Send me Bitcoin and I’ll tell you who you are? If you make a transaction in Bitcoin, the recipient will be informed of the address from which the Bitcoin came. The payment and the recipient’s address are stored together with the amount on the blockchain. With simple means can then determine how many Bitcoin are on the payment address. One of many solutions in this very heated debate is bestmixer.io.
About anonymity, paranoia and the desire for more serenity.
Information is the gold of the third millennium. In our small country you get the impression that the account balance and the income are among the most sensitive data of a person. But this information is anything but in our hands, whether we like it or not. For investigative agencies, for savvy hackers and for intelligence agencies, finding out about a person at the local savings bank is not a big challenge. In the Bitcoin ecosystem, there is some hysteria about the glassiness of the blockchain. Apart from the fact that one operates in the Bitcoin network under one or more pseudonyms, there are many solutions for improved privacy and anonymity. The most promising one is probably the Lightning Network, which until now has only limited practicality. An already working solution represents the platform bestmixer.io.
One of many solutions to remain undetected
Bestmixer.io is a coin tumbler and settled in the theoretical debate in the area of the so-called CoinJoins. In principle, you send Bitcoin to a larger pool and from this larger pool the desired amount is sent to the destination. Thus, your own Bitcoin address does not appear as a source at the payee. The mixing of coins also has another advantage: The fungibility, ie the indistinguishability, of individual Bitcoin is thereby improved. Find out more about this topic in the podcast on the flagship in terms of fungibility: Monero.
The user-friendliness of the bestmixer.io mixing tool is one of the most positive features. This practical aspect is often forgotten in the delusions of “be-your-own-bankers” and “know-your-coiners”. The service provider renounces the knowledge of his clients. So you can start without registration directly. First you copy the recipient address into the field provided. The platform offers the possibility to use one of three available pools to mix its own Bitcoin with those of other users. The Alpha Pool only includes BTC from other users of the platform. The Beta Pool contains major transactions from the Alpha Pool, funds from investors in the company and some of their reserves.
Ultimately, the Gamma Pool has only funds from the investor and corporate side. So the fees also depend on which pool you choose. In addition, you have the option of dividing the amount sent to up to three recipient addresses. One set screw that should make it even more difficult for Blockchain analysts is the delay button. This determines whether the three transactions will be sent at the same time or with a delay.
Once you have worked through the intuitive input fields, a colored bar indicates how good the mixing result is. So you can optionally turn on one or more screws to improve the concealment. In the next step, an address is then displayed to which you can send the desired amount. When using the service several times, working with the so-called bestmixer code is recommended. This prevents you from getting BTC, which you fed into the pool earlier, back again. After each transaction, a new code is spitted out, which can be specified during the subsequent mixing. Besides Bitcoin you can also mix Litecoin and Bitcoin Cash. Furthermore, the implementation of Ethereum is planned.
The error in the matrix
However, bestmixer.io can not shake off a precarious quality: the company’s services are centralized. Although the operators write that sensitive data, including the sender address and the delays of the individual transactions, would be deleted within 24 hours. At this point, however, there is nothing left but to trust them. The validity of the address to which you ultimately send the desired BTC, there is also a guarantee letter, which confirms that the output address was actually generated by bestmixer.io. That, too, is one thing that you ultimately have to accept.
From Bitcoin 1.0 to Bitcoin 2.0
The fact is that Bitcoin stores transactions, just like a bank transfer. Already there is a hurdle in the Bitcoin network that makes transactions on the blockchain anonymous as a bank transfer: You do not appear with your own name, but with an address. The reference system for this Bitcoin 1.0 outlined here is still fiat money. Bitcoin 2.0 has long since been in the pipeline, from which even some savvy users are referring to material, whether in the form of improved wallets, which automatically use a different address for each payment or in the form of the Lightning Network.
Since centralized exchanges have introduced the KYC principle, the first hurdle of anonymity of Bitcoin 1.0 weighs less heavily, but even Bitcoin has not slept in the meantime. So in the course of the Lightning Network, almost no transaction ends up on the Blockchain. But even without technical advances, you can protect yourself. For example, one of the most important rules when sending and receiving Bitcoin is to use each address only once. Most software and hardware firewalls have this feature built in. So the analytic problem becomes more complex with each new pseudonym.
A question of price
It should not be forgotten in the debate on anonymity and privacy, which has since taken on slightly paranoid features, that the reference system is Fiat currency. And by comparison, we’ve created a very good system with Bitcoin. So it is certainly an illusion to believe that one can achieve complete anonymity and complete privacy protection. Likewise, it will remain a mere fantasy to be completely independent, not to mention whether that is desirable at all. What we can try to achieve is as much anonymity and privacy as we need – a question that everyone has to answer for themselves.
It will be a question of the price we are willing to pay. The non-existent tax secrecy from one of the most fair and progressive countries in the world – Sweden – makes us breathe a sigh of relief. If you want to know how much your neighbor earns, you can read this from publicly available lists. There are plenty of theoretical ways to exploit Bitcoin system errors or bitcoin errors. But practicing these opportunities is again associated with effort. And maybe the secret of the account balance in the end is not as interesting as we think.