So when people use this to buy meth or whatever they have to do the same thing? Like wouldn’t you have a transaction in the blockchain that says Mother just spent 500 at crack emporium or whatever?
There are companies dedicated to tracing and deanonymising cryptocurrency wallets—most famously Chainalysis.com. These companies track all the coins that went through one of these mixers and mark them as suspicious, which makes it difficult to cash them out.
The reputable Tor marketplaces no longer take bitcoin for this reason. Usually they take Monero or other coins that have a mixing mechanism built-in for every single transaction, along with several other layers of privacy.
The blockchain will say that 1HyxSA1usLNzxUHh7PTaXNrDBFpq9aP4Dz wallet performed a transfer 1Ha5Af4fxUHh7PTaXNrDBFpq9aP4Dz wallet.
That information is not attached to an identity. The wallets are accessed with a private key that looks something like this: L1ispX5HjXv7wDbqace4um82yq1JZLqjtK6T636EgQ3Kp3LRgiyH
Alright last one if there’s nothing linking an identity to a wallet then how is the blockchain verifying anything? Like if you get possession of a wallet you own it. So how could the feds find you / why is laundering necessary?
Don’t feel obligated to answer if you’re busy or whatever I’m just curious as to how this all works
The blockchain is just a historical record of transfers. It records that X was sent to Y at Z time. This is verified by other machines and sent to the rest of the blockchain network.
That's literally all it is. No record of who controls those wallets is needed. You only need to record what is sent from wallet to wallet to have a record of what money is where. The blockchain is a ledger of wallets and transfers verified by a desynchronised network. That's what the miners do, they perform the computing power for verifying the transfers and telling the rest of the network and they do this in exchange for the blocks that they mine for.
So how could the feds find you / why is laundering necessary?
It's not. Except for when you actually want to use it for transactions where handing over an address is necessary, or if you want to swap that money from bitcoin to realworld money.
So when people use this to buy meth or whatever they have to do the same thing? Like wouldn’t you have a transaction in the blockchain that says Mother just spent 500 at crack emporium or whatever?
There are companies dedicated to tracing and deanonymising cryptocurrency wallets—most famously Chainalysis.com. These companies track all the coins that went through one of these mixers and mark them as suspicious, which makes it difficult to cash them out.
The reputable Tor marketplaces no longer take bitcoin for this reason. Usually they take Monero or other coins that have a mixing mechanism built-in for every single transaction, along with several other layers of privacy.
The blockchain will say that
1HyxSA1usLNzxUHh7PTaXNrDBFpq9aP4Dzwallet performed a transfer1Ha5Af4fxUHh7PTaXNrDBFpq9aP4Dzwallet.That information is not attached to an identity. The wallets are accessed with a private key that looks something like this:
L1ispX5HjXv7wDbqace4um82yq1JZLqjtK6T636EgQ3Kp3LRgiyHAlright last one if there’s nothing linking an identity to a wallet then how is the blockchain verifying anything? Like if you get possession of a wallet you own it. So how could the feds find you / why is laundering necessary?
Don’t feel obligated to answer if you’re busy or whatever I’m just curious as to how this all works
The blockchain is just a historical record of transfers. It records that X was sent to Y at Z time. This is verified by other machines and sent to the rest of the blockchain network.
That's literally all it is. No record of who controls those wallets is needed. You only need to record what is sent from wallet to wallet to have a record of what money is where. The blockchain is a ledger of wallets and transfers verified by a desynchronised network. That's what the miners do, they perform the computing power for verifying the transfers and telling the rest of the network and they do this in exchange for the blocks that they mine for.
It's not. Except for when you actually want to use it for transactions where handing over an address is necessary, or if you want to swap that money from bitcoin to realworld money.
The block chain verifies that a particular wallet had the funds it's trying to spend. Who controls the wallet doesn't matter.