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Joined 16 days ago
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Cake day: October 29th, 2024

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  • From what I understand, which honestly, isn’t a lot - the method used to anonymize transactions and balances is more like obfuscation than anything else. The system uses various techniques to fuzz up the data in such a way that it becomes impossible to trace.

    It’s a bit like if you wanted to send a bank transfer for £200 but anonymize it somewhat, you could transfer that money around between a bunch of other bank accounts, before sending it on to the final source. And if multiple people are doing the same thing, it becomes essentially impossible to determine where the money entered and left.

    The problem is though that such systems aren’t true encryption in the same way that RSA is, for example - the data isn’t unreadable, and it’s not impossible to reverse, it’s just that there’s so much junk data and it’s such a mess that it makes the true transactions difficult to identify and the end user has extremely strong plausible deniability. However, it’s likely just a matter of time before some state actor finds a vulnerability in the technique that allows them to trace transactions - if they haven’t already done so.





  • They should apply to all platforms which have over a certain number of users, for sure. It’s not really a good idea imo to make it universally applicable because then you would end up with a situation where a hobbyist developer is legally required to deal with complying with all that legislation for their homebrew project with half a dozen users.