Bitcoin And Anonymity: What is Bitcoin Mixing? And Why do People Use it?

Bitcoin is a peer-to-peer decentralized form of electronic assets which do not require any central authority for confirmation or record keeping.

There are two concepts to note here that are critical to the new kind of digital assets that are collectively referred to as cryptocurrencies.

The first being the token which is the medium of exchange between two parties.

The second is the protocol upon which the token is being exchanged. The bitcoin protocol, in particular, uses a public ledger system where all transactions can be seen on the blockchain.

Bitcoin transactions use cryptographic calculations to complete blocks of transactions. These transactions are generated using specialized equipment called miners which try to solve the transaction blocks from difficult cryptographic equations. The miners get a fee for confirming these blocks.

Bitcoin addresses are the point from which funds can be either sent to or received from each user within the blockchain.

Transactions are sent from one bitcoin address to another which appear on each block and cryptographic calculations are made when the miners process each calculation for the transactions made while they are added to the public ledger.