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UK: financial transactions via Bitcoin are at risk - report

Wednesday 26 November 2014 00:28 CET | News

Digital currency researchers at the University of Luxembourg have shown that money transactions via Bitcoin network do not protect users IP address and it can be linked to the users transactions in real-time.

The team demonstrated that only a few computers and about EUR 1,500 are required to reveal the IP address behind each transaction.

New findings showed that Bitcoin entry nodes, to which the users computer connects in order to make a transaction, form a unique identifier for the duration of users session. This unique pattern can be linked to a users IP address.

Moreover, transactions made during one session, even those made via unrelated pseudonyms, can be linked together. With this method, hackers can reveal up to 60% of the IP addresses behind the transactions made over the Bitcoin network.


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Keywords: UK, financial transactions, Bitcoin, risk, IP, protocol, hackers, data breach, money, fiat currency, cryptocurrency
Categories: DeFi & Crypto & Web3
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Countries: World
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DeFi & Crypto & Web3