How crypto mixers differ from crypto tumblers
The emergence of various systems combined with cryptocurrency exchanges has created a need for anonymous but secure transactions. Despite all the possibilities of digital money, transactions are traceable, meaning the risk of exposing personal data remains high. Crypto mixers and crypto tumblers have evolved to protect investors. Thanks to these tools, you can count on true anonymity when making a transaction.
Cryptocurrencies are developed based on blockchain technology, which requires the existence of a decentralised ledger to record each transaction. This architecture ensures the transparency of all actions and makes it possible to trace each stage of the payment process. A crypto mixer has been developed to achieve a high level of confidentiality. This technology mixes coins so that they lose their original transaction links. This makes it impossible to trace where the money came from and where it went.
The difference between a crypto mixer and a crypto tumbler
A crypto tumbler is a more advanced version of a mixer. It does not just mix coins – it creates new transactional relationships between them, removing information about previous interdependencies.
The purpose of creating these tools was to ensure anonymity in Bitcoin payments. However, as other cryptocurrencies have developed, their capabilities have expanded.
The Bitcoin mixer combines the coins of all users into a single database and, once mixed, sends them to their owners. At the same time, it is essential to note that the transaction now involves different coins from those originally present. In this way, the mechanism mixes up the history of payment transactions, and it is impossible to trace the money. There are two types of crypto mixers:
1. Centralised. In this case, third parties cannot trace information about transactions, but the platform itself records information about transfers, including their origin and destination.
2. Decentralised, based on smart contracts. Coins are removed from liquidity pools after mixing, making it completely impossible to trace the senders of the money. Such crypto mixers use the CoinJoin protocol, which works through a coordinated method or peer-to-peer mechanism.
Crypto tumblers change the form of the transaction and the form of the coins. The coins are divided into several parts and sent to different addresses. After this shuffling, the coins are reassembled into a single whole. This ensures that even if the data from one stage becomes available, the others cannot be traced or linked. In addition, crypto tumblers perform transactions with a delay and can change transaction amounts, increasing anonymity.
Although crypto mixers and crypto tumblers work the same way for all digital currencies, they have different features for each coin. In this way, these tools provide maximum security for different types of e-money.
