On April 19, Trezor, one of the most popular cold wallets in the crypto community, enabled a new privacy feature for its users through the CoinJoin security protocol.
the new to update For Trezor is now available for Trezor Model T users, who simply need to add their CoinJoin account to enjoy the security benefits offered by the decentralized protocol.
CoinJoin enhances users’ privacy and anonymity
CoinJoin is an obfuscation method in which different wallet addresses marshal a transaction, combining their inputs into a single transaction, making it nearly impossible for trackers to properly know the origin and destination of funds held by each wallet. Trezor users will be able to hide their transaction history and wallet balance when making transactions.
The new implementation is made possible through a collaboration with the privacy-focused Wasabi Wallet, which is open source and available for Windows, Linux, and Mac.
It uses the decentralized mixing protocol CoinJoin to allow anonymity when transactions are made, preventing recipients from reviewing the sender’s history.
To activate the new Trezor update, users need to add their CoinJoin account in the main Trezor menu, where options for other accounts such as SegWit, Taproot, Legacy SegWit, and Legacy are also available.
Cons of using the new Trezor update
Using CoinJoin requires a coordinating fee, which makes transactions a little more expensive. Therefore, those who want to enjoy greater security will have to pay a small usage fee of around 0.3%.
CoinJoin is “currently being publicly tested, so it comes with some caveats. Also, there are still ongoing improvements being made to the algorithm,” Trezor warned in its post, meaning that sudden changes can be expected.
Additionally, it should be noted that using CoinJoin may lead to longer transaction times due to the mixing process.
They also recommend “limiting tokens to a maximum of 1 BTC to avoid generating too many UTXOs (unspent transaction outputs).” This means that for now, transactions will be limited to 1 BTC to prevent any errors.
Despite the few negatives of the new update, Trezor left its mark on the ecosystem, becoming the first hardware wallet to implement the CoinJoin protocol.
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