique protocol that creates one-time addresses. This allows you to hide information about the payee, the balance of his account and so on.
  • Protection against hacking. Cryptographic algorithms ensure the security of electronic cash stored in user wallets.
Due to CryptoNote and the obfuscation added to the protocol, passive mixing is provided: all transactions in the system are anonymous, and all participants in the system can use plausible negation in the event if they are being captured.
Dirty Monero?
Among the miners, it’s in high demand, due to anonymity for mining on other people's computers and servers. Recently, there have been more cases when Monero was noticed in the code of many viruses. The power of many computers around the world is used to extract this particular cryptocurrency, in particular, this happened last year in London, where scammers used the hacked government servers for mining.
Also Monero, right along with Bitcoin, Zcash and Dash is the most used cryptocurrency in Darknet. A particularly favored method of money laundering is the so-called "mixer". The principle of its work is that the money received illegally is sent to the exchange where Bitcoin coins are purchased, for which the Monero tokens are then purchased and then the attacker can safely transfer to any stock exchange, to a pre-established account and receive money in any form convenient for him.
Advantages of Monero
  • Absolute decentralization. Without any control, including financial organizations (banks and etc);
  • The anonymity of transactions;
  • Constant growth and trust;
  • The presence of his own personal wallet.
Disadvantages of Monero
  • The size of one transaction in Monero is more significant than in Bitcoin;
  • The anonymity of transactions began to challenge experts working on the development of other cryptocurrencies.
Conclusion
Now the developers are actively working to promote the currency. Given the high anonymity and growth in demand, success is entirely assured. The anonymity of Monero transactions is not absolute. If the attacker controls a large part of the network, then under certain circumstances, he can deanonymize some of the transactions.
At the time this article was published, Monero [XMR] is 0.812% of the total of CryptoIndex portfolio. You can always check the current CIX100 composition at our MVP platform: http://cryptoindex.ai/
Stay updated on our channels: Follow CRYPTOINDEX on Telegram Follow CRYPTOINDEX on Medium Follow CRYPTOINDEX on Twitter Follow CRYPTOINDEX on Facebook Follow CRYPTOINDEX on Linkedin Follow CRYPTOINDEX on Reddit
https://preview.redd.it/zz0qunsbcpi11.png?width=757&format=png&auto=webp&s=63687e4c6d097b241a2c647fe03945b3d07d2047
submitted by kkkc to CryptoIndex_io [link] [comments]

Unmasking anonymity

Every cryptocurrency owner should be aware that there is the possibility their identity and activity once considered perfectly secure may be revealed/ de-anonymized at some point.
Since decentralized Bitcoin cryptocurrency came into existence in 2008, people have been hoping that fast convenient and anonymous money not controlled by anyone would be used. Indeed, promising revolutionary ideas and technical solutions at the time were embedded in the Bitcoin concept. Today Bitcoin is the most popular cryptocurrency throughout the world. It carries a reputation for allowing users to operate in the shadows, but is Bitcoin completely anonymous? Almost a decade after its introduction, no additional anonymity mechanisms were implemented in Bitcoin.
The most important anonymity principle of cryptocurrencies is not only impersonality of a cryptocurrency wallet but also an impossibility of tracking connections via blockchain.Bitcoin, unlike a common bank account, provides its users with an opportunity to become a system member and manage financial resources regardless of anyone. An impossibility of blocking or confiscation of funds from an owner's wallet is a crucial advantage of decentralized cryptocurrencies.
However, the anonymity provided by Bitcoin is rather vulnerable. As well as the majority of well-known cryptocurrencies it is tied to distributed blockchain technology, which records every transaction and traces them back to their origin.
In other words, a privacy form which today is offered by Bitcoin, is confined to pseudo-anonymity: an individual is represented by an alias in a blockchain. Anyone can create a new and completely random Bitcoin address at any time, without the need to submit any personal information to anyone. However, this does not guarantee that connections cannot be revealed. When any payment is executed, its amount, remaining credits and all the previous and following transactions of the participants become available to everyone. Until the link between an analyzed address and a real identity is established, this information is abstract. But once an interaction with real world takes place (for example, IP-address, stock account, delivery address, etc. is identified), transaction history of a particular person can be definitely tracked. Moreover, there are other methods used for deanonymization, namely taint analysis, cluster analysis and volume analysis.
Therefore, the problem that every Bitcoin owner faces is that this cryptocurrency, as well as many others, is pseudo-anonymous rather than anonymous and lacks privacy. If you are interested, please stay tuned and in the next posts we'll discuss defenses against deanonymization attacks.
Jambler.io - Bitcoin's anonymity is our business
submitted by Jambler_io to u/Jambler_io [link] [comments]

