Crisp Bitcoin Accounts: Defining Attributes

Being that the entire transaction ledger of Bitcoin is public, it is probable that someone has established or is working to establish an automated reverse identity program, designed to ascertain the identity of every person who possesses a Bitcoin wallet. Likely initiators of such a program is obvious. The logic of such a system would be based upon analyzing upstream and downstream Bitcoin transactions with the objective of locating a transaction counterparty whose identify is know. Then tradition methods for obtaining information from the known counterparty would be applied.

So how do you solve the problem of maintaining transparency into the cryptocurrency itself while protecting the identities of account holders? One way would be to maintain the "crisp" quality of the Bitcoin account itself. Kind of like a fresh, crisp dollar bill that hasn't been used very much, if not at all, except to be issued by a bank. The value in a Bitcoin account with little usage is that there are fewer transactions to apply a reverse identity process. Some would perceive value in such an account, beyond the value of the Bitcoin it holds.

So if you can't spend the Bitcoin, how can you ever realize the stored value? Account-base transactions. In other words, you never transfer Bitcoin to or from the account, you transfer the account itself. The permanency of traditional Bitcoin transactions is established, making actual Bitcoin account exchanges just another type of non-recourse transaction. Of course the concept discussed herein would not be relevant for Bitcoin accounts were the owner revealed his identity and other personal information upon establishing the account.

There is likely a market for an application that leverages the transparency of the Bitcoin blockchain, which supports confidence in the cryptocurrency itself, and focuses on strengthening the element of transaction privacy of the initiating party and counter party. In a given transaction, the Bitcoin blockchain will not see or record the transfer of Bitcoin, because theoretically, the Bitcoin was never transferred. Like the transaction never occurred. Only the account holding the Bitcoin itself will be transferred.