How can Bitcoin users protect their personal finances?

This phrase is the answer to how Bitcoin users protect their privacy.

Contents

Here is a summary of the processes modern Bitcoin users use to improve the privacy of their transactions:

Do not arbitrarily disclose personal information during purchase.

Do not reuse the address. Once the funds are used, do not use this address again.

Choose to use the Tor network

Choose to use the wallet with the CoinJoin feature

Choose to use Lightning networks in the right scenarios

loss of personal information

The gradual loss of privacy has become incredible. Now the outside environment is harsher than the one above, but how can you protect yourself?

The correct explanation for us is:Confidentiality is our policy. Instead of having to disclose something about ourselves to the public, we can choose to disclose it to anyone or not.

Cypherpunk believes there must be a way to protect your personal encryption technology to keep you safe in the internet age.

Over the years, all needs have been put forward and ideas continue to be put into practice. Using hash algorithms, b-money, RPOW, and more, this team is building a foundation a step further through constant research.Finally, based on the assumptions of one step ago, Satoshi Nakamoto proposed Bitcoin, a joint venture for electronic money users.

Do not present personal information in an arbitrary manner

Bitcoin guarantees human freedom in the financial market primarily for two reasons:

Bitcoin System Freedom

The system works on its own and no one can control them, but anyone can be a member of the network of machines.

Does not match the real me

There is no KYC, so the address doesn't quite match you. The public can see all the information, such as the address of both parties for the exchange and the exchange number, but there is no way to link these exchanges to a specific person.

These two elements make them more anonymous than cash due to the lack of direct contact in the company and the lack of positive attitudes.

However, Bitcoin is realanonymous bitcoinsAnonymity can be accomplished by blocking certain data before the address is actually linked to the identity.

As long as the conversation between Bitcoin and the home address takes a break and finds a way to connect the two, this is the process by which data in the chain actually emerges from the chain. As long as these steps are completed, your trade information will be made public and the channel information will be visible to anyone, but that would be a bad thing.

Therefore, in order to enjoy the personal benefits of Bitcoin, it must be completed in three phases.

Keep your public key anonymous

Protect the IP monitor

Clear market history

Do not reuse the addressPrivacy Now

Satoshi Nakamoto offers the following solutions in his free article: For more privacy, the new address is applicable to all industries.

In the Bitcoin system, multiple addresses can be created and new addresses can be used for any exchange, so even if one of the parties to the previous exchange knows you for the real reality and location of the change, there is no way to find out. the other party. business information.

However, to get the benefits you have to be careful not to participate and distribute the money elsewhere.This extraordinary attitude facilitates careful monitoring, coordination of data exchange and the desired results do not exist.

Non-renewable addresses and new addresses must be used for each change. The first step to achieving privacy is to keep your important citizens anonymous.

Troubleshoot IP Monitor and access the Tor network

The Bitcoin exchange itself does not have an IP address, and the affected data is not stored on the blockchain. In fact, Bitcoin is a social-to-peer network, and data interference can be connected while transmitting data.

The way it works is that when an exchange occurs, one of them broadcasts it and the other receives it and continues to broadcast to other parts of the network as a connection. Although the exchange does not clearly indicate the origin of the base or the relay node of the two nodes, in the process of propagating the transaction, whether the node chooses to monitor to determine the initial IP address of an exchange , and save and store this. IP data, it will also determine the transfer IP address. You have the opportunity to present.IP addresses can often affect the actual address.

Tor encrypts data transfers across multiple layers, rendering user data anonymous and inefficient transmission.Even if the relay node is configured to monitor, you will not know what is going on at both ends, so you can hide the IP address and prevent access to the IP address.

Tor is easier to use.Many Bitcoin wallets use Tor network services as an optional option, and some wallets (such as Wasabi wallets) use a preselected option, which is easier to use.

Use Coinjoin to hide company history and improve privacy

Based on this, you can use Coinjoin to separate exchange ideas and publish them to hide the history of the market.Bitcoin's pseudo-anonymity is that the information exchange records the addresses of the parties to the exchange and the value of the exchange, and all information is public and visible to all. And CoinJoin separates the exchange of ideas and products, making it an impossible medium of communication, recognizing the benefits of anonymous exchanges.

The principle is very simple, for example, if several people create a company at the same time, we save these changes and send them simultaneously to the address.Since there is no contact between the initiator of the exchange and the beneficiary of the exchange, after this unification and this transmission, no one can know where the person in the exchange is located, so bind the 'exchange with the sender. The recipient will be deleted.

At the moment, if you look in your Bitcoin browser, you only see the following information:

As you can see in the picture, it is not at all possible to find the output address that matches the original address.Some wallets and websites offer such financial services, so be careful when using them to select more and larger users.

The chain operation can provide enough privacy after following the above steps, although there is a way to follow, the cost to pay is very high, so I think it should be enough for the user way of Bitcoin. .

Choose to use Lightning networks in the right scenarios

To deleteThere are also private transportation options outside of the Lightning Network. In general, small businesses will use Lightning Network because of its high speed and low cost.

In fact, the Lightning Network also offers privacy preservation.First of all, the operation of the Lightning Network is done by payment, the company is closed to the chain, and this information is not integrated into the blockchain and cannot be seen by anyone. . Second, onion routing can be done over the Lightning network as well, and like the Tor network above, payments are sent in multiple ways and only a fraction of the payment information is transmitted, making it very difficult to process. tracking, so node monitoring is also available. do not know. full details. Therefore, it is recommended that you use the Lightning Network resolution as appropriate.

Defending Bitcoin's privacy requires little effort and no limits, a perfect solution.