Bitcoin privacy problem

in blurtech •  2 years ago 

Harry Potter privacy blockchain Mimblewimble is a privacy-based protocol that protects both the sender and the receiver address from public access the likes of Monera which is a popular privacy blockchain has been a top leading blockchain with a market capitalization of over $2.8 billion leads the go option for privacy protection in the crypto industry has been a prime mover protecting users online transactions, protecting users data (transaction) is one of the core aims in which bitcoin was introduced little did users know with more innovation these bitcoin transactions will become accessible for some organization chainalysis Is one of the leading blockchain institutions that build tools for governments and alternate financial institutions to monitor cryptocurrencies transactions these tools have rendered most large Bitcoin-based transactions to be traceable/monitors countering the idea of privacy upon which blockchain is built on.

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Bitcoin may be pseudonymous—no one’s identity is recorded on the blockchain—but every single transaction is.
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Centralized exchange needs users' identity (KYC) for registration, every single transaction carried out by traders/investors can be closely monitored on these exchanges, and it makes it easy for security agencies to monitor users interacting with dark web or any Illegal online activities can be easily track, thanks to on-ramp cryptocurrency exchanges that requires one's identity which can be easily matched with users identity this makes bitcoin transaction easily traceable.

When privacy is breached users' data are at stake if it falls on the wrong side this has prompted bitcoin developers to closely work behind the scenes to tackle such privacy problems.

Wallets

CoinJoin is a technology that uses a mixing protocol that obscures bitcoin transaction origin by mixing a collective group of users' transactions making it difficult for transactions to be tracked, Wasabi and Sparrow wallets use mixing protocols technology to improve users' privacy, using this wallet can help improve bitcoin privacy transactions.

Lighting network

Bitcoin layer scaling solution lighting network was introduced to help solve bitcoin's scalability problem and also help keep users' transactions private, it helps reduce congestion on the bitcoin blockchain by grouping transactions temporarily which are later recorded on the blockchain permanently collectively, with lighting network not storing transaction individually but it collectively adding group of transactions which makes it difficult for users transaction to traced makes it a privacy based network.

The use of certain wallets and bitcoin lighting network is a go option for users who want their bitcoin transactions to be anonymous on the bitcoin blockchain privacy is very important in any organization and it's as important when it comes to using cryptocurrency.

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  ·  2 years ago  ·  

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