Friday, December 13, 2021

The Privacy Concept of Cryptocurrencies And Their Limits

There have been concerns on how far our privacy is compromised when we use cryptocurrencies such as Bitcoin and Ethereum. This is one of the reasons why developers are seeking ways to enhance the privacy of users, even though there are oppositions from some quarters who believe that transactions on the blockchain are meant to be public.

In any case, what we have seen in recent times is increased interest in the community to protect the privacy of users of these cryptocurrencies. Whales or people holding large volumes of Bitcoin for example have to find ways to protect their identities. Even if you don’t mind people knowing how much you have in the bank, you certainly would mind having everybody know about all the financial transactions you make.

Not Really Anonymous

There was a time some thought that cryptocurrencies such as Bitcoin and Ethereum were privacy coins. But as time went by, a clearer understanding has shown that this is not so. The public blockchain on which these cryptocurrencies were built on makes it possible to identify and link transactions to real-world identity of the users.

For instance, the transactions on the Bitcoin blockchain, even though are strings of alphabets and numbers could theoretically be linked to an IP address. Also, with the increasing demand for KYC, many exchange users actually reveal their identities to these platforms, practically linking their wallets to their identities. This has resulted to these cryptocurrency networks becoming a goldmine of information, financial information to governments. 

Quest for Privacy Continues

When personal privacy is thus compromised, the consequences may not be immediately apparent. This is why many cryptocurrency enthusiasts are anxious to enhance their privacy while using digital currencies such as Bitcoin. The Ethereum developer community is even working on adding an extra layer of privacy on the network. This is to give users the needed protection that privacy bestows.

It is also important to understand that blockchain analysis companies are working hard to make sure that they build tools that invade the privacy of users. This is why blending services have been developed to make transactions with cryptocurrencies private and safe. Understanding that the securing your coins should be paramount would make you opt for a tumbling service whenever you’re making transactions on the Bitcoin and Ethereum networks.

The Tumbling Service Solution

When digital assets are mixed at a good tumbling service, all transactions are effectively dissociated from the wallets of the owners through the use of an advanced algorithm. You should know that in using a Bitcoin mixer or Ethereum mixer, your objective should be to remain anonymous on the network and keep your coins safe from hackers. To accomplish this, you have to use a tumbling service that knows what they’re doing and capable of helping you meet your objectives.

Bear in mind that crypto tumblers are not created equal. Using a wrong mixer would fool no one, but end up giving you a false sense of security. This is why you must choose an efficient and reliable blender that would do the job and keep your funds safe.

Disclosure: This is a sponsored press release


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The Privacy Concept of Cryptocurrencies And Their Limits