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Data flow between their computers like gossip in a crowd, spreading quickly and redundantly until everyone has the information—with no one but the originator knowing who spoke first. This system worked so well that it was carelessness, not any privacy flaws in Bitcoin, that led to the breakthrough in the investigation of Silk Road. When Ulbricht, the ringleader, was hiring help to expand his operation, he used the same pseudonym he had adopted years before to post announcements on illegal drug discussion forums; that and other moments of sloppiness made him a suspect. Once FBI tracked his IP address to a San Francisco, in California, Internet cafe, they caught him in the act of logging into Silk Road as an administrator. Other criminals could take solace in the fact that it was a slip-up; as long as you used Bitcoin carefully, your identity was protected behind the cryptographic wall. But now even that confidence is eroded. Among the first researchers to find a crack in the wall were the husband-and-wife team of Philip and Diana Koshy. In 2014, as graduate students in McDaniel’s lab at Penn State, they built their own version of the software that buyers and sellers use to take part in the Bitcoin network. It was especially designed to Skip Tracer be inefficient, downloading a copy of every single packet of data transmitted by every computer in the Bitcoin network. “We wanted to see everything,” Philip Koshy says.
For the original version including any supplementary images or video, visit http://www.sciencemag.org/news/2016/03/why-criminals-cant-hide-behind-bitcoin
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