SAN FRANCISCO – Bitcoin mixers are the type of services that mix your BTC from different sources to obscure the transaction history. Using such services, Bitcoin holders or Bitcoiners can protect their privacy and key the spying eyes away from assessing the history of their funds, transactions, and any other information about them.
Though Bitcoin addresses are anonymous or pseudo-private, and they don’t really reveal the specific information or identity of the owner or holder. But they can be traced back to the exchanges or other points through which the owner may expose and reveal their real-world identity. For example, if you withdraw bitcoin from an exchange where you’ve identified yourself, the exchange knows that the withdrawal address is yours. There are also more advanced techniques — such as blockchain analysis — to tie Bitcoin addresses to real-world identities.
What are Bitcoin Mixers?
Bitcoin mixers are a type of software (in some cases a solution or service or SAAS) that let the holder or user mix their coins with other users in order to achieve more privacy and maintain anonymity.
As explained in the above example, the next time coins move from these addresses, users risk revealing all sorts of personal information. Depending on how they spend the coins, they could reveal how many coins they own (even on other addresses), what they spend their money on, and more.
By mixing their coins, users can obscure the ties between their Bitcoin addresses and real-world identities. This allows them to use Bitcoin more privately.
Why use a Bitcoin Mixer?
There are many reasons some bitcoin holders and users don’t want the history of their BTC holding or transaction to be discovered.
Bitcoin Mixing software or services can obscure this analysis in many different ways. These software, services or platforms can be centralized or decentralized platforms, Lightning Network-style payment channels and projects that use privacy-focused altcoins as intermediary mixing steps.
Coinomize bitcoin mixers, for instance, identify the groups of users that send the same amount of BTC to a new Bitcoin address that they control and then merge all of the individual transactions into one main transaction. Users then take the same amount of BTC they originally sent back out, and now they have effectively obscured the previous activity of their bitcoin. Other services charge fees that are then used to financially motivate people to offer their own bitcoin to be mixed, thus improving the mixing efficiency.
Coinomize says it offers fast and accurate Bitcoin mixing for users, as soon as the transaction is made. It then severs the link of that transaction, making it impossible for anyone to trace back the original Bitcoin wallet used to deposit the coins.
When coins are mixed, they are sent to the specific withdrawal address providing every user with complete privacy and anonymity during the transaction.
We seek Safe Harbor.