CoinJoinXT Uses Lightning Network to Make Bitcoin Transactions Private
cryptocurrency-event-2018

CoinJoinXT Makes Traceability of Bitcoin Transactions Challenging Using Lightning Network

Cryptocurrencies have been highly promoted as “private” and “anonymous”, however, several crypto crimes have been making their way to media headlines. This clearly shows that, regardless of how “secure” they may be, there are ways to break in. Simply put, identifying owners is said to be attainable. This is where CoinJoin can help to increase privacy, which was first suggested by Gregory Maxwell.

According to existing information, CoinJoin stemmed from a simple idea, which goes along the lines of, “When you want to make a payment, find someone else who also wants to make a payment and make a joint payment together.” By following this concept, putting one and one together becomes far too complicated and inaccurate, which in turn prevents third-party interferences and traceability of how funds are transferred.

If this wasn’t enough, an improved idea came about, which focuses on blending bitcoin transaction among a crowd. Creator of JoinMarket, Adam Gibson explained in a post that incorporating the Lightning Network, one that was developed as a way to deal with Bitcoin’s scalability concerns, could increase privacy. The new proposal, “CoinJoinXT” takes it a step further and supposedly “gives users deniability”.

The reason for CoinJoinXT is to prevent one from knowing that CoinJoin structures are present. In particular, this approach will rid one of assumptions, ensure more parties are making payments, and increase the number of transactions all while reducing the probability of being able to pinpoint an input to an output.

A major player in this extra layer of privacy is called the “dual-funded Lightning channel”, which Gibson described as a “bleed-through and amplification of off-chain privacy to on-chain”.

For the time being, Gibson believes that this approach is feasible, however, he regards it as a work-in-progress with several functions that need to be considered. He added the reason as to why Lightning Network was crucial for CoinJoinXT, explicitly sharing that:

“Ideally, we’d have Schnorr key aggregation for multisig, and support for dual funded Lightning channels for the amount decorrelation trick mentioned. Without either of those, such a transaction graph on the blockchain will be somewhat identifiable.”

For an in-depth analysis of this privacy-promoting approach, go to:

 

[FREE] Get Our Best Crypto Trading, Mining & Investing Hacks:

cryptocurrency-event-2018

*Action Required* Enter Your Email To Get Insight For Trending Coin News & Reviews

I will never give away, trade or sell your email address. You can unsubscribe at any time.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

eighteen + 17 =