CSE1006 Study Guide - Bitcoin

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Document Summary

Mixing can improve anonymity in many contexts by using an intermediary to route your communications (or money). Put the coin into some intermediary, some service. After the insertion, it forgets the sender and treats its entire bitcoin storage as indistinguishable from each other. At the end, it might combine them into a unique transaction or merge them in different ways. When the user comes back to withdraw their bitcoins, they won"t be tied to the coins they put in, they will get their coin from some other randomly picked deposit that the intermediary received. Suppose that somebody is looking at the public information in the blockchain. So, he doesn"t know the operations made by the intermediary. Then, he won"t be able to link the input addresses to the ultimate output addresses corresponding to the same user. Online wallets seem to be suitable as intermediaries.

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