Maintaining the anonymity of cryptocurrency transactions is an essential aspect of security and privacy for cryptocurrency users. The Bitcoin mixer was invented a few years ago and is an excellent solution for those who want to keep their transactions private automatically.
Why do users prefer Bitcoin mixers?
The form of privacy that Bitcoin offers is limited to pseudo-anonymity: an individual is represented on the blockchain by a pseudonym. However, this does not guarantee the impossibility of restoring links. Cryptocurrency can be cleared manually or using an automatic service. The manual version uses anonymous coins: ZCash, Dash, and Monero. Their blockchains do not store the addresses of the sender and recipient in transactions, as well as the transfer amount. It is rather a complex process; therefore, users prefer to set up a crypto mixer.
Types of crypto mixers
According to the method of mixing coins, two types of crypto mixers are distinguished:
- centralized, these include the earliest Bitcoin mixing services. The operation algorithm of such sites was straightforward: they collected coins from different users, mixed them among themselves, and then, minus the commission, sent them to the sender. The more the resource attracted customers, the better the degree of anonymity of the money received. The disadvantage of this algorithm is that in most simple mixers, the purity of the incoming crypt is not checked, and the user has a high probability of receiving cleared money with a dubious transaction history;
- peer-to-peer – more complex decentralized mixers that use several algorithms to mix money. This technology allows you to achieve maximum confidentiality and reduce the risk of fraud.
So, the crypto mixer is a platform for virtual operations that does not allow us to trace the origin of the cryptocurrency.
