The principles of Nakamoto, who created the first cryptocurrency, were security, anonymity and the absence of intermediaries between the buyer and the seller, but today these principles are egregiously violated. The ability not to provide any information about your identity in the calculations should have allowed to maintain confidentiality. It is likely that if today cryptocurrency were not exchanged on exchanges, when verification was required in almost all cases, but only mined, then in most cases confidentiality would be preserved.
On the other hand, criminals and in particular hackers are always looking for and periodically inventing new options for access to other people’s data and money, and the requirements of exchangers and many companies to pass an identity check helps fraudsters in this. So, having hacked into any database where customer data is stored with reference to their crypto addresses, those who want to get into your pocket or control your digital finances can track your wallets using blockchain analyzers.
Further, you can not only find out your data and the contents of the crypto-wallet, but also calculate your contacts by perfect crypto transfers and even your location. Some developers after the studies reported that they will be able to disclose the data of half of all addresses of the first and main cryptocurrency, violating their anonymity, and experts said that now there is an opportunity to reveal the identity of about 20% of users. Even hiding an IP address using a VPN or Tor network do not guarantees users protection from binding their crypto wallets to their identity and physical location.
How crypto anonymity arranged
At the basic level, cryptocurrency is a series of transactions that are recorded sequentially into a single encrypted database based on the principles of a distributed blockchain registry. This will help to better understand how the anonymity of the digital currency works. You can’t make changes to such a database somewhere in the middle or earlier, which protects Bitcoin from counterfeiting, due to the exclusion of an illegal record about the transfer of coins.
Since cryptocurrency has:
– Transactions that are not tied to a specific person, everyone can transfer coins without having to tell anyone their data. This is a significant difference from any other payment systems, and especially from bank payments. All that is required for the transaction is only the confirmation of the miners, that is, inclusion in the system block. The two sides of the transfer of crypto assets may not know each other;
– Wallet addresses at the network protocol level are not tied to a specific person. Any random user can generate a new wallet at any time, without having to provide any documents or other data;
– Information about crypto transactions is transmitted between random P2P nodes that do not know who created this transaction, that is, was it the node that transmitted the information, or any other network of cryptocurrencies. Communication of nodes occurs only through IP addresses.
What violates anonymity
To violate Bitcoin privacy, an attacker can use the personal information of specific people if they were previously compromised and associated with some Bitcoin address with which transactions occurred. All addresses in the Bitcoin blockchain are in an open system and everyone can see them and the transfers associated with them, regardless of their direction.
The next way is that fraudsters can connect several nodes to the Bitcoin network in order to collect information that will be enough to determine the source of a particular transaction, since the P2P network is not completely protected from leaks. If at least one of the associated wallets is related to a particular person, then using one of the methods described above, the ownership of all wallets will be disclosed.
How users can to counter cryptocurrency privacy disclosures
The privacy of the crypto world is the subject of a rally between crypto holders and hackers. Despite the constant efforts of developers to increase Bitcoin privacy, hackers are constantly inventing new ways to crack access to crypto. However, there are several ways to protect yourself and your personal data online, which will help you protect your crypto assets. Using software to hide an IP address is one of the existing solutions. Although there are no weaknesses in such a TOR browser, there is also no way to determine their origin if transactions are performed through it.
However, using a Bitcoin mixing service is much more useful in ensuring the security of digital tools and their transfers, although you will need to make a little extra effort. But when you use an effective and reliable cryptocurrency mixer, such as BitMix.biz, you will definitely receive the anonymity of your transactions.
Efficient crypto privacy tool – Bitcoin mixer
Bitcoin mixer will protect your anonymity when mixing almost any amount, but if you need to clear large crypto amounts, then it is definitely worth using proven methods. For example, you should use the randomization function, like in BitMix.biz, which increases the complexity of tracking by many times. In addition, the return of your virtual assets is secured by a guarantee deposit of $ 15,000 in specialized forums, links to which you can get by contacting us.
Continuing about security, you should make sure the Bitcoin addresses belonging to BitMix.Biz are correct by checking them with the 1BitmixQRMUHYYEi11KBRhSfACa1BtcZrZ key. So, you will not allow your cryptocurrency to disappear without a guarantee of return.
BitMix.Biz offers the function of a variable cleaning fee, a time-delayed transaction, previously prepared coins, a letter of guarantee, protection against re-crediting, the ability to automatically and manually instantly delete mixing information.
A convenient, simple and intuitive interface available in 10 languages will not cause difficulties when using the service, no matter what experience you have in using cryptocurrencies. BitMix.Biz also has an affiliate program for additional benefits from the use and the ability to use the API key on your site.