It is a fairly common belief that using Bitcoin over the Tor network will allow a user to pay for various goods or services while maintaining full anonymity. Unfortunately, that is far from what one can realistically expect to achieve.
It is a fairly common belief that using Bitcoin over the Tor network will allow a user to pay for various goods or services while maintaining full anonymity. Unfortunately, that is far from what one can realistically expect to achieve.
While Bitcoin DOES provide a confiscation proof, government free form of common currency, its very nature is not designed to facilitate full anonymity, even when used in conjunction with tools that do. Ergo, BTC is widely recognized as '''psuedo-anonymous'''.
While Bitcoin DOES provide a confiscation proof, government free form of common currency, its very nature is not designed to facilitate full anonymity, even when used in conjunction with tools that do. Ergo, BTC is widely recognized as **psuedo-anonymous**.
In early 2018, a mix of 5-year-old NSA documents discussing their blockchain tracking methods and a [https://arxiv.org/pdf/1801.07501.pdf research paper] by The Qatar University of Doha further confirmed the long-held beliefs that paper trails are almost impossible to avoid, even in the world of cryptocurrency.
In early 2018, a mix of 5-year-old NSA documents discussing their blockchain tracking methods and a [research paper](https://arxiv.org/pdf/1801.07501.pdf) by The Qatar University of Doha further confirmed the long-held beliefs that paper trails are almost impossible to avoid, even in the world of cryptocurrency.
Below, we will discuss and debunk many of the common claims and misconceptions about using BTC with Tor, as well as some potentially more secure alternatives.
Below, we will discuss and debunk many of the common claims and misconceptions about using BTC with Tor, as well as some potentially more secure alternatives.
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@@ -28,43 +28,46 @@ While the first 3 steps involve non-anonymous identities and transfers, John has
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@@ -28,43 +28,46 @@ While the first 3 steps involve non-anonymous identities and transfers, John has
Because of this, even chaining wallets from one associated with a personal identity to one that is not before completing the transaction is also useless, as the chain of transactions is still present. Further, Bitcoin is retroactively and forever in the future exploitable to this tracing, making any transactions that have or will happen vulnerable.
Because of this, even chaining wallets from one associated with a personal identity to one that is not before completing the transaction is also useless, as the chain of transactions is still present. Further, Bitcoin is retroactively and forever in the future exploitable to this tracing, making any transactions that have or will happen vulnerable.
== Misconceptions / FAQ ==
## Misconceptions / FAQ
=== "But if I use BTC over Tor, then there is room for plausible deniability, right?" ===
### "But if I use BTC over Tor, then there is room for plausible deniability, right?"
'''No.''' See above.
**No.** See above.
=== "But does chaining wallets X amount of times help?" ===
### "But does chaining wallets X amount of times help?"
You may delay the inevitable, but ultimately if the record is there, it can be eventually traced.
You may delay the inevitable, but ultimately if the record is there, it can be eventually traced.
=== "What about tumbling?" ===
### "What about tumbling?"
While the research that was recently conducted does not take tumbling into account, it is not out of the scope of possibility. With the vulnerability of the blockchain being retroactive and indefinitely into the future, tools and software could be developed by malicious actors to trace even formerly tumbled coins. We just simply cannot be sure of the potential down the road.
While the research that was recently conducted does not take tumbling into account, it is not out of the scope of possibility. With the vulnerability of the blockchain being retroactive and indefinitely into the future, tools and software could be developed by malicious actors to trace even formerly tumbled coins. We just simply cannot be sure of the potential down the road.
=== "So is there any way to effectively use BTC anonymously then?" ===
### "So is there any way to effectively use BTC anonymously then?"
Not really, no. Short of some financial acrobatics and a serious amount of effort, your transactions will be forever susceptible to tracking.
Not really, no. Short of some financial acrobatics and a serious amount of effort, your transactions will be forever susceptible to tracking.
