Correlation attacks on Bisq transactions?


#1

Hi, I’ve been using Bisq and just wanted to better educate myself a bit. Suppose you’re using Zelle or something similar to buy the BTC, so then the bank has a record of you using Zelle. Given that BTC’s blockchain can be audited, it seems like the bank etc would be able to do a correlation analysis of the amount you sent in zelle, and the price of bitcoin at the time, and determine that you were buying btc. Moreover, by auditing the blockchain, it seems like they could match up USD amounts with BTC funding transactions, and figure out which bitcoin addresses you (the zelle user) own. They could even (possibly) piece together who owns which .onion addresses. Or am I mistaken? Has this been discussed here before?

Thanks.


#2

Hi, there is an interesting discussion about privacy here:

with some good tips to help with your privacy.
Basically, swim in the center of the statistics.


#3

I think the number of Zelle transactions and number of BTC transactions are big enough to create a lot of false positives so that such correlations are rather useless. The 10 min. block interval adds more uncertainty to the mix.

A much more critical aspect is chain analysis IMO.
If you connect a btc tx to your real live identity at some point it is quite difficult to make sure that you are not tainting other coins from your wallet as well. Depend on many factors like: Which wallet you use, coin merge in your wallet, technical skills to control your transactions, technical skills to have good online privacy,… Beside that lookup in blockexplorers or webpage tracking data can lead to deanonymisation (leak IP,…).
I think that is the biggest problem in Bitcoin from a privacy perspective.

Beside that once you use a Fiat payment method where your identity is passed to the peer you don’t have strong privacy protection anyway as the peer could theoretically be an undercover agent and therefor getting your id (on LBTC there are such reported cases but usually with high trading amounts).
You have to keep that limitation in mind when considering other protection aspects. Bisq’s fiat payment methods cannot be used if using Bitcoin or Bisq is illegal.