Incoherent remblings and other topics of interest
Deep within the more inquisitive internet communities, beyond the reach of censorship where the net's original anarchy still reigns supreme, a group of anonymous freedom enthusiasts have been nurturing a very interesting rumor concerning the bitcoin blockchain that has recently gained traction in the mainstream cyberspace. I'm well aware of the countless conspiracies already circulating but unlike most, this one has enough objective merit to warrant suspicion.
Some basic knowledge of how bitcoin operates is required to fully appreciate the gossip, so for those unaware of how the btc blockchain technology works, it's basically a program that maintains a log file of transactions across a network, this oversimplification ignores a lot of details critical to the bitcoin environment but for the context of this blog post what matters is that:
1. The bitcoin blockchain contains the entire BTC transaction history
2. This blockchain is preserved across all participant nodes
3. It is possible to send bitcoins to an "invalid", personalized address
Bitcoins sent to these fake addresses will be lost, nevertheless they are still a transaction that must be logged, appending the transaction details (including the fake output addresses) to the blockchain and distributing it across the entire mesh. Valid bitcoin addresses are generated from 256-bit private keys as public keys hashed to 160-bit (or 20 byte) string that is then stored in the blockchain as hex and can only be redeemed by the original private key.
This also means the blockchain isn't responsible for ensuring that a certain output address can be indeed accessed, it's the users responsibility to provide an address he holds the private key to. Providing any unique combination of 20 bytes as a destination address is perfectly valid though it would lock any bitcoins sent to it since the blockchain requires the private key used to generate the address to redeem said coins, such is the price for storing 20 bytes of (unique) data in the BTC blockchain.
In a typical bitcoin transaction, decoding the resulting output addresses from hex to ASCII shouldn't amount to anything but a string of seemingly random alphanumeric characters. That is, unless said address was generated by encoding a custom, 20-byte ASCII string into hex using Base58Check, in this case the decode would produce the original ASCII text.
This means that, as long as you don't mind loosing a few BTC credits, you can insert 20 bytes of custom (and unique) data into the blockchain. Preserving it for posterity by synchronizing across all participant nodes as a decentralized, uncensorable, nigh untamperable public database.
Taking the previous rundown into consideration, it's to be expected that some bitcoiners use the blockchain to store and secure small amounts of data in creative ways. A practice that is so aligned with the blockchain's principles that Satoshi Nakamoto himself famously embedded the following string into the very first bitcoin block, the "genesis block" (though it was added to the coinbase since he mined the first block, not the previously explained method).
It's at least evident that he designed bitcoin to allow for arbitrary data to take full advantage of the technology, serving both as an alternative to our current FIAT overlords and as a digital wall for the community to graffiti. So, when I learned that "someone" had supposedly hidden some very condemning blackmail of very important and influential people in the bitcoin blockchain I was more than willing to believe it. In fact, Wikileaks had previously done something similar by embedding a 2.5MB zip file full of links to the actual data, though it was done in a rather obtuse way to prevent data scavengers from stumbling into a cache of leaked secrets.
Today, there is even an official way to add messages to the blockchain by using the OP_RETURN script opcode. Bitcoin was to be used as a broker of both credit and information from the very beginning.
If you'd like to 'mine' the blockchain for secrets, I wrote a simple script that decodes all the output addresses in a transaction, it queries Blockchain.com so you don't have to download the entire blockchain. As previously explained, this alone may not be enough to peel away all the potential layers of obfuscation possible, nevertheless it is enough to take a quick peek at what the bitcoin community has been sneaking into the blockchain.
Just what could be hiding in the blockchain?