{"id":13167,"date":"2019-04-01T23:11:19","date_gmt":"2019-04-01T15:11:19","guid":{"rendered":"https:\/\/www.hongkiat.com\/blog\/?p=13167"},"modified":"2019-04-01T15:33:49","modified_gmt":"2019-04-01T07:33:49","slug":"introductions-to-bitcoins-tor-network","status":"publish","type":"post","link":"https:\/\/www.hongkiat.com\/blog\/introductions-to-bitcoins-tor-network\/","title":{"rendered":"The Beginner&#8217;s Guide to Bitcoins &amp; Tor Network"},"content":{"rendered":"<p>Internet users familiar with the underground community are likely to have heard the phrase \u201cdeep web\u201d. It combines a set of websites and communications technologies which apply solely to the Tor network. This collective open-source software has blossomed into a revolutionary idea in just a few years.<\/p>\n<p>On a similar note the bitcoin currency has also been gaining some attention. Although these two ideas are <strong>not<\/strong> correlated, they do fit together in the subject of underground web technology.<\/p>\n<p>So, Through this guide, I\u2019d like to introduce you to the topic of bitcoins, how they work, and their connection with the Tor network. Let\u2019s first clarify what Tor is really about.<\/p>\n<p class=\"note\"><strong>Read Also:<\/strong> <a target=\"_blank\" href=\"https:\/\/www.hongkiat.com\/blog\/ways-to-own-bitcoins-online\/\">4 Ways to Own Bitcoins Online<\/a><\/p>\n<h2>The Tor Project<\/h2>\n<p>The original <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/www.torproject.org\/\">Tor network project<\/a> isn\u2019t as underground as it used to be. The open-source software was an effort to provide a new layer of Internet protection between the user and the remote website server, thus providing you with a sense of security. This is accomplished by using 3 different relay proxies which re-direct you along a random path in the network.<\/p>\n<p>Similar to Bit Torrent, users of the Tor network will keep their computers running 24\/7 as a relay service. This means when you go to access a website on Tor it\u2019ll pass your request through 3 different computers (called <strong>nodes)<\/strong>.<\/p>\n<p>This level of encryption ensures that no single computer within the proxy chain can determine your physical location and requested content. The <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/www.torproject.org\/docs\/faq.html.en\">official Tor FAQ<\/a> contains more technical details if you\u2019re interested.<\/p>\n<p>This is crucial for users who prefer to keep their location and privacy unknown, individuals like whistleblowers or abuse victims. The fact that a wider variety of people now use Tor increases the level of security, helping you hide among the many other faceless users who are on the network.<\/p>\n<h2>Getting Started<\/h2>\n<p>To access this network of proxies you only need to download their package software. If you visit the <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/www.torproject.org\/download\/\">Tor project downloads page<\/a> you\u2019ll notice a listing for the most popular Operating Systems including Linux, Windows, and Mac OSX. The software is bundled as a zip archive without requiring any installation.<\/p>\n<figure><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/assets.hongkiat.com\/uploads\/introductions-to-bitcoins-tor-network\/the-tor-project.jpg\" alt=\"the tor project\" width=\"1020\" height=\"594\"><\/figure>\n<p>After opening, just double-click the Tor icon to start up relay services, and shortly after, a new web browser should launch in the Gecko\/Mozilla engine. It\u2019s basically a shell script of Firefox which runs under custom proxy settings for Tor.<\/p>\n<p>The entire network behaves as one interconnected and fluid proxy server farm. It\u2019s important to note that you can access regular HTTP websites via proxy, but the load times are immensely slower. The real benefit of using Tor is to gain access into the <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/en.wikipedia.org\/wiki\/Onion_routing\">onion routing<\/a> network. Within this chasm of the deep Internet lies the hidden websites so often discussed around the watercooler.<\/p>\n<h2>Onion Routing<\/h2>\n<p>This new technology is used within the Tor network to communicate hosts with darknet websites. These are still HTML\/CSS pages which have been hosted on servers specifically targeting an <code>.onion<\/code> DNS address.<\/p>\n<p>This TLD (Top-Level Domain) is actually similar to other country codes such as <em>.us<\/em>, <em>.co.uk<\/em>, <em>.es<\/em> and others. However, you are not accessing the same websites, as through an HTTP\/FTP connection.