I recommend that you familiarize yourself with these materials:
http://anonymity-in-bitcoin.blogspot.ru/2011/07/bitcoin-is-not-anonymous.html
https://bitcointalksearch.org/topic/coinjoin-bitcoin-privacy-for-the-real-world-279249
https://bitcointalksearch.org/topic/ann-joinmarket-coinjoin-that-people-will-actually-use-919116
https://bitcointalksearch.org/topic/confidential-transactions-content-privacy-for-bitcoin-transactions-1085273
https://en.bitcoin.it/wiki/Thin_Client_Security
The main method is called "CoinJoin" and is based on "joining" your transactions with transactions of other users.
Topic: Which algorithms does the mixer sites use? (Read 604 times)
If there is no specific mixing algorithm, it will not provide anonymity. For example, the MD5 encryption system performs a one-way hash. The hash value is not resolvable. But some sites compare with their database records. For example, the MD5 version of the term "bitcoin" is "cd5b1e4947e304476c788cd474fb579a". MD5 decrypter sites previously register the hash value of the "bitcoin" word into their system. Later, when the user searches for "cd5b1e4947e304476c788cd474fb579a" in the system, it finds the word "bitcoin".
First of all, MD5 is not an encryption algorithm or system, it is a hash algorithm. They are two very different things.Secondly, there are no such Bitcoin objects that algorithms can perform on to do anything. That is simply not how Bitcoin works.
If there is no specific mixing algorithm in the mixer sites, it means that there is no anonymity. Because the whole address pool was created by the site in a normal way. The login address and the exit address are certain. The FBI can request and receive information about the address of the bitcoin on the site.
Yes, this is exactly what can happen, and exactly why you should only use mixers you trust. The mixer knows EXACTLY where the Bitcoin came from and EXACTLY where the Bitcoin is going to. They know everything, and if they are compromised, so is your anonymity. There is nothing that can be done to make a mixer that does not know the specifics of the mixing that they do. The point of the mixer is to prevent outside parties from knowing where your Bitcoin came from and is going, but the mixer will most certainly know those details. 
There are no algorithms involved. What mixing sites do is each person gets a new deposit address, and when you get your Bitcoin out of the mixer, you are given Bitcoin from someone else's deposit address. Essentially they have a pool of Bitcoin and when you deposit, your Bitcoin goes into the pool and you get the same amount out of the pool.
If there is no specific mixing algorithm, it will not provide anonymity. For example, the MD5 encryption system performs a one-way hash. The hash value is not resolvable. But some sites compare with their database records. For example, the MD5 version of the term "bitcoin" is "cd5b1e4947e304476c788cd474fb579a". MD5 decrypter sites previously register the hash value of the "bitcoin" word into their system. Later, when the user searches for "cd5b1e4947e304476c788cd474fb579a" in the system, it finds the word "bitcoin".
If there is no specific mixing algorithm in the mixer sites, it means that there is no anonymity. Because the whole address pool was created by the site in a normal way. The login address and the exit address are certain. The FBI can request and receive information about the address of the bitcoin on the site.
There are no algorithms involved. What mixing sites do is each person gets a new deposit address, and when you get your Bitcoin out of the mixer, you are given Bitcoin from someone else's deposit address. Essentially they have a pool of Bitcoin and when you deposit, your Bitcoin goes into the pool and you get the same amount out of the pool.
Do address mixing sites use a specific algorithm? Is there an algorithm that every site develops for itself? Or is the mixing done according to a standard mathematical rule?
Probably just attempting to reduce the number of inputs to the transaction. Randomness is key to obfuscating transactions.
Can you explain this a bit more?
Do address mixing sites use a specific algorithm? Is there an algorithm that every site develops for itself? Or is the mixing done according to a standard mathematical rule?
Probably just attempting to reduce the number of inputs to the transaction. Randomness is key to obfuscating transactions.
I doubt they all have the same algorithm as they all work a little differently. Basically all that matters in your algorithm is that none of the coins placed in by one person will ever be mixed with said persons coins. How you do it is something you'll have to do more research on because there is no bitcoin mixer package you can buy.
Do address mixing sites use a specific algorithm? Is there an algorithm that every site develops for itself? Or is the mixing done according to a standard mathematical rule?
Jump to: