Blockchain & Cryptocurrency Glossary

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Tumblers

1 min read
Pronunciation
[tuhm-buh-lerz]
Analogy
Think of tumblers like stirring ingredients in a pot so no one can tell which spoon served which ingredient.
Definition
Services or protocols that mix cryptocurrency by pooling and redistributing funds to obscure transaction origins and enhance privacy.
Key Points Intro
Tumblers enhance privacy by blending transactions among multiple users.
Key Points

Mixing pool: aggregates funds from many users

Anonymity set: larger pools increase unlinkability

Centralized vs. decentralized: trade-offs between trust and reliability

Fees: charge a percentage for mixing service

Example
A Bitcoin tumbler collects coins from users, mixes them in a series of batched transactions, and redistributes to new addresses, breaking on-chain linkability.
Technical Deep Dive
Centralized tumblers require custodial deposits and trust, while CoinJoin-based tumblers coordinate multi-party transactions without custody. Decentralized mixers use protocols like Wasabi Wallet’s Chaumian CoinJoin with blinded signatures to preserve privacy without a central party.
Security Warning
Centralized tumblers can steal funds or maintain logs compromising privacy.
Caveat
Privacy guarantees degrade with low participation or network congestion.

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