Anonymity is among the main features for cryptocurrencies to gain their popularity all over the world. But do these technologies REALLY guarantee total anonymity? Actually, no. All the transactions ever initiated and competed by users are stored in blockchain with their data available for anyone in public. Consequently, any withdrawal can be tracked to any stage if someone wants that to happen.
To “hide” trails of transactions, they invented bitcoin mixers. What are they and why do we need them?
Let’s find out. Check the text below to know more on bitcoin mixers in two minutes.
What Is a Bitcoin Mixer?
For starters, let’s compose a certain definition for a bitcoin mixer. In fact, it is a website taking the role of a trade mediator accepting and sending transactions. This means, you only need to enter the website and send cryptocurrency with it to “hide” the withdrawal.
One should remember that any service of that type takes charge for its operations. The rate of fees is usually quite loyal, especially when considering possibilities which users gain with the help of the website system. The average rate varies between 1 to 5%.
How It Works
The main principle of bitcoin mixers and their functioning is already explained in their name. In fact, the technology of such resources is relatively simple. Just like a kitchen mixer or blender mixing several ingredients to create a single mass, bitcoin mixers also mix transactions from various accounts between themselves.
This means, when you send a withdrawal through the mixer, you pass it to the website. The website itself mixes your coins with those of other transactions. Blending goes for dozens or even hundreds of times, and coins reach the previously given recipient’s account after that.
Going this way, an immense mass of new transaction data appears in the blockchain network making it difficult and even impossible to track the addresses of senders and recipients in the end.
Now, after we found out how the bitcoin mixer functions, let’s take a look at the use cases. Who and why requires such solutions?
Why to Use Bitcoin Mixers?
There exists an opinion stating that only criminals willing to stay in shadows or people simply laundering earned coins use bitcoin mixers. Of course, things are different in reality. Yes, dishonest users also go in for mixer services but the intention of people developing these technologies was different and aimed to serve to a significantly wider range of users.
So, who needs a bitcoin mixer and why?
First, such websites should be very interesting to regular users. Think about that: even usual banks keep your withdrawal history or particular payment data secret, while anyone can get that information in the cryptocurrency environment.
Respectively, bitcoin mixers allow everyone protecting their private life, finance and personal data. For instance, you most probably don’t want anyone to know that you sent 10 BTC to an adult shop account yesterday or bought pills to cure prostate.
Apart from that, nobody knows what expects them in future. Maybe, a transaction you completed five years ago will bring you some troubles after some time as it is in public access throughout the period.
So, if you want to secure your privacy, you now know why you need a bitcoin mixer. You also found out how it works. And of course, you’ll be able to use it when necessary.
Keep your data, ID and personal life secure with reliable bitcoin mixers only.