Silk Road forums
Discussion => Security => Topic started by: CREAM on August 24, 2011, 10:42 am
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When a buyer makes a purchase, the funds are held in escrow. Are these escrowed bitcoins sent to a "holding wallet" on SR servers, or are these funds kept in the buyer's eWallet and managed by SR database logic?
If the escrowed bitcoins are transferred to a "holding wallet" then isn't most, or any, tumbling/laundry you do is fundamentally flawed in that they can always be traced back to this same wallet?
If the escrowed bitcoins are, in fact, kept in the buyer's eWallet and managed by a Silk Road "escrow database" (or some kind of escrow logic that doesn't involve actually transferring these coins /out/ of the buyer's wallet) then there is no central link to which laundered bitcoins can be traced.
Is my thinking correct on this issue? Any senior members, or Silk Road him/her -self, have input on this thought?
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This is pure speculation. I think that the bitcoins are only put there as an IOU. No real bitcoins are transferred anywhere until the escrow is paid out. That's when the everything happens. So, when it gives you a dollar amount its just that an amount that is locked in. Because escrow isn't done til the transaction is done, the amount in bitcoins could go up or down..At least, that's my take on it...
So, all the bitcoins are just stored in a secure place. No matter how you get your bitcoins on SR I believe it always go through the tumbler somehow...(At least that is my theory and my hope)..
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This is pure speculation. I think that the bitcoins are only put there as an IOU. No real bitcoins are transferred anywhere until the escrow is paid out. That's when the everything happens. So, when it gives you a dollar amount its just that an amount that is locked in. Because escrow isn't done til the transaction is done, the amount in bitcoins could go up or down..At least, that's my take on it...
So, all the bitcoins are just stored in a secure place. No matter how you get your bitcoins on SR I believe it always go through the tumbler somehow...(At least that is my theory and my hope)..
indeed speculation. safe thing to do would of course be the IOU instance only. The bitcoin fluctuation would have to affect Silk Road's escrow as it does the rest of the market, so (speculation) escrow may be more complex than we think. I think they keep escrow in hard coin; offline. Silk Road is resiliently built and very complex. There's a reason we are told certain things by Silk Road themselves, and they are for sure never going to disclose all - in the interest of everyone's safety.
I am almost positive the tumbling does indeed occur multiple times - on the way in, on the way out, and constant options for new receiving addresses. It's risk vs. their 5% - I assure you they've invested in a robust safety net.
B
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This is pure speculation. I think that the bitcoins are only put there as an IOU. No real bitcoins are transferred anywhere until the escrow is paid out. That's when the everything happens. So, when it gives you a dollar amount its just that an amount that is locked in. Because escrow isn't done til the transaction is done, the amount in bitcoins could go up or down..At least, that's my take on it...
So, all the bitcoins are just stored in a secure place. No matter how you get your bitcoins on SR I believe it always go through the tumbler somehow...(At least that is my theory and my hope)..
indeed speculation. safe thing to do would of course be the IOU instance only. The bitcoin fluctuation would have to affect Silk Road's escrow as it does the rest of the market, so (speculation) escrow may be more complex than we think. I think they keep escrow in hard coin; offline. Silk Road is resiliently built and very complex. There's a reason we are told certain things by Silk Road themselves, and they are for sure never going to disclose all - in the interest of everyone's safety.
I am almost positive the tumbling does indeed occur multiple times - on the way in, on the way out, and constant options for new receiving addresses. It's risk vs. their 5% - I assure you they've invested in a robust safety net.
B
Okay, yes, I agree with you two (and also like the way it's worded as an "IOU"; better than my technical wording :P )
I also agree with the disclosure/obscurity factor (that SR doesn't disclose everything to us for all of our safety.) Thanks guys.
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So affectively SR is one big wallet? It's also a mixer/tumbler in that case, right?
P.S. I hope SR admins gave handed their wallet to the Wallet Verifier : http://3woapc2khixooeit.onion/
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So affectively SR is one big wallet?
I would hope not; that's the point I was trying to make: If it was, then all the coins going through SR are traceable back to a single wallet no matter what.
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My poor translation of nice saying..
curiosity killed the cat.
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My poor translation of nice saying..
curiosity killed the cat.
lol, your translation was perfect....
:)
B
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So affectively SR is one big wallet?
I would hope not; that's the point I was trying to make: If it was, then all the coins going through SR are traceable back to a single wallet no matter what.
Assume every coin comes from here is traceable...
SR say they tumble the coins for you, so I guess it means it's all in one wallet - which is best imho.
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If SR is not dumb, Sr has more than one wallet. SR probably controls a network of wallets to tumble, ditching old wallets and adding new ones all the time. Not sure if SR would tumble though 3rd party exchanges or not. Your BTC are probably just bouncing around while SR's codebase credits your account. Your coins get actually tumbled to/from your throwaway wallet when you cash out/in.