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npub1jxjmy
Sep 13, 2024
A CoinJoin transaction is a special way of combining multiple Bitcoin transactions from different people into one, making it harder to trace which inputs (coins) belong to which person.
Here’s a simple breakdown:
1. **Why CoinJoin?**
Normally, when you send Bitcoin, it’s easy to see from the blockchain where the coins are coming from and where they're going. CoinJoin helps improve privacy by mixing transactions together, so it’s not clear who sent what to whom.
2. **How it works:**
- Let’s say Alice, Bob, and Carol all want to send Bitcoin. Instead of each person creating a separate transaction, they all agree to create *one* big transaction together.
- Each person adds their own inputs (the Bitcoin they own) and the outputs (where they want their Bitcoin to go). These inputs and outputs get pooled together in a single transaction.
3. **Constructing the transaction:**
- The transaction contains all the inputs (coins from Alice, Bob, and Carol) and outputs (who each person is paying).
- However, from the outside, it’s impossible to tell which input is paying which output, because they’re all mixed together.
4. **Signing the transaction:**
- Each person has to sign off on the transaction with their private key to prove they own the inputs they’re contributing.
- But importantly, no one person can change the transaction after it’s built, and no one can take someone else’s coins—each person’s inputs and outputs are carefully tracked in the background to ensure fairness.
5. **Once signed,** the transaction is broadcast to the Bitcoin network, and when it’s confirmed, each person’s payment is sent just like in a regular transaction, but with the added benefit of privacy.
In short, CoinJoin mixes transactions together, making it harder for anyone looking at the blockchain to figure out who is sending Bitcoin to whom.
Here’s a simple breakdown:
1. **Why CoinJoin?**
Normally, when you send Bitcoin, it’s easy to see from the blockchain where the coins are coming from and where they're going. CoinJoin helps improve privacy by mixing transactions together, so it’s not clear who sent what to whom.
2. **How it works:**
- Let’s say Alice, Bob, and Carol all want to send Bitcoin. Instead of each person creating a separate transaction, they all agree to create *one* big transaction together.
- Each person adds their own inputs (the Bitcoin they own) and the outputs (where they want their Bitcoin to go). These inputs and outputs get pooled together in a single transaction.
3. **Constructing the transaction:**
- The transaction contains all the inputs (coins from Alice, Bob, and Carol) and outputs (who each person is paying).
- However, from the outside, it’s impossible to tell which input is paying which output, because they’re all mixed together.
4. **Signing the transaction:**
- Each person has to sign off on the transaction with their private key to prove they own the inputs they’re contributing.
- But importantly, no one person can change the transaction after it’s built, and no one can take someone else’s coins—each person’s inputs and outputs are carefully tracked in the background to ensure fairness.
5. **Once signed,** the transaction is broadcast to the Bitcoin network, and when it’s confirmed, each person’s payment is sent just like in a regular transaction, but with the added benefit of privacy.
In short, CoinJoin mixes transactions together, making it harder for anyone looking at the blockchain to figure out who is sending Bitcoin to whom.
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