Protecting Bitcoin Privacy With Burner Wallets \ stacker news ~bitcoin

Protecting Bitcoin Privacy With Burner Wallets

3615 sats \ 12 comments \ @Jon_Hodl 20 Apr 2023 bitcoin

Hey fellow plebs,

I just published this article on protecting bitcoin privacy with burner wallets.

As always, I would love any feedback you can send my way.

Typos
Content suggestions
Questions
anything else you think would benefit

Thanks again for your help.

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617 sats \ 3 replies \ @davidw 20 Apr 2023

Great write-up!

Would love to get a sneak peak inside the practices employed by these surveillance snails and the patterns they claim to be able to associate against. Need an insider with access to their toolset to detail it all. It’d be incredibly interesting and worth discussion on here.

550 sats \ 0 replies \ @Jon_Hodl OP 20 Apr 2023

Thanks for your input. I wish I knew more about all of the heuristics and how they use them but I once saw the risk scoring tool used by a chain analysis company and it looks pretty pathetic.

I don't think anyone really knows what they are doing and the community of plebs and cypherpunks can code faster then chain anal companies. We're way more clever too.

Thanks again for your comment.

374 sats \ 1 reply \ @lightcoin 20 Apr 2023

many (if not all) of the heuristics they use are documented here: https://en.bitcoin.it/Privacy

69 sats \ 0 replies \ @Jon_Hodl OP 20 Apr 2023

Great resource, I have been doing research for a resource page on heuristics and the link you shared has some new ones that I don't think I have heard of before.

Much appreciated.

703 sats \ 1 reply \ @jordan_bravo 20 Apr 2023

In the article, you write:

As far as I know, there is not a way to generate a PayNym on iOS

Stack Duo recently announced the upcoming PayNym feature for their iOS wallet. I don't think it's been released yet, but it's good news for iPhone owners because it will be the first wallet to implement PayNym on iOS.

0 sats \ 0 replies \ @Jon_Hodl OP 20 Apr 2023

Thanks a bunch for letting me know about this. I will keep tabs on this and do some experimenting as soon as they have gone live.

21 sats \ 1 reply \ @Ridolfo 20 Apr 2023

Excellent write-up. I haven't actually tried out Sparrow wallet yet.

Would add though for on-chain "burner wallets", the transaction is not deleted. Even though you immediately use a coin joiner and abandon the wallet, there is still a chance your outputs could be traced non-deterministically (depending on how well the coins were mixed).

0 sats \ 0 replies \ @Jon_Hodl OP 20 Apr 2023

Solid feedback. Thanks. I agree. I wasn't quite sure how to word that but I'll have to update the content with that caveat.

Thanks again for your help.

0 sats \ 0 replies \ @DarthCoin 22 Apr 2023

Or just use LN and the 3 level stash, described here: #167755

0 sats \ 1 reply \ @samuelorji47 20 Apr 2023

Protecting Bitcoin Privacy with Burner Wallets

Bitcoin transactions are not completely anonymous. Every transaction is stored on a public ledger (blockchain), which can be accessed by anyone. This is great for transparency and security, but not ideal for privacy. Fortunately, there is a solution – burner wallets.

Burner wallets are temporary wallets that can be used for a specific purpose and then discarded. Here's how they work:

Step 1: Create a Burner Wallet

There are many burner wallet options available, but one of the most popular is the Burner Wallet by Austin Griffith. This wallet is web-based and can be accessed from any device with internet access.

Step 2: Transfer Bitcoin to Your Burner Wallet

To protect your privacy, you should transfer only the amount of Bitcoin you need for your specific purpose to your burner wallet. This minimizes the risk of exposure if your burner wallet is compromised.

Step 3: Use Your Burner Wallet

Once you have Bitcoin in your burner wallet, you can use it for your desired purpose. This could be to make a purchase online or to send Bitcoin to someone else without them knowing your permanent wallet address.

Step 4: Dispose of Your Burner Wallet

After you have used your burner wallet, you should dispose of it. This can be done by clearing your browser cache or using a dedicated burner wallet that self-destructs after use.

Benefits of Burner Wallets

By using burner wallets, you can protect your Bitcoin privacy in several ways:

It prevents your permanent wallet address from being linked to specific transactions.
It minimizes the risk of your sensitive information being exposed if your burner wallet is compromised.
It allows you to use Bitcoin without leaving a permanent trail.

Conclusion

Protecting your Bitcoin privacy is important, and burner wallets are an effective way to do it. By using temporary wallets, you can keep your personal information and transaction history private, while still enjoying the benefits of Bitcoin.

0 sats \ 0 replies \ @02c0869267 21 Apr 2023

I'm missing the point of this comment other than to show us that you were able to summarize the op's article? I guess congratulations are in order... no, not really. WTF

0 sats \ 0 replies \ @02a9721f5b 21 Apr 2023 freebie

Protecting the privacy of your Bitcoin transactions is an important consideration for many users. Burner wallets are one approach that can be used to enhance the privacy of Bitcoin transactions. Burner wallets are temporary wallets that are used for a specific purpose, such as a one-time payment or a short-term holding of Bitcoin.

By using a burner wallet, you can limit the amount of information that is linked to your permanent Bitcoin wallet. For example, you could use a burner wallet to make a payment to a merchant or to receive a payment from someone without revealing your permanent Bitcoin wallet address.

However, it is important to remember that burner wallets are not a foolproof solution to privacy concerns. Transactions on the Bitcoin network are still visible on the blockchain, and sophisticated analysis techniques could potentially link burner wallet transactions to your permanent wallet address. Additionally, burner wallets are only as secure as the devices and networks they are accessed from, so it is important to use appropriate security measures when using burner wallets or any other cryptocurrency wallet.

Overall, burner wallets can be a useful tool for enhancing Bitcoin privacy, but they should be used in conjunction with other privacy-enhancing measures, such as coin mixing services or privacy-focused wallets. As with any cryptocurrency-related activity, it is important to do your own research and exercise caution to protect your funds and your privacy.