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0 sats \ 8 replies \ @linesgone OP 12 Aug 2022 \ parent \ on: Anonymity in Bitcoin... bitcoin
It’s not banks I care about. It’s more the path the coin travels and how one wallet connects to another.
The use case I am talking about is Bitcoin is bought from a KYC exchange and move to a hardware wallet. Is not that hardware wallet now connected to your identity?
Sure boating accidents, etc etc… plausible deniability….
I’m more wondering how later 2/3s will handle this all.
There are three distinct things, don't mix them up - UTXOs, wallet and identity. A wallet has many UTXOs, an identity can have many wallets (hence many UTXOs). Now, there is no link between the identity and the UTXO. Many people miss this key point which should be emphasised more, that you can't know for sure who controls the UTXO once it's moved out of your control, except for ofcourse when you just received or sent a payment where you know for sure what UTXOs your sender/receiver owns. There are many ways a UTXO can move and morph, and at every stage you can just make assumptions about who might have control over it, not be sure of it. Overtime, i believe many types of transactions will occur, coinjoined, coinswap, etc and will be in the majority and it would become even more hard (impossible rather) tell determine who owns a certain UTXO.
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There is no way to prove I didn't drop my KYC bitcoin wallet into a lake on accident, is that what you guys mean by "boating accident" ?
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Yes, or so such scenario.... basically "my dog ate my homework" sorta argument.
Though legally speaking its BS (right?). Sure your "no longer" have possession of the hardware wallet but the is that wallet not now dead to you? As soon as you move the Bitcoin to another wallet...the entire history is there on the blockchain and it's now connect to that wallet, and the next wallet, etc etc.
I guess, the argument goes..."I dropped my hardware wallet with my KYC coin in the lake on my recent fishing trip... I guess someone must have fished it up and started moving my Bitcoin...but it wasn't me (sly smile)."
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What about my point that you can spend/ sell your bitcoin to someone in person by giving them your seedphrase. No bitcoin ever moves on the blockchain, but you are now sitting on a yacht.
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Giving someone your seed phrase is inherently insecure since you could have just copied it. To make sure the buyer is the only one in possession of the private key, he MUST move it to a new wallet.
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Unless you have a multi-signature setup where the parties' don't know each other and transfer the keys to the new parties.
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Oh good point, didn't think of that actually! I'm stumped then.
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This is why OpenDimes were invented. It's the closest thing there is to "physical bitcoin". It let's you verify that nobody has the private key and allows you to get the private key if you ever need to move it on-chain
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