How to explain Bitcoin Whitepaper to a 8 year old kid - Part 7
2025
Privacy - How Bitcoin keeps your identity secret
In Bitcoin Town, everything is public! Every single transaction is written in the blockchain. So how do we keep users private?
The Clever Trick: Anonymous Addresses
Instead of hiding the transactions, Bitcoin hides the names behind them. Each person uses a public key — a long code that doesnt say your name. Its just random letters and numbers!
So people can see that someone sent some Bitcoin to someone else, but they dont know who.
One Key per Payment
To stay even more private, use a new key pair (a new Bitcoin address) for every transaction. That way, no one can link all your payments together and guess who you are.
In short:
- 🏦 Old system hides transactions.
- ⛓️ Bitcoin makes all transactions public but hides identities behind codes.
- 🔑 Use new addresses often to stay private.
- 🕵 Its pseudonymous, not fully anonymous.
P.S. The content was assisted by AI