Table of Contents
Buying a VPS with Bitcoin (BTC)
There are Several customers for whom staying anonymous is an important factor when making a purchase. Meaning that many customers don’t want anyone to be conscious of how much they earn, where and for what they spend their money and how much money they have stored, etc. That’s why HostZealot has taken care to buy VPS with BTC and other cryptos.
Although, when it comes to BTC, its use does not guarantee complete anonymity, as the technology of each transaction on the blockchain is based on a completely transparent one. This is a big reason why many people only know BTC currency under a pseudonym. Nevertheless, it can also be very beneficial for you to keep anonymous if you use it wisely. In this article, we have given complete information about BTC, how it is capable of working and how to use it to remain anonymous. Also having a knowledge about Stock Trading Terms is a huge advantage.
How does bitcoin (BTC) work
If we talk about the ways of working of bitcoin then it is also rooted in the technologies of blockchain-like other cryptocurrencies. All the transactions done by it are kept in a universal database. Based on this, one can get the information of each transaction, how much money was sent and from where etc. That’s why you should never disclose your name, address and other individual information here. This privacy is as a relative and succumbs to all actions taken by you.
Let’s take a look at how blockchain technology can function and how you can benefit from it to have complete anonymity
Blockchain Technology
All blockchain transactions involve different types of data packages. All these data can be echeloned into input and output. The inputs are related to the addresses from which coins can be sent. And The outputs are related to the addresses that the coins can receive. Every transaction made with BTC is entered into either an input or an output. This way BTC can be easily sent to one or more addresses. A transaction provides only one input and one output, which is a very rare case because it requires the sum of all BTC sent (input) to be equal to the sum of each BTC (output) received.
It is generally observed that each transaction involves many small inputs. For example, if you have three inputs and each input contains one BTC, and you want to send those BTC to an online shop, the software combines all three inputs into a single transaction.
Bitcoin Anonymity
Each transaction is transmitted irregularly through a peer-to-peer network, However, this system is not completely hermetic. For example, if an individual factor has a single occasion to connect multiple nodes to the BTC network, So all the information collected by him can be done enough to easily trace the source of a distinctive transaction.
On the other hand, a BTC address can also be associated with specific people, but this is possible only if their respective information is linked to a distinctive BTC address. It also associated several addresses that were consumed to deposit or withdraw money from an exchange wallet.
But the most Necessary thing to note is that every BTC transaction can be viewed by anyone. It allows for the addition of multiple BTC addresses and attributes them to a distinctive user. Thus, if one address is linked to a particular person through one of these beyond methods, So each address is denominated.
