Bitcoin is the new money: minted and exchanged on the Internet. Faster and cheaper than a bank, the service is attracting attention from all over the world. But a big question remains: are the transactions really anonymous?
Several research groups worldwide have shown that it is possible to find out which transactions belong together, even if the client uses different pseudonyms. However it was not clear if it is also possible to reveal the IP address behind each transaction. This has changed: researchers have now demonstrated how this is feasible with only a few computers and about €1500.
“It’s hard to predict the future, but some people think that Bitcoin could do to finance what the Internet did to communications,” says Prof. Alex Biryukov, who leads digital currency research at the University. “So I think especially for Luxembourg it is important to watch what happens with Bitcoin.”
The Bitcoin system is not managed by a central authority, but relies on a peer-to-peer network on the Internet. Anyone can join the network as a user or provide computing capacity to process the transactions. In the network, the user’s identity is hidden behind a cryptographic pseudonym, which can be changed as often as is wanted. Transactions are signed with this pseudonym and broadcast to the public network to verify their authenticity and attribute the Bitcoins to the new owner.
In their new study, researchers at the Laboratory of Algorithmics, Cryptology and Security of the University of Luxembourg have shown that Bitcoin does not protect user’s IP address and that it can be linked to the user’s transactions in real-time. To find this out, a hacker would need only a few computers and about €1500 per month for server and traffic costs. Moreover, the popular anonymization network “Tor” can do little to guarantee Bitcoin user’s anonymity, since it can be blocked easily.
The Latest on: Virtual money
via Google News
The Latest on: Virtual money
- Sallie Mae Partners with Her Campus for Nationwide Virtual Graduation Ceremonyon May 13, 2020 at 2:30 am
Graduates from More Than 800 Colleges and Universities Along with Celebrities, Influencers, Leaders, Expected to Attend #ImStillGraduating Ceremony Set for May 15 at 12 p.m. ET Sallie Mae to Award ...
- Ellicott City DJ’s virtual dance parties raise nearly $1 million for first responders amid coronavirus pandemicon May 13, 2020 at 2:03 am
Chris Kopec, known as DJ Kopec, has been hosting virtual dance parties from his Ellicott City basement and streaming them online since the end of March, and has raised nearly $1 million in donations.
- The Wrap: Curbside expansions, virtual tours and lobster lineson May 13, 2020 at 1:48 am
More restaurants and bakeries open for curbside pickup, and a food tour company takes it online. This story and all coronavirus stories are free to the public. Please support us as we do our part to ...
- Univision Sets Table For Virtual Upfront, Touting Strength Of Hispanic Market, Nielsen Studyon May 12, 2020 at 11:42 pm
Univision — which has struggled to sell mainstream marketers on Hispanic media in volumes its execs have long felt it deserved — took another swing Tuesday at explaining why in a ...
- Coronavirus: Cal State University system moves toward virtual learning for Fall 2020on May 12, 2020 at 7:55 pm
The California State University system is among the first and the largest in the nation to make definitive plans for the next academic year. “Anything done on campus this fall won’t be done as it ...
- Rise Up New York telethon: JLo, Billy Joel, Tina Fey, more raise $115M for coronavirus reliefon May 12, 2020 at 5:02 pm
Host Tina Fey shed tears after announcing more than $115 million was raised to support New Yorkers impacted by COVID-19 during a virtual telethon.
- Rise Up New York! virtual telethon raises money for New Yorkers impacted by COVID-19on May 11, 2020 at 6:25 am
Monday night's star-studded telethon, Rise Up New York!, raises money for COVID-impacted New Yorkers. IHeartMedia's John Sykes told PIX11 Morning News what to expect for the benefit event hosted by ...
- Entrepreneur, Investor, Best-Selling Author Arian Simone Releases Fearless Money Mindset Book During Quarantine With A Virtual Book Touron May 11, 2020 at 5:00 am
The Fearless Money Mindset implements seven principles to transform your relationship with money. As featured in FORTUNE and Forbes, ...
- Virtual Money Outlook and Forecast 2020 due to COVID-19 Impacton May 8, 2020 at 8:44 pm
This report also researches and evaluates the impact of Covid 19 outbreak on the Virtual Money industry involving potential opportunity and challenges drivers and risks We present the impact ...
- ‘The industry will be transformed’: The FT’s guide to making money from virtual eventson May 6, 2020 at 9:02 pm
Orson Francescone, managing director of FT Live, said he can “see a route to us delivering what we thought we were going to deliver” at the beginning of the year.
via Bing News