Bitcoin Mixer uses technique to make your transactions private without needing to trust the bitcoin mixing service. Bitcoins never leave your control and therefore it is impossible for them to be stolen or confiscated. Shared Coin provides privacy combining transaction with other people's.
Shared Coin is a method of making transactions which requires less trust in the service, based on the concept which acts as a meeting point for multiple people to join together in a single transaction. Having multiple people in a transaction improves privacy by making transactions more difficult to analyse.
The important distinction between traditional mixing services is the server cannot confiscate or steal your coins.
Shared Coin is a method of making transactions which requires less trust in the service, based on the CoinJoin concept which acts as a meeting point for multiple people to join together in a single transaction. Having multiple people in a transaction improves privacy by making transactions more difficult to analyse. The important distinction between traditional mixing services is the server cannot confiscate or steal your coins.
The server does not need to keep any logs and transactions are only kept in memory for a short time. However if the server was compromised or under subpoena it could be force to keep logs. If this were to happen although you haven't gained any privacy you haven't lost any either.
A Shared Coin transaction will look something like this. As you can see multiple inputs and outputs make the determining the actual sender and receiver more difficult.
Between 30 seconds to 5 minutes depending on the number of iterations.
The maximum transaction size is 100 BTC.
Shared Coin is a free service however a bitcoin network fee of 0.0001 BTC is required.
- Tor can prevent leaking of information through your ip address.
- Sending coins to or from tagged addresses reduces privacy.
- When creating a Shared Coin transaction your browser generates a number or temporary/intermediate addresses. The balance of these addresses is not checked on blockchain.info itself unless the "Recover Intermediate Addresses" button is used. Looking up the balance of these addresses is an information leak as if blockchain.info was keep logs it would show you had an interest in these addresses. So don't use the "Recover Intermediate Addresses" tool unless there has been an error with a transaction.
Shared Coin can never completely sever the link between the input and destination address, there will always be a connection between them, it is just more difficult to analyse.