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
[google_news title=”” keyword=”Virtual money” num_posts=”10″ blurb_length=”0″ show_thumb=”left”]
via Google News
The Latest on: Virtual money
- How to avoid virtual and in-person business meeting fatigueon April 28, 2024 at 4:03 am
With everyone stuck at home, virtual meeting platforms like Zoom, Microsoft Teams, and Google Meet combined old-school conference calls with video to keep our calendars full. Efficient, easy to do ...
- Money Matters: 10 Tech-Infused Approaches to Secure Your Kids’ Futureon April 27, 2024 at 7:55 am
Ensuring your children’s financial security is more important than ever. With the rapid advancements in technology, there are numerous innovative ways to safeguard their future. From smart saving ...
- Hyundai's 'virtual' solar for Georgia plant reflects 'backward process,' critics sayon April 27, 2024 at 5:16 am
With limied options in Georgia, Hyundai has tapped Texas for 'virtual' solar power credits for its Svannah-area EV manufacturing facility.
- The Future of Money: How Cryptocurrency is Transforming the Financial Industryon April 26, 2024 at 11:27 am
Welcome to the future of money, where digital currencies are revolutionizing the financial industry as we know it. With cryptocurrency gaining traction around the world, traditional forms of currency ...
- The 7 Best Ways To Make Money Online From Homeon April 26, 2024 at 3:00 am
The concept of making money online from the comfort of your own home has become more feasible and appealing than ever before.
- Google Thinks It Can Cash In on Generative AI. Microsoft Already Hason April 25, 2024 at 6:29 pm
While both Alphabet and Microsoft boasted strong quarterly earnings, only one tech giant showed that its generative AI bet is starting to pay off.
- 5 Advantages of a Virtual Startup Businesson April 25, 2024 at 9:53 am
Evan Puhala is a member of the website optimization team at Guided, a virtual tourism startup that is aiming to help the European tourism industry rebound from the pandemic. He was part of the team ...
- Virtual forum scheduled to discuss proposed LDS templeon April 25, 2024 at 7:32 am
A meeting meant to discuss the site of a proposed Church of Jesus Christ of Latter-Day Saints temple will be held online in May, City officials said.
- MSNBC Will Use Virtual-Reality Supreme Court Bench During Trump Insurrection Argumentson April 25, 2024 at 6:10 am
MSNBC plans to augment audio of the Supreme Court's Trump insurrection deliberations with a virtual-reality set that emulated the bench of justices ...
- How a Virtual Assistant Taught Me to Appreciate Busyworkon April 24, 2024 at 2:02 am
A new category of apps promises to relieve parents of drudgery, with an assist from A.I. But a family’s grunt work is more human, and valuable, than it seems.
via Bing News
