The coin mixer first appeared a few years after Bitcoin was launched. Technically savvy users realized that this first cryptocurrency was not entirely anonymous. After all, the blockchain displays the information of the address that sent the transaction and how many bitcoins were left by that time.
Why Do You Need a Coin Mixer?
The key goal of the coin mixer is to increase the level of anonymity and ensure confidentiality during the transaction in the Bitcoin blockchain. With traditional money, banks and other financial systems carry out processing and registration, providing a high level of accountability.
However, Bitcoin does not have a single processing body. The network is completely decentralized, as a result of which transactions pass through tens, hundreds and thousands of nodes around the world. This technology comes with both advantages and disadvantages.
Despite a certain confidentiality, since users do not give any open personal information to the network, the transactions themselves are easily tracked, thanks to the records in the blockchain register. Using certain tools and services, one can compare the public address of the wallet from which bitcoins were sent to the digital traces left by the participant in the transaction, both in the blockchain and on the internet.
Coin mixer is aimed at solving this problem. It performs a coin mix, blending the coins of all users who use the service. This creates a pool in which it is impossible to determine the original ownership of the coins. The original transaction is obfuscated, and a new one is formed. Thanks to this, it is not possible to connect the old transaction with the new one.
This provides not only a high level of confidentiality but also prevents attackers from discovering the final address of the transaction and identifying the sender.
Why is Anonymity on the Network Important
Numerous scientific and advisory articles have already addressed this subject. However, many users still fail to realize that even the regular internet is not safe, let alone the darknet.
Hackers and attackers are happy to collect user data, form them in the databases, and either sell them or use them for intrusive purposes. Utilizing Bitcoin mixers, such as Tumbler.io, helps to ensure transaction anonymity and protect user privacy against such threats. By interfering with tracking processes and creating additional layers of security, bitcoin mixer Tumbler.io helps ensure that your data and finances remain safe. Moreover, cases of theft of funds are frequent, both directly in blockchains and in traditional banking systems.
With blockchain, everything is more complicated than with ordinary bank cards. The main issue lies in the output of unused transactions, also known as UTXO. Thanks to them, the address of the sender shows the amount of bitcoins, which remained in the account. This becomes a close interest of attackers, as they can find out the address, the amount and start hunting for bitcoins.
How the Bitcoin Mixer Works
Most coin-mixers operate based on the same principles. However, the specific details of a given service might vary to provide enhanced security, as seen with Tumbler.io, for example. Specifically, the service provided by bitcoin mixer Tumbler.io includes unique features and anonymity-enhancing mechanisms that go beyond the standard coin-mixing practices. This ensures an additional layer of protection and privacy for users who choose our services.
In general, it looks as follows:
- The initiation of the transaction by the user. He sends the transaction to the address of the coin mixer.
- The mixing process. Upon receipt of bitcoins, a btc mix is initiated, adding them to a common pool. As a rule, for this, bitcoins are crushed on Satoshi and all coins are mixed up.
- The use of tangling methods. Coin mixer involves a variety of tools, such as delaying time operations, crushing at several addresses, and sending with different amounts.
- The distribution of coins. After mixing and using methods of confusion, the system begins to send new coins to the indicated addresses.
- Confirmation of the transaction. After the top, how the distribution occurred, the operation is confirmed in the blockchain.
Many people think that a coin mixer is used exclusively by scammers who have stolen funds and are trying to hide them. However, back in 2019, Chainalysis (an analytical service for studying blockchains) published a report. It says that less than 4% of all coins are obtained by criminal means. All other funds came from ordinary users. Moreover, about 40% of them were sent from cryptocurrency exchanges.
Interestingly, in 2020 and in 2021 similar studies were conducted. It turned out that the amount of criminal use of coin mixers fell to 0.62% in 2020 and to 0.15% in 2021.
Such measures are explained simply: attackers can track wallets belonging to the cryptocurrency and users tear transactions to hide their main wallets, where most bitcoins are stored.
Coin Mix: Methods of Confusion in Mixers
Estimation methods may differ in the number of options in coin mixers. However, we will give the most common:
- Generation of crypto address. The service creates many unique addresses to which users are sending bitcoins. They are used to get and distribute mixed coins.
- Separation of bitcoins. Upon receipt of coins, a coin mix occurs, resulting in a division into small amounts. This complicates the possibility of tracking the original source.
- Delay by time. The user can indicate any postponement of sending in the framework given by the service. Thus, it becomes easier to adjust the transaction for others for concealment.
- Using several crypto addresses for receiving. The service can send several addresses, as a rule, up to 5. The total amount can be divided in proportion to or in the manner prescribed by the user.
- The variability of the commission. The service takes a small commission. However, the user is given the opportunity to install it independently in a given range.
The final point offers protection to not just the users, but also to the coin mixers themselves. Analysts cannot accurately determine whether the shot bitcoins in the form of a commission are ordinary or were payment for the service.
Utilizing Bitcoin mixers like Tumbler.io is essential for maintaining transaction anonymity and safeguarding your assets in the volatile world of cryptocurrency. This particular Bitcoin mixer stands out by offering unique features and enhanced security, ensuring your financial activities remain confidential. Take control of your privacy today by choosing Tumbler.io for your Bitcoin transactions and secure your digital future.
Tumbler.io TOR MIRROR:
Follow Technoroll for more!
Editorial Staff of the TechnoRoll, are a bunch of Tech Writers, who are writing on the trending topics related to technology news and gadgets reviews.