When Bitcoin entered the market in 2009, it changed everything. For the first time in history, there was a reliable, secure, and instant peer-to-peer digital cash system available to the public. This invention ushered in the digitization of the economy.
In its early days, Bitcoin found use among the cypherpunk community and the dark web. Both of these communities embraced the technology for its ability to transfer value, directly, globally, and within minutes. Back in those days, Bitcoin wasn’t any less private than today. However, there weren’t any platforms readily available to assist people in deciphering the nuances of blockchain transactions.
Privacy on Center Stage
As Bitcoin’s network expanded, so did its market value. Developers, users, and regulators began to focus more on privacy, or how to remove it, from the equation. Basically, users wanted more privacy, whereas, regulators wanted to know who owned all this digital money.
Today, there are a variety of firms available to the public and law enforcement that can trace the origins and destination of blockchain transactions. These companies showed the world that Bitcoin is not anonymous.
In fact, it’s anything but private. Every transaction that occurs is broadcast across the public ledger. These broadcasts are like breadcrumbs that lead to the transaction’s sender and recipient.
The Community Steps In
Since the earliest days of Bitcoin, programmers realized that their privacy was non-existent on the blockchain. This epiphany led developers to figure out new protocols to anonymize their cryptocurrencies. Coin mixers are the result of those efforts.
Coin mixers utilize a combination of tactics to make it nearly impossible to determine Bitcoin transaction details with any certainty. Depending on the platform, the particulars of the mixing process can vary. One of the most advanced platforms in operation today is Mixertumbler. This platform integrates next-generation anonymity protocols to keep your privacy safe. Here’s how it works.
It Starts with the Foundation
Mixertumbler is built from the ground up with privacy in mind. The firm never retains any customer information. Even the support tickets erase after the problem resolves. This approach is necessary when you consider the amount of funding going into blockchain forensics at the moment. Some reports place this amount at over $80 million in this year alone.
The technical aspects of Mixertumbler are intricate but simple to explain. Basically, everyone’s Bitcoin goes into a large pool where it mixes together. Notably, these coins come from around the world and from different transaction times.
Get in the Mix
The strategy makes sense. It’s impossible to track transactions when you don’t know the amount, sender, receiver, or even when it was sent. The combination of these techniques and Mixertumbler’s unique business practices are what it takes to remain anonymous nowadays.
How Much Does it Cost to Mix My Bitcoin?
Every platform charges a different rate for its mixing services. On average you will pay between 3%-5%. Some platforms, such as Mixertumbler offer fees as low as 1%. However, it’s critical to mention that your fee will also depend on the total amount of Bitcoin you intend to mix.
Do I Need to Mix My Bitcoin?
While everyone’s investment strategy differs, most experts agree that mixing your Bitcoin is a smart idea. Primarily, you don’t want a hacker to associate you with a particular account. If they do, they can then just sit back and watch your account as you stack sats and plan their heist. Discretion is the best tool to keep your cryptocurrency safe.
Things to Check When Choosing a Mixer
Not all coin mixers are the same. You need to stick to reputable platforms to avoid losing your crypto. Open source platforms are more secure than private ones. Additionally, more popular mixers have access to more “ fresh “ Bitcoin. This access ensures that you don’t end up with any of your old coins.
Coin Mixers — They’re Here to Stay
When you look at the history of privacy within the cryptocurrency sector, it’s impossible to imagine a scenario in which this community gives up their ability to remain anonymous when they desire. For this fact alone, coin mixers will always play a vital role in the market. For now, platforms like Mixertumbler continue to provide users with options.
Originally published at https://www.cryptofolds.com on September 2, 2020.