Bitcoin transactions reveal the origin and destination addresses of every unit spent. Bitcoin’s privacy problem can be solved by a special type of transaction called a “coinjoin” which includes coins from multiple users that are reorganized into matching amounts.
All Bitcoin transactions show where the coins that are being spent came from (known as inputs) and where the coins are being sent to (known as outputs). Each input and output has an address, and an amount.
When a payment creates two outputs, the receiver can track the leftover change that belongs to the sender when it is spent in a future transaction. When a payment consumes more than one input, an observer can link multiple payment addresses used by the sender together.
These kinds of transactions are easy to trace, revealing a chain of information about a wallet’s balance and transaction history to anyone who looks for it. Coinjoin transactions are different: There are more than two outputs and the inputs are consumed by multiple senders.
Coinjoins allow you to privately shift your coins from the original addresses known by previous senders or receivers into new addresses that are not deterministically linked to your previous transactions, even if you are not making an immediate payment.
In order to organize all the inputs and outputs into a coinjoin transaction, a central coordinator is used to relay all the transaction information to participants. This process is non custodial, so the coordinator and the other participants cannot steal your funds.
A minimum of 150 inputs is required for the coinjoin to proceed, but up to 400 inputs are allowed in a single round. Once enough inputs are ready, users choose outputs that are the exact same size as other users, creating a crowd of identical matches to hide in.
A new unique Tor identity is used any time an input is registered or an output is claimed by a client so that the coordinator is not able to link any coins together by matching the IP address to the same owner.
Each consecutive coinjoin your coins participate in increases the size of the crowd they are hiding in, allowing users to boost their privacy as much as they want before sending or storing their coins.
wasabiwallet / Wasabi Wallet
npub167…8schc
2023-04-19 12:26:26
Author Public Key
npub167hmfzj38hkumks4wxny89797la0sf7wnwfrw4enlmcl82msp0cs78schcSeen on
wss://nos.lolPublished at
2023-04-19 12:26:26Event JSON
{
"id": "d9e2c242733c3d706d66177566e96be2a1e2fdfb0681a7bd68fd4be3a5a4c195",
"pubkey": "d7afb48a513dedcdda1571a64397c5f7faf827ce9b92375733fef1f3ab700bf1",
"created_at": 1681907186,
"kind": 1,
"tags": [],
"content": "Bitcoin transactions reveal the origin and destination addresses of every unit spent. Bitcoin’s privacy problem can be solved by a special type of transaction called a “coinjoin” which includes coins from multiple users that are reorganized into matching amounts.\n\nAll Bitcoin transactions show where the coins that are being spent came from (known as inputs) and where the coins are being sent to (known as outputs). Each input and output has an address, and an amount.\n\nWhen a payment creates two outputs, the receiver can track the leftover change that belongs to the sender when it is spent in a future transaction. When a payment consumes more than one input, an observer can link multiple payment addresses used by the sender together.\n\nThese kinds of transactions are easy to trace, revealing a chain of information about a wallet’s balance and transaction history to anyone who looks for it. Coinjoin transactions are different: There are more than two outputs and the inputs are consumed by multiple senders.\n\nCoinjoins allow you to privately shift your coins from the original addresses known by previous senders or receivers into new addresses that are not deterministically linked to your previous transactions, even if you are not making an immediate payment.\n\nIn order to organize all the inputs and outputs into a coinjoin transaction, a central coordinator is used to relay all the transaction information to participants. This process is non custodial, so the coordinator and the other participants cannot steal your funds.\n\nA minimum of 150 inputs is required for the coinjoin to proceed, but up to 400 inputs are allowed in a single round. Once enough inputs are ready, users choose outputs that are the exact same size as other users, creating a crowd of identical matches to hide in.\n\nA new unique Tor identity is used any time an input is registered or an output is claimed by a client so that the coordinator is not able to link any coins together by matching the IP address to the same owner.\n\nEach consecutive coinjoin your coins participate in increases the size of the crowd they are hiding in, allowing users to boost their privacy as much as they want before sending or storing their coins.",
"sig": "071be9725d3521cad6495bbd18a9e7641de9adef35560e8b70c0b0d41d285f176ab00df60e1f4d6be3af6ec8972557d709dc46441b30370ee37e43f71e492fd4"
}