Recounting The Privacy-Advancements And Improvements Made For Bitcoin Cash (BCH)
Bitcoin Cash Makes Great Improvements In Its Privacy Features
The concerns over the privacy in the digital asset arena has taken the center stage in recent years, mainly due to the crackdown of regulatory bodies and law enforcement agencies on money transmitters, seized coin shuffling services, and blockchain analysis, which has seen a significant rise in recent years. Usually, a large section of the crypto community was dependent on mixing applications that utilize protocols like Coinjoin to mask the transactions.
However, on May 22 the crypto community received a massive set back when Europol shutdown one of the largest mixing websites Bestmixer.io. The website in question worked with a number of crypto assets which include Bitcoin, Bitcoin cash, Litecoin, and Ethereum. The website used to combine various different crypto transactions together to provide obfuscation of its origin.
It is a well-known fact that governments around the world like control especially over financial aspects, and in the last decade this greed for control has led to many unethical measures including full-fledged surveillance on citizens without their consent and in many cases even without their knowledge. Many blockchain analysis firms have cropped up, and law enforcement agencies have been arresting people for illegal money transmission and laundering.
This crackdown led to many crypto users to turn towards mixing websites like Bestmixer.io as the absence of clear regulations on crypto use make any crypto transactions suspicious and brings it under the radar of law enforcement agencies.
What Led To The Ban Of Bestmixer.io
Dutch Law Enforcement agency has accused Bestmixer.io of masking $200 million worth of Bitcoin. The law enforcement agency also claims that they have accumulated IP addresses, transaction details, bitcoin addresses and chat messages for several transactions which they are going to analyze and investigate for any wrongdoings.
The Dutch Fiscal Information and Investigation Service (FIOD) released a statement after the ban stating,
“This information will now be analyzed by the FIOD in cooperation with Europol and intelligence packages will be shared with other countries.”
Privacy Advocates Have Been Mixing A Lot Of Cryptocurrencies In Last Year
As the crackdown of law enforcement agencies surged, many privacy advocates in the crypto space flocked to various mixing websites and software. A recent study by Longhash suggests that at least 4 percent of the Bitcoin transaction make use of Coinjoin protocol. While conjoin protocol mixes several transactions together, it still gives full authority to the individuals over their Private Keys.
Bitcoin Cash users, on the other hand, have been using the Cashshuffle -protocol which was first launched with Electrum Cash wallet. The latest version of the Electrum Cash wallet comes with Schnorr signature along with Cashshuffle protocol by default.
Since its launch on March 27, BCH users have mixed millions of dollars worth of BCH tokens using the Cashshuffle protocol. The protocol has gained significant popularity with BCH fans who have used the platform for masking their transactions. On May 1st the protocol was used to shuffle 1,774 BCH worth $478k creating an all-time shuffling record. As of now, a total of 8237 shuffles have been made for 38,530 BCH amounting to $16.5 million.
Bitcoin Cash Boats Of Better Privacy Than Its Peers
The use of mixing software and platforms are surely on the rise, but using these platforms may become difficult for BTC users as the transaction fee rises. With a significant increase in the transaction fee, it becomes increasingly difficult to pool BTC transactions with others. The next transaction fee for Bitcoin Block is $4.34.
Bitcoin Cash the forked sibling of Bitcoin has been focusing towards the long term goal of becoming the digital currency of the world. The network over the years has become more feasible, secure and privacy-focused. It has a negligible transaction fee when compared to the pioneer's Bitcoin. Even when the network processed around 2.4 million transactions on September 1, the transaction fee remained below a penny per transactions.
Bitcoin cash in its tryst to become the privacy-focused coin introduced Schnorr signatures which promises optimum privacy and obfuscation for the transactions on the platform. The Cashshuffle protocol which was introduced with Electrum wallet is an open-source protocol, which means any wallet can use the protocol to ensure high-privacy features.
Mixing Softwares Would Become A Norm In Coming Years
The crackdown on Bestmixer was just the beginning, and more shutdowns might follow for different websites and platforms providing mixing and masking of transaction facilities. Thus, it is more sensible for the crypto space to move towards non-custodial platforms and protocols since centralized crypto tumbler would eventually go out of fashion.
Bitcoin Cash has already made the move towards a privacy-centered future by introducing features such as Cashshuffle, Neutrino, Schnorr signatures with payment channels hidden as ordinary payments, atomic swaps, and consistently low fees. The added privacy features have made the altcoin one of the most fungible digital assets as of today.