Does Whirlpool effectively hide your utxo's
Discussion
Essentially yes, they unlink any name you had associated to those btc
So if I have a kyc stack, I can whirl pool it a little at a time into a new wallet? Wouldn't someone be able to follow the utxo?
You could, someone wouldn’t really know because you’ll have maybe 10 other collaborators that’ll scramble the utxo with you
Btc sessions has a good video on whirlpooling to cold storage using sparrow wallet 🤙
I agree on this on, he makes it super easy to do and understand
I need to install whirlpool still. I have sparrow already.
Whirlpool is integrated into Sparrow by default I think. I've been using this set up to automatically mix to cold storage for a while now and it works pretty well.
Just as a warning though it requires a lot of patience if you have a bunch of post mix UTXOs and you want a few rounds of mixing.
What do you mean with unlink?
If you by BTC through a kyc exchange your name is forever associated with that amount, but coinjoin can “unlink” your name and make it anonymous
If that is the way it works then that is what I wanted. I want the utxo's to be not linked to my original purchase utxo.
Hide might not be the right word as all UTXOs are visible on the blockchain, it makes it so the owner of the UTXO is unknown. Breaking the link from old UTXO to new.
Most ppl refer to it as forward privacy.
You have to fundamentally understand how UTXOs work.
Think of a UTXO as a bill denominations.
1 5 10 20 50 100s
So when you spend a higher denominated bill for a lower denomination of payment you are essentially " owed" back change
When you send a UTXO to the tx0 you are sending a predetermined amount of sats.
.5
.01
.001
So think of those as dollar bills you put them in a pile and mix it around and then grab a bill out you dont know whos bill you got but you can be sure the link between the prior utxo set and the one you have now is broken.
As others have stated prior if youve bought KYC then the government will forever know you have X amount of #bitcoin forever so technically they could hold you responsible for said amount.
Using whirlpool will break the link but doesnt kill the KYC