Wasabi Wallet enhances privacy for Bitcoin transactions primarily through its implementation of the CoinJoin protocol. CoinJoin is a method of combining multiple transactions into a single one, making it difficult to trace the flow of funds. When users participate in a CoinJoin transaction, their Bitcoin inputs are mixed with those of other users, effectively anonymizing the transactions by obscuring the origin and destination of the coins.

Wasabi Wallet employs a decentralized, trustless CoinJoin process, meaning that no central authority controls the mixing process, and users do not have to trust a third party. This is achieved through the use of Chaumian CoinJoin, which ensures that the wallet cannot link inputs to outputs during the mixing process.

Additionally, Wasabi Wallet uses Tor (The Onion Router) network for all its network communications. By routing all traffic through Tor, Wasabi hides users' IP addresses, further enhancing privacy by preventing network observers from linking transactions to specific users.

Wasabi also supports deterministic builds, allowing users to verify that the software they download and run is exactly the same as the source code available publicly, reducing the risk of malicious code.

Through these methods—CoinJoin mixing, Tor integration, and deterministic builds—Wasabi Wallet significantly improves the privacy and anonymity of Bitcoin transactions, protecting users from surveillance and tracking by third parties.