Privacy-minded Bitcoin traders have helped push CoinJoin transactions to become three times what it was originally in just the past year.
Blockchain data firm Longhash recently crunched the numbers and announced that the relative usage of CoinJoin out of all Bitcoin transactions has increased three-fold from 1.31 percent to 4.09 percent.
The Longhash report notes that the release of Wasabi Wallet, one of the most well-known privacy-focused Bitcoin projects available right now, in August 2018 is a big component of the rise in CoinJoin usage.
“Wasabi Wallet contains an implementation of CoinJoin, which is likely the most well-known privacy enhancement for Bitcoin,” explains the report.
“According to blockchain data provided to Longhash by Adam Fiscor, who is the CTO of zkSNACKs (the company behind Wasabi Wallet), these CoinJoin-based transactions have been on the rise over the past year.”
Making Bitcoin truly anonymous
While Bitcoin is usually known to the general public as an anonymous digital currency, user privacy has actually been pinpointed as one of the coin’s weak points.
Transaction histories, in particular, were relatively easy targets since anyone with the technical knowledge and skill set can trace them on the public ledger.
CoinJoin was one solution meant to remedy this issue. It works by letting multiple users pool individual transactions into one big transaction.
Funds involved in this big transaction are then scrambled to further obscure which address is sending and which address is receiving.
“A higher percentage of CoinJoins may indicate more users are using Bitcoin for its originally intended purpose as a permissionless, apolitical form of digital money,” notes the report.