Bitcoin blender: the essence of coin mixing

Although tracking a specific person during operations with a crypt is impossible, it is possible to calculate the address of the recipient’s crypto wallet and – the user himself. To make transactions completely anonymous, Bitcoin blenders were invented.

What is it?

A Bitcoin blender is a service that mixes user transactions. Their principle of operation is that they send a crypt to the recipient but from another user. Due to this, the direct connection “sender – recipient” is interrupted. These blenders accept bitcoins from different users, directing them according to a particular algorithm, and then return bitcoins to their original holders. This process does not hide the transaction data – you can still see them in the block analytics, but it complicates data aggregation.

Technical details of Bitcoin blenders functionality

The technical details of how Bitcoin mixers work may vary depending on the specific service, but in general, they include the following steps:

• Address generation: The coin mixer generates a set of unique addresses where users can send their cryptocurrency. These addresses are used to receive and distribute mixed funds.
• Separation of funds: Once the funds are received, the coin mechanism splits them into small amounts. It helps increase the anonymity of the funds and makes them more challenging to trace back to their source.
• Mixing funds: The Bitcoin blender mixes the funds with other users’ funds. It is usually done by pooling funds and then redistributing them back to users in smaller amounts.
• Obfuscation: A coin mixer can use various methods to further obscure funds’ source and destination. It could be delaying transactions, routing transactions through different wallets, or using different denominations.
• Distribution of funds: Once the mixing and obfuscation process is completed, the mixed funds are sent to users. Users receive cryptocurrency from a pool of mixed funds with no traceable link to their original funds.
• Transaction confirmation: The blockchain confirms the transaction once the mixed funds are distributed. It completes the coin mixer’s work to increase the transaction’s confidentiality and anonymity.