Bitcoin CoinJoin is a privacy scaling method that allows users to pool their Bitcoin inputs (unspent transaction outputs, or UTXOs) into a single transaction and receive the same amount of Bitcoin output but with different addresses.
According to Trezor, the Model T is the first and only Hardware Wallet to enable CoinJoin transactions for BTC, while several software wallets like zkSNACKs’ Wasabi wallet already have CoinJoin. The feature will be rolled out to Trezor’s Model One devices at a future date.
Enter a new era of privacy with Trezor. Pay with your money, not with your data!
We’re proud to be the first hardware wallet to implement coinjoin in collaboration with @wasabiwallet
To celebrate, get 15% off a Trezor Model T between April 19 and 26🔒https://t.co/eu2j47vuLl
— Trezor (@Trezor) April 19, 2023
It is worth noting that most transactions on the blockchain are publicly accessible and readable, and tools like Etherscan, Dune Analytics, or Block Explorer are used for analyzing transactions. Violations of user privacy are simply a click away.
CoinJoin aims to reinstate transaction privacy by combining multiple Bitcoin payments from multiple spenders into a single transaction with an obfuscated history and ownership.
CoinJoin can be done through decentralized CoinJoin marketplaces such as JoinMarket, or through wallets like Trezor’s Model T or zkSNACKs’ Wasabi wallet. Both Model T and Wasabi use zkSNACKs’ CoinJoin service which charges a coordination fee of 0.3% of the coinjoined amount.
After the Release, users need to simply press the “anonymize” button, after which they then choose the number of CoinJoin rounds — with every round increasing the level of privacy — confirm their choices on the Trezor device, and the rest of the coinjoin process is automated and requires no active user participation.”
Speaking about the new privacy upgrade, Matěj Žák, CEO of Trezor, outlined the firm’s value for privacy “as an individual’s most important asset,” and said, “Consequently, we’re delighted that we’ve found a way for our community to keep their bitcoin history private.”