Mixer bitcoin services allow users to mix their Bitcoins with others, to protect their privacy. Bitcoin addresses are anonymous and do not reveal the owners’ identities. However, they can be linked to identities. For instance, if someone withdraws Bitcoin from some exchange where they have identified themselves, the exchange will know their withdrawal addresses. Besides, advanced techniques like Blockchain analysis link Bitcoin addresses with real-world identities.
When users transfer Bitcoins from linked addresses, they risk revealing personal information. The information could include how the user spends the Bitcoins, the number of coins they have, what they purchased, and more. Fortunately, by hiring a mixer bitcoin service, users can mask the connections between their Bitcoin address and real-world identities. These services allow them to use Bitcoins anonymously. Numerous mixer bitcoin strategies have been developed in recent years. These include fully centralized solutions where users trust the mixer, solutions where they need not trust anyone, and solutions similar to the Lightning Network payment channels.
This article will explore the two most popularly used solutions available nowadays. First are the centralized mixer bitcoin services. They accept Bitcoin payments from users and send different ones in return. When many individuals use a particular mixer bitcoin service, it becomes incredibly challenging for outsiders to link any ‘incoming’ Bitcoins to the ‘outgoing’ ones. Thus, it breaks the connection trail and provides anonymity to users. However, users should choose a trustworthy mixer bitcoin service since it will know who sent and received the coins.
Another type of mixer bitcoin services is the Chaumian Coinjoin Mixers. They are modern Bitcoin mixers and have solved the limitations of earlier mixer services. Besides, they are designed not to allow even the unit that merges transactions to figure out which Bitcoins went where. Also, they cannot steal the coins. Many individuals use a mixer bitcoin service to mix their coins and protect their privacy. There are several reasons why someone may want to protect their privacy. For instance, users may not want anyone to know where they spent their money, how much Bitcoins they own, etc.
The newest generation Bitcoin Tumbler support called Coinomize was developed. Its principal objective is to protect the privacy of a person’s identity and their Bitcoin. It’s available on the mobile platform available by Android users. It’s currently working towards providing the identical service to iOS users too. Additionally, tumbling a Bitcoin to eliminate its past transaction is not prohibited. There are no definite laws that prohibit the tumbling of cryptocurrencies.