Twistedpair: Towards Practical Anonymity in the Bitcoin P2P Network
TwistedPair: Towards Practical Anonymity in the Bitcoin P2P Network Abstract—Recent work has demonstrated significant anonymity vulnerabilities in Bitcoin’s networking stack. In particular, the current mechanism for broadcasting Bitcoin transactions allows third-party observers to link transactions to the IP addresses that originated them. This lays the groundwork for low-cost, large-scale deanonymization attacks. In this Fig. 1: Supernodes can observe flooding metadata to infer work, we present TwistedPair, a first-principles, theoretically- which node was the source of a transaction message (tx). justified defense against large-scale deanonymization attacks. TwistedPair is lightweight, scalable, and completely interoperable with the existing Bitcoin network. We evaluate TwistedPair through experiments on Bitcoin’s mainnet to demonstrate with an overview of Bitcoin’s P2P network, and explain why its interoperability with the current network, as well as low it enables deanonymization attacks. broadcast latency overhead. A. Bitcoin’s P2P Network I. INTRODUCTION Bitcoin nodes are connected over a P2P network of TCP links. This network is used to communicate transactions, the Anonymity is an important property for a financial system, blockchain, and control packets, and it plays a crucial role in especially given the often-sensitive nature of transactions [15]. maintaining the network’s consistency. Each peer is identified Unfortunately, the anonymity protections in Bitcoin and similar by its (IP address, port) combination. Whenever a node gen cryptocurrencies can be fragile. This is largely because Bitcoin erates a transaction, it broadcasts a record of the transaction users are identified by cryptographic pseudonyms (a user can over the P2P network; critically, transaction messages do not have multiple pseudonyms).
[Show full text]