WEBVTT 00:00.410 --> 00:08.300 Now, as we mentioned before, the Bitcoin ledger or the blockchain is completely public and anybody 00:08.300 --> 00:10.250 can read it and analyze it. 00:10.880 --> 00:17.690 Now we also mentioned that in the blockchain, in each entry, there isn't a lot of information about 00:17.690 --> 00:23.750 the people transferring money, but you'll see the addresses of the senders and receivers. 00:24.080 --> 00:30.320 So this is fine as long as these addresses are not linked to identities. 00:31.130 --> 00:37.790 Now there is a number of scenarios where you wouldn't want your address to be linked to another address. 00:38.180 --> 00:46.550 For example, let's say you purchased your coins using a coin exchange that requires ID verification. 00:46.820 --> 00:52.730 In that case, the address that the money will come from will be linked to your real identity, and 00:52.730 --> 00:55.130 you'll be sending it to your tails wallet. 00:55.400 --> 01:01.700 That way, if anyone analyses the blockchain, they'll easily be able to link your exchange address 01:01.700 --> 01:08.690 the one that you use to purchase the bitcoins and verify your ID with to the ID of the electron wallet 01:08.690 --> 01:10.460 that you created on tails. 01:10.460 --> 01:16.940 And that way this address is linked to your identity, and then any transactions you make or receive 01:16.940 --> 01:19.550 will be linked to your real identity. 01:20.330 --> 01:26.330 Other examples would be if you're sending money to another address that you're not sure if the user 01:26.330 --> 01:32.570 is practicing proper OPSEC, or if you are not sure if the user is using his money legally. 01:32.570 --> 01:39.350 We can't really know what people do in their personal lives, so breaking the link between the sender 01:39.350 --> 01:46.700 and the receiver is not easy when it comes to bitcoins because the blockchain is completely public. 01:47.600 --> 01:51.140 This is where tumblers and mixers come in play. 01:51.170 --> 01:53.390 The idea of this is very simple. 01:53.420 --> 02:01.130 First of all, you send your coins to a server or a service that's available to a number of people, 02:01.130 --> 02:06.890 not only you, and then this service will send your money to a different wallet. 02:06.980 --> 02:13.190 This way you're breaking the connection between the sender and the receiver, and you can actually link 02:13.190 --> 02:15.440 a number of mixers if you want. 02:15.440 --> 02:21.500 So you can send this to mixer number one, mixer number two, mixer number three, and then to your 02:21.500 --> 02:23.600 wallet or to someone else's wallet. 02:23.600 --> 02:29.930 And you can even do this to send money to your own wallet to hide the connection that you actually own 02:29.930 --> 02:30.860 both wallets. 02:31.310 --> 02:37.310 For example, let's say you purchased money from an exchange that required you to verify your identity. 02:37.340 --> 02:44.410 You transfer that money to a wallet in here, and then so this wallet will not be linked to your identity. 02:44.420 --> 02:50.570 You send the money to a mixer, and then the mixer will send the money or the coins to another wallet 02:50.570 --> 02:51.700 that you control. 02:51.710 --> 02:58.670 And this way it is very difficult to link the transaction that happened here with the transaction that 02:58.670 --> 02:59.570 happened here. 03:01.430 --> 03:07.460 Now the way mixture is mixed, the coins differ depending on the mixer that you use. 03:07.460 --> 03:13.490 So some of them will literally just randomly select an equal amount of money that you sent from their 03:13.490 --> 03:15.380 own wallet and send it to you. 03:15.410 --> 03:20.300 Others will be mixed in the money that they have with different exchanges and send it to you. 03:20.330 --> 03:26.300 There is others that will literally sell the money or the coins that you give them in coin exchanges. 03:26.330 --> 03:31.840 They'd use crypto stock exchange to buy coins and then send you the new coins that they bought. 03:31.850 --> 03:37.280 So again, making it very, very difficult to track, some of them will split the payments and send 03:37.280 --> 03:41.990 it to you in a number of transactions instead of sending it in one transaction. 03:41.990 --> 03:46.120 Some of them will add a time delay to make it even more difficult to trace. 