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Does TOR help protect transactions and or just nodes?
Sybil Attacks…I run a full Bitcoin node. I can see that I am connected to 8 other nodes and that these nodes are geographically distributed throughout the world and not the ones that are closest to me. So am I right to assume that Bitcoin connects nodes in a random manner so as to eliminate the possibility of a Sybil attack?
Great question! I’d like to know the answer to this as well.
Pseudo random, connect to ‘one’ next node in the list of cached addresses, I guess the algorithm designer goal was that what you mention to minimize the risk of not mingle around the anonymous crowd of nodes, but, a big but, where did come from the 1st node and the 1st list of neighbor nodes your node build it from? if by bad luck your 1st connections are part of the Sybil team then your node might be screwed … That’s why node owners don’t trust they nodes, they verify/confirm once in a while with several public explorers that their node looks good and have the ‘right’ blocks in it…
I guess TOR can only help protect your node ‘location’, TOR will hide in the lower layer network addresses the one physical address your node is in. A transaction or a block of transactions does not need any protection since it suppose to be an ‘open’ (public domain knowledge) and all content will be verified by nodes with the ‘current’ valid block-chain and accepted or discarded as invalid.