I have been doing coin mixing shuffle tasks on a platform called Antusdt, a third-party platform that provides merchants with software for mixing currencies. I started wondering why would I mix my coins with others and I get paid for doing that. Then, it occurred to me that crypto merchants involved in buying and selling want to protect their privacy as much as possible. And the only way to do that is to use a coinjoin service provider.
Contrary to what the majority in the crypto space think, the Bitcoin network is not completely anonymous. Bitcoin is often claimed to be a private way to pay, but this isn't quite true. There's only pseudonymous privacy and the users are vulnerable to a wide array of methods of compromise. Once this privacy is broken it is very difficult and sometimes costly to recover.
But now Bitcoin is growing in popularity as an asset and it is attracting attention from governments and banks which are creating and lobbying for laws to regulate track, or outright ban its use. In this environment, Bitcoin transaction privacy is becoming a treasure.
Conventional banking provides a level of privacy by default. You can use it to keep your financial details private from employers, in-laws, and thieves. Your inlaws don't see how much you have in your bank account to keep making financial demands on you, your employer doesn't learn about the passive income that is coming into your bank account every month from the investment you make from your paycheck, and thieves don't see how much you spent buying your latest TV set or the balance of your bank account for them to target and scam you. Bitcoin poor privacy can be a major disadvantage for individuals and businesses.
Poor privacy in Bitcoin is fundamentally an anonymity problem: anyone can see your transactions and, from network analysis, learn a lot about who you are and what you do. For example, if you buy a product from amazon.co, book an apartment in Tom Hill hotel and then pay for a plane ticket all with Bitcoin, it is possible to identify you using the right analytic tools.
Even if you switch to a new address chain, you still have privacy loss because old coins will still be identifiable as yours and your payments will form a trail even when you make larger transactions.
But, there's a solution to Bitcoin's privacy issues that address these problems. A solution that makes your privacy with Bitcoin completely remain anonymous.
Crypto transactions are not anonymous but pseudonymous, which means the identity of a user is not known but the transactions are recorded on the blockchain for transparency within the network. Anyone can see these transactions on the blockchain and can tell which wallet addresses were sent and which wallet addresses were received, and the amount involved in those transactions. This level of privacy does not go well with those who are making payments with cryptocurrency on a larger scale. Using a conjoin service provides such crypto users the privacy they need because it completely makes their transactions anonymous.
The principle of coinjoin is to enhance user privacy by combining all inputs and outputs from separate transactions to form a single unified transaction. What this means is that individual transactions are merged for a single transaction. In most cases, when an individual wish to use CoinJoin, he would first need to find another individual who also wishes to combine their inputs for a transaction, and then initiate a joint and singular CoinJoin transaction. The CoinJoin transaction combines numerous inputs, making it difficult for a third party to determine which recipient received which output. The recipient would be unable to determine which address the received funds came from.
In that way, there are no traces between the transaction outputs and your identity. It's impossible to know who is who in a CoinJoin transaction.
If you desire 100% anonymity in the crypto space, the coinjoin service got you covered. For this, there are software wallets and websites that are specific to the service. Notable software wallets that run a coinjoin service are Wasabi and Samourai.
These wallets allow you to make your BTC transactions anonymous by mixing them with others. The amount of anonymity provided will depend on how many other parties are participating in the mix.
CoinJoin is an anonymization technique to make your transactions harder to track. It allows you to mix your bitcoins with bitcoins from other users which are then sent back to you. This mixing is usually done with 50 to 100 other parties. This is a good idea when you want to spend your Bitcoin and don't want your address to be tracked.
You can also use websites such as Coinjoin.io to participate in multiple CoinJoin transactions, reinforcing the anonymity of the participants. Coinjoin.io allows users to mix BTC and BCH.
All the above services charge a fee from users. The fee charged for CoinJoin is 0.003%, which remains low because it is calculated by the number of participants and not by the value of the transaction.
If you would like to participate in a CoinJoin transaction with Wasabi, you should send at least 0.01 BTC to the specified address. Any extra BTC you send will be automatically queued and anonymized in the next CoinJoin transaction.
When you're doing transactions with a smaller amount, it's a good idea to use Samourai.
Bottom line
With the continuous attack by governments and banks against cryptocurrency users, 100% anonymity in Bitcoin transactions is desirable to protect yourself against any invasion of your crypto portfolio. With this, you can safely use your Bitcoin anywhere and anytime without the fear of being tracked.
With the privacy measure measures provided in this article, you can spend as much as you want on your Bitcoin without anyone knowing your transactions.
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this is interesting.. i never thought something like this is possible