Half of all Tor sites compromised, Freedom Hosting founder arrested [X-post from /r/technology]

(Copying text in case the original link goes down. NOTE: I'm not the original submitter, I just copied/pasted here)
BREAKING: HALF OF TOR SITES COMPROMISED, INCLUDING TORMAIL
The founder of Freedom Hosting has been arrested in Ireland and is awaiting extradition to USA.
In a crackdown that FBI claims to be about hunting down pedophiles, half of the onion sites in the TOR network has been compromised, including the e-mail counterpart of TOR deep web, TORmail.
http://www.independent.ie/irish-news/courts/fbi-bids-to-extradite-largest-childporn-dealer-on-planet-29469402.html
This is undoubtedly a big blow to the TOR community, Crypto Anarchists, and more generally, to Internet anonymity. All of this happening during DEFCON.
If you happen to use and account name and or password combinations that you have re used in the TOR deep web, change them NOW.
Eric Eoin Marques who was arrested runs a company called Host Ultra Limited.
http://www.solocheck.ie/Irish-Company/Host-Ultra-Limited-399806 http://www.hostultra.com/
He has an account at WebHosting Talk forums.
http://www.webhostingtalk.com/showthread.php?t=157698
A few days ago there were mass outages of Tor hidden services that predominantly effected Freedom Hosting websites.
http://postimg.org/image/ltj1j1j6v/
"Down for Maintenance Sorry, This server is currently offline for maintenance. Please try again in a few hours."
If you saw this while browsing Tor you went to an onion hosted by Freedom Hosting. The javascript exploit was injected into your browser if you had javascript enabled.
What the exploit does:
The JavaScript zero-day exploit that creates a unique cookie and sends a request to a random server that basically fingerprints your browser in some way, which is probably then correlated somewhere else since the cookie doesn't get deleted. Presumably it reports the victim's IP back to the FBI.
An iframe is injected into FH-hosted sites:
TOFREEDOM HOST COMPORMISED By: a guest on Aug 3rd, 2013 http://pastebin.com/pmGEj9bV
Which leads to this obfuscated code:
Javascript Mozilla Pastebin Posted by Anonymous on Sun 4th Aug 02:52 http://pastebin.mozilla.org/2776374
FH STILL COMPROMISED By: a guest on Aug 3rd, 2013 http://pastebin.com/K61QZpzb
FBI Hidden Service in connection with the JavaScript exploit: 7ydnpplko5lbgfx5
Who's affected Time scales:
Anyone who accessed an FH site in the past two days with JavaScript enabled. Eric Eoin Marques was arrested on Sunday so that's the earliest possible date.
"In this paper we expose flaws both in the design and implementation of Tor’s hidden services that allow an attacker to measure the popularity of arbitrary hidden services, take down hidden services and deanonymize hidden services Trawling for Tor Hidden Services: Detection, Measurement, Deanonymization"
http://www.ieee-security.org/TC/SP2013/papers/4977a080.pdf
The FBI Ran a Child Porn Site for Two Whole Weeks http://gizmodo.com/why-the-fbi-ran-a-child-porn-site-for-two-whole-weeks-510247728
http://postimg.org/image/o4qaep8pz/
On any other day one would say these sick perverts got what they deserved. Unfortunately the Feds are stepping far beyond just pedophiles in this latest issue.
The js inserted at Freedom Hosting? Nothing really, just an iframe inject script with a UUID embedded server-side.
The iframe then delivers an exploit kit that appears to be a JavaScript 0day leading to...something. It only attempts to exploit Firefox (17 and up) on Windows NT. There's definitely some heap spraying and some possible shell code. The suspect shell code block contains some strings that look to formulate an HTTP request, but I haven't been able to collect the final payload yet. The shell code also contains the UUID with which the exploit was delivered. Any UUID will work to get this part of the exploit.
I'm still pulling this little bundle of malware apart. So far, I've got that the attack is split across three separate files, each loaded into an iframe. Calls are made between the frames to further obfuscate the control flow. The 'content_2.html' and 'content_3.html' files are only served up if the request "looks like" Firefox and has a correct Referer header. The 'content_2.html' is loaded from the main exploit iframe and in turn loads 'content_3.html'.
Short version. Preliminary analysis: This little thing probably CAN reach out without going through Tor. It appears to be exploiting the JavaScript runtime in Firefox to download something.
UPDATE: The exploit only affects Firefox 17 and involves several JS heap-sprays. Note that the current Extended Support Release is Firefox 17, so this may also affect some large organizations using Firefox ESR.
http://pastebin.mozilla.org/2777139
The script will only attempt the exploit on Firefox 17, so I'm no longer worried about it being some new 0day. Enough of the "Critical" MFSAs are for various sorts of memory corruption that I don't have the time to find out if this is actually a new exploit or something seen before.
http://postimg.org/image/mb66vvjsh/
Logical outcomes from this?
  1. FBI/NSA just shut down the #1 biggest hosting site and #1 most wanted person on Tor
  2. Silkroad is next on their list, being the #2 most wanted (#1 was Child Porn, #2 is drugs)
  3. Bitcoin and all crypto currenecies set to absolutely CRASH as a result since the feds can not completely control this currency as they please.
I don't always call the Feds agenda transparent, but when i do, I say they can be trying harder.
http://tl.gd/n_1rlo0uu
EDIT: Link to thread in technology, the discussion is pretty heated in there.
Interesting comment by FFandMMFan:
Edit: It's also about crashing Bitcoin. The government and banks are terrified of a currency that they cannot control. They want it dead, and they want it dead NOW.
EDIT 2: The TOR Project has posted an official statement about the takedown. (discussion)
submitted by otakuman to Cyberpunk [link] [comments]

