Why does Bitcoin have anonymity (Bitcoin, anonymity)

08/13/2023 10:33 • NFT Newsflash • 113 views

Why does Bitcoin have anonymity? Why does Bitcoin have anonymity?

Over the past decade, as more and more digital currencies have been created and circulated alongside well-known assets, participating in this space remains a challenge – how to protect one’s wealth if no one knows if they own their private keys!

We can assume that an address can be traced back to and is not acceptable (e.g., sender or receiver), and the address is consistent with associated email addresses, phone numbers, and other information, it represents a sum of money. However, this does not mean that they cannot obtain anything.

To make this information public, many in the encryption community believe that this idea may be a mistake: you must carry out transactions using a new decentralized encryption method without relying on a third-party intermediary. A “trust” is formed. When people start to worry about something specific, they often shift their focus to other things. So the reasons for Bitcoin’s anonymity and hidden value are simple:

1. The blockchain technology is novel and difficult to forge; 2. Transactions are faster through cryptographic algorithms; 3. Network validation nodes can complete confirmation without complex processes.

In addition, although blockchain is a new technology, it fundamentally has two issues: first, you need to remember that Bitcoin is not as secure as gold. Secondly, because each user has a different account, and each account has the same timestamp and hash value as the data source; the third point is that although most Bitcoin miners use the same batch of equipment, Bitcoin also provides similar security functions even if only a few mining machines can support Bitcoin payments. Finally, exchanging between different exchanges is very difficult.

Of course, there is another option, which is to use Bitcoin as an exchange medium. For example, someone asks you if Bitcoin has any restrictions, or how many people you need to have to obtain a certain amount of network access? In fact, Bitcoin is not like that; if you only focus on price fluctuations, your transaction will become a huge bubble.

As mentioned earlier, the price of Bitcoin is determined by the traders, not by the holders reacting in the market, but by the two parties in the transaction setting the price themselves. That is to say, regardless of whether you are buying or selling goods or purchasing items, Bitcoin is ultimately conducted in the same way.

Bitcoin Anonymity

In the blockchain field, anonymity has always been one of the core elements of cryptocurrencies. As time goes on, Bitcoin’s anonymity has gradually been accepted and used by more and more people: there is a growing interest in cryptography, digital signatures, distributed networks, and privacy technology. However, due to the lack of factors of provability and transparency, the scope of this uncertainty is expanding.

In order to make this concept possible, some experts believe that Bitcoin is a technology with a high degree of anonymity because it can function as “electronic cash” and its value will not be affected. Furthermore, although there are multiple different methods, these methods are all based on blockchain technology to ensure the validity of transactions and how to ensure data integrity.

According to data statistics from BitcoinTreasuries, currently over $600 million worth of Bitcoin has been stolen or used for money laundering. This means that over 80% of fraudulent activities are conducted through Bitcoin. (Cointelegraph)

This article and pictures are from the Internet and do not represent SipPop's position. If you infringe, please contact us to delete:https://www.sippop.com/23685.htm

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.

Why does Bitcoin have anonymity (Bitcoin, anonymity)

Bitcoin Anonymity

Related recommendations