Bitcoin, the pioneering cryptocurrency, has seen a meteoric rise in popularity over the years, but it comes with its own set of privacy challenges. It is well-known that once a Bitcoin address is attached to your real-world identity, anyone can simply look it up on the blockchain and gain insight into your transaction activity. Enter Wasabi Wallet, a non-custodial hot wallet that addresses these concerns with features designed to enhance user privacy and security.
In this review, we’ll explore the features of Wasabi Wallet.
What is Wasabi Wallet?
Wasabi Wallet is a Bitcoin wallet that strongly emphasizes safeguarding user privacy. It offers a range of functions, including wallet creation, sending and receiving Bitcoin, and employing trustless CoinJoin transactions to maintain user privacy.
Using Wasabi Wallet, individuals can access up-to-the-minute insights into their Bitcoin transaction history and current balances. The CoinJoin feature enables users to consolidate their coins into a single transaction, bolstering privacy.
The open-source API of Wasabi Wallet permits users to construct the wallet directly from its source code, streamlining their processes. Additionally, Wasabi Wallet is compatible with various operating systems, including Windows, Mac, Linux, and Debian/Ubuntu.
Pros
- The wallet is CoinJoin-enabled, ensuring privacy.
- Enhanced privacy through Tor integration.
- Free and open-source.
Cons
- Wasabi Wallet only supports Bitcoin, making it unsuitable for investors who want to manage several assets.
- There is no mobile version of the wallet.
Wasabi Wallet: Key Features
As a wallet, Wasabi values user privacy and anonymity. This is evident in its features that help keep users and their IP addresses anonymous.
Usability
Wasabi provides users with a convenient solution for storing virtual currency by offering internet connectivity and full functionality. Its seamless integration with hardware wallets sets it apart, making it an ideal choice for individuals seeking security and accessibility for their digital assets.
For managing funds, Wasabi’s desktop version is compatible with Windows, Linux, and macOS devices, giving users a broad spectrum of choices.
Additionally, the wallet has an intuitive interface that makes it easy to manage transactions quickly and easily. It also has a range of documentation that assist users in navigating the platform.
Privacy and Security
Since its inception, the wallet has upheld a consistent level of security, with no reported instances of significant security breaches. During the installation and setup process, users receive a 12-word seed phrase, a randomly generated sequence of words. This seed phrase serves as a means to back up the wallet or regain access if a user’s device is lost or damaged.
As a non-custodial wallet, users have complete control over their funds and can enhance wallet security with a password. Safeguarding the 12-word backup phrase and the password is crucial to maintaining access to the wallet’s contents.
In addition, the wallet guarantees privacy and anonymity by implementing some features;
CoinJoin: CoinJoin ensures the highest level of privacy when conducting Bitcoin transactions. It achieves this by disrupting the connection between the input and the corresponding output, preventing the output from identifying the owner of the initial input. This renders it nearly impossible for anyone to trace a transaction back to its original owner, guaranteeing user confidentiality and security.
Tor Integration: With its locally installed or automatic Tor integration, Wasabi protects all its users’ data using robust encryption technology. This means that any communication between nodes and users cannot be traceable back to the user’s original IP address. As such, users have an extra layer of security and privacy when conducting Bitcoin transactions.
Cost and Fees
Acquiring the wallet software is free through downloading and installing. However, performing CoinJoin transactions comes with a fee. The fees mostly rely solely on the anonymity set.
Let us take an instance and assume that the fee is 0.003% of the anonymity set. As such, if you are performing a CoinJoin and you set the anonymity to 40, your fees will be 0.003% x 40 = 0.12%.
Speeding and Cancelling Transactions
When sending Bitcoin, you need to know the destination address of the receiver. This commits to the spending condition the receiver agrees to have for this coin. However, this may be different.
Since Wasabi version 2.0.4 open in new window, the Preview Transaction dialog contains privacy suggestions. The privacy suggestions help the user to improve their transaction. They are displayed when hovering over the triangle or shield in the top right corner. The suggestions are based on the current coin selection for this transaction. For example, the suggestions warn users when the transaction contains non-private coins.
Additionally, quickly speeding up or canceling a pending transaction is possible. Speeding up and canceling are similar, the main difference being that a Cancel Transaction will send the coins to a new address owned by the user/wallet (this is all done automatically).
Final Thoughts
Wasabi Wallet, a non-custodial wallet, prioritizes top-notch privacy and security. With its integrated CoinJoin and Tor features, it caters to traders and investors who highly value privacy while conducting Bitcoin transactions.
However, it must be noted that Wasabi exclusively supports Bitcoin and lacks a mobile app. It might be less suitable for investors seeking a wallet accommodating multiple cryptocurrencies or offering mobile tracking convenience.
FAQs
Is Wasabi a good wallet?
As a wallet, Wasabi values user privacy and anonymity. This is evident in its built-in CoinJoin, coin control, and Tor integration features that help to keep users and their IP addresses anonymous. This further prevents security breaches and data leaks.
Is Wasabi Wallet free?
Wasabi Wallet offers features such as wallet loading and generation, trustless CoinJoin transactions, and a TOR integration. Wasabi Wallet is a free and open-source software.
