Revealed in a post on the zcoin weblog printed 4th May, the concept is to create an ethereum-compatible model of the procedures in the Zerocoin protocol which enable customers to transform non-anonymous cryptocurrency (bitcoin, ether and many others) into an nameless token.
The thought is that these tokens may very well be despatched to a different person, transformed again into the bottom currency and spent with out revealing the personal token’s proprietor.
Running such a system on ethereum opens up the potential of each leveraging the platform’s sensible contract performance and eliminating the necessity for a trusted third social gathering to deal with the blending, as is at present the case with bitcoin mixers.
As the zcoin submit defined:
“Unlike Coinjoin and its variants, it also does not require a central server to process such mixing, does not require you to trust any third parties and does not require other users to provide liquidity for a mixing transaction.”
While the very best ranges of anonymity within the cryptocurrency area are at present related to standalone currencies reminiscent of zcash, sprint and monero, the zcoin mixer is consultant of a small however rising development in privateness initiatives targeted on ethereum.
Another such instance, ZoE (Zcash on ethereum), equally confirmed that there are fruitful avenues to discover in bringing anonymity know-how to the distributed computing platform.
Marble jars picture by way of Shutterstock
Correction: An earlier model of this text referred to the Zerocash protocol. Zcoin is constructed on the Zerocoin protocol.