[[br]]
== Potentially more secure Altcoins ==
'''PLEASE NOTE THAT THE TOR PROJECT DOES NOT VOUCH FOR THE SECURITY, ANONYMITY OR THE FUTURE SECURITY OF ANY CRYPTOCURRENCY.'''
## Potentially more secure Altcoins
**PLEASE NOTE THAT THE TOR PROJECT DOES NOT VOUCH FOR THE SECURITY, ANONYMITY OR THE FUTURE SECURITY OF ANY CRYPTOCURRENCY.**
The below examples are of anonymity-focused cryptocurrencies that are currently in development or circulation. Please feel free to contribute to this list if you have some to add.
The below examples are of anonymity-focused cryptocurrencies that are currently in development or circulation. Please feel free to contribute to this list if you have some to add.
=== Monero (XMR) ===
### Monero (XMR)
Monero is an open-source cryptocurrency created in April 2014 that focuses on privacy and decentralization that runs on Windows, macOS, Linux, Android, and FreeBSD. Monero aims to improve on existing cryptocurrency design by obscuring sender, recipient and amount of every transaction made.
Monero is an open-source cryptocurrency created in April 2014 that focuses on privacy and decentralization that runs on Windows, macOS, Linux, Android, and FreeBSD. Monero aims to improve on existing cryptocurrency design by obscuring sender, recipient and amount of every transaction made.
Official site: [https://GetMonero.org]
Official site: [https://GetMonero.org]
=== ZCash (ZEC) ===
### ZCash (ZEC)
Zcash is a cryptocurrency aimed at using cryptography to provide enhanced privacy for its users compared to other cryptocurrencies such as Bitcoin. The Zerocoin protocol was improved and transformed into the Zerocash system, which was then developed into the Zcash cryptocurrency in 2016.
Zcash is a cryptocurrency aimed at using cryptography to provide enhanced privacy for its users compared to other cryptocurrencies such as Bitcoin. The Zerocoin protocol was improved and transformed into the Zerocash system, which was then developed into the Zcash cryptocurrency in 2016.
Official site: [https://z.cash]
Official site: [https://z.cash]
=== ColossusXT (COLX) ===
### ColossusXT (COLX)
Colossus is a decentralised currency that aims to facilitate fully anonymous payments through obfuscation. Coins received can be instantaneously mixed within the wallet using a preconfigured number of rounds. An unlimited amount of sending / receiving addresses can be generated, allowing users to create one-use burner addresses for every transaction, or use them for specific tasks. It utilizes an energy efficient Proof of Stake 3.0 protocol and a second-tier Masternode network for community-based governance along with a blockchain based self-funding treasury system.
Colossus is a decentralised currency that aims to facilitate fully anonymous payments through obfuscation. Coins received can be instantaneously mixed within the wallet using a preconfigured number of rounds. An unlimited amount of sending / receiving addresses can be generated, allowing users to create one-use burner addresses for every transaction, or use them for specific tasks. It utilizes an energy efficient Proof of Stake 3.0 protocol and a second-tier Masternode network for community-based governance along with a blockchain based self-funding treasury system.
Official site: [https://colossusxt.io]
Official site: [https://colossusxt.io]
[[br]][[br]]
== References ==
== References ==
[https://arxiv.org/pdf/1801.07501.pdf Deanonymizing Tor Hidden Service Users Through Bitcoin Transactions Analysis] - a paper by researchers at the Qatar University of Doha
[Deanonymizing Tor Hidden Service Users Through Bitcoin Transactions Analysis](https://arxiv.org/pdf/1801.07501.pdf) - a paper by researchers at the Qatar University of Doha
[https://theintercept.com/document/2018/03/20/pages-from-oakstar-weekly-2013-03-08/ 2013 NSA memo regarding Bitcoin] - The Snowden Documents
[2013 NSA memo regarding Bitcoin](https://theintercept.com/document/2018/03/20/pages-from-oakstar-weekly-2013-03-08/) - The Snowden Documents
