Sohail Shuja
Chief Minister (5k+ posts)
I think you have not gone through how the Bitcoin Tumblers, Bitcoin Laundry and Mixer works in the blockchain.
I think that you may also know that being opensource does not mean that all the codes are available to the miners. The scripting codes are always hidden.
Cutting the long story short.... the "Proof of Existence" in the blockchain basically plays dice to consolidate the data from its P2P nodes, as given hereunder
Alright, very well explained theoretically, but here comes in the concept of point of reference, when you are doing an audit. How? lets see
1- Suppose you are sitting at Node 722, with its initial condition where it cannot consolidate the whole data for the 21 million BTCs (Practically, to do that, you need a super computer to collect, compute and verify the data of all the nodes all around the globe for these 21 million BTC through their public keys). Now before getting a correction message from Node 433 in the blockchain, the data I have at my Node 722 is not true at all. Once my record is corrected by Node 433, then I am OK with it. This is the theory. But practically, as there are thousands of transactions going on in a single second, all around the globe, then you are always in the situation of the Node 722. So, you can't literally lock the data at one place and say that OK this is it... from here I will start my audit. So, virtually, there is no audit possible. You are always in a state of what is known as the Heisenberg's uncertainty principle. Or to be simply put, you are trying to put bandage on your leg while you are running. It is not possible in a system which is continuously updating itself and you are never sure that the data you are looking at is all updated and consolidated or not.
Now adding insult to the injuries... there is a further division of a bitcoin and its public keys. I mean you have 1 BTC, then you can send me 0.2 BTC out of it as well. Now here, two different public keys will be generated for this transaction, one for the 0.8 BTC in your wallet and one for 0.2 BTC in mine. Now you decide to make two more payments of 0.2 BTC to two different wallets. Now again three more private keys will be generated, two for the 0.2 BTC transactions and one for the remaining 0.4BTC balance in your account. So if you need to determine that how much balance you had at the starting point, in the blockchain, you need to track back to the 1BTC. This may be possible for a one or a few wallets at a time, when you halt their transactions for audit purposes.
But in the realtime blockchain, no one can really get to a point to track back and sum up all the transactions to their starting point where it totals 21 million BTC, because so many Bit coins are constantly getting assigned new private keys.
