Home Technology How Bitcoin Anonymity Sets Work – Bitcoin Magazine

How Bitcoin Anonymity Sets Work – Bitcoin Magazine

19
0


Let’s talk about Whirlpool “forward-looking anonymity sets” — the crowd in which you are hiding in.

To date you may be familiar with the Whirlpool CoinJoin implementation which is available on the Samourai Wallet mobile app, or Sparrow Wallet desktop app. When you participate in a Whirlpool CoinJoin you gain privacy by collaborating in a multiparty transaction which leaves anyone looking on-chain scratching their head while trying to decipher where your bitcoin has gone.

A Whirlpool CoinJoin is just like any other bitcoin transaction, made up of inputs and outputs. However each input is provided by a different bitcoin wallet, and each output is returned to one of the participating wallets. This transaction is organized by Samourai Wallet’s central Whirlpool coordinator, all the time without the coordinator knowing which input belongs to which output (“blinded”), and without you ever giving up custody of your bitcoin.

Previous articleCoinbase Rumors Going Insolvent Grow – Here’s What People Are Saying
Next articleCelsius Files For Chapter 11 Bankruptcy – Bitcoin Magazine