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anonymous? |
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Since it became famous, cryptocurrencies have been a topic of contention among people and government agencies. This
is so because they are deemed untraceable and entirely anonymous.
But as we understand the technology behind crypto better, it is easy to know that it
is not easy to establish its anonymity.
Most of these currencies depend on blockchain technology and have an open public transaction ledger; it is difficult to understand how anonymous crypto transactions are
valid.
In this article, we dig deeper to find out the answer.
What is
Cryptocurrency?
Before we explore anonymity, it is essential to understand what crypto is. Cryptocurrencies are digital or virtual currencies
with no physical embodiment and are used as a medium of exchange, just like fiat currency. The most significant advantage of a cryptocurrency is that it is
impossible to counterfeit or double-spend. Also, as it is a decentralized currency, no federal agency or organization has control over it.
All crypto
transactions are recorded in a public ledger, contrary to common belief. For instance, all bitcoin transactions are accessible to anyone on the network. The
information in the ledger includes:
- The bitcoin wallet addresses both parties involved in a transaction.
- The date & time of each transaction.
- The value of each transaction.
However, the identities of the people behind wallet addresses remain entirely anonymous. This is why many online
betting sites support crypto to offer complete anonymity.
Many players are not just satisfied with finding a
betting site without registration; they want further anonymity.
How anonymous is it?
As far as revealing the person's identity is concerned, crypto transactions are entirely
anonymous. On the other hand, all additional information regarding a crypto transaction is public for anyone can look at.
In theory, a single player can
hold several crypto wallets to make wagers, and there will be no way to link those wallets with each other. After finding a betting site without registration,
a player can deposit and withdraw crypto without revealing their identity. Still, the transaction itself would be logged into the public ledger. The
information available in the public ledge will be the crypto amount deposited or withdrawn, time, date, and the value of the transaction.
According to
the original Bitcoin whitepaper, it is advised to users that they should use a new address for each transaction to avoid any detection. Here's what the paper
included:
"As an additional firewall, a new (address) should be used for each transaction to keep them from being linked to a common
owner… The risk is that if the owner of an (address) is revealed, linking could reveal other transactions that belonged to the same owner."
Satoshi Nakamoto, Bitcoin Inventor
Conclusion
Technically, crypto transactions are
not entirely anonymous, as much information about these transactions is logged in blockchain public ledgers. It is nearly impossible to link the owner of
cryptocurrencies with the transactions as no personally identifiable information is included in public logs.
In a way, these transactions offer complete
anonymity, so many no verification betting websites support cryptocurrency. |
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