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Do a lot of services allow you to refund money to a new account? As I understand it, bitcoin doesn't track coins so much as it tracks the funds associated with
by SomeStupidPoint 9y ago
Do a lot of services allow you to refund money to a new account?
As I understand it, bitcoin doesn't track coins so much as it tracks the funds associated with account numbers. When you have "dirty" coins, it's really that people know an account (say, A) has illegitimately gotten funds (say, $x).
A tumbler functions by taking $x from A, transferring it to the tumbler account (say, T), and then transferring it on to other accounts (eg, B1, B2, ..., Bn) in various amounts that total the input ($x) minus some fee. Something like:
(A, $x) -> [T] -> [(B1, $y1), (B2, $y2), ... (Bn, $yn)]
In order to use a service as a tumbler, you'd need them to a) keep secret what you bought from them (ie, the difference between $x and $y) and b) allow you to transfer the funds out to a different account number than the one that sent the coins in (and ideally, a few such numbers).
It would seem like any legitimate business would hand over that information when requested (or subpoenaed).
- resf 9y ago> As I understand it, bitcoin doesn't track coins so much as it tracks the funds associated with account numbers. It's actually the opposite. The blockchain does track coins, but not accounts or account numbers. Rather, each transaction involves "scripts" which specify some conditions with which coins can be used as inputs to another transaction. In a normal transaction, one key can spend the coins, but e.g. it is possible to send coins to a script that is impossible to satisfy, therefore the coins are unspendable, yet don't exist in an 'account' at all.