Bitcoin Anonymization and Other Updates

• John Vandivier

While the price of each bitcoin has fallen over the past 18 months and remained stagnant over the past few months, the technology and network continue to improve.

Perhaps most notably, bitcoin anonymization is making a come back. First, bitcoin was described as anonymous. <a href="http://www.afterecon.com/economics-and-finance/zerocoin-and-bitcoin-taking-anonymity-to-the-next-level/">Then we realized that bitcoin was not as anonymous after all. We began calling it pseudonymous because it has some of the characteristics of anonymity in a weaker form.

However, there have long been additional techniques for real anonymity in the crypto world. Even before we realized how non-anonymous bitcoin really is, <a href="http://www.afterecon.com/economics-and-finance/3-reasons-why-i-now-like-litecoin/">I was writing that buying and selling litecoin or other altcoin with bitcoin creates strong anonymity.

This is because it is possible to trace transactions inside a particular blockchain, but it is not feasible to trace transactions between different blockchains without additional information, such as a web service user account which links two wallets from different blockchains.

Now it has become easier than ever to switch back and forth between litecoin, bitcoin, and other altcoins <a href="https://www.shapeshift.io/new.html?ref=afterecon.com">using a service called ShapeShifter. This method is faster and less costly than using traditional crypto exchanges. It is also even more anonymous because than the old exchange based method because there is no need to create a user account. User accounts have been a strong link between wallets and offline identities.

Some other new cool bitcoin related technologies and services include:

  1. Wrte.io. This service charges people to send you email.
  2. Mercury. This open source technology is a distributed exchange system which can be used to trade bitcoins, altcoins, colored coins, and more.
  3. Darkleaks. This technology allows the sale of information. It is targeted toward the sale of leaked information and may provide motivation for the leak of information, but you could see how it could be expanded into a tool for patent sale, sale of educational material, or ransom funding.