Tracking of Bitcoin transactions made trickier

Initially, bitcoin was considered a method to exchange money secretly. But, later it was revealed that it is possible to track all the Bitcoin transactions by anyone and thus, identifies the parties concerned.

To overcome this, a research team from the Boston University, North Carolina State University, and George Mason University has designed a Bitcoin-compatible system. This system claims to make it harder for anyone to track or identify the parties included in the Bitcoin transaction.

Bitcoin functions by offering every user a distinctive public key that is a series of numbers. Users were allowed to transfer money from one public key to another in the form of digital bitcoins. The research team has designed a system known as “TumbleBit.” It is a computer process that functions above Bitcoin. The system takes benefit of an accessible theory known as mixing service. So, let’s have a look at the three-phased approach of this new system.

First phase: Escrow

The Parties A inform the tumbler when they have to make a payment whereas the Parties B inform the tumbler when they want to be paid. The complete process is carried out on the public blockchain.

Second phase

Here, the team has included cryptographic tools into place that permit the tumbler to transfer money to the accurate parties without getting the information about the parties involved in it. This phase is not visible on the blockchain.

Third phase: Cashout

All the transactions are done concurrently, as a result, making it tough to know who is involved in any definite transaction. Even this phase is not visible in the public blockchain.

Now, there is no need to worry as you can safely make transactions anonymously. Isn’t it?

Leave a Reply

Your email address will not be published. Required fields are marked *