<\/p>\n<figure><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/assets.hongkiat.com\/uploads\/introductions-to-bitcoins-tor-network\/how-tor-works.jpg\" alt=\"how tor works\" width=\"1020\" height=\"659\"><\/figure>\n<p>The most intriguing part of the Onion routing network is within their unique URL addresses. Instead of human-readable strings such as <em>hongkiat.com<\/em> these appear as randomly generated numbers and letters. So for example, to visit \u201cThe Hidden Wiki\u201d you would enter the following in browser:<\/p>\n<p><code>http:\/\/kpvz7ki2v5agwt35.onion\/wiki\/index.php\/Main_Page<\/code><\/p>\n<p>This redirects to a Wikipedia-style site focusing on everything Tor-related.<\/p>\n<p>To get a better idea of how Tor websites are designed and created, check out some of the other examples I\u2019ve provided below.<\/p>\n<ul>\n<li>TorStatusNet Microblogging \u2013 <code>http:\/\/lotjbov3gzzf23hc.onion\/<\/code><\/li>\n<li>Tor Web Design Guidelines \u2013 <code>http:\/\/wf4df37hrebhwzts.onion\/<\/code><\/li>\n<li>Freedom Hosting \u2013 <code>http:\/\/xqz3u5drneuzhaeo.onion\/<\/code><\/li>\n<li>MyBitcoin \u2013 <code>http:\/\/xqzfakpeuvrobvpj.onion\/<\/code><\/li>\n<li>BitLaundry \u2013 <code>http:\/\/yhngvp3q5h4s7d3e.onion\/<\/code><\/li>\n<li>BitLotto \u2013 <code>http:\/\/jpjyhljziw2glwfg.onion\/lotto\/index.html<\/code><\/li>\n<li>Simple PM \u2013 <code>http:\/\/4v6veu7nsxklglnu.onion\/SimplePM.php<\/code><\/li>\n<li>Anonymoose Chat \u2013 <code>http:\/\/c2hluuzwi7tuceu6.onion\/<\/code><\/li>\n<\/ul>\n<h2>Introduction to Bitcoin<\/h2>\n<p>Let\u2019s take a break from Tor for a moment and examine the underground currency, bitcoin. Bitcoins behaves just like any other monetary system; it can be exchanged and traded for Dollars and Euros. It is not too difficult to comprehend with a bit of reading but I feel that this video really clears up some of the confusing areas for beginners.<\/p>\n<p class=\"video-19by6\"><iframe loading=\"lazy\" width=\"560\" height=\"315\" src=\"https:\/\/www.youtube.com\/embed\/Um63OQz3bjo\" frameborder=\"0\" allowfullscreen><\/iframe><\/p>\n<p>Now, the bitcoin currency has a few benefits. Notably there is no central banking group which manages and loans out these coins. They are created through computer processing \u2013 theoretically nothing more than time and GPU compression. This also means no central authority is issuing \u201cclearing\u201d for bitcoin transactions. Thus instead of waiting 2-3 business days for a bank you can transfer bitcoins between addresses in just a few hours.<\/p>\n<h2>Collecting and Exchanging Coins<\/h2>\n<p>Although it is an exciting endeavor, the average btc user does not spend time mining for bitcoins. The process is too intense for a single computer and you likely won\u2019t find the payoff worthwhile.<\/p>\n<p>Professional miners work together in <strong>pools<\/strong> and will sometimes run a series of rigs setup with dual video cards (Graphics Processing Units) for the highest turnout rate.<\/p>\n<p>But for the majority of beginners it\u2019s unrealistic to jump into this right away. The much simpler method of collecting bitcoins is to transfer in your own cash, or alternatively provide service work.<\/p>\n<p>A lot of btc users are willing to trade coins for Internet marketing, web design, development, and similar odd jobs. But moving cash into your bitcoin address (or <strong>wallet<\/strong>) is also just as simple.<\/p>\n<figure><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/assets.hongkiat.com\/uploads\/introductions-to-bitcoins-tor-network\/bitcoins.jpg\" alt=\"bitcoins\" width=\"1000\" height=\"664\"><\/figure>\n<p class=\"note\"><strong>Read Also:<\/strong> <a href=\"https:\/\/www.hongkiat.com\/blog\/bitcoin-questions\/\">Everything You Need to Know About Bitcoin<\/a><\/p>\n<h2>How are Bitcoins Spent?<\/h2>\n<p>The ultimate goal is to use this alternate currency and hold our reserve coins in some type of wallet. Then we can use a unique wallet ID (or <strong>bitcoin address<\/strong>) to shop  where bitcoins are accepted. This coin archive can either run through a desktop software or a third-party browser solution.<\/p>\n<figure><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/assets.hongkiat.com\/uploads\/introductions-to-bitcoins-tor-network\/bitcoins-accepted-here.jpg\" alt=\"we accept bitcoins\" width=\"1000\" height=\"667\"><\/figure>\n<p>Those who value ultimate safety and security will want to keep their bitcoin assets local, i.e. in their computer. But I feel more comfortable using online wallets, as I have direct access to my accounts from any computer.<\/p>\n<p>Now putting aside the possible earnings from buying and selling the currency itself, you can purchase a lot of things with bitcoins!<\/p>\n<figure><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/assets.hongkiat.com\/uploads\/introductions-to-bitcoins-tor-network\/bitcoin-classified.jpg\" alt=\"bitcoin classified\" width=\"1000\" height=\"600\"><\/figure>\n<p>But if you truly want a catalog of shops, you cannot go wrong with the <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/en.wikipedia.org\/wiki\/Bitcoin\">official bitcoin trade wiki<\/a>. This includes a detailed list of physical and digital items you can purchase with no shortages of URLs. These categories include clothing, video games, books, electronics, and so much more.