Bitcoin News Mash-Up: Bitcoin-Tor Combo Not Secure; Coinbase’s New Multisig Vault; and More

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Bitcoin News Mash-Up

Following are the major Bitcoin news of the day

Bitcoin Security over Tor Network Questioned
Researchers at University of Luxembourg released a report in which they questioned the cryptocurrency Bitcoin’s security over the anonymity-offering Tor network. According to Ivan Pustogarov, one of the aforementioned researchers, Tor network anonymity features can be compromised by a ‘man-in-the-middle’ attack that will reveal a Bitcoin user’s IP address. It simply means that the attacker will subjugate the victim’s security layer and will be able to record the Bitcoin transactions done from different addresses. The attacker however won’t be able to steal the Bitcoins. The study states:

“A low-resource attacker can gain full control of information flows between all users who chose to use bitcoin over Tor. In particular the attacker can link together user’s transactions regardless of pseudonyms used … and a totally virtual bitcoin reality can be created for such … users.”

Coinbase Launches Multisig Vault
Bitcoin users can now have access to their own private keys, thanks to Coinbase’s new multisig wallet. The famous Bitcoin wallet company designed this vault in the wake of endless customer requests, who simply wanted the right to control their own private keys. The customers’ fears were mostly sketched from the incidents like Mt. Gox, which ultimately made them consult Coinbase for a better security layer. The company, on the other hand, was itself researching over securing the Bitcoin stores. Their blog reads:

“Our new Multisig Vault gives the customer complete control of their own private keys. Coinbase has no ability to move funds (which means you are safe from Coinbase being hacked, going bankrupt, or anyone seizing your bitcoin). It also means that you as a customer have much greater responsibility in storing your backup key securely. If you lose this backup and forget your multisig password, Coinbase cannot help you recover your bitcoin. For this reason, we only recommend this feature for advanced users.”

US Businesses Not Up For Bitcoin Yet
Accounting software research firm Software Advice recently conducted a survey among the small businesses in the US to know their stand on Bitcoin adoption. The results were mostly negative as a majority of these businesses preferred to rely on traditional banking systems, rather than accepting Bitcoin and any other type of digital currency as one of the payment methods.

To contact the reporter of the story: Yashu Gola at yashu@forexminute.com