Topic: Why do we need coin mixers? (Read 409 times)
★ Bitcoin mixing services, ways and methods. ★
https://bitcointalksearch.org/topic/bitcoin-mixing-services-ways-and-methods-1707954
In theory mixing services are used to disguise the origin of the coins.
In practice - not sure if this works. The FBI has been using software to track coin movements. There are lots of start-ups that track bitcoins, and some might be able to track mixing services too:
https://bravenewcoin.com/news/bitcoin-tracking-platforms-gaining-traction/
In practice - not sure if this works. The FBI has been using software to track coin movements. There are lots of start-ups that track bitcoins, and some might be able to track mixing services too:
https://bravenewcoin.com/news/bitcoin-tracking-platforms-gaining-traction/
Quote
it is a large task to track and trace the movement of every bitcoin. A blockchain startup, called SABR, claimed that its software could have completed the task in a matter of days.
SABR describes its product as a “Palantir” for the blockchain, a name used by revered author J. R. R. Tolkien. The author gave the name to crystal balls used for communication, and as a means of seeing events around of the world.
SABR’s mission is to provide law enforcement with a view beneath the surface of multiple blockchains, to ensure digital currencies are not being used for illicit purposes, and to bring legitimacy to digital currencies. The surveillance team explained that blockchain technology, in conjunction with a distributed and aligned transaction confirmation network, has the potential to be the most useful innovation of the 3rd millennium.
The New york based startup raised US$1m in seed funding for its patented technology, and said it will use the investment to develop its blockchain monitoring and identification system.
Another startup which intends to identify illicit activity, United Kingdom based Elliptic, is also tackling the situation. Having already raised US$2m, from Octopus Investments during 2014, the company recently announced an additional US$5m had been secured for development.
Elliptic’s bitcoin transaction identification software implements an artificial intelligence-based technology, which can explore the Bitcoin blockchain. Elliptic will use the technology to expose patterns in the network which may be suspicious transactions or activities.
The European Cybercrime Centre (EC3) has also taken an interest in taming the Wild West of bitcoin transactions. EC3 has partnered with blockchain company Chainalysis, an official investigator for the creditors of the collapsed bitcoin exchange, Mt Gox. Chainalysis will provide the law enforcement agency with access to software which detects suspicious activity in real-time, alongside other investigation tools.
SABR describes its product as a “Palantir” for the blockchain, a name used by revered author J. R. R. Tolkien. The author gave the name to crystal balls used for communication, and as a means of seeing events around of the world.
SABR’s mission is to provide law enforcement with a view beneath the surface of multiple blockchains, to ensure digital currencies are not being used for illicit purposes, and to bring legitimacy to digital currencies. The surveillance team explained that blockchain technology, in conjunction with a distributed and aligned transaction confirmation network, has the potential to be the most useful innovation of the 3rd millennium.
The New york based startup raised US$1m in seed funding for its patented technology, and said it will use the investment to develop its blockchain monitoring and identification system.
Another startup which intends to identify illicit activity, United Kingdom based Elliptic, is also tackling the situation. Having already raised US$2m, from Octopus Investments during 2014, the company recently announced an additional US$5m had been secured for development.
Elliptic’s bitcoin transaction identification software implements an artificial intelligence-based technology, which can explore the Bitcoin blockchain. Elliptic will use the technology to expose patterns in the network which may be suspicious transactions or activities.
The European Cybercrime Centre (EC3) has also taken an interest in taming the Wild West of bitcoin transactions. EC3 has partnered with blockchain company Chainalysis, an official investigator for the creditors of the collapsed bitcoin exchange, Mt Gox. Chainalysis will provide the law enforcement agency with access to software which detects suspicious activity in real-time, alongside other investigation tools.
Therefore is coin mixing service something like a cloaker?
Sorry have no idea what is the coin mixers but it sounds like hiding your real identity behind something
Sorry have no idea what is the coin mixers but it sounds like hiding your real identity behind something
I get the idea behind it, but my question is if someone sends an Ethereum from wallet A to bittrex, used that Eth to buy bitcoin or any other coin with it, then use that coin to buy back Ethereum, wouldn't that automatically "Mix" the Eth since I get a new one? If so then why do we need all these mixing companies?
This is no different than sending a coin straight from an exchange, which is something you never want to do if your goal is anonymity.
The goal of mixers (they don't actually achieve this goal in most circumstances as chain analysis companies are proving with more and more frequency) is to make the coins origin (before the mixing) unverifiable to an observer--exchanges can observe the whole process and most will report any transactions that took place while on the exchange, so it would be useless to launder money.
What would you suggest to blurr the blockchain ?
We all start out as noobs and I sent straight from multiple exchanges to my wallets. Even pointing multiple unverified exchange accounts to a wallet but then sent from a verified account to the same wallet.
Myetherwallet reuses the same address afaik so really everything is pretty easily linked
I like your signature btw
Interesting, does the same work if someone used a bitcoin to purchase say Neo off of bittrex then used that Neo to buy Ethereum. If someone tries to track down the person who had the original bitcoin, can they find him or her through the new coin he's bought aka Ethereum?
I get the idea behind it, but my question is if someone sends an Ethereum from wallet A to bittrex, used that Eth to buy bitcoin or any other coin with it, then use that coin to buy back Ethereum, wouldn't that automatically "Mix" the Eth since I get a new one? If so then why do we need all these mixing companies?
You can be tracked, if you have on only one exchanger your data. Each transfer can be tracked from most coins, so it is not really mixed. If governments do a serious and good job, it would be not fearable to be tracked on each step. But you can't only be tracked by the "good guys" but "bad" and criminals too. So it is not only the aim of criminals to keep their privacy. 
I get the idea behind it, but my question is if someone sends an Ethereum from wallet A to bittrex, used that Eth to buy bitcoin or any other coin with it, then use that coin to buy back Ethereum, wouldn't that automatically "Mix" the Eth since I get a new one? If so then why do we need all these mixing companies?
This is no different than sending a coin straight from an exchange, which is something you never want to do if your goal is anonymity.
The goal of mixers (they don't actually achieve this goal in most circumstances as chain analysis companies are proving with more and more frequency) is to make the coins origin (before the mixing) unverifiable to an observer--exchanges can observe the whole process and most will report any transactions that took place while on the exchange, so it would be useless to launder money.
Wihout mixing it's possible to trace btc as it moves from wallet to wallets . This way in some case a trace of the BTC can be done. If you want to avoid this mixing helps to break the trace.
You need that if won't be tracked by others especially government agencies. I think you don't need that if you are not committed crime..
That's a good point, but that's going through an organization that is prominent and well known. Even with smaller exchanges there's the possibility that the data associated with accounts could be released, ip addresses logged, etc. If you're using a bitcoin mixer you want to be guaranteed that you're covering your tracks so darknet mixers have got you covered there as a specialty.
Just mixers came first 
in fact, the mixer is the first thing that came cryptocurrency.
in fact, the mixer is the first thing that came cryptocurrency.
I get the idea behind it, but my question is if someone sends an Ethereum from wallet A to bittrex, used that Eth to buy bitcoin or any other coin with it, then use that coin to buy back Ethereum, wouldn't that automatically "Mix" the Eth since I get a new one? If so then why do we need all these mixing companies?
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