Tor_and_The_Dark_Net_Remain_Anonymous_and_Evade_NSA_Spying_by_James

creating a wallet and logging in to it. Send Shared and Shared Coin. Send Shared is
another way of mixing up coins, the way that it works is, you send your money into the
giant pot and it gets matched up with somebody else who is sending the same amount. An
example of this is let us say we have 4 people. A, B and X, Y. Person A is sending 1
Bitcoin to person B and person X is sending 1 Bitcoin to person Y. Send Shared will
match these amounts together, and it will mix them so that person A sends their 1 Bitcoin
to person Y and person X sends their Bitcoin to person B. This way you are breaking the
chain that links person A to person B because there is no record of person A ever sending
anything to person B. This is a very good option to use, and one that many people prefer.
Of course, there are many people using Send Shared, so the likelihood of there just being
4 people mixing up transaction is going to be more like 10,000 or more, making it pretty
much impossible to track.
Shared coin uses a different method called coinjoin. Shared coin hosts a coinjoin server
which acts as a meeting point for multiple people to join together in a single transaction.
Having multiple people in a transaction improves privacy by making transactions more
difficult to analyses. The important distinction between traditional mixing services is the
server cannot confiscate or steal your coins. A sharedcoin transaction will look something
like the following.
https://blockchain.info/tx/e4abb15310348edc606e597effc81697bfce4b6de7598347f1
As you can see multiple inputs and outputs make the determining the actual sender and
receiver more difficult. Basically it sends the coins in and out of many different wallets
that are participating in Shared coin at the time and it does this to throw hundreds or
thousands of transactions in all the wallets participating making it extremely difficult to
track. The downside though is that coinjoin can never completely sever the link between
the input and destination address, there will always be a connection between them, it is
just more difficult to analyze. The benefit to Shared Coin is that while this processing is
happening, you can hit cancel and get your coins back. When you send your coins into a
traditional mixing service, an untrustworthy mixing service could potentially steal your
coins.
Now that you have the knowledge to make an educated decision on how to mix up your
coins to your intended destination, I feel that you can now put your mind at ease when
looking to buy something with Bitcoins.