Privacy - Assessment 3
When a user creates a transaction that aggregates multiple inputs to pay one larger output, can the coins that are used in that transaction be traced back to a single owner?
Yes, but only if the inputs have all been signed with the same digital signature.
Yes, it clearly shows on the ledger that the inputs belonged to the spending party.
No, once multiple inputs have been aggregated into a single output there is no way to discern whom they belonged to.
No, the record on the ledger is not enough to identify a user, however it is possible to link spent inputs to a spending party.
How can wallets avoid linking inputs to a single owner?
By spending a larger output than the payment itself, however this is not always possible.
By spending a larger output than the payment itself, this is always possible and recommended although it may result in a higher transaction fee than normal.
By using Simplified Payment Verification so there is no traceable way to discern who is associated with which particular inputs.
By removing the digital signatures to minimize transaction size.
If a user spends coins that they have received from third parties, or which were spent back to themselves as change, it becomes ____________ i) chain of ownership back via the ledger. This _________ ii) a user's __________ iii) to __________ iv) who have an understanding of how to analyse the public ledger.
i) difficult to trace the, ii) is because, iii) address becomes encrypted and is only visible, iv) those
i) impossible to trace any part of the, ii) prevents, iii) digital signature from becoming known, iv) thieves
i) easy to trace the, ii) this is because the transaction includes, iii) identity, iv) users
i) possible to trace some part of the, ii) risks exposing, iii) financial activities, iv) malicious parties
Mitigation strategies to prevent a user's _________ i) being ________ ii) include the use of _________ iii) for instances in which many inputs are being used. Each input can be spent in _________ iv), thereby avoiding the possibility of linking the user to a group of coins.
i) financial activities, ii) exposed, iii) separate transactions, iv) completely separate transactions
i) public address, ii) found, iii) coin mixing, iv) a way that the transactions are mixed with other transactions
i) transactions, ii) revealed, iii) time staggering, iv) a way that prevents them from being confirmed in a way that they seem to be different transactions
i) identity, ii) doxxed, iii) using separate digital signatures, iv) a way that a new key is generated for each input
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