Due to the recent advancements in the technology in the security domain of the wallets of cryptocurrency, Bitcoin has entered a phase of better security in terms of addresses of wallets and transaction traces. Wasabi wallet has contributed to the security of wallets and providing security. Adam Ficzor, the CTO and co-founder of the privacy tech startup company, Zksnacks, talked about the Wasabi wallet, which is set to debut on August 1, and said;
From here on out, people can’t say Bitcoin is not private anymore.
Evidently vouching for the privacy extent of the wallet, although admitting the fact that it might not have the best of interfaces for the desktop.
I just published “Wasabi: Privacy Focused Bitcoin Wallet for Desktop” https://t.co/ohJFrzm0kw
— nopara73 (@nopara73) July 6, 2018
This wallet is said to offer CoinJoin transactions, and might be one of the very few mainstream light wallets to allow this feature. Light wallets usually use the backend of the servers to check the balance inside the wallets, this way they connect all the addresses to identify the users, resultantly, decreasing the privacy towards the developers. Wasabi might be the only light walled to ensure total anonymity in this field. CoinJoin was the idea presented by Gregory Maxwell in 2013 for the anonymity of Bitcoin transactions which operates on the idea of making multiple joint transactions instead of one. This idea has proved to be the most efficient in terms of handling the primary issue of wallets, i.e. privacy of the users.
Wasabi, like most other wallets, has done a lot of experimentation for security and privacy and has finally came out with a model, after a few iterations of designs (Initially named HiddenWallet), which uses the CoinJoin operation for enhanced anonymity.
Bitcoin wallets have thousands of addresses inside, but blockchain explorers can easily detect the user by tracing multiple addresses back to the common user. The wallet usually send transaction and balance queries to all the addresses of the user and all the addresses point back to a single user that uses them. The idea of Wasabi was to eliminate this problem. They made a filtering process which works by sending in queries in such a way that you don’t have to connect all of your address together, hence contributing to the privacy and security needs. It also uses the filter to eliminate the explorers out of the equation by helping you figure out which blocks in the blockchain you are interested in and connecting you to many bitcoin nodes at a time and you get one block form one node. This helps the user to eliminate the third party in such a way that they cannot guess what transaction the user in interested in and cannot make any statistical guesses about the user.
The wallet mixes the coins with other user’s funds when you initiate the transactions. This mixing makes it almost impossible for the analysts to decode who the sender or the recipient of the transaction is, resultantly, making it difficult for the spies to locate or trace the money trails. Compared to the competitors that use centralized Bitcoin mixers, Adam says;
Centralized Bitcoin Mixers are often vulnerable to amount analysis, they can steal your coins and you have no privacy against them. Wasabi solves all these issues.
He also claimed that the Wasabi Wallet has used self-funding and will operate on the mixing fee of 0.3% which would be enough income for the company. He stated;
We’re actually expecting to have a lot of income, so we’re not selling out.
The mode of operation of the Wallet demands the use of Tor browser, which is globally known to have the best privacy and VPN policies which ensure total anonymity even towards the VPN suppliers, hence adding to the privacy.
Upon answering the FAQs, Adam said that he might not consider putting hardware wallet support in the equation as long as there in room for huge improvements to be made in this field.
Most of the privacy tech project, like the other privacy inclined wallets e.g. Samourai Wallet (Also goes by the name SW) have also shown its interest in the CoinJoin technology and is said to implement it by the end of this year. This would be called the Whirlpool cycle.
Successfully completed internal testing of multi-person Whirlpool collaborative Tx. 5 people spread across 3 countries, a single Whirlpool cycle, an off the charts Boltzmann score. All without ever giving up private keys or trusting a 3rd party. https://t.co/4FdMG5YQeD pic.twitter.com/87UPmyFR3P
— Samourai Wallet (@SamouraiWallet) July 17, 2018
Both the SW project and the Wasabi wallet have common concerns. Adam also said;
Fungibility is very closely related to privacy and anonymity. And we know this is a property of money, that this is a feature it needs.
Wasabi developers also seem quite optimistic about the coming progress in the near future and in their own blog post said that they are soon going to be able to use Bitcoin in an end-to-end, fully anonymous way.