Coin Mixing And CoinJoin Explained

Binance Academy · 2023-02-17T06:47:55.000Z

Introduce Bitcoin is often called digital cash, but this is a bit of a lame comparison. If Alice pays Bob $10 in cash, Bob doesn't know where the money came from. If he then proceeds to give it to Carol, she will not be able to infer that Alice ever possessed it. Bitcoin is different because of its inherently public nature. The history of a given coin (more precisely, its unused transaction output - abbreviated UTXO) can be observed by anyone. It is a bit like writing the transaction amount and the names of the participants on the invoice every time it is used.