Bitcoin’s anonymous developer, known as “0xB10C”, has warned of suspicious behavior by a possible company on the digital currency network. According to their analysis, the strange entity attempts to link bitcoin transactions to IPs, which are numbers that identify computers on the Internet.
If successful, it could compromise the privacy of bitcoin network users, with blockchain analysis.
For the developer, the action can be performed by a company that offers transaction tracking services and hopes to improve its product. According to him, the logic of P2P transactions should be reviewed by the community to fix the problems before a problem arises.
Bitcoin developer published his study for all interested
In recent years, many blockchain analytics companies have appeared in the market. Among the best-known names, Chainalysis and CipherTrace, among others, came up with tools that help with both criminal investigations and compliance with transactions involving bitcoin and other cryptocurrencies.
But according to “0xB10C,” an entity he recognizes as LinkingLion carefully analyzed network transactions to link IPs to them.
An entity I call LinkingLion, active since 2018 and on a Monero ban list, opens connections to many clearnet Bitcoin nodes. Presumably it is trying to link transactions to node IPs. Perhaps a chain analysis company trying to improve its product?
An entity I call LinkingLion, active since 2018 and on a Monero banned list, opens connections to many clearnet Bitcoin nodes. It presumably tries to link transactions to node IPs. Perhaps a chain analysis company trying to improve its product? https://t.co/W4PDoln3p3
— 0xB10C (@0xB10C) March 28, 2023
After the warning, the developer has published some solutions that can be adopted by the community to avoid the problem.
Still, he acknowledges that the entity could easily circumvent his proposals and fall back on transaction checking. Finally he understands thatsolving the root problem requires deeper changes to the P2P logic in bitcoin“.
Those who use node with TOR run less risk
Despite the new risks that could affect bitcoin transactions, the developer has been investigating the activity of TOR configured nodes. So he understands that these agents are not at risk of having their IPs leaked to the foreign entity, if properly configured.
“Transactions sent over privacy networks like Tor are unaffected if done properly. One strategy is to send a transaction to a node on the Tor network using a new connection and then disconnect shortly afterwards. Some Bitcoin wallets with a strong focus on privacy are implementing similar features. It is currently not implemented in the Bitcoin Core wallet. Tools like bitcoin-submittx can be useful.”
In any case, the case had repercussions in the bitcoin community and is already being studied more closely to prevent a possible end to the privacy of transactions. The developer’s full study is available on its website.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
