How can Bitcoin users protect their financial privacy?


The following is a summary of ways that the average Bitcoin user can improve the privacy of their transactions.

Loss of personal privacy


The gradual loss of an individual’s right to privacy is a fact of life. The current external environment is much more complex than the above, and how can you protect your privacy?

Don’t give out personal information about yourself


Bitcoin safeguards the freedom of financial transactions for two main additional factors.

  1. Prevent IP monitoring
  2. Elimination of clear transaction history

Don’t reuse addresses for privacy


Satoshi Nakamoto offers his solution in the whitepaper: as an extra layer of privacy, use a new address for every transaction.

Using Tor Networks to Solve IP Logging Problems


Bitcoin transactions themselves do not contain any IP addresses, nor does the associated data exist on the blockchain. In fact, Bitcoin is based on a P2P network, and the data is transferred with information attached to it.

Use Coinjoin to hide transaction records and increase privacy


For this reason, we can also use Coinjoin to separate the input from the output of a transaction, thus hiding the transaction records. Bitcoin’s pseudo-anonymity lies in the fact that transaction records record the addresses of both parties and the amount of the transaction, and all records are public. visible to anyone. Coinjoin is a way to make transactions anonymous by separating the inputs and outputs of a transaction so that they do not correspond to each other. effect.

Choose to use Lightning Network in the right scenario


In addition, there is another way of sending privacy that is off-chain based, and that is through the lightning network. Usually in small transactions, we prefer to use lightning networks because of their speed and low cost.



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