Trezor, a leading cryptocurrency hardware wallet provider, has recently announced the addition of the CoinJoin privacy feature for its Bitcoin users. This new feature provides an increased level of privacy and anonymity by allowing users to mix their transactions with other users, making it difficult to trace the origin of funds. With privacy becoming increasingly important in the world of cryptocurrency, Trezor’s CoinJoin feature provides a valuable tool for those looking to protect their financial information. This new feature is sure to set Trezor apart from competitors and attract a new wave of users who prioritize security and privacy in their cryptocurrency transactions.
Trezor, one of the most popular cold wallets in the crypto community, has enabled a new privacy feature for its users through the CoinJoin security protocol. The update is now available for Trezor Model T users, who simply need to add their CoinJoin account to enjoy the security benefits offered by the decentralized protocol.
CoinJoin is an obfuscation method that enhances users’ privacy and anonymity. It combines inputs from different wallet addresses into a single transaction, making it almost impossible for trackers to properly know the origin and destination of the funds held by each wallet. Trezor users can now hide their transaction history and wallet balance when making transactions. The new implementation was made possible through a collaboration with the privacy-focused Wasabi Wallet, which is open-source and available for Windows, Linux, and Mac.
To activate Trezor’s new update, users need to add their CoinJoin account in the main Trezor menu, where options for other accounts such as SegWit, Taproot, Legacy SegWit, and Legacy are also available. However, using CoinJoin requires a coordination fee, making transactions slightly more expensive. Those who want to enjoy greater security must pay a small usage fee of about 0.3%.
Trezor warned in their post that CoinJoin “is currently being publicly tested, so it comes with some warnings. Also, there are still ongoing improvements being made to the algorithm”, meaning sudden changes can be expected. Additionally, using CoinJoin may result in longer transaction times due to the mixing process.
Thus, Trezor recommends “to limit coinjoining to a maximum of 1 BTC to avoid creating too many UTXOs (unspent transaction outputs)”. This means that, for now, transactions will be limited to 1 BTC to prevent any errors. Despite the few downsides of the new update, Trezor has become the first hardware wallet to implement the CoinJoin protocol.
In conclusion, Trezor’s new update represents a solid step towards further enhancing the privacy and anonymity of all crypto transactions. With this new feature, users can rest assured that their transactions will be more secure than ever before.