How does it work?
A bitcoin mixer, also known as a bitcoin tumbler, is a service that helps protect your privacy and anonymity when dealing with cryptocurrencies, particularly bitcoin. As cryptocurrencies, and specifically bitcoin, have gained popularity in recent years, the issue of privacy has become a concern. Bitcoin, being a decentralized and transparent system, allows all participants in the network to see all transactions conducted using this cryptocurrency. This means that anyone can trace your financial history and find out how many bitcoins you have sent and received.
This is where the need for tools to ensure privacy when working with bitcoin arises. Bitcoin mixers are one such tool. Bitcoin mixers are services that allow users to mix their bitcoins with those of other users in order to obscure transaction trails and make it difficult to trace individual transactions.
So how do bitcoin mixers work? The principle behind mixers is relatively simple. A user sends their bitcoins to the mixer's address and then specifies the address they want to receive the mixed bitcoins on. The mixer combines the bitcoins from different users together and sends them to the specified address. This makes it nearly impossible to trace which bitcoins were sent and received.
In a nutshell, Blender has a lot of bitcoins in its reserves. A customer sends some amount of bitcoins and they go to the end of the reserve chain. Afterwards the customer receives the amount of bitcoins from the beginning of the chain.
This approach allows Blender to make mixings fast, without the need of waiting for another customers' bitcoins.
Using the mixing code
This approach still has a drawback: there is a probability for a customer to receive his own previous bitcoins. To address this issue, Blender introduces the mixing code.
With the use of this code there is no probability for a customer to receive his own bitcoins or change from it.