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How can bitcoin network track my assignments?

Bitcoin Stack Exchange

Bitcoin News / Bitcoin Stack Exchange 206 Views

I know, every assignments are hashed so no one can but only contract parties know about assignments.

This is untrue, or at least an oversimplification that is misleading.

The details of all Bitcoin transactions are published in the public and widely replicated journal of transactions which we call the blockchain. All Bitcoin nodes, including wallets, have direct or remote access to thousands of copies of this information.

None of this data is encrypted in any way. All the algorithms used are public knowledge. This is by intention and is necessary for the fundamental security of Bitcoin. It is required that it is possible for all nodes to independently verify transactions and detect double-spending or other types of fraud.

Some transaction types use a script that doesn't reveal a public key until the recipient spends the money. For example Pay to Public Key Hash (P2PKH) instead of Pay to Public Key (P2PK). However both the key and it's hash are just numbers. We call this hash an address! Transforming one number into another only improves privacy if you look at the overall system carefully. A common theme in many Bitcoin innovations is improving privacy by making it harder for others to associate transactions with specific individuals or organisations.

It is for these types of reason that the Bitcoin network is often described as pseudonymous rather than anonymous.


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