Achieving Bitcoin Anonymity Through Mixers – Bitcoin Magazine

This is a promoted article provided by BitMix.Biz

A bitcoin mixer, also known as a bitcoin blender or tumbler, is a service designed to ensure the anonymity of Bitcoin transactions using a special mixing algorithm where bitcoin from several sources are combined and mixed to rid coins of compromising traces of past transactions to hide their origin and protect the privacy and anonymity of users.

The architecture of the cryptocurrency is designed in such a way that each of the Bitcoin transactions is recorded in the public, unaltered registry on the blockchain, so that any member of the community can verify the validity of any coins transfer.

The trust in Bitcoin and, accordingly, its value in the users’ eyes is based on this. However, the use of Bitcoin itself is pseudonymous, not anonymous. This opens up opportunities for various intruders who want to find out who owns digital funds in specific wallets, usually containing large amounts of crypto, or who want to track the finances of a specific person and their origins.

“Various criminal gangs hack crypto exchanges and extract data about you and your Bitcoin address, thanks to the mandatory KYC/AML verification requirements, when you are forced to confirm your personal data, and then, using analyzers, they can find your main BTC wallet,” explained a representative of bitcoin mixer service BitMix.Biz.

Dangers Of Deanonymization

In June 2020, the marketing base of the French Bitcoin hardware wallet company Ledger was hacked, exposing a vulnerability in a system that was once considered to be one of the safest ways to store cryptocurrencies. The result of this hack was the leak of personal data and contact information of about 1 million users — that is, their names, surnames, mailing addresses, email addresses and phone numbers, as well as information about customer orders.

Although company representatives said at the time that this leak of personal data had no effect…

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