CBP Bitcoin Privacy and Anonymity Techniques 3

Question 1

What is Wasabi Wallet primarily known for in the Bitcoin ecosystem?

Accepted Answer

Implementing a trustless CoinJoin protocol (WabiSabi) that allows non-custodial Bitcoin mixing

Answer

Wasabi Wallet uses the WabiSabi CoinJoin protocol to allow users to mix their Bitcoin in a trustless, non-custodial manner to improve on-chain privacy.

Question 2

What is Silent Payments (BIP352) in Bitcoin?

Accepted Answer

A protocol allowing sending to a static identifier where each payment generates a unique on-chain address without recipient interaction

Answer

Silent Payments let senders compute a unique address from the recipient's static code and the sender's inputs, requiring no interaction and eliminating address reuse.

Question 3

What is an 'anonymity set' in the context of Bitcoin privacy?

Accepted Answer

The number of users or outputs that are indistinguishable from one another after a privacy-enhancing transaction

Answer

A larger anonymity set means there are more plausible owners for a given UTXO after mixing, making it significantly harder for analysts to identify the true owner.

Question 4

Why does running a full Bitcoin node improve privacy compared to using an SPV (lightweight) wallet?

Accepted Answer

A full node downloads all blockchain data locally, so the user never reveals which addresses they monitor to a third-party server

Answer

SPV wallets must query external servers for address balances and history, leaking which addresses belong to the user; a full node validates everything locally without disclosure.

Question 5

What is a 'dust attack' in the context of Bitcoin privacy?

Accepted Answer

Sending tiny Bitcoin amounts to target addresses so that when the dust is spent with other UTXOs, the owner's addresses become linked

Answer

Attackers send tiny 'dust' outputs to target addresses; when the victim later spends them alongside other UTXOs, the attacker can link those UTXOs and deanonymize the wallet.

(CBP) Certified Bitcoin Professional Practice Test

(CBP) Certified Bitcoin Professional Practice Test

CBP Bitcoin Privacy and Anonymity Techniques 3