ChipMixer is a cryptocurrency service that “mixes” cryptocurrencies to help avoid trackers and analysts. Find out everything you need to know about ChipMixer today in our review.
What Is ChipMixer?
ChipMixer, found online at ChipMixer.com, is an anonymization service catered to bitcoin users.
Many people believe that bitcoin is a fully anonymous currency, or that bitcoin payments are untraceable. In reality, bitcoin analysts can trace transactions back several “hops”, and even ban users for situations where their coins were used for illegal transactions 5+ hops back.
If you get so-called “tainted” coins, then those coins could be tracked to you, and you could be punished despite the fact you had nothing to do with the illegal activity. Many users have had their accounts frozen for precisely this reason.
Of course, other bitcoin users are using bitcoins for shady or illegal activities, and wish to use an anonymization service to avoid being tracked.
That’s why many people choose to use mixing services. ChipMixer is one such mixing service. Using ChipMixer, you can make your bitcoin transactions more anonymous. ChipMixer is similar to other mixing services, but offers several unique innovations that could make it a popular option for bitcoin users.
ChipMixer launched on May 26, 2017.
How Does ChipMixer Work?
Similar to other mixing services, ChipMixer mixes the funds of its users together, then returns them to users in an effort to confuse blockchain analysts or blockchain tracking software. When used properly, a mixing service prevents blockchain analysts from associating coins with user data.
Many people compare mixing services like ChipMixer to banking services in countries like Panama, the Cayman Islands, and the Bahamas. Every day, people move their fiat currencies through banks in these countries because they have stricter secrecy laws. ChipMixer works in a similar way.
Specifically, ChipMixer works by utilizing a number of bitcoin wallets containing predetermined amounts of bitcoin. ChipMixer funds these addresses before users deposit bitcoin. Then, users send money to ChipMixer, and users receive chips of bitcoins as a receipt of their deposit.
To anonymize the service even further, ChipMixer lets users split and merge any chips they have. This adds an additional layer of random complexity. For an even further layer, ChipMixer lets users bet and donate chips.
ChipMixer lets users bet chips – but it’s not a casino. Instead, users can bet a certain number of chips, then receive either nothing or double that amount. It works in a similar way to merging and splitting, but with an extra bit of fun involved.
Using these methods, your inputs and outputs won’t always match, which is why ChipMixer provides an additional layer of anonymity. Due to betting, the amount you put into ChipMixer may not always be the same as the amount you take out.
Donating also works like merging and splitting. It adds additional layers of complexity to the operation. Donating funds the mixer itself, and does not require any commissions on transactions. Aside from voluntary donations, there are no fees involved with ChipMixer.
When a user withdraws funds, it means their chips are removed from ChipMixer’s list. Then, they receive a private key to sweep the address. Chip withdrawals cannot be viewed on the blockchain.
Ultimately, ChipMixer has chips in all different sizes, including 0.001 BTC, 0.002 BTC, 0.004 BTC, and so on until you reach 4.096 BTC. If you deposit 0.112 BTC, you’ll receive 0.064 + 0.032 + 0.016 BTC.
Since each chip was funded before your deposit, there’s no link between your chips and your deposit on the blockchain. Yes, your deposit is viewable, but the chips you received in exchange for your deposit cannot be traced back to you.
The reason ChipMixer uses chip sizes of 0.001 BTC, 0.004 BTC, etc. is to make them easy to split and merge. If you had a chip of 1 BTC and split it, then your minimal chip would be 0.015625 BTC, which would make the process more complicated.
ChipMixer promises a number of benefits over other mixing services. Some of the benefits include:
- Full control over mixing, including deciding if you want to bet and donate your chips or use them as-is; this makes the process more random and thus, harder to trace
- Fungible outputs (every chip is exactly the same)
- Outputs are faster than inputs; from the blockchain’s perspective, you spend your bitcoins before sending them to a mixer, which makes them difficult to trace
- Output may be higher or lower than your input because of optional betting, which makes transactions even harder to trace
- Use multiple small inputs to merge into one big input off the blockchain; you can pay for a larger purchase using many smaller chips, for example, for further anonymity
- ChipMixer waits 48 hours by default for your input transaction, although they can wait even longer on request
- Outputs can be used instantly; you receive a private key immediately and you can set your own miner’s fee
- There’s no fee; it’s a donation only service, and you can pay as much as you want
You can contact the developers of ChipMixer by email at [email protected]
The company announced its platform on the BitcoinTalk.org forums on May 26, 2017. Aside from an email address, there’s little information about the developers of ChipMixer available online.
Ultimately, ChipMixer claims to have reinvented the world of mixing. The service promises enhanced user privacy and a difficult-to-trace mixing model. Users deposit money into the service, then receive access to various chips in return.
Those chips can be split or merged using tools like donations and betting. And, since the chips were funded before your initial deposit, they cannot be traced back to you.
Overall, ChipMixer is an innovative service that will appeal to a wide range of bitcoin users who value anonymity (for whatever reason). You can learn more about ChipMixer at ChipMixer.com.