Bitcoin Mixer restores anonymity on Bitcoin transactions

2019-8-28 16:06

There are often misunderstandings when it comes to the anonymity of Bitcoin transfers. Because unlike many people believe, Bitcoin cannot be used for absolutely private trading. Because payments with Bitcoin are not anonymous, but pseudonymous.

This is due to the fact that past transactions that ran via blockchain technology cannot be changed afterwards. This is at least what the innovative technology promises. Basically, Bitcoin’s blockchain is a publicly accessible cash book that displays all legitimate transactions that have ever been made. This has the advantage that every network participant can examine the transaction history completely independently and check its flawless functioning.

Cash is the only truly anonymous means of payment

But there are also disadvantages to the pseudonymized transaction history of Bitcoin. One of them is the lack of privacy. Cash is still the only real means of payment that is anonymous. The lack of privacy is particularly problematic for a peer-to-peer electronic cash system.

So anyone who has always wondered how to move anonymously in the Bitcoin network will find ways and means to remain more anonymous as a Bitcoin user in the following.

Crypto-exchanges require a KYC process

In order to establish a connection between pseudonymous Bitcoin addresses and real persons, a link to the offline world is required. If you want to buy Bitcoin at all, you first have to exchange Euro or another Fiat currency for Bitcoin. Crypto exchanges are usually used for this purpose. And in order to make use of a crypto exchange, it is necessary to register on the website – and this requires (at least in most countries) a prior know-your-customer process. This is where the connection to the analogue world is established.

This means that a person cannot remain completely anonymous. If, for example, a law enforcement agency asks for the Exchange data of a suspect person and obtains access to the data, the privacy is gone. In the past, cases like those of the bitcoin.de crypto exchange showed that some crypto exchanges do not even hesitate to surrender data without a court order.

Decentralized Exchanges guarantee anonymity

So if privacy is important to you and you absolutely want to remain anonymous, you should make use of a DEX, a decentralized exchange. A DEX is based on a blockchain and is therefore not bound to a physical location. A decentralized exchange is therefore difficult to define from a regulatory point of view. To be precise, it is not even a legal entity. Even though this type of exchange is still in its development, projects such as Bisq and Bithumb DEX are two promising examples.

Frequent change of addresses

Another way to achieve anonymity is to change addresses frequently. If you use the same Bitcoin address over and over again, you risk that patterns can be easily derived. So if you use a new address for every transaction, you use a very good technique of obfuscation. Ledger Nano S and other modern wallets make this possible without any problems. Due to the SHA-256 algorithm, the possible number of obtainable Bitcoin addresses is virtually unlimited.

Bitcoin mixers disguise the origin of a transaction

Another way to remain anonymous is to use so-called Bitcoin mixers or bitcoin tumblers. This means that inputs and outputs of Bitcoin transactions cannot be linked to each other. This method works as follows: The Bitcoin user first sends the specified number of coins to a so-called “processing server”, which mixes its own transaction with transactions of other network users. At the end a final output to the destination address is created.

At this point in time, it is hardly possible for external persons to determine where the transaction comes from. Only different inputs and outputs can be read on the server of the mixer. Now it is no longer possible to trace which input can be assigned to which output. The more often you mix your transaction, the more anonymity is required. Before choosing a Bitcoin mixer, you should take a close look at it in advance to avoid falling for fraud. After all, users must first send their Bitcoin to the mixer’s server – so be careful!

The post Bitcoin Mixer restores anonymity on Bitcoin transactions appeared first on CaptainAltcoin.

Similar to Notcoin - TapSwap on Solana Airdrops In 2024

origin »

Bitcoin (BTC) на Currencies.ru

$ 66243.47 (-0.14%)
Объем 24H $19.195b
Изменеия 24h: -1.14 %, 7d: 7.75 %
Cегодня L: $66031.14 - H: $66391.13
Капитализация $1305.037b Rank 1
Цена в час новости $ 10400.93 (536.9%)

bitcoin transactions anonymity cannot restores mixer pseudonymous

Источник: captainaltcoin.com

bitcoin transactions → Результатов: 126


Research: Bitcoin Inscriptions might have run their course

Bitcoin Ordinal Inscriptions, digital assets akin to NFTs inscribed on a satoshi, have been flooding the Bitcoin network with transactions, pushing it to an all-time high. While miners enjoy record-breaking profits from the fees generated, a surprising negative correlation has emerged between the number of transactions and active addresses.

2023-5-11 15:00


Slow but steady wins the race: Coinbase to add batched Bitcoin transactions

The recent spike in bitcoin prices and the skyrocketing number of daily outputs has had a direct impact on the transaction fees and the congestion of the mempool. Despite the different solutions that have been implemented to address these issues, some of the most important cryptocurrency exchanges in the industry have failed to implement them.

2019-6-8 11:10


Bitcoin Blocks Are Close To Becoming Full Once Again Per Latest Industry Research Report

Bitcoin Blocks Are Close To Becoming Full Once Again Bitcoin (BTC) blocks seem to be reaching a limit, leading to an increase in the fees that miners take for processing transactions. Since April 2018, the number of transactions in the Bitcoin network has been growing, reaching 452,000 transactions in just a single day a few […]

2019-5-7 21:47


Фото:

Bitcoin hits massive milestone with its 400,000,000th transaction

Bitcoin has reached a milestone! The blockchain powering the world’s most popular cryptocurrency officially processed its 400,000,000th transaction overnight. That’s right. Check the records – at pixel time, there have been at least 400,251,742 transactions sent via Bitcoin‘s independent, censorship-resistant, peer-to-peer electronic cash system.

2019-4-9 12:19


дальше еще 77 новостей →

Партнеры Currencies.ru

Реклама на Currencies.ru

Самое свежее на Currencies.ru

What is 2020 Preparing for Cryptocurrencies?

Blockchain technology and cryptocurrencies have left us fascinated. Funnily enough, blockchain technology was once touted as a bubble bound to fail surviving the tryst of times. Not only has it survived, but finds its application in several fields of business, including the energy sector, the healthcare sector and tourism.

IOTA Use Cases Rapidly Expanding: Tangle To Solve World’s Waste Problem

The Biota team wants to use IOTA technology to tackle the waste problem. The Tangle will help develop a deposit system that rewards people for collecting plastic waste. IOTA technology for waste separation Decentralised technologies are not necessarily perceived by the public to be the best in terms of energy efficiency and CO2 emissions.

LocalBitcoins Trade Volume Hits Lowest Point Since 2017

At its highest point this year, the platform moved over USD 70,000,000 in one week. Increased personal data required by the platform could influence the decline. Bitcoin (BTC) trades through the LocalBitcoins platform have fallen to their lowest levels since August 2017.

Can The Blazing Fast EOS 2.0 Save Eos, The Token?

The crypto currency EOS is known to many crypto users as the longest ICO of all time. The EOSIO 2.0 update gives you the opportunity to take a closer look at the project and the latest changes. These are of particular interest as they make the network more powerful as well as making dApp developers’ […]The post Can The Blazing Fast EOS 2.0 Save Eos, The Token? appeared first on CaptainAltcoin.