Bitcoin mixers in the world of cryptocurrencies

The paradox of Bitcoin is that it is public and anonymous. All transactions on the network are easily traceable, but public keys are not tied to their owners’ data. The point at which Bitcoin can move from anonymity to identification is an attempt to turn it into real currency through exchanges or wallets. Therefore, mixer services were designed to keep your actions private on the blockchain.

Why is privacy needed?

Blockchain technology does not imply the anonymity of cryptocurrencies. Once a user has left their actual data linked to a wallet or Bitcoin address, they can be tracked using services and algorithms. The purpose of tracking can be different, and it is mainly law enforcement agencies and criminals who do this. Moreover, the latter is even more common since weighty reasons are needed to launch the state machine. It explains the desire of many users to maintain privacy when making financial transactions. In this case, using a Bitcoin blender is the best alternative.

The peculiarities of Bitcoin mixers

The algorithm of such an operation is simple:

  • the user sends the cryptocurrency to the blender address, generated separately for each client;
  • his coins are mixed with other users’ transactions or distributed among hundreds of thousands of wallets inside it;
  • after that, “clean” bitcoins get into the storage needed by the sender – they are returned to the owner or transferred to the wallet of the new owner.

Due to the distribution of funds through different wallets, it is impossible to establish a connection between the sender and the recipient. Splitting transactions into several parts can hide the real number of transferred coins.

So, the speed of the mixing process is determined by the type of cryptocurrency chosen and the total amount of the transaction. Most well-established blenders use delayed transaction technology to minimize the likelihood of being traced. Trusted toggle switches rarely keep transaction logs longer than 72 hours. This approach increases the level of confidentiality of transactions.

Article Categories:

Comments are closed.