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It's a coin mixer: you deposit ETH into a common pool shared with a bunch of other people, and you get back (off-chain) a code that can be used to redeem your d
by norswap 5y ago
It's a coin mixer: you deposit ETH into a common pool shared with a bunch of other people, and you get back (off-chain) a code that can be used to redeem your deposit at a later date. Since there is no link between the code and the sender on-chain, nobody knows which contributor to the pool withdrew.
So if there are N deposits then later N withdrawals, the only thing you know is that each withdrawal matches one of the deposits, but not which one.
As for privacy improvements:
- If you deposit then immediately withdraw, observers might suspect that you instantly withdrew your deposit.
- You need ETH for the withdrawal transaction, which has to come from somewhere (making it potentially traceable). With their relayers you can withdraw to an empty account while hiding the origin of the transaction fee.
- generalizations 5y ago> the only thing you know is that each withdrawal matches one of the deposits, but not which one. If there were e.g. three deposits for 5.542, 3.799, and 10.4322 ETH, and someone withdrew 3.799 ETH, then it seems like you'd know which deposit they made. Best case, you wait long enough and maybe someone else deposits 3.799 ETH.
- numbsafari 5y agoI wonder if it could be argued in court that use of such a system makes you party to a conspiracy.