If like most people you cherish privacy. You may be wondering if your transactions on the Bitcoin network are safe. If it is, there is also a question of if they can all be traced back to you. Some users believe that Bitcoin is anonymous but the truth is that it is not despite the fact that some of us wish it were so.
In recent times, crypto users have understood that Bitcoin use is not really private. A casual observer could look at the blockchain and know what transactions a wallet owner has made. This is why those who are privacy conscious are increasingly going for options that make it easy to protect their privacy.
Knowing this, we would want to know the importance of using Bitcoin anonymously and how this is accomplished in practice.
The Openness of Blockchain
One of the attractions of the blockchain technology is that it confers openness on transactions made on it. This enables all parties to have access to view the data being transacted. For instance, when one party initiates a transaction, the other party would know the status of that transaction.
Unfortunately, not just the parties concerned are privy to this information. Third parties not directly involved can also see it thereby invading the privacy of the people involved.
The fact is that there is no way of knowing who is viewing the transactions and what their intention is. Wallets with large volume of bitcoins could be inadvertently exposed to malicious players. This is why it is important to confer anonymity on Bitcoin before use.
Bitcoin Cannot Be Hacked But…
I’m sure you are aware that the Bitcoin network cannot be hacked. This gives every user rest of mind and protects their assets but it can also give people a false sense of security. This is due to the fact that individual wallets could be accessed by hackers if they simulate the login process through phishing or key logging procedures.
Hackers are using clipper malware to steal Bitcoin from users. This process is initiated by a malicious script that changes the copied destination address to that of the hacker. The sender oblivious of the fact that the address has been changed sends their coin to the hacker. These are some of the reasons why it is important to use Bitcoin anonymously.
Bitcoin tumblers or blenders are mixing services that make it possible to use Bitcoin anonymously. The software accomplishes it by mixing the coins sent to the platform with other coins held in the mixer. This makes it possible to dissociate the address of a wallet from the real world identity of the owner.
Another advantage is that it prevents blockchain analysis from following the transaction history of a wallet. Now this is a field that is advancing which makes it possible for hacker to gain access to sensitive information such as how much funds a wallet has and possible link it to an owner. With a good Bitcoin tumbler such as Bitcoinmix.org, such data are hidden effectively.