10. Privacy
The traditional banking model achieves a level of privacy by limiting access to information to the parties involved and the
trusted third party. The necessity to
announce all transactions publicly precludes this method, but
privacy can still be maintained by breaking the flow of information in another place: by keeping public keys anonymous. The public can see that someone is sending
an amount to someone else, but without information linking the transaction to anyone. This is
similar to the level of information released by
stock exchanges, where the time and size of individual trades, the "tape", is made public, but without telling who the parties were.
As an additional firewall,
a new key pair should be used for each transaction to keep them
from being linked to a common owner. Some linking is still unavoidable with
multi-input
transactions, which necessarily reveal that their inputs were owned by the same owner. The risk is that if the owner of a key is revealed, linking could reveal other transactions that belonged to the same owner.
https://t.me/BitcoinWP/403