In recent times, the decentralized economy has had to contend with the fact that centralized authorities would want to bring cryptocurrencies under their purview. Even with the wide application of know your customer processes by exchanges, there seems to be no limits to the extent regulators would go to ensure that the identities of cryptocurrency users are known and that every transaction made on the blockchain can be traced.
There has been a lot of investment in blockchain analysis companies by government agencies and exchanges. The latter seem eager to live up to the expectations of regulators even though there are no known legislation empowering blockchain analysis companies to track the activities of cryptocurrency owners and their transaction histories.
This clearly contradicts the vision of Satoshi Nakamoto, the Bitcoin founder who envisaged a permissionless peer to peer network that enables people to send and receive values without recourse to third parties. With the increasing funding of analysis companies, there is no doubt that in the next few years, no transaction made on the blockchain would be anonymous. This is why the role of bitcoin mixers is getting even more important in the quest for people to use cryptocurrencies anonymously.
As paramount as people’s privacy has become in recent times, it is obvious that chain analysis companies are not letting up in their bid to profile users of cryptocurrencies. They have already made millions of dollars doing this and many exchanges are actively hiring them as seen with the recent acquisition of Neutrino by Coinbase.
Even though the strength of the cryptocurrency industry is not just in its decentralization, every user appreciates the control it confers on them. The concept of managing your funds without third party involvement is what makes many holders attracted to digital currencies. However, that independence may well be threatened by increasing scrutiny.
No one wants their privacy invaded by strangers. Neither do people permit strangers to scrutinize their bank statements when they have no direct dealings with them. The activities of blockchain analysis companies are very similar to privacy invasion because they take advantage of the transparent features of the blockchain to profile users. The only way to avoid this is by using mixers to cloak your transactions.
A bitcoin mixer such as Bitcoinmix.org would ensure that no one tracks your transactions made on the Bitcoin and Ethereum networks. The company does this by using special mechanisms to dissociate your wallets from its transactions by giving you new coins. Now this is important because exchanges are now known to place restrictions and sanctions on users if they feel that their coins are tainted.
You also need to use a good blender like Bitcoinmix if you have substantial volume of coins in your wallet since you would not want prying eyes to know that you’re the owner of all those coins. Furthermore, while making payments or receiving them, remaining anonymous is important and you may as well take advantage of the services of a blending service.
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