Bitcoin Privacy and Anonymity Techniques Flashcards
7 cards from real CBP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Bitcoin Privacy and Anonymity Techniques flashcards as text
What is CoinJoin in Bitcoin?
Answer: A technique that combines multiple users' transactions into one to obscure the transaction graph
CoinJoin combines multiple users' inputs and outputs into a single transaction, making it difficult to trace which input corresponds to which output.
What is a stealth address in Bitcoin?
Answer: A one-time address derived by the sender for each transaction, unlinkable to the recipient's public identity
Stealth addresses allow the sender to derive a unique one-time address for the recipient, so each payment goes to a fresh address that only the recipient can find using their private key.
Why is Bitcoin address reuse harmful to privacy?
Answer: It links multiple transactions to the same entity, enabling transaction graph analysis
Reusing a Bitcoin address makes it easy for blockchain analysts to link all incoming and outgoing transactions to the same entity, significantly reducing privacy.
What is the primary privacy implication of Bitcoin's UTXO model?
Answer: Every unspent output is publicly traceable on the blockchain, enabling analysis of fund flows
Since every UTXO and its history is permanently recorded on the public blockchain, sophisticated chain analysis can track ownership patterns and fund flows.
What does BIP47 (Reusable Payment Codes) enable for Bitcoin users?
Answer: A single static code from which unique one-time addresses are derived for each payment
BIP47 allows a payee to publish a reusable payment code; payers derive a unique address for each transaction from it, preventing address linkage across payments.
What is a Bitcoin mixing service (tumbler)?
Answer: A service that pools Bitcoin from multiple users and returns equivalent amounts to different addresses, breaking the on-chain trail
Tumblers accept Bitcoin from users and return equivalent amounts (minus fees) to new addresses, breaking the on-chain link between the source and destination funds.
How does routing Bitcoin transactions over the Tor network improve privacy?
Answer: It hides the user's IP address when broadcasting transactions, preventing network-level surveillance of transaction origin
When transactions are broadcast over Tor, the user's real IP address is masked, making it harder for network observers to link broadcasted transactions to specific users.