The design idea of the cryptocurrency mixer is to run the digital signature of the transaction through a “black box” that hides the digital signature.
A cryptocurrency mixer is a program that mixes a specific amount of crypto currency in a private pool before transferring it to a designated recipient. For example, a bitcoin browser that tracks all bitcoin transactions would show that A transfers bitcoins to the mixer and B receives Bitcoins from the mixer. This way, no one knows who sent the BTC and to whom. Therefore, “dirty bitcoins” are laundered during the cryptocurrency mixing process.
The function of a cryptocurrency mixer is to mix your cryptocurrency with a whole bunch of other cryptocurrencies and return smaller units of cryptocurrency to an address of your choice, 1-3 less than the total amount you deposited %. Mixers usually make 1-3% of their profits, which is how they make a living.
Mixing currency is similar to the crime of money laundering. However, just because someone is involved in mixing coins doesn’t mean they are committing a crime. Instead, it just means they want to increase the privacy of cryptocurrency transactions.