[ANN] Mixtum.io - because your privacy really matters! New Bitcoin Mixer is launched.

Today on August 27, 2018 - we are pleased to announce the launch of MixTum.io - a Bitcoin mixer, which really allows you to protect your privacy.
It is a brand new project, but it's based on proven technologies. We use ‘Bitcoin Mixer 2.0’ algorithm to shuffle bitcoins. Unlike most classical mixers we don't mix your BTC's with others (cryptocurrency from other users) in the same pot. Moreover, we even do not use two or more pots for that. MixTum.io works in a different way and eliminates the risk of shuffling your bitcoins with some which might be of a questionable origin. And this makes our approach special. To put it simple, we exchange your bitcoins with those which we purchase from cryptocurrency stock exchanges, verify them with scoring system, and by means of innovative algorithms we outwit most of well known deanonymization technologies, like blockchain volume analysis, cluster analysis, taint analysis, etc. As a result, your privacy is at no risk, because you receive your bitcoins in various independent parts at random time intervals and to,if needed, at the different addresses and, so they have no connection to you.All this makes our approach totally different.
As it is common to the cryptocurrency market we offer both Clearnet and Tor versions. We require no registration and we store no logs. All the transactions are digitally signed with letters of guarantee. You can always check them with a PGP fingerprint published on MixTum.io. Our tech support is 24/7.
---MixTum.io - Because your privacy really matters!
Clearnet: https://mixtum.io/E-mail: [mixtum_[email protected]](mailto:[email protected])
submitted by MixTum_Bitcoin_Mixer to u/MixTum_Bitcoin_Mixer [link] [comments]

05-02 20:44 - 'r/Bitcoin recap - April 2018' (self.Bitcoin) by /u/SamWouters removed from /r/Bitcoin within 1923-1933min

