CBP Bitcoin Privacy and Anonymity Techniques 3

Question 1

What is Wasabi Wallet primarily known for in the Bitcoin ecosystem?

Accepted Answer

Implementing a trustless CoinJoin protocol (WabiSabi) that allows non-custodial Bitcoin mixing

Answer

Manufacturing hardware wallets focused on air-gapped cold storage security

Answer

Providing an integrated decentralized exchange for anonymous Bitcoin swaps

Answer

Serving as the official reference wallet for the Lightning Network

Question 2

What is Silent Payments (BIP352) in Bitcoin?

Accepted Answer

A protocol allowing sending to a static identifier where each payment generates a unique on-chain address without recipient interaction

Answer

A method of sending Bitcoin that produces no blockchain record of the transfer

Answer

A feature that suppresses transaction confirmation push notifications in mobile wallets

Answer

A technique for making zero-fee Bitcoin transfers between compatible wallets

Question 3

What is an 'anonymity set' in the context of Bitcoin privacy?

Accepted Answer

The number of users or outputs that are indistinguishable from one another after a privacy-enhancing transaction

Answer

The total number of Bitcoin addresses that have ever been generated globally

Answer

The group of full nodes that specifically validate privacy-oriented transactions

Answer

A list of cryptocurrency exchanges that do not require KYC identity verification

Question 4

Why does running a full Bitcoin node improve privacy compared to using an SPV (lightweight) wallet?

Accepted Answer

A full node downloads all blockchain data locally, so the user never reveals which addresses they monitor to a third-party server

Answer

A full node encrypts all outgoing transactions before broadcasting them to the network

Answer

Full node operators are legally exempt from KYC requirements on exchanges

Answer

Full nodes automatically route all connections through Tor by default

Question 5

What is a 'dust attack' in the context of Bitcoin privacy?

Accepted Answer

Sending tiny Bitcoin amounts to target addresses so that when the dust is spent with other UTXOs, the owner's addresses become linked

Answer

A spam attack that floods the mempool with thousands of low-fee transactions

Answer

A mining pool technique that exploits small block reward variations

Answer

A method of obscuring transaction amounts by appending random small values

Question 6

What does 'plausible deniability' mean in the context of Bitcoin privacy?

Accepted Answer

Constructing a transaction so that multiple equally valid interpretations exist and none can be proven correct

Answer

A legal defense strategy available to Bitcoin traders accused of tax evasion

Answer

A blockchain protocol where all transaction amounts are hidden by default like Monero

Answer

A wallet feature that allows users to reverse a transaction after it has been confirmed

Question 7

What is the role of a CoinJoin coordinator in a privacy mixing round?

Accepted Answer

A server that organizes mixing rounds by collecting blinded inputs and outputs without learning which inputs map to which outputs

Answer

A miner who validates and confirms CoinJoin transactions on the blockchain

Answer

A regulatory entity licensed to oversee Bitcoin mixing and comply with AML rules

Answer

A consensus node that votes on approving privacy-related Bitcoin protocol upgrades