Navigating Privacy Risks in Bitcoin Transactions

This chapter examines the vulnerabilities of the CoinJoin protocol, particularly in Wasabi's implementation, exposing users to de-anonymization risks. The discussion revolves around the balance between privacy enhancements and maintaining Bitcoin's fixed supply, while also addressing the implications of current regulations and potential legal challenges. Additionally, alternative methods for enhancing privacy, such as Lightning network solutions, are explored in relation to their effectiveness and the evolving cryptocurrency landscape.