Understanding the Levels of Anonymity at Bitcoin Casinos

Anonymity is a big selling point for Bitcoin casinos because they encourage players to game without the burden of exposing their identity. While this option is not available for fiat casinos, Bitcoin casinos have made it a seamless process, so they are slowly gaining market share in the industry. Anonymity is offered at varying levels based on the activity players perform at a Bitcoin Casino. In this guide, we will highlight some of the types of anonymity provided by Bitcoin casinos and how these protect the identity of users. Without further ado, let’s get right into it! Types of Anonymity used by Bitcoin Casinos Privacy is a big factor that limits the participation of players at online casinos. When players gamble at a no KYC Bitcoin Casino, their identities are not required to game or process transactions. In addition, the design of the blockchain makes it possible for Bitcoin casinos to provide anonymous services without breaking the law. Therefore, players are legally able to gamble in these casinos without fear of repercussions from the law. Here are 5 types of anonymity used at Bitcoin casinos. Confidential Transactions This is a process Bitcoin casinos use to anonymize the identity of users making a transaction. Multiple user transactions are bundled into one group. This makes it impossible for prying eyes to determine what transactions come from whom. All members of the group are chosen randomly from the blockchain which further obscures the identity of the user. Although it is possible to determine if a transaction was made from a group, it is impossible to tell what specific user from within the group is responsible. This is great for all users at a Bitcoin casino, especially whales who move large amounts of funds. Address Shielding Address shielding is the act of protecting the originating address of a transaction. While shielding this address, the blockchain can verify the transaction without revealing details about the wallet address or its transactions. Sharing any personal information about the transaction such as the sending address and transaction amount is entirely dependent on the user. Therefore, this places the security of each transaction in the hands of the user. This improves the trust between Bitcoin casinos and players as they know their identities will remain protected due to the power of the blockchain. Token Mixers These mixers take in deposits from different users and place them into the same pot then it completes all transactions from the pot. This mixing or co-mingling of funds makes it hard for anyone to follow the transaction on the blockchain. By mixing the transaction in a process called tumbling, the origination of funds is obscured. Therefore, the sender and recipient of any funds sent using this method are protected from prying eyes. Some mixers hide deposits by splitting transactions into smaller amounts to thousands of addresses before sending them back to the intended destination. This works for players who are trying to protect their identity during gambling. HD Wallets HD Wallets protect users at the wallet level by spinning up a new wallet each time you perform a new transaction. This reduces the dependence on a single address for each transaction and limits the ability of anyone to link multiple transactions to your wallet address. The design of the wallet allows users to create an infinite amount of disposable addresses from a single source without betraying the identity of the user. These wallets have improved the privacy standards in the casino space as they are cheap to maintain and do not require financial commitments from the user or operator. Stealth Address Stealth addresses are the opposite of HD wallets. These addresses are generated each time a user receives a cryptocurrency deposit. This is great for players who want to receive payouts of their winnings without exposing the identity of the recipient. This is great for users who would like to maintain their anonymity when they receive huge wins from the casino. The system relies on a network of interconnected public and private keys which only obscure the identity of the recipient. The downside of this anonymity protection is that the amount being transferred is not hidden.

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Understanding the Levels of Anonymity at Bitcoin Casinos

Understanding the Levels of Anonymity at Bitcoin Casinos

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