Bitcoin has a privacy problem when they send you money: these services are used to hide the transfers
The rise of cryptocurrencies in recent months is causing payments and transactions to increase, but these operations are registered in the blockchain and therefore money and purses can be tracked (wallets) that are the origin and destination of these cryptocurrencies.
Those who are concerned about these records have some alternatives to avoid such transactions being so exposed. If you want to receive bitcoin with greater privacy guaranteesSome experts advise, there are services such as Tippin.me or Paynym.is that hide these operations and hide them so that their traceability is more complex.
As the economist explained Juan Rallo on Twitter, all transactions carried out with bitcoin are public and are registered in the blockchain. Services like Blockchair.com have a transaction “explorer” that allows you to check transactions, addresses of cryptocurrency wallets and even text data embedded in those transactions.
Although cryptocurrency wallets do not publicly identify their owners, these data are registered by the “exchanges“, cryptocurrency trading markets that verify the identity of users before they can “open an account” with cryptocurrency wallets.
To try to avoid such tracking and gain privacy, there are solutions that hide such transactions. Paynym for example it makes use of “ghost addresses” (stealth addresses) of wallets. Service is combined with Samourai Wallet, an application for Android mobiles that offers privacy in transactions and that prevents “blockchain surveillance companies from identifying you.”
Another option is Tippin.me, a Patreon-like platform that allows reward users and creators with a “tip” (in English “tip”, hence the name) in bitcoins that is sent to Twitter users.
The platform makes use of the Lightning network, a protocol that works on cryptocurrencies and their blockchains and that allows microtransactions to be carried out quickly and that also theoretically reinforces privacy, since the details of those payments are not publicly registered on the blockchain.
The Lightning network uses the so-called “onion routing“to send those data packets across various nodes that only have partial information of origin and destination that intervenes in that definitive route between the actual origin and destination of the transaction. It is a similar scheme to the one used in the Tor browser.
Several researchers have warned that there are certain attacks what can “de-anonymize” Lightning network transactions in bitcoin and breaking that promise of privacy, but of course both platforms pose a potential alternative to protect those transactions in case we do not want them to be recorded.