'''
Hi Bitcoiners!
I’m back with the sixteenth monthly Bitcoin news recap.
It's easy for news and developments to get drowned out by price talk, so each day I pick out the most popularelevant/interesting stories in Bitcoin and save them. At the end of the month I release them in one batch, to give you a quick (but not necessarily the best) overview of what happened in Bitcoin over the past month. Lots of gems this time around!
You can see recaps of the previous months on [Bitcoinsnippets.com]1
A recap of Bitcoin in April 2018
'''
Bitcoin recap - April 2018
Go1dfish undelete link
unreddit undelete link
Author: SamWouters
1: bit*o*nsni**ets*com 2: https://www.reddit.com/Bitcoin/comments/88mxv4/april_fools_the_dip_was_just_one_big_joke_the/ 3: https://www.reddit.com/Bitcoin/comments/88ygka/created_bip39_wordlist_on_one_sheet_of_paper_have/ 4: https://www.reddit.com/Bitcoin/comments/899zsm/lnd_41_released/ 5: https://www.reddit.com/Bitcoin/comments/89o16y/im_mark_karpel%C3%A8s_exceo_of_bankrupt_mtgox_ask_me/ 6: https://www.reddit.com/Bitcoin/comments/89rrw4/eclair_wallet_released_for_main_net/ 7: https://www.reddit.com/Bitcoin/comments/89xoji/satoshi_chose_todays_date_as_his_birthday_on_this/ 8: https://www.reddit.com/Bitcoin/comments/8a9fop/meanwhile_electrum_is_silently_working_on_adding/ 9: https://www.reddit.com/Bitcoin/comments/8aaenc/nick_szabo_defined_the_basic_concepts_of/ 10: https://www.reddit.com/Bitcoin/comments/8a5aez/sec_quietly_puts_bitcoin_etf_proposals_back_on/ 11: https://www.reddit.com/Bitcoin/comments/8abc7d/elizabeth_stark_ceo_of_lightning_labs_on_yahoo/ 12: https://www.reddit.com/Bitcoin/comments/8afz22/bitcoin/ 13: https://www.reddit.com/Bitcoin/comments/8aojsg/twitter_finally_suspended_the_compromised_bitcoin/ 14: https://www.reddit.com/Bitcoin/comments/8b7avc/canadian_banks_ban_cryptocurrency_buys_canadians/ 15: https://www.reddit.com/Bitcoin/comments/8axhii/someone_just_tipped_me_000000000001_btc_using_ln/ 16: https://www.reddit.com/Bitcoin/comments/8b6884/is_this_community_too_pro_bitcoin/ 17: https://www.reddit.com/Bitcoin/comments/8b7avc/canadian_banks_ban_cryptocurrency_buys_canadians/ 18: https://www.reddit.com/Bitcoin/comments/8bfbte/bitmex_research_complete_guide_to_proof_of_stake/ 19: https://www.reddit.com/Bitcoin/comments/8bgjbv/interesting_detail_worlds_most_efficient_bitcoin/ 20: https://www.reddit.com/Bitcoin/comments/8bqb8d/we_just_witnessed_the_biggest_1hr_volume_in_the/ 21: https://www.reddit.com/Bitcoin/comments/8c21mo/we_made_bulletproofs_twice_as_fast_with_rust_and/ 22: https://www.reddit.com/Bitcoin/comments/8bz8fs/update_hi_rbitcoin_i_quit_my_job_to_start/ 23: https://www.reddit.com/Bitcoin/comments/8bz8hj/yahoo_japan_is_buying_40_stake_in_cryptocurrency/ 24: https://www.reddit.com/Bitcoin/comments/8c4gux/bitcoin_market_opens_to_16_billion_muslims_as/ 25: https://www.reddit.com/Bitcoin/comments/8cd0yv/rbitcoin_just_reached_800000_subscribers/ 26: https://www.reddit.com/Bitcoin/comments/8cnul8/why_the_whole_banking_system_is_a_scam/ 27: https://www.reddit.com/Bitcoin/comments/8coq3w/breaking_coinbase_just_bought_one_of_bitcoins/ 28: https://www.reddit.com/Bitcoin/comments/8cvzny/imf_director_lagarde_bitcoin_could_make_global/ 29: https://www.reddit.com/Bitcoin/comments/8cuj28/lightning_nfc_the_new_plan_to_bring_bitcoin_to/ 30: https://www.reddit.com/Bitcoin/comments/8d0ra0/ladies_and_gentlemen_i_present_to_you_the/ 31: https://www.reddit.com/Bitcoin/comments/8dc65s/amazon_filed_a_patent_to_deanonymize_bitcoin/ 32: https://www.reddit.com/Bitcoin/comments/8dr4fw/benedikt_b%C3%BCnz_bulletproofs/ 33: https://www.reddit.com/Bitcoin/comments/8dnugw/bitwage_integrates_segwit_looks_forward_to_the/ 34: https://www.reddit.com/Bitcoin/comments/8dxj7z/ln_is_getting_stable_eclair_works_much_bette 35: https://www.reddit.com/Bitcoin/comments/8dub5c/video_a_deep_dive_into_lit_a_lightning_network/ 36: https://www.reddit.com/Bitcoin/comments/8e4qzz/indian_high_court_set_to_overrule_central_bank_of/ 37: https://www.reddit.com/Bitcoin/comments/8ebjjm/bitcoin_lightning_network_matures_with_record/ 38: https://www.reddit.com/Bitcoin/comments/8ebso1/til_ken_sheriff_has_not_only_shown_how_to_mine/ 39: https://www.reddit.com/Bitcoin/comments/8ecrvs/you_can_buy_reddit_gold_with_bitcoin_again/ 40: https://www.reddit.com/Bitcoin/comments/8dxnc4/exploring_the_lightning_network_daemon_lnd_04/ 41: https://www.reddit.com/Bitcoin/comments/8etnqu/nasdaq_is_open_to_becoming_cryptocurrency/ 42: https://www.reddit.com/Bitcoin/comments/8erolf/wikipedias_bitcoin_page_removed_the_bitcoin_dot/ 43: https://www.reddit.com/Bitcoin/comments/8f1u7h/17000000_bitcoins_have_been_mined_4_millions_to/ 44: https://www.reddit.com/Bitcoin/comments/8f1eqf/the_ultimate_guide_to_btcpay_the_free_and/ 45: https://www.reddit.com/Bitcoin/comments/8fc4ec/600_bitcoin_users_seek_lawsuit_against_bitcoincom/ 46: https://www.reddit.com/Bitcoin/comments/8fk49h/bitcoin_was_the_9th_most_read_article_on/ 47: https://www.reddit.com/Bitcoin/comments/8fixff/france_slashes_tax_rate_on_cryptocurrency_sales/ 48: https://www.reddit.com/Bitcoin/comments/8fqe5w/the_government_of_the_philippines_has_announced/ 49: https://www.reddit.com/Bitcoin/comments/8g17vs/eltoo_a_simplified_update_mechanism_for_lightning/ 50: https://www.reddit.com/Bitcoin/comments/8fzhim/beginners_guide_to_lightning_on_a_raspberry_pi/
Unknown links are censored to prevent spreading illicit content.
submitted by removalbot to removalbot [link] [comments]

