Despite the claims of many politicians, Bitcoin transactions are not anonymous. Bitcoin developers are looking to change that with the addition of their new CoinJoinTX protocol. In its current state, BTC users can be tracked through the use of blockchain analysis tools which are readily available in the marketplace. CoinJoin’s latest protocol may eliminate these capabilities and help BTC users around the globe enjoy private transactions.
CoinJoin is a popular BTC privacy protocol that was introduced in 2013. The protocol functions by utilizing a joint payment platform to mix transactions prior to sending them. When a BTC user sends a payment using CoinJoin, their funds are mixed with other BTC user’s funds. Once the BTC has been mixed, the sorted BTC is then sent to the address requested.
In its current state, CoinJoin is providing users with an added layer of privacy. The problem is that it is easily identifiable that CoinJoin was used. Blockchain analysis will show the CoinJoin metadata. This means that while the transaction may not be traceable it is obvious that the CoinJoin platform was used.
Fungibility is a key component to achieving true crypto privacy. Fungibility means that all coins can be interchanged for others within the network. Many privacy altcoins such as Monero and Dash incorporate fungibility into their system to achieve true anonymity within their transactions. CoinJoin now believes that the Lightning Network will help BTC to achieve the same.
One of the main CoinJoin developers, Adam Gibson, believes that the Lightning Network could be the key to taking BTC anonymity to the next level. He has proposed a LN upgrade to the CoinJoin system dubbed CoinJoinTX. By adding a LN payment channel to their anonymity process, CoinJoinTX will make it nearly impossible to determine who received BTC’s from where.
Adam released a proof of concept earlier in the week to help demonstrate his proposed upgrade. He also stated the technology exists today to make the process function but that there should be further development and research put forth prior to any public releases.
Lightning Network Adds New Functionality to BTC
The LN is giving BTC users more functionality than ever before. Off-chain solutions are popular in the cryptocommunity and the integration of the LN is giving BTC users more functionality than ever before. The LN will allow BTC users to enjoy popular crypto features such as smart contract technology. In addition, to the added privacy platforms such as CoinJoinTX are adding to the network, BTC users are now able to enjoy micro-transaction payments.
The LN is currently in its beta testing stages and the network’s developers have cautioned users against sending large amounts of funds until the Beta testing stages are complete. Still, there is no shortage of developers looking to the LN to help alleviate BTC’s current scalability concerns.
What do you guys think? Do BTC users want more privacy? Let us know in the comments below.