![]() ![]() Wasabi has a partial Bitcoin Knots integration. ![]() A new Bitcoin peer is chosen for every transaction broadcast. Wasabi connects to each peer through a different Tor stream. All this without involving any exit node. Wasabi connects only to onion nodes, so end-to-end encryption is enforced between the wallet and peers. # Private transaction broadcastingĪll Wasabi traffic is tunneled through Tor. The only adversary that could possibly overcome this would have to setup thousands of full nodes over Tor and also break Tor itself. Because of the end-to-end encryption of the onion network, it immediately defeats an ISP adversary and makes the already impossible job of the Sybil adversary even more impossible. When a block is acquired, the peer gets disconnected. One block per peer, and always over a fresh Tor stream. From those filters, the clients figure out which blocks they are interested in and download them from peers. The backend server serves block filters to all the clients over Tor. # Wasabi Wallet light node # Private UTXO retrieval It is reasonable to assume that this entity can break the onion routing, not Tor's encryption itself. In this case, a supernode cannot track back transactions to your IP address.Īn entity that can break Tor is a universal adversary, however, most Tor attacks are not possible if exit nodes are not involved. You can use Bitcoin Core with Tor, which solves some of the above-mentioned issues. Dandelion: Privacy-Preserving Transaction Propagation open in new window. However, some papers note it’s not bulletproof:īitcoin transaction propagation does not hide the source of a transaction very well, especially against a “supernode” eavesdropper that forms a large number of outgoing connections to reachable nodes on the network. Other peers cannot figure out which transaction originates from a specific node because Core does not only broadcast its own transactions but also propagates every other transaction that hits its mempool. # Private transaction broadcastingīitcoin Core broadcasts transactions to other peers on the clearnet, unencrypted. # In-depth comparisonįurthermore, network-level privacy consists of two sub-categories.īitcoin Core downloads all the blocks ever created and establishes your wallet balances locally. Wasabi has network-level privacy as good as a Bitcoin full node. Then, Wasabi pulls the verified blocks and queries the mempool from the full node. It is also possible to connect Wasabi to a remote full node on another computer by specifying the local IP address or Tor onion service in the settings. If bitcoind open in new window is installed and run on the same computer as Wasabi, then it will automatically and by default connect to the full node. In order to fully verify everything, running a full node is essential. This means that by default, all network communication is secured from outside snooping and the IP address is hidden. If Tor is not already installed, then it is accessed automatically from within Wasabi. Wasabi checks if there is a local Tor instance installed, and if so, it uses this to onion-route all the traffic to and from the network. # Wasabi's solution # Full node by default & block filters over Tor When the user sends the extended public key or a filter of all the addresses to the central server, then the server can COMPLETELY deanonymize the users. And there is Electrum, which sends your addresses open in new window to random Electrum servers. There are light wallets, which query a backend server to get information regarding specific addresses or use BIP 37 open in new window bloom filtering SPV wallet protocol, which is extremely bad for privacy open in new window. However, when a node or a wallet does not gossip all transactions, but only the transactions of its user, then it is easier to find out which node has sent those specific transactions. Thus it is very difficult to find out which transactions originated from which full node. The IP address can even be used to find the physical location of the user!Ī Bitcoin full node broadcasts not just the transactions of its user, but it also gossips all of the other transactions that it has received from its peers. When the communication to the network is unencrypted over clearnet, then there is an easy correlation of the Bitcoin transactions to the IP address of the peer who sent it. Full node by default & block filters over Tor.There is a lot of communication between them and metadata can be used to de-anonymize Bitcoin users. # Network-Level Privacy - Bitcoin Core vs Wasabi Walletīitcoin is a peer-to-peer network of full nodes that define, verify, and enforce the Bitcoin consensus rules. ![]()
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