Basics of Cluster Analysis

Technology serves a purpose. The reasons someone craves privacy vary greatly. Some people believe that one should only be identified when and if they choose to be. Other people may not want somebody to know how much money they hold. Some may be hiding their funds from a corrupt third party. The appearance of cryptocurrencies enabled people to become part of the global economy and no border, bank or political power can deny them their right to save, send and receive money worldwide whenever they desire to. However, due to this situation, some concerned persons have found themselves at a disadvantage and deanonymization technologies have been starting intensively to progress.
In January 2018, the Bitfury Group introduced a system enabling the analysis of the Bitcoin blockchain, compilation of clusters of wallets owned by one user and comparison of them with public information in the Internet when available. Given the right circumstances, the last point can reveal not only the interconnection of certain wallets but also the ownership of a particular person. This technology minimizes a number of errors during data clusterization. Actually, it means if not particularly elimination of Bitcoin anonymity, then at least its considerable decrease.
Fortunately, there are some basic methods to increase privacy on the Bitcoin network available right now. One such a straightforward solution is using TOR or other methods to hide IP addresses. Another basic solution to increase privacy is creating a new wallet for each transaction. A slightly more advanced method to gain privacy is the use of mixers. Be careful when using classic mixers, as their addresses can be deanonymized by means of cluster analysis. To ensure your activity stays untraceable a great deal of work needs to be done. Nevertheless, Bitcoin users are able to enjoy a certain level of privacy, depending on how much of their identity they reveal, which of the anonymizing techniques they apply, how many, and how often. Jambler.io - Bitcoin's anonymity is our business
submitted by Jambler_io to u/Jambler_io [link] [comments]

