Bitcoin is frequently touted as a form of digital currency. However, this statement is controversial. Bitcoin has a high level of publicity, since all transactions data are saved in the blockchain. This is especially true for the release of unused transactions, the so-called UTXO.
Along with this, bitcoin provides confidentiality, as it does not disclose the owner’s private information anywhere. However, modern blockchain analysis allows you to tie the address with a certain person. Using various techniques, it is possible to fully deanonymize the sender of a transaction. Therefore, it took technology that breaks the connection between operations.
- BitcoinMixer: What Is It?
Bitcoin mixers are so called because of their activities. They carry out the mixing of the received coins and change them to completely different. Bitcoin tumblers such as Tumbler.io provide mixing of coins. The process looks as follows:
- The user in the settings indicates all the necessary mixing parameters.
- Sends bitcoins to the service, according to the crypto address indicated to him.
- Waiting for the time set by him and receives coins to the indicated addresses (one or more depending on the settings).
The bitcoinmixer service collects user coins in pools where the bitcoins are mixed. After that, the system distributes coins at the indicated addresses, in accordance with the settings that the user introduced.
As a result of the process, the transaction completely breaks off and it is impossible to connect it with the previous address in the future in theory. In practice, however, experts are capable of associating cryptocurrency addresses with IP addresses, which poses a significant challenge.
In this case, there is coin join. They have a higher degree of incoherence. This enables the severing of ties with transactions, leaving no evidence to confirm your participation in them.
- What is Coin join?
The idea of Coinjoin’s operations was proposed by the developer Gregory Maxwell in 2013. Note that he was also engaged in the development of Bitcoin. The specialist published the thread, providing a short description of the essence of such operations and how to achieve the necessary level of confidentiality without making changes to the protocol.
Coin join is a combination of bitcoins of a user group in a general operation. To understand the essence, you need to know the structure of a conventional transaction in bitcoin.
Operations in the blockchain include entrances and outputs. If you want a transaction, the user accepts UTXO, which we talked about at the beginning of the article. They are input data. UTXO also sets the output information and sign the input. It is worth noting here that all inputs are signed separately and the user can set a couple of outputs.
Consider a transaction in which 4 entrances are 0.2 bitcoin. It also has two exits: 0.7 bitcoin and 0.09 bitcoin. Several conclusions can be drawn from it:
- The user sends funds and some of them are returned to him. It is logical to think that most is intended for the recipient.
- The user decided to make a larger UTXO of the smaller. This is done to combine smaller inputs to get the right amount.
- Each entrance is independent, and the operation itself can have from one entry to four.
On the last assumption, the principle of Coin join is built, which today shows high efficiency.
- Coin join principle
The idea is to give participants the opportunity to include their funds in a common transaction indicating the desired exit. At the same time, the entrances are united, which causes the impossibility of an accurate indication of which entrance to whom belongs to.
We use the past transaction example, but only there are 4 participants in it. They are combined using the coordinator (bitcoin tumbler providing services, for example, Tumbler.io) and indicate the inputs and outputs.
The coordinator collects the information received and includes it in the transaction. Participants on their own signature operations before sending to the network. After confirming the operation by users, the operation cannot be changed. Otherwise, it will be invalid. Thanks to this approach, the risk of theft of funds is excluded, since you send bitcoins from your address, as you store them.
At the same time, the transaction is obtained as a kind of “black box” in which the mixing of coins occurs. At the same time, UTXO is destroyed to create a new one. Moreover, the connection between them is manifested only through the transaction. However, it will not work to identify the participants.
- Confidentiality of the new level
Thanks to the improvement of Coin join, all transactions Ftcan be safely questioned. It is not difficult to understand that the operation took place using this technology. However, it is impossible to find out who sent money to whom.
The bitcoinmixer technology is becoming more and more popular. At the same time, the understanding that the input information belongs to one specific user has lost its validity. This made it possible to bring the level of confidentiality to a completely new limit.
In the example, we gave a transaction with only four participants. In reality, such operations with a hundred users were successfully carried out. It is impossible to find out who, how much and to whom it was transferred to bitcoins in such a transaction is impossible.
Tumbler.io TOR MIRROR:
http://tumbler222jbg3jjkr7zezg4xp6q3fmbqpjlk5cy4kqxvh5xfmxgosyd.onion/
Clearnet: https://tumbler.io/