What is a Bitcoin Mixer?
Bitcoin Mixer, also known as Bitcoin
mixing solutions, is a system that allows you to protect your wallet privacy by mixing your transfer transactions.
It is unclear who owns a Bitcoin wallet. These wallets have nicknames known as ‘pseudonymus’ which are made up of letters and numbers and are not registered in any individual name. When you, as the owner of the wallet, make a transfer, it is not known that you are the one who made the transfer, but the nickname of your wallet will appear. If it is known that you are the owner of this pseudonymous wallet, all the transfers you make with this wallet can be tracked via
the blockchain
. Bitcoin mixer systems offer you solutions to protect your privacy. There are currently two types of Bitcoin mixer solutions available;
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Central Mixers
Centralized Bitcoin mixing services allow you to take your Bitcoin and send it to a new Bitcoin wallet you create. Thus, it complicates the transfers you have made, making it difficult to follow these transactions on the blockchain. When you receive such a service, you still give your identity to the central Bitcoin mixer you are using. If the central mixer wants and/or has to share this information, it can. For this reason, the privacy you want to have is endangered again. Another situation is that the central mixer you work with has to be reliable. Otherwise, after receiving your Bitcoin from you, it will not transfer it to your other wallet and may steal your Bitcoins.
Centerless Mixers
Decentralized Bitcoin mixers provide solutions to these two situations that can be encountered in centers. Since it is not connected to a center, you can prevent your Bitcoin from being stolen or your identity from being shared by others. The working principles of decentralized Bitcoin mixers are realized when a group comes together and makes a large transfer to themselves. After this transaction is made, it is not possible to determine who the transferred Bitcoins come from. For this to happen, all users involved in the mixer must confirm the process. Thus, you can make your transfer in a circle of trust knowing that your privacy and Bitcoin are safe.
Should We Use Bitcoin Mixers?
Anyone who does not want their transfers to be tracked can benefit from Bitcoin mixer services. Although the blockchain network will never be able to see your name, such an additional measure may be preferable.
Can Bitcoin Mixer Services Be Blocked?
Although it varies according to the laws of the countries, this is possible. Centralized Bitcoin Mixer services can be shut down and blocked when there is a judicial process. While this is still possible for decentralized mixer services, it is more difficult to shut down and block such a service without authority. For this reason, you can prefer decentralized Bitcoin mixers in such a case.