[uncensored-r/Bitcoin] Deanonymization Risks on Lightning Network

The following post by tripledogdareya is being replicated because some comments within the post(but not the post itself) have been silently removed.
The original post can be found(in censored form) at this link:
np.reddit.com/ Bitcoin/comments/7t1q5x
The original post's content was as follows:
A few days ago I posted about how the differences betweenTor and Lightning Network topologies might undermine the privacy that users are able to achieve with the Lightning implemenation of onion routing. Despite many disparaging remarks about my intentions, both Adam Back (u/adam3us) and Rusty Russell (u/rustyreddit) have replied and indicated that there is at least some validity to the concerns raised. Additional discussion of this topic in various comment threads has inevitably led to questions about what is at risk and what users can to do minimize those risks. I’ve had time to formulate the beginnings of a response to the former, which is a necessary precursor to eventually answering the latter. It may not be very satisfying to get the answers in this order, but it is the natural result of posting this work as it evolves. So let’s get right down to it and explore some of the risk areas I’ve been able to identify for Lightning Network operators.
Lightning Network results in many opportunities for an analyst to correlate data across several domains and tie them back to a single pseudonym. Let’s call this single identity the operator’s nym. For purposes of this post, the nym represents the complete anonymous persona of its associated operator - every Lightning operator has only one nym. An analyst may end up identifying multiple sub-nyms until they’re able to link them to a single operator.
The primary sub-nym on Lightning Network is the node. Nodes have many properties which can uniquely identify them over time and space. This is necessary to ensure you're transacting with whom you intend, even if you don't know their real identity. Long-term node identities are also a requirement for payment channels. Because these properties cover different domains but all link back to the same node identity, deanonymization in one domain affects activity across all domains that can be associated with the node. These properties can also be leveraged by an analyst to associate sub-nyms with their operator’s nym.
So what makes up a node identity?
  • Node ID
  • IP addresses
  • Node customizations
  • Channels
  • On-chain transactions
  • Lightning Transactions
Node ID. The most obvious identifier for a node is its node_id, the public key the node uses when signing messages on the network. A node’s node_id is known by all of its peers. It is not necessary for a transaction sender to expose their node_id, however, the sender must know the receiver’s. A node desiring to service third-party transactions must broadcast channel_announcement messages for the channels which can be used for routing, which exposes the node_id to the whole network.
IP addresses. While the node_id is certainly the strongest node identifier, it is not the only property that could identify a node or link multiple nodes to a nym. Lightning transactions are active, requiring bi-directional communication to complete. To communicate with peers on the internet, nodes require an IP address. At a minimum, this IP address is known to a node’s peers and, if the operator wants to invite other nodes to open channels, it may be broadcast to the network in node_announcement messages. Although IP addresses do not prove who is behind them, they can provide a lot of information about the operator’s identity and link multiple nodes to a single nym. Connecting to Lightning over anonymizing solutions such as VPNs and Tor can assist in disassociating the IP addresses from the operator, but also introduce new correlation data for observers of those domains.
Node customizations. The node_announcement messages carry some customizable fields (alias, rgb_color, features) which are not unique, but could still serve to fingerprint nodes if an operator regularly uses a unique or identifiable combination.
Channels. Nodes can be uniquely identified by their set of channels. Channels which are open at the same time are obvious correlation points; less obvious is the fact that channel relationships are transitive. For instance, if a node initially opens chA and chB, an analyst can easily identified them as belonging to the same node. chA isn’t very reliable so the operator closes that channel and some time later opens chC. The analyst, who has been observing the network, can now associate chC with chA through their shared concurrent channel, chB. If the operator then closes chB and later opens chD, the analyst can link all four channels to the single node thanks to this transitive nature, even though chA and chD were never open at the same time nor share any concurrent channels.
On-chain transactions. Each channel a node participates in will have several addresses which may associate back to the operator’s nym. Inputs to the funding transaction and outputs from the commitment transaction are implicitly transitive; there can be some doubt as to the ownership of an output, but there is a known relationship. An analyst monitoring the blockchain activities of a node may be able to use the inputs and outputs to reliably associate channels opened using the proceeds from previously closed channels, even when the channels are associated with different nodes. This is another way in which an analyst might link multiple sub-nyms to a single nym.
Lightning Transactions. A major trade-off that operators make by transacting over Lightning Network instead of on-chain is that of transaction privacy. In exchange for the promise of keeping their transactions off of the blockchain, Lightning imposes higher risk of transaction correlation. If the privacy guarantees that Lightning provides are breached, deanonymizing the sending and receiving nodes, all exposed transactions can be used by an analyst in an attempt to correlate them to a single nym or operator.
submitted by censorship_notifier to noncensored_bitcoin [link] [comments]

