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Wasabi Wallet Meaning

Wasabi Wallet is an open-source, non-custodial Bitcoin wallet designed to enhance transaction privacy through coinjoin, a mechanism that mixes multiple users’ transactions to obscure the relationship between inputs and outputs. When a user initiates a coinjoin, the wallet coordinates with other participants to create a single transaction with many inputs and outputs, making it difficult for third parties to trace funds.

Wasabi also features Tor integration, which routes traffic through the Tor network to conceal users’ IP addresses. While Wasabi improves anonymity, regulators scrutinise privacy tools that can be used to launder funds, and some exchanges may flag coins that have been mixed.

Users should weigh the benefits of privacy against potential compliance issues.

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