03:46.130 --> 03:51.170 So there is a lot of techniques that can be used, but the whole idea is the same. 03:51.170 --> 03:55.820 You send the money to the mixer and you wait for the money to arrive in the second wallet. 03:56.450 --> 04:00.080 Now, because there are a lot of mixers, I can't really cover all of them. 04:00.080 --> 04:05.900 You can simply look in DuckDuckGo or Google or any of the other search engines that I showed earlier 04:05.900 --> 04:11.690 in the course for Bitcoin mixers and see all the options that you have and see how they work and compare 04:11.690 --> 04:14.870 them and then use the one that's most suitable for you. 04:15.200 --> 04:20.810 But in this lecture, I want to show you three examples that are slightly different from each other. 04:20.810 --> 04:23.930 Therefore, they can be useful in different scenarios. 04:24.710 --> 04:31.550 Now all of these mixers have a darknet and a clear net address, and if you scroll down on all of them, 04:31.550 --> 04:35.240 you'll see both the clear net and the darknet addresses at the bottom. 04:36.110 --> 04:41.060 For some reason, this one that I'm using right now, the Bitcoin laundering dotcom, the darknet address 04:41.060 --> 04:41.990 is not working. 04:41.990 --> 04:44.930 That's why I'm accessing it over the clear net address. 04:45.380 --> 04:49.490 Now, the cool thing about this one is it's actually very cheap. 04:49.490 --> 04:51.260 It doesn't charge you any fees. 04:51.260 --> 04:57.020 You only pay for transaction fees, but it doesn't really do a lot of complex operations. 04:57.020 --> 05:01.760 When mixing the coins, you literally send the coins and then it sends you coins back into the other 05:01.760 --> 05:05.330 wallet, breaking the connection between the sender and the receiver. 05:07.360 --> 05:09.910 The next one is BitMEX. 05:10.210 --> 05:15.920 The way this will work is you send the coins and they store all of the coins in one wallet. 05:15.940 --> 05:21.370 They mix the coins in that wallet and then they give you different coins into the second wallet. 05:21.730 --> 05:26.110 Now, these guys do charge a little bit more, but again, they're fast enough. 05:26.140 --> 05:27.940 I should have also mentioned that bit. 05:27.940 --> 05:33.490 Laundering is pretty quick, it's pretty instant, so it's much faster than a lot of other services. 05:33.520 --> 05:39.220 Now, you should keep in mind the more complex the mixing process is, the longer it takes to get your 05:39.220 --> 05:43.150 money, because obviously there would be more operations involved. 05:43.660 --> 05:46.510 This leads us to mixed up dot IO. 05:46.690 --> 05:53.860 This is the most expensive service between the three, but it is the most anonymous because when you 05:53.860 --> 05:58.370 send the coins to them, they don't simply just mix it and send it back to you. 05:58.390 --> 06:05.440 They will use this to buy crypto from stock exchange and then send you brand new coins that they bought 06:05.440 --> 06:07.930 from stock exchange and from investors. 06:08.530 --> 06:14.170 Now with this, the amount that you receive can also be split into a number of transactions. 06:14.260 --> 06:20.650 A time delay can also be added to make it more difficult to trace these coins and link them between 06:20.650 --> 06:22.870 the sender and the receiver accounts. 06:24.450 --> 06:31.650 Last but not least, I should also mention that there are a number of mixers that are related to Darknet 06:31.650 --> 06:33.630 markets such as Helix. 06:33.660 --> 06:37.140 Now, this is supposed to be a really, really good mixer. 06:37.170 --> 06:42.600 The only problem I see with it is the fact that it is related to a darknet market. 06:42.600 --> 06:47.760 So the fact that you're going to be using this mixer, sending or just receiving money from an address 06:47.760 --> 06:53.280 that's related to this mixer, could raise a lot of question marks on why you're using a mixer like 06:53.280 --> 06:53.820 that. 06:53.850 --> 06:59.820 Therefore, depending on your situation, it might make more sense to use one of the ones that I'm showing 06:59.820 --> 07:00.780 you right here. 07:00.810 --> 07:04.070 And like I said, there are lots of mixers out there. 07:04.080 --> 07:08.610 You should do your own research and see which ones fits your scenario best. 07:09.030 --> 07:11.190 Using them is pretty much the same. 07:11.220 --> 07:16.800 And in the next lecture, I'm going to show you how to use mix them just as an example. 07:16.800 --> 07:20.400 So you get an idea on how they work in general.