The level of privacy that users have while transacting on-chain is often misunderstood, with many people believing that cryptocurrency is mostly anonymous. The reality is quite the opposite.
Blockchains utilize a public ledger to store a full history of user transactions, meaning that every on-chain interaction from every user is stored on a database that can be accessed by anyone. While no one is able to alter this transaction data, the mechanism can cause privacy concerns for some users — especially when combined with KYC data from centralized service providers.
Calls for greater on-chain privacy have led to a variety of solutions, with one emerging solution for Bitcoin being Tumbler.io. The platform offers a BTC mixing solution that obfuscates the transaction history of each cryptocurrency token, helping users to protect their privacy on-chain and avoid key security concerns.
What is Tumbler.io?
Tumbler.io is a Bitcoin (BTC) mixer that unlocks a higher degree of privacy when compared with traditional blockchain use. The platform allows users to pool their funds together, which can obfuscate the flow of BTC on the blockchain and help users to keep their identities secure.
On-chain transactions leave an immutable digital footprint that, when combined with KYC credentials collected from third-party vendors such as CEXs, can be used to trace the flow of BTC back to individuals. This results in all transactions being made fully public, with anyone, anywhere in the world being able to view the contents of a person’s wallet, and that wallet being linked directly to an individual via government-issued identification.
By providing a solution that can mitigate these privacy issues, Tumbler.io offers a way to protect the identity of its users and, by extension, the security of their finances.
How does the platform work?
Tumbler.io users can send their cryptocurrency to a shared pool, where the tokens are inscribed with a unique cryptographic tag known as “Tumbler code”. The user will then receive an equal amount of crypto back in return, except the tokens they receive will come from the pool’s others users.
The unique tag applied by Tumbler.io is used to differentiate the user’s tokens from the rest of the crypto in the pool. This alters the flow of transaction data on the blockchain and makes it more difficult to trace the origins of each token.
Additionally, Tumbler.io maximizes privacy by deploying a time delay between transactions and by splitting each user’s total BTC into several parts for deposits. This makes it near-impossible to trace on-chain data back to a single participant, helping to preserve financial privacy and help users to retain their anonymity on-chain.
Why might someone want to use an on-chain privacy solution?
To understand why someone might want to use an on-chain privacy solution, it’s important to first understand exactly what blockchains are and how they work.
The Bitcoin blockchain is a cryptographically secure online ledger that can process user transactions without intermediaries. To do this, transaction data is recorded permanently on a public database that is unable to be altered retroactively by any single party.
Recording user data permanently on the blockchain can cause security concerns, because it requires that public keys are permanently linked to a full history of a user’s transactions.
While public keys are not individually identifiable by default, the combination of public blockchain data with identification documents collected by centralized blockchain companies can link public keys to their owner. In essence, on-chain transactions can be traced back to individuals once a public key has interacted with KYC-enabled accounts.
Many blockchain users believe that people have a right to financial privacy, which has led to demand for solutions such as Tumbler.io across various blockchain ecosystems. Regarding the Bitcoin blockchain specifically, Tumbler.io utilizes one of the most prominent methods for achieving a greater level of privacy — Bitcoin mixing.
How much does it cost to use Tumbler.io?
Tumbler.io charges a service fee that varies according to the total BTC being mixed by the pool’s participants. The more BTC sent to the pool, the higher the discount for the end user.
In total, fees range between 0.50% and 0.90% of the total BTC sent. A full breakdown of the service charges can be found in the table below.
| Mixed Amount | Discount | Min. Service Fee |
| 1–10 BTC | 10% | 0.90% |
| 10–50 BTC | 20% | 0.80% |
| 50–100 BTC | 30% | 0.70% |
| 100–1000 BTC | 40% | 0.60% |
| 1000 BTC and more | 50% | 0.50% |
What are the current regulations for Bitcoin mixing solutions?
The legal status of Bitcoin mixing depends on the local jurisdiction of the end user. In most places, Bitcoin mixing is considered legal as long as criminal funds are not involved.
There are, however, concerns among regulators in certain jurisdictions regarding the legal status of Bitcoin mixing. Some law enforcement agencies have highlighted that mixing services can enable money laundering by allowing people to obscure proceeds from criminal activities, which means that the legal status of the process is still evolving.
Since people can use Bitcoin mixers for legitimate privacy reasons, it can be difficult for regulators to classify the mechanism as illegal. The legality often depends on licensing and intent, but in most cases, courts will consider use on a case-by-case basis.
It’s important to find out whether Bitcoin mixing is legal in your current location before using Tumbler.io. In the United States, for example, all Bitcoin mixers are required to register under the Bank Secrecy Act. Meanwhile, the National Crime Agency (NCA) in the UK has called for direct regulation of Bitcoin mixing, as reported by Coindesk.
Since regulations are constantly evolving, make sure to do your due diligence before making use of a privacy solution such as Tumbler.io. Bitcoin mixing is not explicitly illegal in most jurisdictions around the world, but there may be risks for users in several places.
The bottom line
Tumbler.io delivers a safe and effective Bitcoin mixing solution. The platform enables its users to achieve a greater level of privacy while transacting on-chain, helping to store currency and mask their transactions without bringing attention to their total holdings on the public ledger.
Ethereum founder Vitalik Buterin said about a similar solution to Tumbler.io, that “privacy is normal”. While it’s certainly the case that Bitcoin mixing solutions have received attention from lawmakers owing to their potential for illicit use, Tumbler.io ensures full compliance for users in most jurisdictions around the world.
You can learn more about Tumbler.io here.
