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.
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.
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.