Bitcoin wallets are necessary tools for buying, trading and selling Bitcoins and other cryptocurrencies. Merchants depend on it to securely store cryptocurrency as well as retain and verify transaction data.
Bitcoin is often considered an anonymous payment network. However, Bitcoin is probably the most transparent payment network in the world. At the same time, when used appropriately, Bitcoin can provide acceptable degrees of anonymity.
Although users can enhance their anonymity by regularly changing addresses and using different wallets, this can take time for the typical individual. Similar features are included in privacy-focused wallets, as are additional features such as Tor integration and multi sig Security.
In this article, we’ll take a look at five innovative privacy-focused bitcoin wallets and their features.
Mercury Wallet is a bitcoin wallet that is built on the new layer 2 chain-of-state technology for bitcoin scaling. As a result, the wallet can accept Bitcoin deposits without transaction fees.
This is due to state strings, which allow off chain transfer and settlement of Bitcoin transactions without the need for on-chain confirmation (mining). Since there is no mining, there is no mining fees.
As a result, users will be able to quickly transfer full custody of an amount of Bitcoin to anyone. This improves anonymity while making Bitcoin more accessible and less expensive to use.
Simply put, this wallet allows users to transmit and exchange Bitcoins instantly and without incurring transaction fees. Users can also transfer Bitcoin while remaining anonymous. The wallet is only available as a desktop wallet for Mac and Windows users and it only supports Bitcoin.
The Mercury Wallet uses the unspent transaction output (UTXO) protocol, which is the underlying technology that establishes the value and ownership of a cryptocurrency like Bitcoin. The transaction ID (TxID) and output index number are used to identify the UTXO.
The most fundamental goal of the Mercury Wallet system is to facilitate the transfer of ownership of individual UTXOs held by a unique key from one party to another without requiring an on-chain transaction. Instead of using on-chain transactions, Bitcoin nodes allow this change of ownership but do not allow seizing or freezing the output.
Guard is a non-custodial multi-asset wallet that allows users to buy, store, send, receive and sell digital currencies. The crypto wallet has multi-signature security measures as well as private keys that are encrypted using a password that users create when signing up for the wallet.
When users sign up, Guarda sends them a backup text file with the wallet’s encrypted private keys, which should be kept securely on an offline storage device. This key is needed for users to access their accounts, so it’s best to keep it safe.
Guarda Wallet has several features, including coin staking, multi-signature security, and compatibility with all major and current cryptocurrencies and tokens, including stablecoins like Tether. Tezos, Harmony, Cosmos, Callisto, Tron, EOS, and Komodo are some of the coins that can be staked using the wallet.
Thanks to its shielded wallet, the wallet provides specific support for Zcash. This allows users to retain all the privacy features provided by Zcash (ZEC) while facilitating payments and security token transfer. The cryptocurrency wallet was created in partnership with the Zcash development team to ensure that its zk-SNARK technology can always be used.
The wallet also has a chrome extension that allows users to make online purchases, connect to blockchain games as well as connect to NFT markets.
Wasabi Wallet is a non-custodial, open-source, privacy-focused bitcoin wallet for Windows, Linux, and Mac. It has a built-in Tor connection, CoinJoin, and coin control privacy features. The Wasabi Wallet is only available on desktop computers and does not have a mobile version.
Since the wallet is non-custodial, users have full control over their cryptocurrency. This implies that no third party can freeze or seize a user’s money. Users are always responsible for protecting and safeguarding their wallets.
By changing addresses, the wallet also makes it harder for anyone to spy on a user’s balance and payments. Users must continue to use a different Bitcoin address each time they request payment.
Confidentiality is also improved since when receiving or transmitting a payment, no information is given to peers on the network. Tor can also be configured and used as a proxy to prevent attackers or internet service providers from linking user payments to their IP addresses.
This wallet suggests fees based on current network circumstances, which can be waived. This implies that this wallet will help users determine the appropriate cost so that their transactions are completed in a timely manner without paying more than necessary. Users can also choose to override this suggestion.
Electrum was one of the first bitcoin wallets, appearing at the end of 2011. It is a light wallet, without thrills, simple to use while offering a high degree of protection.
Electrum has a variety of features, such as hardware wallet compatibility and the ability to change the Bitcoin transaction cost, as well as replacement by fee (RBF) and child-pay-for-parent (CPFP).
Electrum is not intended for newcomers to the blockchain ecosystem. It is intended for cryptocurrency traders and investors who are already familiar with how Bitcoin works. There are no animation instructions or walkthroughs, and the user interface hasn’t changed much since the wallet was released about a decade ago.
People who own Bitcoin and want a feature-rich wallet with a plethora of privacy options can benefit from Electrum. The Electrum wallet does not present itself as a private wallet, but it offers features that allow users to remain anonymous while being secure by default.
Users can establish new addresses and store their keys, but what sets it apart is its ability to interact with a handful of the most popular hardware wallets, like TREZOR, KeepKey, and the Ledger Nano S. By extension, the wallet inherits all these wallets. ‘ features and privacy settings.
Samurai Wallet is a bitcoin mobile app wallet that focuses on user privacy and security. The wallet allows users to increase transaction fees to speed up their transactions. The cost is set at the usual rate, but users can increase it to complete their transaction before others.
Samourai uses a different address each time you interact with Bitcoin to secure your metadata and prevent anyone from identifying you, your transaction amounts, and the number of Bitcoins you hold. Tor and VPN support is another privacy-related feature. Users using Tor or a VPN can use an anonymous IP address that is not associated with them or their location.
This is another transactional protocol feature that allows for anonymity when using public payment addresses. It works by scanning a public payment code to establish a payment channel between two wallets. This produces a specific transaction on the blockchain that allows you to anonymously transmit Bitcoin to another wallet without knowing the recipient’s address.
This is another form of transaction that increases privacy and fungibility by confusing blockchain spies. This feature can help prevent transaction tracing. This can be useful when banks or stock exchanges stop suspicious transactions.
Samourai Wallet can only be accessed on Android mobile devices due to its high anonymity and privacy features.
Bitcoin wallets are crucial for anyone using digital cash. When selecting a privacy-focused bitcoin wallet, it’s best to prioritize functionality, ease of use, and accessibility (e.g. what platform a wallet is available on).