Bitcoin Transactions COULD be Private, Ever Since It's Last Update - But NO EXCHANGES Are Implementing It...

No comments
Private bitcoin transactions

Taproot, Bitcoin's most recent significant update, is more popular among wallets than among exchanges in the ecosystem.

This version included, among other things, privacy-oriented improvements that exchanges may not be greatly motivated to adopt.

Taproot transactions is however supported by an increasing number of wallets, allowing users to receive or send bitcoins with a private newly generation address that masks their public wallet address.

Taproot is used by 17 of the top 32 wallets for transferring or receiving bitcoins.

Exchanges Aren't Jumping To Implement...

On the exchange side, Taproot's adoption isn't looking good, with one of the top 50 exchanges being a little-known P2P exchange (similar to localbitcoins) named Agoradesk.

Exchanges may be hesitant to accept bitcoin deposits sent to Taproot addresses because this with promoting user privacy, comes preventing the deep examination of blockchain transactions that allow the origins if tokens to be determined.

Why Are Exchanges Avoiding it?

Because exchanges must comply with financial regulations in every nation where they operate, private transactions may put them in a position where they are asked to pass over information on a transaction, but then not have it.

What remains unclear is why some of these exchanges offer other privacy coins but not taproot for Bitcoin.

The best guess explanation I have for this is that privacy coins that have been listed for years don't upset enforcers nearly as much as converting Bitcoin from public to private, which may be viewed as a direct hostile move.

But It's Still Easily Accessible...

Find one of the many wallets that support taproot transactions for Bitcoin, and you'll just need to take the step of transferring your Bitcoin from an exchange, to your wallet, then doing the transaction you want private.  

This shouldn't be an 'extra' step for you, since you should be keeping your BTC on a non-exchange wallet you have the keys for anyway. 

-----------

Author: Justin Derbek
New York News Desk
 Global Crypto Press
Breaking Crypto News

No comments

Spend $20, GET $40! Do it while you still can here!