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Note: I checked the following in Dogecoin wallet (because it is lighter), and assuming it is same in bitcoin too.
Hello all, i'm an undergrad researching on bitcoin and its protocol. I was going through topic "transaction" where i got a bit confused.
Here is what i think i know:
Bitcoin Protocol's requirement:
- Anonymity, which is why bitcoin encourages users to create and use as many new addresses in the wallet as possible, so that different transactions don't get connected to each other.
- Transaction confirmation, that a user has those many bitcoins that (s)he needs to send.
Now, suppose i have 100 bitcoins received in addresses A1, A2 and A3. Suppose 20 in A1, 10 in A2 and 70 in A3. Suppose the vendor creates a new address V and asks me to send in those 100 bitcoins to V for the service. Thus, when i send 100 bitcoins to V from my wallet, the transaction mentions all these 3 addresses along with amount to V.
Now, we know we require mentioning the 3 addresses for transaction confirmation, but if these all are mentioned together, it means all these belong to the same user, that is me. So, the all the addresses have been connected to each other and also been connected to me, thus breaking my anonymity.
What am i missing out here?
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