…Researched and contributed by Henry George.
Hardware wallet manufacturer Trezor has partnered with Wasabi Wallet, a privacy-focused wallet, to enhance the privacy and security of Bitcoin (BTC) transactions through the implementation of the CoinJoin feature.
CoinJoin is a process that obfuscates transaction history and enables users to send their BTC as part of a large collaborative transfer, effectively anonymizing transactions.
The feature was introduced by former Bitcoin core developer Gregory Maxwell in August 2013, allowing users to send BTC transactions more privately.
Trezor’s CoinJoin feature is now live on the company’s Trezor Model T wallet, while the company is also working to enable the option for its first hardware wallet, the Model One, in the near future.
To enable CoinJoin, users must open a new CoinJoin account on the main Trezor menu and allow the anonymous communication protocol, Tor, for maximum privacy.
Trezor CEO Matěj Žák emphasized that the company values privacy as the most important asset of individuals and that they are delighted to provide a way for their community to keep their Bitcoin history private.
While the CoinJoin process can take up to several hours and is associated with additional fees and longer transaction times, Trezor’s Bitcoin analyst Josef Tetek notes that the feature is optional and that users who choose not to use CoinJoin will not experience any changes.
Commentary
Trezor’s implementation of the CoinJoin feature in collaboration with Wasabi Wallet is an important development for those who prioritize privacy and security when conducting Bitcoin transactions.
With the rising popularity of cryptocurrencies and increasing concerns about privacy and data security, the need for more privacy-enabling features has become essential.
Trezor’s CoinJoin feature is a step towards achieving that goal, allowing users to anonymize their transactions and make it more difficult for their transaction history to be traced.
However, it is important to note that the feature is associated with additional fees and longer transaction times.
The 0.3% coordinator fee and mining fee associated with each round of CoinJoin can be somewhat more costly for users.
Furthermore, the process of setting up a conjoin account discovery may take significantly longer than regular account discovery.
Nevertheless, the ability to enhance the privacy and security of Bitcoin transactions may be worth the added costs and time for many users.