Trezor, the popular crypto hardware wallet manufacturer, has announced the addition of a new Coinjoin feature to its Trezor T model. The feature, which went live on April 19, allows users to mix their funds with a pool of other users, thus obfuscating their UTXOs and preserving their privacy. The Coinjoin feature was announced by Trezor seven months ago, following the company’s collaboration with the developers of the Wasabi wallet. The feature is optional, and users must activate a Coinjoin account in the Trezor software suite. Trezor also encourages users to use the privacy-enhancing network Tor while using the feature.
The Coinjoin feature is not unique to Trezor, as other companies have also utilized the scheme to mix UTXOs. For instance, the open-source bitcoin payment processor Btcpay introduced a Coinjoin plugin for merchants in February. The plugin allows merchants to mix their UTXOs with other bitcoin transactions. However, there is controversy associated with Wasabi’s Coinjoin process, and this has led to criticism of Trezor’s newly added privacy feature. There have been speculations that the blockchain analysis company Chainalysis is tracking the Zksnacks Coinjoin coordinator. The Coinjoin feature and a screenshot of Trezor’s commentary about UTXOs used for “nefarious activities” have been criticized for allegedly being contradictory to privacy. Some academic research has also shown that Coinjoin transactions can be de-anonymized by clustering bitcoin addresses and mapping them to users’ identifications. There is also criticism that Coinjoin coordinators or mixing services may not be trustworthy and can de-anonymize users.
Despite the criticisms, Trezor’s Coinjoin feature is a significant development in the cryptocurrency industry. It marks a new era of privacy for bitcoin users. The feature adds an extra layer of anonymity to bitcoin transactions, making it more difficult for anyone to trace the origin of a transaction or identify the parties involved. This is particularly important for users who value their privacy and want to keep their financial transactions private. The Coinjoin feature is a step towards making bitcoin transactions more private, secure, and anonymous.
Trezor’s Coinjoin feature is currently only available on the Trezor T model, but the company is testing the idea with the older Trezor device. The feature is not mandatory, and users can choose whether or not to use it. However, it is a valuable tool for users who are concerned about their privacy and want to keep their financial transactions private. The feature is easy to use, and users can activate a Coinjoin account in the Trezor software suite.
In conclusion, Trezor’s Coinjoin feature is a significant development in the cryptocurrency industry. It marks a new era of privacy for bitcoin users and adds an extra layer of anonymity to bitcoin transactions. The feature is easy to use and is a valuable tool for users who are concerned about their privacy. However, there are concerns associated with the feature, and users should be aware of the risks before using it. Overall, Trezor’s Coinjoin feature is a step towards making bitcoin transactions more private, secure, and anonymous.