<\/p>\n<p class=\"note\"><strong>Read Also:<\/strong> <a href=\"https:\/\/www.hongkiat.com\/blog\/bitcoin-wallets\/\">14 Best Bitcoin Wallets For Secure Bitcoin Storage<\/a><\/p>\n<h2>Anonymity with Bitcoins and Tor<\/h2>\n<p>On the surface it appears that these two topics don\u2019t have much in common. But there are a lot of underground networks within the Tor project which discussed bitcoins as the next level of our world economy.<\/p>\n<p>It\u2019s difficult to say where things will go from here at this point, but it\u2019s certain that the underground community have created an astounding system. And both of these technologies are only in the early stages of adoption and development.<\/p>\n<figure><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/assets.hongkiat.com\/uploads\/introductions-to-bitcoins-tor-network\/anonymous.jpg\" alt=\"anonymous\" width=\"1000\" height=\"694\"><\/figure>\n<p>I feel the problem with a lot of monetary solutions is a general lack in privacy and security. I would not imply that PayPal is an unsecured website, but it\u2019s difficult to understand why only a handful of people are allowed to control that website\u2019s policy.<\/p>\n<p>In the bitcoin marketplace, digital exchanges are held between buyer and seller. Purchasing through the Tor\/Onion network adds an extra layer of security.<\/p>\n<p class=\"note\"><strong>Read Also:<\/strong> <a href=\"https:\/\/www.hongkiat.com\/blog\/bitcoin-security\/\">The Good, The Bad And The Ugly Of Bitcoin Security<\/a><\/p>\n<h2>Resources on Tor\/Onion Routing<\/h2>\n<ul>\n<li><a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/www.linuxjournal.com\/content\/tor-browser-bundle-tor-goes-portable\">Tor Browser Bundle Goes Portable<\/a><\/li>\n<li><a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/www.torproject.org\/docs\/bridges\">Configuring your browser to use Tor<\/a><\/li>\n<li><a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/lifehacker.com\/create-a-tor-button-in-chrome-for-on-demand-anonymous-b-5614732\">Create a TOR Button in Chrome for On-Demand Anonymous Browsing<\/a><\/li>\n<li><a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/www.onion-router.net\/History.html\">Onion Routing History<\/a><\/li>\n<li><a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/en.wikipedia.org\/wiki\/Onion_routing\">Anonymous Routing in Wireless Networks<\/a><\/li>\n<li><a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/www.reddit.com\/r\/onions\">Reddit onion links discussion<\/a><\/li>\n<\/ul>\n<h2>Resources on Bitcoin<\/h2>\n<ul>\n<li><a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/www.weusecoins.com\/\">we use coins<\/a><\/li>\n<li><a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/bitcoinbasics.com\/\">Bitcoin basics<\/a><\/li>\n<li><a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/www.theguardian.com\/technology\/2011\/jun\/22\/bitcoins-how-do-they-work\">Bitcoins: What are they, and how do they work?<\/a><\/li>\n<\/ul>\n<h2>Conclusion<\/h2>\n<p>The underground Tor network and bitcoin marketplace are just two examples of emerging technologies. We may be at the verge of a technological breakthrough in restructuring how we access and trade currency through the Internet. I\u2019m an early adopter of both these ideas and will be following the news closely on future developments!<\/p>","protected":false},"excerpt":{"rendered":"<p>Internet users familiar with the underground community are likely to have heard the phrase \u201cdeep web\u201d. It combines a set of websites and communications technologies which apply solely to the Tor network. This collective open-source software has blossomed into a revolutionary idea in just a few years. On a similar note the bitcoin currency has&hellip;<\/p>\n","protected":false},"author":18,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3398],"tags":[1963,1964],"topic":[4521],"class_list":["entry-content","is-maxi"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.8 (Yoast SEO v27.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>The Beginner&#039;s Guide to Bitcoins &amp; Tor Network - Hongkiat<\/title>\n<meta name=\"description\" content=\"Internet users familiar with the underground community are likely to have heard the phrase &quot;deep web&quot;. It combines a set of websites and communications\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.hongkiat.com\/blog\/introductions-to-bitcoins-tor-network\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Beginner&#039;s Guide to Bitcoins &amp; Tor Network\" \/>\n<meta property=\"og:description\" content=\"Internet users familiar with the underground community are likely to have heard the phrase &quot;deep web&quot;. 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