Suppose you are familiar with the fundamental issues of the Bitcoin blockchains. In that case, this is public information in which any user can see every transaction in conjunction with wallet addresses. This is the reason why they are not entirely confidential or even anonymous.
Many users need privacy, which has led to the creation of a Bitcoin mixer called a Bitcoin switch. Suppose you want to understand this issue in more detail. In that case, we advise you to familiarise yourself with the capabilities of the unique Bitcoin mixer https://yomix.io, which has minimal commission and compatibility with the Tor browser.
Bitcoin mixer and its essence
The program uses multiple users’ Bitcoins and mixes them so no extra user can determine the amount of money sent. After that, it sends them to their destination.
If you looked at such a transaction in a particular manager, you would find the address of the mixer as the recipient (which refers to the outgoing transaction from your wallet) instead of the Bitcoin address.
Similarly, if you enter the recipient’s address and look at where the coins were deposited into your wallet, the only information you find there is the switch’s address.
Such a platform is called a mixer because it mixes the coins of one user with the currencies of other BTC holders to such an extent that none of them can be traced, linked with the original address of the works here.
How Bitcoin mixer works
There are two types of crypto mixers:
- Centralised mixers. Users enter their e-wallet addresses on these platforms and send a particular amount of cryptocurrency to this specialized platform. This is the amount of money they want to mix. Thus, the user gives the agent complete control over the performance of multiple transactions aimed at mixing Bitcoins. Here, an agent is a specialized algorithm that performs multiple transactions as random.
- Decentralised mixers. In this case, mixers try to avoid intermediaries. Thus, users join and select the crypto assets they want to mix to make small transactions between users of the same crypto platform. There is the fact that the more users in the pool, the higher the level of randomization.
In other words, centralized and decentralized mixers work by collecting Bitcoins from multiple users, combining their financial transactions, and then sending coins to different destinations.
For example, one Bitcoin enters the platform in conjunction with 499 Bitcoins from other users, and this program then mixes them up and sends one Bitcoin to an assigned address.
Benefits of using a Bitcoin mixer
The most significant benefit of using the Bitcoins mixing platform is the increased privacy and anonymity of transactions, and they help you stay in the shadows when working with cryptocurrency.
Other reasons for using a Bitcoin mixer:
- payment of anonymous donations, journalistic sources;
- protection of personal data, such as a user’s name, address, and phone from any exchange or investment office;
- replenishment of balance sheets of various services;
- avoid leaking valuable information.
Although tracking a crypto wallet or transaction down to an IP address or identity can be challenging, it is still possible. Any transaction in most blockchains is public, meaning an unauthorized user can track the point to which all the money goes.
Bitcoins mixer is a concept that helps any BTC holder anonymize his cryptocurrencies. As a result of this process, it will be tough for an attacker to decrypt the sender and receiver of Bitcoins. Thus, such a program erases the transaction history for a particular Bitcoin.