Cryptocurrency’s transparent nature is an advantage to many, yet has one major flaw: a lack of privacy. A blockchain is a ledger that is intentionally open and public. Making a crypto transaction leaves a digital trail of information on the blockchain that can be traced back to you. This poses a security risk and is a breach of privacy for many.
As crypto sees continued adoption, more users are seeking privacy. BlockWallet allows its users to protect their crypto portfolios via easily accessible privacy smart contracts that render funds untraceable. Millions of users can benefit from reclaiming their financial privacy with BlockWallet.
While BlockWallet offers an optimal standard of baseline privacy, many recommended practices increase privacy and security on the blockchain. We’ll delve into these recommended practices to demonstrate how users can be as private as possible with BlockWallet.
- Your IP address is public and can be used against you. For example, your ISP could timestamp data packets sent from your IP address and connect them to a withdrawal transaction. Use a VPN or Tor to hide your IP address and mitigate this risk. Future versions of BlockWallet will include full Tor integration.
- The note used during BlockWallet deposits can be used to link your deposit to your withdrawal. You will be able to get your transactions audited by safeguarding this note.
- Clear your cookies before using a DApp with a new BlockWallet address. If a DApp sees two separate addresses with the same cookies, it can know that the addresses have the same owner. For maximum security, use a new browser, wallet, and IP when accessing funds on a new address.
- A public RPC could know that your addresses are connected. For example, using the same IP or API tokens on different addresses could reveal your identity. Avoid public RPCs to mitigate this risk.
It is worth reiterating that many users may opt to ignore these points for increased convenience. Privacy requirements should be assessed on an individual basis. BlockWallet's baseline privacy functionality offers far superior privacy when compared to the standard trail of information left on a block explorer like Etherscan.
- Deposits and withdrawals made next to each other often belong to the same person. We recommend at least waiting until multiple deposits have been made before making a withdrawal. Even if there have been multiple deposits, they could be spam deposits that make the anonymity set seem larger than it is. Waiting at least 24 hours before making a withdrawal is optimal.
- If there are multiple deposits from one address, and then multiple withdrawals of the same size, it’s highly likely that they belong to the same person. When making multiple withdrawals, space them out over a period of time and use addresses not linked to each other.
- Making deposits and withdrawals during the waking hours of your timezone may reduce your anonymity and allow people to deduce which part of the world you reside in. Spread out your deposits and withdrawals across 24 hours for maximum security.
- The anonymity set can vary in size at any given time. Other users may choose to reveal their transactions, effectively reducing the size of the anonymity set. Therefore it’s advisable to not reveal any information about deposits and withdrawals to keep the anonymity set as big as possible.
- Avoid disclosing your wallet addresses when possible. If you need to disclose an address for a transaction, then use a fresh BlockWallet address with no links to your main portfolio.
The simplest rule to follow for optimal transaction privacy is to blend in with the crowd and avoid making patterns.
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