Etherium mixer benefits|Why an Etherium mixer is needed
What is an etherium mixer and what is it for
Internet visitors conducting various cryptocurrency transactions usually seek maximum anonymity. However, this is not always the case, as innovative blockchain technology makes it easy to trace the user. Cryptocurrency transactions such as bitcoin and etherium are common knowledge. By a single transaction alone, one can see the entire history of transactions executed by a particular user over a period of time.
In order to achieve maximum privacy during the execution of various cryptocurrency transactions, a specific program — the mixer — can be used. It was developed a few years ago and is the optimal solution for those who want to keep their transactions confidential.
The main characteristics of a cryptocurrency mixer, or mixer:
the method of operation is based on the fact that money from several pseudo-anonymous clients is mixed with each other;
Mixing occurs when a transaction arrives at a user’s designated address;
During the mixing process, the user’s data and transactions are masked by performing cryptographic mathematical operations;
After the end of the encryption, it becomes impossible to identify the client and the amount of the transaction.
In the process of encrypting transactions, the mixer applies zero-disclosure arguments. This misleads customers and confuses deposited funds. A certain level of transparency is maintained through the smart contract. Third parties are allowed to verify the correct functioning of these agreements, while the anonymity of the users is fully protected.
When a user deposits their money for encryption, a secret word and a secret hash are generated for them. These are then sent to the smart contract and added to the deposit list. If the user wants to withdraw the funds, they must provide proof (in the same way as the key); this proof is equivalent to the secret word, which allows a specific hash to be distinguished from the total. In order to increase privacy and confidentiality the following secret browsers can be used:
Anonymous software is one hundred percent decentralised. It is not connected to third parties that take responsibility for the user’s assets or have access rights to break the encryption process.
Advantages of the etherium mixer
The etherium mixer resource provides complete anonymity to the user in the case of routing transactions. In this case, the connection between the directory of the one sending the cryptocurrency and the one receiving it is destroyed. The withdrawal of the money cannot be traced back to the sender. The communication is done through complex smart contracts. Keys or proofs that are given to the user at the time of deposit are used to send the funds to the new address.
Vitalik Buterin on the anonymity of blending
Vitalik Buterin, a well-known domestic cryptocurrency expert, pioneered the invention of etherium blending. The gist of his idea was that many customers were interested in hiding their blockchain technology activity while transferring etherium. The proposal initially focused on one-off anonymous transactions, with no suggestion of anonymity at the network level as a whole.
Buterin says that there are currently two ways for customers to complete transactions. If the default transaction settings are made, customers receive and send cryptocurrency from the same account, so all of their activities appear in a single blockchain sequence. It is also possible to conduct transactions using multiple accounts at the same time. However, it is difficult to encrypt blockchain activity using this route.
Today, according to Buterin, users can make transactions in one of two ways. «By default, users send and receive cryptocurrency from a single account, which means that all procedures are mapped to the public blockchain. Also, users can carry out transactions through multiple profiles, but this is not the best solution for hiding blockchain activity.
Buterin states: When users make transactions to send cryptocurrency, all connections are traceable on the blockchain. To achieve anonymity, he suggests creating two smart contracts — a relay and a mixer. With these, the user would be able to choose private transactions using a private set. This method, according to Buterin, appears to be the most effective and optimal for the majority of Internet users who regularly transact in ethereum.