First of all I admit that I do not have knowledge in regards to bitcoin network. I just want to point out some concerns regarding security.
On my knowledge, bitcoin makes our transaction secured and anonymous. We are aware that before we can make transactions we need a wallet and there are lots of sites that you can get one. Some of these sites requires registration which is totally fine for me. My concern is that, some of these sites requires me to "verify" my identity by uploading government ID's, address, pictures and any other document to personally identify me.
Do you think this requirements ruin the purpose of having "anonymous" transaction over bitcoin network?
FIY read below
> Can nodes on the network tell from which and or to which bitcoin
> address coins are being sent? Do blocks contain a history of where
> bitcoins have been transfered to and from?
Bitcoins are sent to and from bitcoin addresses, which are essentially random numbers with no identifying information.
When you send to an IP address, the transaction is still written to a bitcoin address. The IP address is only used to connect to the recipient's computer to request a fresh bitcoin address, give the transaction directly to the recipient and get a confirmation.
Blocks contain a history of the bitcoin addresses that a coin has been transferred to. If the identities of the people using the bitcoin addresses are not known and each address is used only once, then this information only reveals that some unknown person transferred some amount to someone else.
The possibility to be anonymous or pseudonymous relies on you not revealing any identifying information about yourself in connection with the bitcoin addresses you use. If you post your bitcoin address on the web, then you're associating that address and any transactions with it with the name you posted under. If you posted under a handle that you haven't associated with your real identity, then you're still pseudonymous.
For greater privacy, it's best to use bitcoin addresses only once. You can change addresses as often as you want using Options->Change Your Address. Transfers by IP address automatically use a new bitcoin address each time.