Deanonymization of Cryptocurrency Transactions (Biryukov, Tikhomirov) @ EuroS&P 2019 Lecture 6 — Bitcoin and Anonymity COMO GANHAR DINHEIRO E SKINS DE GRAÇA!!! BITCOINS!!! Report Links 74% of Bitcoin Mining to China, Sees Threat ... Anonymity in the Bitcoin Peer-to-Peer Network by Giulia Fanti [PWLConf 2019]

Keywords: deanonymization, cryptocurrency, bitcoin. Discover the world's research. 17+ million members; 135+ million publications; 700k+ research projects; Join for free. Advertisement. Content ... Tor is a P2P network for promoting traffic security of various forms of internet communications for millions of users worldwide. In most cases, Tor users are very unlikely to become the target of an adversary, as they are namely shielded via Tor against opportunistic local hackers, local censorship authorities and hostile destinations. Bitcoin in the News : 2018-07 Price; Google Autocompletes 'Bitcoin Buy' Bitcoin in the News : 2020-08 Price; 28 May 2016. Bitcoin Deanonymization How's it going with that 'online bitcoin course', last mentioned in Going Deeper into Bitcoin (March 2016)? At that time I wrote, It took me exactly a week to work through the first two lectures. I'm sure that I won't be able to maintain this pace ... Occasionally, deanonymization does not require performing sophisticated forms of statistical analysis. For instance, a student in Harvard University was arrested for sending fake bomb threats, via Tor, to get out of an exam! According to FBI data, the emails were sent from an email provided by Guerilla Mail, an email provider that allows users to create temporary emails. Guerilla embeds the IP ... Tornado.cash, an anonymization protocol based on Ethereum, has launched immutable smart contracts on its platform. In a press release published late last week, the protocol explained that it had launched its immutable contracts. Tornado, which ensures that Ethereum users can send money anonymously, explains that the new move will make its protocol unstoppable. The Danger of […]

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Deanonymization of Cryptocurrency Transactions (Biryukov, Tikhomirov) @ EuroS&P 2019

Sixth lecture of the Bitcoin and cryptocurrency technologies online course. For the accompanying textbook, including the free draft version, see: http://bitc... China has banned bitcoin yet it's nation has a high concentration of mining machines. Did this happen by accident? Link to story and other stories mentioned:... CS198.2x Blockchain Technology Week 5 CS198.2x Blockchain Technology is the second course in the Blockchain Fundamentals edX program. Sign up today for free or for a professional certificate with ... Dhaka, Bangladesh -- My dividend discount model has a diagonal spread and it may be time for recapitalization. -- Here are today's MadBits: 1.) Bitcoin Anonymization begins with Bitcoin Mixing ... Recently, researchers have demonstrated deanonymization attacks that exploit weaknesses in the Bitcoin network's peer-to-peer (P2P) networking protocols. In particular, the P2P network currently ...

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