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CoinJoin is a privacy-enhancing technology for Bitcoin that combines multiple transactions into one to obfuscate the transaction trail.

CoinJoin is a method used in the Bitcoin network to increase transaction privacy. It was proposed as a way to make Bitcoin transactions more private by combining multiple transactions from multiple users into a single transaction. By doing so, it becomes difficult to determine the link between the sender and receiver addresses, enhancing privacy by making transaction analysis more difficult. CoinJoin does not require any changes to the Bitcoin protocol and can be implemented on top of the existing network. However, from an accounting perspective, it can create challenges when trying to track specific transactions for financial reporting or tax purposes.


  • Example 1: Three Bitcoin users use a CoinJoin-enabled wallet to combine their transactions, creating a single transaction that sends Bitcoin from their addresses to the intended recipients.
  • Example 2: A Bitcoin user uses a CoinJoin service like Wasabi Wallet to improve the privacy of their Bitcoin transactions.


Blockchain and Technology
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