Tumbler

A tumbler, also known as a mixing service, is a tool used to enhance privacy in cryptocurrency transactions by obscuring the origin and destination of funds. Tumblers work by pooling multiple users' transactions together, mixing their coins, and then redistributing equivalent amounts of different coins back to the users. This process breaks the traceable link between the sender and receiver, making it difficult for outside observers to track the flow of funds on the blockchain.

Tumblers are often used by individuals seeking to protect their financial privacy or avoid surveillance on public blockchains like Bitcoin. However, the use of tumblers has attracted regulatory scrutiny, as these services can be exploited for illicit activities, such as money laundering and hiding the proceeds of illegal transactions. Due to these concerns, many jurisdictions have implemented regulations aimed at preventing the misuse of mixing services.