> For the complete documentation index, see [llms.txt](https://hub.bsvblockchain.org/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://hub.bsvblockchain.org/higher-learning/bsv-academy/bitcoin-whitepaper-series/section-10-privacy-bitcoin-whitepaper/privacy-in-bitcoin-transactions.md).

# Privacy in Bitcoin Transactions

<figure><img src="https://3421145409-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FRTEKu4E7Fvtss3GI9CYU%2Fuploads%2F1CCoJP2HnDKr23vUS7Cs%2FBitcoin%20Transaction.gif?alt=media&amp;token=8a0b921a-40f0-4b2f-a97a-b3510f9b5114" alt=""><figcaption></figcaption></figure>

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.

\- Satoshi Nakamoto, Bitcoin Whitepaper

In the realm of Bitcoin, the necessity to announce all transactions publicly presents a challenge to privacy. However, privacy can still be preserved by **anonymizing public keys**. While the public can observe that a transaction is occurring—specifically, the amount being sent from one party to another—the **identities of the parties involved can remain obscured**. This is **akin to the operations of stock exchanges**, where the time and size of trades are disclosed, but the identities of the trading parties are not.

To enhance privacy, it is advisable for users to employ a **new key pair** for each transaction. This practice minimizes the **risk of linking multiple transactions to a single owner**. However, it is important to note that some linking may still occur, particularly in **multi-input transactions**, where the inputs reveal that they were owned by the same individual. If the owner of a key is identified, it could potentially expose other transactions associated with that key, thereby compromising privacy.


---

# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.

## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation by asking a question.

Perform an HTTP GET request on the following URL with the `ask` and `goal` query parameters:

```
GET https://hub.bsvblockchain.org/higher-learning/bsv-academy/bitcoin-whitepaper-series/section-10-privacy-bitcoin-whitepaper/privacy-in-bitcoin-transactions.md?ask=<question>&goal=<user_goal>
```

`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is what the user is ultimately trying to achieve, the reason they need the answer. Sharing it helps GitBook give you a better, more relevant answer. A goal is most helpful when it describes the outcome the user wants rather than restating the question. For example, with `ask=how do I create an API token`, a goal like `automate deployments from our CI pipeline` lets GitBook tailor the answer to that use case.

The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.
