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Bitcoin not so anonymous, Irish researcher says

Jul 29, 2011, 19:01 (1 Talkback[s])
(Other stories by Nathan Witkop)


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"Well, to be fair, originally the system was never described as anonymous, but the developers would say that it's rather pseudo-anonymous. So you use some identifier and that's all that can be traced back to you. There are two things: The first is that the media often say that Bitcoin is anonymous, and I would say that anyone that works in the development of Bitcoin would agree that these reports are wrong.

"The second thing is that Bitcoin has this unusual property that if I receive Bitcoins from two sources, A and B, I can generate one identity to receive the Bitcoins from A and I can generate a second identity to receive the Bitcoins from B and there's no way to link these two identities. However, maybe in a couple months time, I can perform another Bitcoin transaction and where I send these Bitcoins to C. This third transaction can link A and B. So by joining the Bitcoins together in my wallet, A and B, and sending them to C, I've revealed that previously the two identities that I used to receive the money from A and B are controlled by the same person."

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