Transaction

j"1LAnZuoQdcKCkpDBKQMCgziGMoPC4VQUckMî<div class="post">Assuming a goal of bitcoin is to introduce anonymity to online transactions, one of the things that concerns me most is the traceability of coins to previous transactions.&nbsp; I've read a lot of discussion about this in the forums, but there's still some open questions for me.&nbsp; <br/><br/>So first, let me state what I do understand:<br/><br/>1) All transactions are public in their amounts and public key identities as follows:<br/>&nbsp; a) In a transaction, you can see the public key of the person who spent the money<br/>&nbsp; b) In a transaction, I *think* but am not completely sure you can see the public key of the person who gets the money.&nbsp; (If you can't, you'll see it when they spend the money later, so this isn't that important.<br/><br/>2) Keeping your public keys from being associated with your identity is required if you don't want your transactions to be attributable to you.<br/><br/>We need to better educate users on how to do #2.&nbsp; I have an information security background, and it's not even immediately obvious to me what the best ways of handling bitcoins are to maximize your privacy.<br/><br/>I have these specific questions or comments regarding this topic:<br/><br/>1) Are one-time public keys disposed of when they are no longer required?<br/><br/>For example, I've read that a one-time-use private key is created when I generate a bitcoin block.&nbsp; When I spend these coins and I've signed them to someone else, I shouldn't need that private key anymore.&nbsp; The same thing goes for a key created for taking a payment-by-IP.&nbsp; Keeping keys around after they are no longer necessary may make a user vulnerable to later having their wallet seized and used to prove that they originated a transaction.<br/><br/>2) Reusable keys (those created inside the GUI) should be able to be similarly deleted when they are no longer required.&nbsp; This is a bit more dangerous, because once you delete the key you won't be able to get payments sent to that key, so the user really needs to understand what's going on in this case.&nbsp; Keys with coins stored under them obviously shouldn't be deleted.&nbsp; <br/><br/>3) We really need to make it possible to track coin bundle's lineage to enable the user to know their risk regarding spending specific coins.&nbsp; I think it should be possible, within the GUI, to see all the public keys associated with each coin bundle.&nbsp; It would also be nice to be able to tag keys that are associated with you with comments to aid you in determining which coins to send to someone.&nbsp; That way you could realize that another bitcoin user has seen you use a specific key, and to restrict other coins that are also associated with that key to a similar purpose and not something else that would link the two identities.<br/><br/>4) In addition to making it possible to track a coin bundle's lineage, we also need to be able to choose which coin bundles to include in a payment.<br/><br/><br/>The important thing here is that we need to make the information that is possible to acquire through digital forensics to be easily accessible by the end user.&nbsp; Only by making this information accessible to the end user will people be able to make good security decisions regarding the spending of bitcoins in sensitive environments.<br/><br/>One more thing that is important: Once these features are available, exchangers need to have clear data retention policies.&nbsp; For example, if I was an exchanger, I might keep track of the public keys of the people that I am doing active trades with.&nbsp; I'd probably retain this information until I had traded out the coins I had acquired through a trade, but would dispose of this information once the coins had left my possession.&nbsp; I would also have a policy to not share that information with third parties unless required to by a court order.&nbsp; If I was trading with an exchanger, I would want to know what their policies were and how they differed from my expectations.&nbsp; <br/><br/><br/><br/><br/></div> text/html