Cryptocurrency hardware wallet provider Trezor collaborates with Wasabi Wallet to integrate the privacy-enhancing CoinJoin feature, allowing users to conduct more secure and private bitcoin transactions.
Trezor has partnered with privacy-centric Wasabi Wallet to enhance the privacy of bitcoin transactions. Trezor has introduced the CoinJoin feature on its hardware wallets, enabling users to improve the privacy and security of their bitcoin transactions.
The feature is now live on Trezor’s Model T wallet, and the company intends to bring it to its first hardware wallet, the Model One, shortly.
CoinJoin, a process for anonymizing bitcoin transactions, allows users to participate in a large, collaborative transfer, making transaction history harder to trace.
Gregory Maxwell, a former bitcoin core developer, introduced the method in August 2013, providing an alternative for more private BTC transactions.
Through its collaboration with Wasabi, Trezor has integrated the CoinJoin option into its wallets, letting users conceal their transactions and balances when buying, donating, or conducting other bitcoin transactions.
To activate CoinJoin, users must create a new CoinJoin account in the main Trezor menu, where they can also find other account types, such as Segregated Witness (SegWit) and Bitcoin Taproot accounts.
For optimal privacy, Trezor’s CoinJoin feature also encourages users to enable the anonymous communication protocol, Tor.
Trezor’s bitcoin analyst Josef Tetek explained that CoinJoin is optional and requires users to send their coins to a specific account. If users opt not to use CoinJoin, their experience remains unchanged.
CoinJoin’s transactions are slightly more expensive due to the coordinator fee. Users pay a 0.3% coordinator fee and a mining fee when entering a CoinJoin, but there are no coordinator fees for further rounds, known as “remixes.”
Mining fees apply to all bitcoin transactions, including each CoinJoin round.
CoinJoin transactions also take longer to process. Establishing a CoinJoin account discovery can take much longer than a regular account discovery, as it requires downloading entire blocks and utilizing a slower Tor connection.
Tetek noted that the CoinJoin process could take several hours, but once completed, outputs can be spent like any other bitcoin outputs.
Trezor CEO Matěj Žák highlighted the company’s commitment to privacy as a crucial individual asset.
Trezor is proud to offer its community a way to maintain their bitcoin transaction privacy. The company is the first hardware wallet to implement CoinJoin, following software wallets like Wasabi.