Who would have though a decade ago that the world would be dealing with cryptocurrencies as such a large scale? Well, the bitcoin has surely revolutionized the world of cryptocurrency and many other digital money is available to you nowadays. However, the bitcoin remains the center of the attention and people tend to deal with it. Many of you might have noticed the bitcoin mixers, thinking what they are and why they are useful. Several companies like https://bitcoinmix.org/ are used on regular basis by individuals who carry out transaction using bitcoin. Despite the fact that these services come for money, yet people are using them on wide scale which is likely to pop up a question in your head that why coin mixing is important?
The bitcoin and its use
People like bitcoin because it is not controlled by any system. It is decentralized and you don’t have authorities or organizations having command over this cryptocurrency. Therefore, the transactions that are carried away using this kind of currency remains anonymous, which is why people possess a keen interest in using it. So, the digital currency is helpful because it don’t have any money trail and won’t direct people back to the senders or receivers.
However, there is something else to the spectrum. Whatever transactions we are carrying out, the information about it is stored in a blockchain. It comprises of a number of ledgers that will have information about the transaction, or should we say the records of payments, and is open sourced which means that the whole world can see it.
Considering that, there are people who carry out transactions and want to maintain a higher privacy level. For instance, they might look forward to assuring that even the information in ledgers can somehow be deceived so that they won’t be tracked back. While the information on the ledger, about the accounts involved in transaction and the money being sent, would be something like “7Hkiji79767nnsoijs79rk55kn4mm,” some people still feel that this is not enough anonymity and somehow the hackers will be able to track them.
This is where the mixers come into the action. They help in increasing the level of anonymity and makes the transactions even more complex. The mixers act as a third party, a server, for a group of bitcoin users to meet. The group won’t get to know about each other. The mixer takes coins from them, break it down into numerous parts, and then mix them well with one another before finally sending it to an address.
No one, apart from the mixing server, gets to know from which address the coins came and where they are deposited. In case that you are still in jeopardy, you can repeat the process a few times to make things even more tough and assure that there is no trace of you being associated with the transaction.
In short, the mixers take the coins from you, mix them well with the coins of other clients or the one that they have in their reserves, and send them to the address where you want them to be delivered. The transaction will occur in blockchain as you sending your coins to a random wallet while the person you want to receive the coins get it from any XYZ wallet.