Despite the apparent anonymity, Bitcoin has long been no longer anonymous. Cryptocurrency exchanges and wallets require complete KYC for full access to their services. Thus, it becomes easy to associate your data with a Bitcoin wallet. The anonymity problem concerns not only Bitcoin but also Ethereum, Litecoin, and other popular cryptocurrencies.
Blockchain is an open ledger with the help of which it’s easy to track all your transfers and their recipients. Would you like the bank whose services you use to publish your account balance and all expenses in real-time? At a minimum, you could be the focus of scammers.
What's the solution to the problem of the anonymity of cryptocurrency transactions and wallets?
Anonymous cryptocurrencies like Monero and Dash are directly controlled by regulators and therefore don’t solve this problem.
Cryptocurrency mixers are increasingly becoming an integral part of the cryptocurrency ecosystem as more and more users realize that their data can be accessed by third parties, which in turn can lead to attention from scammers and attempts to crack wallets.
Services such as Bitcoinmix.org solve the issue of transaction anonymity in the Bitcoin, Ethereum, and Litecoin blockchains.
How does it work?
When the user sends funds to the mixer, the service mixes the coins with its reserve and sends new coins to the recipient provided by the user. New coins are different from those previously sent to the mixer, and thus the trace becomes cold in terms of blockchain analysis. This effectively allows the recipient to remain anonymous.
Initially, such services were created exclusively for Bitcoin, but Bitcoinmix.org expanded this list by adding Ethereum and Litecoin.
With the growth of the crypto market and the strengthening of control by regulators, issues of anonymity and confidentiality will become more relevant and services like Bitcoinmix.org will help solve them.