Unspent Transaction Outputs, or UTXOs, are essentially the coins in the Bitcoin network.
Each coin has a distinct transaction history, making all Bitcoin transactions unique and easily trackable.
Bitcoin transactions are public. Is a transaction a payment or a self-spend? Is it a Lightning channel opening? Is it connected to other transactions? It’s a guessing game with popular heuristics that chain analysts use to track bitcoin users.
If a transaction has two outputs, then it’s likely a payment where the sender receives an unused amount back to their wallet.
If there is no change output, then it’s likely that bitcoin did not change hands and that it is a self-spend.
If it’s a payment, it’s likely that all the inputs belong to the same user, connecting unrelated past transactions.
There is a whole industry of bitcoin surveillance, referred to as chain analysis.
Public block explorers allow anyone to monitor, record and analyse transactions.
The choice should be yours. Whether you want to share information publicly or keep some of it personal, should be up to you.
Over 10 years after coinjoins were first discussed, there is still uncertainty about its usage. Let’s bust the Fear, Uncertainty and Doubt (FUD) surrounding coinjoins.
Coinjoin implementations and bitcoin privacy wallets should make no compromises on fundamental privacy principles to protect the security of users.