A mixer is a privacy tool used for cryptocurrency. It hides the source and destination of transactions by mixing users' cryptocurrency transactions together. The main goal of a mixer is to enhance transaction privacy, making it difficult for observers on the blockchain to trace individual transactions or the flow of a user's funds.
The following is how a mixer works and its uses:
How it works
Deposit funds: Users send cryptocurrency (such as Bitcoin or Ethereum) to the mixer.
Mixing process: The mixer aggregates funds from different users and performs a series of complex dispersal and recombination operations. These operations may include sending funds to multiple addresses or using algorithms to shuffle the order of transactions.
Disbursement of funds: The mixer sends equivalent funds to the user's specified address, but these funds typically come from another source, thereby obscuring the transaction trail.
Main uses
Enhancing privacy: Some users wish to protect their financial privacy and prevent others from tracking their transactions through the blockchain.
Avoiding association: For example, protecting trade secrets and preventing competitors from tracking transaction activities.