Enhanced Privacy on Trezor – Trezorthe famous manufacturer of hardware wallet, is once again focusing on improving confidentiality. Thus, the company announced the integration of the protocol CoinJoin for bitcoin users.
Maintaining your privacy with your bitcoins
On April 19, the company Trezor announced the update of Trezor Suite version 23.4. With this new version, Trezor has enabled a very useful privacy feature for Bitcoin users.
Thus, the Trezor T model users can now make transfers using the protocol CoinJoin.
In practice, CoinJoin is a obfuscation method in which different wallet addresses combine their inputs into a single transaction. It thus becomes almost impossible for an outside observer to know the origin and destination of the funds held by each portfolio.
Trezor users will be able to hide their history of transactions and their wallet balance during operations, thereby protecting their privacy.
To enable the new feature, users need to add their CoinJoin account in the main menu of Trezor, where there are also options for other account types such as SegWit, Taproot, Legacy SegWit and Legacy.
Trezor is not at its first attempt for CoinJoin. In effect, the feature had been added in April 2021 for other hardware wallet models produced by the company.
The disadvantages of CoinJoin and the test phase
Obviously, CoinJoin does not only have advantages. In effect, using the protocol incurs coordination costs. Therefore, CoinJoin transactions are slightly more expensive.
In practice, users wishing to benefit from increased security will have to pay a user fee. by about 0.3% of the amount sent.
Additionally, Trezor warned in their post that CoinJoin is currently in testing phase. This involves some caveats. For example, Trezor recommends “ limit coin mixing to a maximum of 1 BTC to avoid creating too many UTXOs “.
Trezor couldn’t have chosen a better time to unveil this update. Indeed, it demonstrates Trezor’s desire to continually improve the security and privacy of its users.
At the end of 2022, Trezor and its rival hardware wallet producers have seen their sales explode. Indeed, the events surrounding the collapse of FTX pushed many users towards hardware wallets.