Bitcoin Silent Payments Secret Keys

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Bitcoin is one of the most pivotal breakthroughs in the entire digital age in terms of transferring value between one person and another. It does not require intermediaries. It is secured by a decentralized quorum of miners and validated by every participant on the network who chooses to in order to guarantee the validity of individual payments. The architecture of the system is designed to allow anyone from anywhere on the planet to receive money from anyone else regardless of where they are. Crowdfunding, charity, funding anything you want becomes instantly possible without needing anyone’s permission, without dealing with any gatekeepers, without any red tape. It’s a brilliant idea in theory, but in reality, it suffers from one massive shortcoming: privacy.

As a push based payment system (no one is allowed to “pull” payments from you, you have to explicitly authorize them yourself and “push” them to other people), Bitcoin requires the sender to have the information necessary to define the destination for money they send. This requires the recipient communicating to the sender their Bitcoin address in one way or another. In the case of trying to raise money from the general public, this has massive consequences in terms of privacy or needing to maintain a constant interactive presence online. Anyone is totally capable of simply posting a single Bitcoin address somewhere online, and from that point, anyone who wishes to send money to that person can simply do so, but there is no privacy in raising money in this way. Simply take that address and look it up on the blockchain, and you cannot only see how much money that person has been sent, but you can see the footprint on the blockchain of everyone who has sent them money. Both the person attempting to raise funds and everyone who has donated to them have no privacy whatsoever; everything is completely open and correlated for the whole world to see.



Source link Bitcoin Magazine

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