If you are familiar with the world of cryptocurrencies, then the term, “coin mixer” is something that you might have come across. A coin mixer is essentially a means of making cryptocurrency transactions more anonymous and harder to track. People who wish to have higher levels of privacy and anonymity with their cryptocurrency transactions frequently use coin mixers to accomplish this.
You may be asking yourself why coin mixers are needed for cryptocurrencies, which are designed to have high levels of cryptographic qualities. The answer is because many cryptocurrencies have public, open sourced ledgers which record all transactions on a blockchain. This means that if you make a transaction with Bitcoin, for example, then this transaction will be recorded for all the world to see.
The actual transaction will not have your name attached to it, but rather, a string of numbers and letters associated with your account. Also, it will not reveal the identity of the party whom you sent your cryptocurrency to. The accounts involved in the transaction would look something like this “7Hkiji79767nnsoijs79rk55kn4mm.” However, for many people, this is not enough anonymity.
The reason is because many people fear that due to the ledger being public, that eventually, their transactions will be traced back to them by hackers, or by well-funded companies who are looking for key financial information. This is unacceptable for people who want the highest possible levels of privacy. So, many people turn to coin mixers to achieve these higher levels of privacy.