Bitcoin also known as internet currency is no longer vulnerable though being most sought after and a favorite for computer scientists, libertarians, and also criminals. It was believed 3 years ago that anyone can buy Bitcoin or digital currency and never be tracked. However, the Federal Bureau of Investigation (FBI) and other Law enforcement have a different opinion. There was an American man of 31 years called Ross Ulbricht, who created Silk Road, a Bitcoin market facilitating the sale of illegal drugs of 1 billion. He was sentenced to life in prison in February 2015. Likewise, there are many other cases that had to plead guilty to being charged with fraud and embezzlement, Bitcoin theft, etc. However, the vast number of Bitcoin users seems to be law-abiding people motivated by privacy concerns or just curiosity. Although, we cannot ignore the fact that Bitcoin’s anonymity could prove to be a powerful resource for financing crime. The digital currency money has a potential to cover secretly the shady transactions.
Records of bitcoin transactions
Bitcoin transactions are processed from electronic bitcoin wallets and are digitally signed for security. The transaction is transparent to all on the Network including the history of the transaction tracing back to the point where the Bitcoins were produced. If you are into investment and waiting patiently for the prices to go up, holding onto bitcoins could prove to be a viable thing. Let’s try to understand how Bitcoin spending works. The bizarre thing about bitcoins is that they don’t exist anywhere, even on a hard drive. We can only trace it to a particular Bitcoin address. There are no digital bitcoins held in it, in the same way, that you might hold pounds or dollars in a bank account. Rather, there are only records of transactions between different addresses, with balances that increase and decrease. Every transaction is stored in a vast public ledger called the blockchain and it is a famous technology.
How is it sent?
With the help of a Bitcoin address and a private key, you can send Bitcoins whose address is generated randomly. This address is simply a sequence of letters and numbers. The private key is similar to the address that is a sequence of letters and numbers; however, it is kept secret, unlike the address. Think of your bitcoin address as a safe deposit box covered with a glass fit. It means that it is transparent to everyone, but only the private key can unlock it to take things out or put things in. For instance, when someone wants to send Bitcoins to someone, one has to use the private key to sign a message with the input, the source transaction of the coin, amount, and output of the one who is a recipient. The sender then sends them from their bitcoin wallet out to the wider bitcoin network. Hence from here, bitcoin miners verify the transaction, putting it into a transaction block and eventually solving it…
Read Full: For Criminals, It Is Impossible To Hide Behind Bitcoin!
