Technologies Related to Privacy Coins — Part 2
This is coin join. The principle of coin join is that many accounts participate in the transaction, which contains more than one account in a “pool” of a large number of buying and selling, but it is difficult to find in the buying and selling one-to-one mapping relationship, buying and selling is fragmented, so no one can find out another account from one account.
The attacker cannot monitor and track the transaction process because the mix is implemented in the “pool”, and the execution of coin join relies on a coin join protocol or other protocols. There is no third party in the process, so it is safe, reliable, and completely decentralized.
Coin join can use multiple rounds of mixing, each mixing can increase the degree of data mixing, making reverse query more difficult. After multiple rounds of mixing, the coins mixed into the “pool” can no longer distinguish which coin is provided from which wallet, because each coin may be composed of a part of the coins provided by multiple accounts.
The advantage of coin join is that the solution is simple and easy to implement. And because of the concise logic flow, errors are less likely to occur during processing. “Existence is reasonable”. At present, coin join has been widely used in some blockchains, which is enough to illustrate the importance of the privacy processing of digital currencies.
One of the biggest benefits of coin join is to make cryptocurrencies better interchangeable, that is, more fungible. The interchangeability of currency means that currency can be completely exchanged, which also guarantees that its own value will not be lost due to its state or previous use. If everyone’s currency is continuously shuffled and combined, it will be difficult for an exchange or other company to “ban” or add “blacklist” it, and all currencies will be circulated on the market. Coin join provides users with privacy by obscuring transaction addresses and amounts, and it is not possible to view the currency’s transaction history, thereby reducing the problem of non-interchangeability.
Although there are many advantages of coin join services, it has not been widely developed due to the current regulatory problems. However, no matter when the market for this service is a certain demand, it will not completely disappear, it will only become more and more perfect. In the future, coin join may also become an important consideration factor affecting the development of the cryptocurrency market.
Of course, there are still many areas that can be improved and optimized in the coin join technology. such as:
1. When a user submits a transaction, the user’s transaction information can be obtained through network sniffing, and the user’s target address and the amount can be restored through the transaction information.
2. The network must be used for transactions, and the real IP address of the user will be exposed during network transmission. The current leak of IP addresses can also provide hackers with information: getting the user’s real geographic location (which is scary enough).
3. Other security issues
