Why Mixnets Are Needed To Make Bitcoin Private


Source: Nym Technologies SA

Bitcoin was initially thought by many to be anonymous digital cash due to the fact that all transactions are conducted as peer-to-peer transfers between wallet addresses which serve as pseudonyms. However, the public nature of Bitcoin’s ledger of transactions (the “blockchain”) means anyone can observe the flow of coins. This means that pseudonymous addresses do not provide any meaningful level of anonymity, since anyone can harvest the counterparty addresses of any given transaction and reconstruct the chain of transactions.

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