A new decentralized exchange allows the anonymous exchange of Bitcoin and Ether. A cryptocurrency mixer makes transactions difficult to track.
David Kaye, UN Special Rapporteur on freedom of expression, notes that encryption and anonymity should be currently offered by States as guarantors of human rights. Therefore, purchasing Bitcoin and other cryptocurrencies anonymously can be considered a right. In the following lines of this article, two alternatives for users to keep their funds anonymous are reviewed.
The first option is the one promoted by Incognito, which allows the anonymous exchange of Bitcoin (BTC) and Ether (ETH) for Monero (XMR), Dash (DSH) or Zcash (ZEC) and other cryptocurrencies, without entering identification data for Know Your Customer (KYC) procedures.
The platform of Incognito does not collect any personal information, which ensures 100% of anonymity to all its users. Without the risk of third parties, the users can control their money and hold their private keys, according to Andrey Bugaevski, the growth leader of the privacy-focused company.
On its website, Incognita specifies that its platform’s transactions are processed in a side blockchain, which it claims to be indecipherable, unlike a public blockchain. It operates on thousands of nodes that feed its network and does not use an order book. Instead, it implements an electronic market-making algorithm that allows instant matches, regardless of how large the order is or how small the liquidity group is.
The Incognito sidechain is building an untrusted gateway to connect to the Bitcoin blockchain. Therefore, the private mode for Bitcoin is issued 1:1, without trust, in the Incognito chain. Through this platform, users can always make anonymous transactions of Bitcoin and other cryptocurrencies, the same as they do with privacy cryptocurrencies such as Monero, Zcash or Dash.
Anonymous with a Mixer
To prevent other people and companies from taking advantage of financial information against the users and to avoid cyber-attacks such as ransomware, the mixers for Bitcoin and other cryptocurrencies offer to operate anonymously.
These companies mix crypto-asset transactions into groups that include decoys, which make it more difficult to track their source. In other words, those seeking to investigate where the mixed cryptocurrency comes from would have more obstacles to track it to the sending wallet.
Despite being misjudged by many security agencies, which see the tools that promise privacy and anonymity as a way to foster criminal actions related to money laundering and illegal activities, this type of service is still offered.
The company provides details of the procedure that users must follow to operate on the platform, whose system breaks the connection between the user’s previous wallet and the new one and uses a combo of premixed coins. The user must complete a form and send the required amount of funds, which will be automatically returned, already mixed.
By Alexander Salazar