How to Use Tor Overlay Network to Send Bitcoin in a Private Manner on the Internet
You can use a number of methods to add anonymity layers to BCH (Bitcoin Cash) transactions, e.g., shuffling coins using mixers or by using a VPN. One method used by many users to anonymize their transactions is through the use of Tor—the free software tool—as they are transacting over the World Wide Web.
By using Tor, you are assured that your internet traffic will be encrypted and routed via the various nodes that are available throughout its overlay network. Although Tor is not able to hide the path followed by each transaction, any Bitcoin user utilizing this network to protect themselves online can make it harder to an investigator to pinpoint their geolocation as well as their real IP address.
Tor—The Overlay Network
When the Bitcoin network was launched by Satoshi Nakamoto, the man credited with introducing this revolutionary technology did not put in place measures that could be used to anonymize the protocols. Given the fact that this network is not private, it means that all the transactions that have been broadcasted over this network can be seen by anyone who has access to the blockchain platform.
But it is important to note that the technology in use is pseudo-anonymous. Also, whenever you are transacting using a coin such as Bitcoin Cash, you can add a number of privacy levels that will assist in mystifying the BCH transaction. One method recommended by many proponents involve the use of the Tor protocol.
The protocol is basically a network overlay made up of thousands of nodes that come in handy in concealing your true location. By concealing the location, it means that if you were to use BCH to transact on the Tor network, your traffic would be first be encrypted before being routed across the web.
Encryption and routing mean that your location, as well as the address of your internet provider (IP), will be concealed from prying eyes. You can easily download the Tor software for use on a GNU/Linux, Mac, and Windows operating system from the official website. Its total size is about 64MB.
The downloads from the server are quite fast, but they are often dependent on your current internet speeds. You can run the program immediately after completing its installation. If you do not want to install it in your computer, you can always install it in a thumb drive. The best thing about this software is that it also comes with its own unique browser, which helps protect your privacy as you surf the web.
Tumble, Tor, And VPN
Whenever a person is using the Tor software to hide their actual location when transacting with BCH, they will need to create a BCH wallet using the network. They can also choose to use a VPN (virtual private network) to help them bury or conceal their web traffic. Both VPN and Tor will help you confuse any online investigator who is trying to find your actual location.