http://www.sovereignpress.org/zerocoin/A new extension is available for Bitcoin to address some of the privacy issues of bitcoin transactions. The extension, known as Zerocoin, was developed by researchers at Johns Hopkins University. The principle behind Zerocoin is that it obfuscates transactions so that they cannot be linked together—effectively eliminating an electronic paper trail.
Researchers at Johns Hopkins University in Baltimore, Maryland, have come up with a way around this problem. Called Zerocoin, it’s a cryptographic add-on to Bitcoin that allows for transactions which cannot be linked together. The key is that it does this without introducing any new centralised elements into the network or using laundering, whereby coins are spent through intermediaries to hide the root purchaser’s wallet address.1
However, there is one serious concern in the Zerocoin software—the researchers anticipate coding in a backdoor:
Green says that he and his fellow researchers are not interested in facilitating criminal activity with Zerocoin. “Zerocoin would give you this incredible privacy guarantee, then we could add on some features which let the police, for instance, to be able to track money laundering. A back door.” The paper is due to be presented at the IEEE Symposium on Security & Privacy in Oakland, California, in May.2
For this reason alone, this software, if and when available, cannot be recommended. Rather than seeing this extension as continued interest in Bitcoin, the Internet community should see it as a new Trojan Horse by the establishment to subvert the freedom of the Internet and the decentralized nature of the Bitcoin network.
1 http://www.newscientist.com/blogs/onepe ... ?cmpid=RSS|
How to stay anonymous in your daily life
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