When you make transactions on the Bitcoin blockchain in the near future, or later, you'll start to realize that while your transactions are not entirely connected to your identity, your Bitcoin address that is publicly accessible and the history of your transactions can be used to identify the real you. This isn't good news because everyone would like to conduct transactions privately. While this may be so however, a lot of Bitcoin users are not aware that they can add an extra layer of privacy to the privacy of their Bitcoin transactions. The best way to do this is to make use of the Bitcoin mixer that is a service that mixes your Bitcoin with other users' coins in a way that the source of each of the coins is completely obfuscated, securing your privacy. What Exactly are Bitcoin Mixers?Also referred to as blenders, tumblers or shufflers. Bitcoin mixers are solutions that permit users to mix their bitcoins with coins from other users in order to protect their privacy. As you've probably guessed that by now, Bitcoin addresses are pseudonymous, meaning while they don't connect your personal details to transactions, a determined person can trace the transaction history of the owner of a particular address. When you transfer money, you risk revealing a great deal of your personal information, from how many coins you have, to how you spent your money and more. This is where Bitcoin mixers can come in handy. Mixing coins is a way to get rid of anyone who tries to trace your transactions. It is possible to mix your Bitcoins with other users , thereby blurring the lines between your Bitcoin address, as well as your actual identity. How does Bitcoin Mixers work?To demonstrate how a Bitcoin mixer works, try blending a fruit drink. Each fruit is a Bitcoin address. After the drink has been consumed, you can't really tell the fruit the one responsible for what flavor. Similar to in the event that you mix your own coins with those of other users, no one can tell which coin comes from the address from which. The types of Mixers of BitcoinThere are a variety of Bitcoin mixers ranging from centralized to decentralized solutions to others that use privacy coins as part of the process. We'll look at two of the most well-known solutions, specifically Chaumian CoinJoin and central mixers. Centralized MixersThe mixers can accept Bitcoin in exchange for different coins. This service gets more popularity as more people use it. It is more difficult to connect the "incoming" and "outgoing coins. However, centralized mixers have some flaws. When you deposit your coins in such a mixer you lose control over your money. It's possible that mixers will not return the coins. Another issue is that because the mixer knows who sent and received which coins, they're able to identify the true identity of the holders of the coins. If they share this information e.g., when compelled to do so by law enforcement officials the users risk losing their privacy. Data is another issue. Centralized coin mixers often have access to the user's activity such as IP addresses, IP addresses, and Bitcoin addresses. Ideally, mixers should erase the information in these logs in the spirit of privacy. But, it is impossible to be sure if a mixer has followed the rules. Then, law enforcement agencies is able to locate central mixers, and force them to shut down. BestMixer is one such mixer that was shut down by Dutch authorities. Chaumian CoinJoin MixersMixers allow large numbers of users to pool their coins to make one large payment. For example, 100 users are able to transfer 0.1 BTC to a new address, then combine the coins into one large transaction. Everyone will get 0.1 BTC back, but this time, nobody is able to determine where each BTC was derived from. Mixers that use the CoinJoin API could be designed in a way that no one is able to see exactly where the transaction went. They are unable to refuse to let coins go out because the users won't sign the merged transaction in the event that they don't receive their BTC isn't returned. Final ThoughtsA Bitcoin mixer gives you greater control over your finances by ensuring no one can follow your transactions' trail. It can block any possible hacker, as well as any other party that is interested in your transaction information. If you're looking to make your transactions even better, a Bitcoin mixer is worth looking at.
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