If I receive BITCOIN in my wallet, and then go to a website like: https://shapeshift.io/#/coins, where I can convert bitcoin to ether for example, is this transaction trackable? More specifically, if Party A sends bitcoin from their wallet to my wallet and then I use shapeshift to convert bitcoin to ether and I send that ether back to Party A. Can Party A track the transaction and know that the ether transaction actually came from the original bitcoin transaction?
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Short answer is yes, it can be tracked, but it is time consuming and not easy.
I seriously doubt anyone you deal with would even think about trying to track any of your transactions.Comment -
are there privacy coins where this can work? How can an exchange from bitcoin to ether be trackable? Shouldn't this act as the ultimate scrambler.Comment -
yeah shapeshift from coin to coin is not traceable in the common sense, yes I am sure some super nerd with a quantum computer could track it but coinbase or gemini not a chance nor would they even think to tryComment -
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You need to use privacy coins such as Monero and ZCash.Comment -
It's already been done, no quantum computer needed lol. Description from the research paper - "In this paper, we use data scraped from ShapeShift over a six-month period and the data from eight different blockchains in order to explore this question. Beyond developing new heuristics and demonstrating the ability to create new types of links across cryptocurrency ledgers, we also identify various patterns of cross-currency trades and of the general usage of these platforms, with the ultimate goal of understanding whether they serve either a criminal or a profit-driven agenda."
For many the solution to the privacy issue lies in zero knowledge proofs, it's a good start anyway.Last edited by lotuspod; 11-22-18, 08:37 PM.Comment