Bitcoin mixers were developed specifically to protect user privacy on the blockchain. What are they? They are services that mix coins so that their connection to the sender is severed. This makes it much harder to track transactions.

Privacy issues in the bitcoin blockchain

The bitcoin blockchain positions itself as a private and transparent tool for transactions. However, in reality, one excludes the other. Despite the fact that the blockchain does not publish names, the privacy is much lower than that of banking transactions.It’s all about the public registry, which is available to absolutely all users. Moreover, there are additional analytical services that contain wallet databases. In fact, they show the connection of a particular person with this or that address. All this plays into the hands of attackers, as it is much easier to steal bitcoins from users than on exchanges or other services.If desired, any direct transaction can be linked to the user. In fact, from one crypto address, a transfer is made not only between users, but also between services. Unfortunately, databases with confidential information are protected worse, and some even sell them themselves on dark sites. Others require verification, e-mail, etc. All this allows you to accurately establish the identity of the wallet owner. After that, it is enough to conduct a phishing attack to steal the login data to the cryptocurrency wallet and steal bitcoins.However, the problem of privacy can be solved. It is enough to use a bitcoin mixer such as Yo!Mix to protect your data from third parties.For additional protection, it is recommended to use a reliable VPN. It is best if you rent a server and make a VPN yourself, as you will be responsible for your personal data. On the Internet, you can find simple instructions on how to create a VPN service without unnecessary problems. Moreover, it will cost less than paying for a third-party one.

Can bitcoin mixers be tracked?

Initially, such services were only engaged in mixing. It used the same address for withdrawal. Add to this a fixed commission and you will realize that it was not very difficult to identify a mixer. This crossed out the chances of breaking the users’ connection to the transaction.Later, however, they started adding additional functionality that made it harder to track the transaction: delaying withdrawals and sending a split amount made it harder, but not so much that it provided a high level of privacy.Then the mixers went even further. They made the commission variable. Services like have set a range of charge on the amount, which varies still depending on the number of additional options. Thanks to this, users not only know what they are paying for, but can also set the optimal size that will not hit the pocket. This makes it impossible to track down a mixer by commission.That leaves the last option – direct exit addresses. After all, the mixer needs to send coins from somewhere. There were some difficulties here, as constantly creating new addresses is not an option. Analysts quickly connected them with the use of services, because most users of the system have been using wallets for a long time.As a result, mixers decided to change addresses from time to time. Created a huge number of them and they regularly change, not so often to arouse suspicion, but also not delaying, risking to disclose the ownership of the address.As a result, it has become very difficult to figure out the mixer. The service perfectly mimics regular users conducting transactions.Add to this the removal of logs, which helps hide the relationship with users from analysts. All this makes mixers confidential and secure.

The question of crypto mixer legality

Most users who are concerned about their security, ask the question, how legal are crypto mixers. we will answer right away, in fact, such services are completely legal. We will give some examples to compare with cash.Making purchases in a store, you do not provide your passport to buy the necessary goods. Doing currency exchange through various exchangers, you also do not provide your personal data. Fiat currency is the best example in this matter, as it is used by most people and does not require you to provide your passport or other documents to prove your identity. With cryptocurrency you have the same right,and since the blockchain is not able to provide it, it is quite reasonable to use a mixer.Laundering stolen coins through a crypto mixer has not been possible for a long time. Services cooperate with exchanges by selling and buying new coins. Therefore, there is no resonance for them to accept them from attackers. After all, as soon as it becomes known about the theft, bitcoins are put on a special blacklist. When they are detected, the exchange immediately freezes the account.Mixers understand this, so such coins themselves do not accept. Due to this, they work completely in the legal sphere. This is confirmed by Chainalysis data, which the analytical service conducts on a regular basis. For 2022, the use of mixers for laundering coins was recorded in less than 1% of all such transactions.

Get the latest Bitcoin News on The Bitcoin News
Our Social Networks:
Facebook Instagram Pinterest Reddit Telegram Twitter Youtube