- Using CoinJoin increases your privacy but you have to read rules of platforms before sending your funds to them. Platforms tend to restrict CoinJoin transactions.
- Only use Coin Join transactions if you have fully control.
- Avoid using Coin Join transactions on third-party platforms that don't allow it.[e].
"Not your keys, not your bitcoin"
[3]It is a vital rule, so if one want to enhance privacy, s/he should learn to use non-custodial wallets that provide enhanced privacy, like Wasabi and Samourai. There are so many mixing platforms but it is risky to store your coins too long on those platforms. Someone made that mistake and lose their coins on scam mixing platforms.
There are two wallets for this purpose:
- Wasabi wallet
- Samourai wallet
They are both use Coinjoin to give users modification options to enhance their privacy.
It is worth to warn you all that those wallets only enhance your privacy, and not give your completely privacy. Additionally, the personal practice of user will determine level of privacy they have.
Now, let's see what is
Coinjoin- CoinJoin: Bitcoin privacy for the real world
- CoinJoin is a trustless method for combining multiple Bitcoin payments from multiple spenders into a single transaction to make it more difficult for outside parties to determine which spender paid which recipient or recipients. Unlike many other privacy solutions, coinjoin transactions do not require a modification to the bitcoin protocol. [1]
- In very simple terms, coinjoin means: “when you want to make a transaction, find someone else who also wants to make a transaction and make a joint transaction together”. [2]
Wasabi walletWasabi Wallet 1.0 Is ReleasedWebsite:
https://wasabiwallet.io/FAQsWhy Wasabi ?#1 - Wasabi walletThe
Wasabi wallet uses CoinJoin in order to anonymize BTC.
- Pros: Easy to use; fairly cheap ~0.15% fee; pretty good privacy; automatically uses Tor
- Cons: ~0.1BTC minimum; with a great deal of effort and investigation, transaction analysis may still be possible, especially if you leave other traces; the coordinator could possibly do an active sybil attack against specific coins
Wasabi wallet has processed
5372 Coinjoin transactions as of writing
What's the legal status of Wasabi/CoinJoin? [5]USA: On May 9, 2019, the Financial Crimes Enforcement Network (FinCEN) issued an interpretive guidance that stated the following in section 4.5.1(b):
Both Wasabi and Monero can be thought of in terms of "anonymity sets". If you're spending some BTC with an anonymity set of 50, this means that an observer can see that the sender is one of 50 people, but they can't tell which. So someone investigating a particular transaction you sent would have you "in their sights" to a certain extent from the start since you're among the 50, but in order to
prove that you sent it, they'd have to either eliminate 49 other people from consideration or find some other evidence linking you to it.
Wasabi always aims for an anonymity set of 50 when mixing. Monero has an anonymity set of 11
per transaction. If you cascade transactions as I suggest above, then this multiplies, so after two transactions you have an anonymity set of 11*11=121, and after a cascade of three you'd have an anonymity set of 1331.
The quality of each member in the anonymity set isn't quite comparable, though. Monero is able to hide transaction amounts, which is helpful, but I tend to consider the quality of Monero anonymity-set-members to be lower on average, since many are probably owned by hosted wallets or other possible global adversaries.
See alsohttps://en.bitcoin.it/wiki/PrivacyAFAIK, that medium post is nothing new.
Base mimblewimble isn't really designed to be a "black box of reliable anonymity" in the way that Monero or Wasabi-CoinJoins are, where connections are hard-broken. It's more of a framework on which you
could build solid anonymity using techniques that have largely not yet been perfected, plus major scaling benefits. Monero = CT + stealth addresses + ring signatures. Grin = CT + "stealth addresses" + mimblewimble. Because grin replaces ring signatures with mimblewimble, its privacy is less reliable than Monero's. Probably the grin developers have tried to make their mimblewimble transaction aggregation methods good, but I currently wouldn't put much faith in it, and IMO it'll take many years of research to get something really solid. That said, CT + stealth addresses offer a certain base level of privacy, and grin's method of handling stealth addresses (using an interactive protocol, exchanging "slates") is both more scalable than Monero and probably more private.
If your goal is to
mix coins, grin is definitely not for you right now, and it may never be. Monero's goal is
maximal privacy, regardless of the cost. Grin's goal is
excellent privacy, consistent with scaling.
[e]:
