Their new article on “Privacy” on Bitcoin wiki has accumulated unanimous praises from readers on social media sites such as Twitter and Reddit. The article was written by coder and crypto enthusiast Chris Blecher.
For the last few weeks I’ve been working on a literature review for bitcoin privacy: https://t.co/hmDf0JT8Ky It aims to cover about all privacy issues in bitcoin, including Lightning network, and has a bunch of examples to help demonstrate how the concepts work in practice.
— belcher (@chris_belcher_) February 23, 2019
In the entire article, he tried to maintain an objective perspective.
“As of 2019 most casual enthusiasts of bitcoin believe it is perfectly traceable; this is completely false. Around 2011, most causal enthusiasts believed it is totally private; which is also false.”
He mentions a few things about privacy which the general population tends to miss out. Given below is a tl;dr of the article that the author had suggested.
- Think about what you’re hiding from, what is your threat model and what is your adversary. Note that transaction surveillance companies exist which do large-scale surveillance of the bitcoin ecosystem.
- Do not reuse addresses. Addresses should be shown to one entity to receive money, and never used again after the money is spent from them.
- Try to reveal as little information as possible about yourself when transacting, for example, avoid AML/KYC checks and be careful when giving your real life mail address.
- Use a wallet backed by your own full node or client-side block filtering, definitely not a web wallet.
- Broadcast on-chain transactions over Tor, if your wallet doesn’t support it then copy-paste the transaction hex data into a web broadcasting form over Tor browser.
- Use Lightning Network as much as possible.
- If lightning is unavailable, use a wallet which correctly implements CoinJoin.
- Try to avoid creating change addresses, for example when funding a lightning channel spend an entire UTXO into it without any change (assuming the amount is not too large to be safe).
- If digital forensics is a concern then use a solution like Tails Operating System.
If you want to read the rest of the 21,000-word article, you can do so here.