Why we CoinJoin, a thread.

First we need to look at the existing fiat system we are hoping to ultimately replace, the privacy expectations of that fiat system, and how we can achieve a similar outcome when using the Bitcoin network.
Let's examine physical cash. You go to an ATM and withdraw cash from your bank account. Your bank knows you used an ATM, they know how much you took out, but that's where their vision ends.

Physical cash is fungible and private.
Likewise, even when spending non physical cash the merchant you are buying from cannot peer into your bank account. All they know is you have enough money to afford what you're buying. They have no other insight into your finances.

The fiat system has basic transactional privacy
The fiat system has various laws that enforce basic and fundamental privacy when using their money.

Relying on legislators to uphold your privacy is playing a dangerous game though, as we have seen with a weakening of fundamental rights and privacy over the years.
In the Bitcoin system we cannot and should not look to politicians and legislation to provide basic transactional privacy.

Fiat means 'by decree'. We do not want money by decree nor do we want privacy by decree. Instead we need to rely on code to enforce our rights to privacy.
Bitcoin is fundamentally a public and transparent system. Every single transaction is recorded in perpetuity on the blockchain.

As such, spending bitcoin in a basic private way - the same way you would spend in the fiat system - can be a challenge
Compounding on the privacy challenge is that the vast majority of bitcoin users are getting their coins through centralized bitcoin exchanges.

They provide the exchange their KYC information which is from that point then tied to their coins.
When you withdraw from your exchange it isn't like withdrawing physical cash from an ATM. The exchange is able to watch what you do with those coins going forward.

A good analogy would be if every bill you withdrew from an ATM had your name and account number printed on them.
Likewise, when spending to third parties you are opening the door to sharing information about past and future spending activity to that party.

Imagine if your church pastor was able to see your OnlyFans subscription when you place a dollar bill into the offering plate.
This is where CoinJoin comes in. A software solution to help solve the basic transactional privacy challenges in Bitcoin.

A good analogy is to think of your bitcoins as gold ingots and CoinJoin as a smelting process. Any markings on your ingots are gone when smelted and recast.
Performing a CoinJoin after buying on a centralized exchange with your KYC information can be seen as obtaining a similar level of privacy from your exchange as withdrawing cash from an ATM provides from your bank.
CoinJoin is not a silver bullet. There are still plenty of privacy challenges a new user will face, but it is the most important action one can take to reclaim privacy when transacting & we are doing all we can to lower the barrier to entry.

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More from @SamouraiWallet

Jan 27
Our understanding of AOPP is it that is some sort of API that wallet developers can incorporate that will automatically 'prove' ownership of a non custodial wallet to the exchange where the user is withdrawing from.

Here is why Samourai Wallet won't include support for AOPP
1) Undermines self custody. Ironically proponents of this say this will promote self custody by providing a regulated pathway. That is nonsense and by buying into this system you are legitimizing the concept that self custody requires permission & compliance.
2) Reveals a weak 'immune system'. The fact that so many developers of non custodial wallet software have seemingly bought into this system will only serve to bolster further incursions by regulators in the future as compliance among developers was high previously
Read 8 tweets
Aug 11, 2021
Understanding Bitcoin Privacy with OXT

A four part crash course in bitcoin privacy and blockchain analysis. Users armed with this knowledge are better prepared for evaluating the implications of spending and receiving and can begin to take steps to protect their privacy. 👇
Part 1/4
Basic Introduction to Chain Analysis And Transaction Privacy

Part 2/4
Chain Analysis Core Concepts

Read 6 tweets
Dec 15, 2020
Our latest research report by @ErgoBTC and @LaurentMT is now live on OXT Research.

We follow the trail of the 1,000 BTC stolen in the recent @kucoincom theft.

We track the coins as they are pushed through a complicated scheme of multiple mixers

research.oxt.me/china-and-nort… Image
We detail the immediate movements of the stolen BTC as they are split and chopped into several mixing services.

Using the free @oxt_btc Analysis Platform we are able to identify the mixing services used (some surprises here!) ImageImage
We leverage wallet fingerprinting to paint a picture of both pre and postmix activity Image
Read 14 tweets
Jun 1, 2020
This is absolutely outrageous.

This is called a Sybil attack, and the operator of this mixing software is admitting - and even laughing about it - that Sybilling their users is official company policy.

From the article: archive.is/jnlpW
We first detected Sybil behaviour in Wasabi during the summer of 2019, which was flatly denied by the Wasabi team. Further to that, our staff were doxxed by Mr. Fiscor in retaliation for our disclosure.

At the time we had no reason to believe that Wasabi was Sybiling, though we labelled the entity "the friendly whale" as they always appeared when liquidity was low and needed a pick me up. We continued to research this as it was clear they wouldn't.

Read 8 tweets
Apr 29, 2020
Our new report by @ErgoBTC is now live on OXT Research

Follow the trail of BTC stolen by the notorious 🇰🇵 North Korean cybercrime collective, The Lazarus Group.

We track the coins as they are laundered through exchanges and inadequate mixing clients.

We dive into the Complaint issued by the US Government, and explore the addresses listed on the OFAC Sanctions List and Defendants Property List

Using the free OXT Analysis Platform we are able to connect the pseudonyms in the Complaint to various exchanges and entities
We detail the three distinct phases the group employed to launder the stolen funds
Read 6 tweets
Feb 28, 2020
How to Whirlpool on mobile, a tweet thread tutorial
First, you need some coins in your wallet. The smallest amount you can mix is a little above 0.01005 BTC. If your wallet is empty, then add some funds using the "Receive" action
2/ Open Whirlpool by pressing the blue "+" in the bottom right corner of the screen. This will launch the Whirlpool service to get mixing started.
Read 12 tweets

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