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Evaluating User Privacy in Bitcoin

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Financial Cryptography and Data Security (FC 2013)

Part of the book series: Lecture Notes in Computer Science ((LNSC,volume 7859))

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Abstract

Bitcoin is quickly emerging as a popular digital payment system. However, in spite of its reliance on pseudonyms, Bitcoin raises a number of privacy concerns due to the fact that all of the transactions that take place are publicly announced in the system.

In this paper, we investigate the privacy provisions in Bitcoin when it is used as a primary currency to support the daily transactions of individuals in a university setting. More specifically, we evaluate the privacy that is provided by Bitcoin (i) by analyzing the genuine Bitcoin system and (ii) through a simulator that faithfully mimics the use of Bitcoin within a university. In this setting, our results show that the profiles of almost 40% of the users can be, to a large extent, recovered even when users adopt privacy measures recommended by Bitcoin. To the best of our knowledge, this is the first work that comprehensively analyzes, and evaluates the privacy implications of Bitcoin.

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Androulaki, E., Karame, G.O., Roeschlin, M., Scherer, T., Capkun, S. (2013). Evaluating User Privacy in Bitcoin. In: Sadeghi, AR. (eds) Financial Cryptography and Data Security. FC 2013. Lecture Notes in Computer Science, vol 7859. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-39884-1_4

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  • DOI: https://doi.org/10.1007/978-3-642-39884-1_4

  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-642-39883-4

  • Online ISBN: 978-3-642-39884-1

  • eBook Packages: Computer ScienceComputer Science (R0)

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