Bitcoin mixing services are nothing new and there is always a security risk associated with using these centralised services. However, that is not preventing new players on the market from providing a slight twist on the Bitcoin mixing service. Washbit officially portrays itself as a Bitcoin laundering service, even though there is no criminal intent to be found.
Washbit – Bitcoin Mixing With A Twist
The process of Bitcoin mixing is elegant in its nature, and many people felt there was no need to further improve the service. Whenever you send Bitcoin to a mixing service, the transaction will be mixed up with other transactions and funds will be sent to your destination address in a randomised way. Doing so would obfuscate the blockchain and make transactions nearly untraceable, adding a layer of anonymity on top of the Bitcoin network.
Washbit is a new Bitcoin mixing service, which offers high anonymity and ease-of-use to its customers. Because Washbit does not log user activity (unlike other mixing services) there is a higher level of anonymity to be achieved. Internet IP addresses are being monitored by government officials and intelligence agencies all around the world and if there is no log of a certain IP accessing Washbit, there is no “official” transaction to speak of.
Some Bitcoin enthusiasts may wonder whether or not another Bitcoin mixing service is needed? With multiple Bitcoin mixers in existence already, it all comes down to user preference in the end. And if there is one thing there can never be too many of, it is choices between various services all offering the same kind of service.
How Does It Work?
By instantiating several big pools of bitcoins – all of which are completely independent transactions – and pool-wise – the user will receive “washed” bitcoins from an unrelated pool. In fact, the recipient can enter up to 10 different Bitcoin addresses where funds can be sent to, further randomizing the washing process.
As soon as the user’s deposit has received six confirmations from the Bitcoin network, Washbit will schedule payouts. Every clean address in the system is disposable, and will only be used once, resulting in the number of transactions per “wash” being equal to the number of payout addresses provider by the user. All in all, the entire “washing” process will take up to 12 hours.
Providing a service such as Washbit, involves multiple layers of security. Not just on the website or software level, but also physical security measures have been put in place. Even if the clearnet domains on which Washbit operates are to be seized in the future, the Tor network will present a failover option to access this service.
Note from the Author: It is important to keep in mind that Washbit is currently in a public testing stage, and bugs may occur. As long as the testing period lasts, it is advised not to send too large transactions to Washbit, to prevent large sums of money from going missing. The minimum deposit is 0.01BTC, and there is a 1% fee for “washing” a Bitcoin transaction.
Images courtesy of Washbit and Shutterstock