CBP Bitcoin Privacy and Anonymity Techniques 1

Question 1

What is CoinJoin in Bitcoin?

Accepted Answer

A technique that combines multiple users' transactions into one to obscure the transaction graph

Answer

CoinJoin combines multiple users' inputs and outputs into a single transaction, making it difficult to trace which input corresponds to which output.

Question 2

What is a stealth address in Bitcoin?

Accepted Answer

A one-time address derived by the sender for each transaction, unlinkable to the recipient's public identity

Answer

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.

Question 3

Why is Bitcoin address reuse harmful to privacy?

Accepted Answer

It links multiple transactions to the same entity, enabling transaction graph analysis

Answer

Reusing a Bitcoin address makes it easy for blockchain analysts to link all incoming and outgoing transactions to the same entity, significantly reducing privacy.

Question 4

What is the primary privacy implication of Bitcoin's UTXO model?

Accepted Answer

Every unspent output is publicly traceable on the blockchain, enabling analysis of fund flows

Answer

Since every UTXO and its history is permanently recorded on the public blockchain, sophisticated chain analysis can track ownership patterns and fund flows.

Question 5

What does BIP47 (Reusable Payment Codes) enable for Bitcoin users?

Accepted Answer

A single static code from which unique one-time addresses are derived for each payment

Answer

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.

(CBP) Certified Bitcoin Professional Practice Test

(CBP) Certified Bitcoin Professional Practice Test

CBP Bitcoin Privacy and Anonymity Techniques 1