Privacy Mixer

Cryptocurrency transactions are publicly recorded on a blockchain, which is a distributed ledger that is accessible to anyone. This transparency is one of the key features of cryptocurrency, as it helps to ensure the integrity and security of the network. However, it also means that all transactions are traceable, which can make it difficult to maintain privacy.

Privacy Mixer, also known as tumbler or blender, is a tool that helps to improve the privacy and anonymity of the user's transactions. It ensures that the origin of funds is unknown, making it harder to trace back to the original sender or recipient. Our privacy system allows users to make internal transfers anonymously. In PivotSwap, the user's "payment information" would need to contain both some kind of "private note", a commitment to a secret that only the sender have access and "splitting array", the encrypted information set by the depositor and only the chosen withdrawer can decrypt to receive the payment.

Privacy Mixers operates under the governance of Mixer Committee, the entity that manages requests related to fund tracking within the protocol. This committee, following the principles of a DAO, utilizes the DKG algorithm, requiring each member to hold one constituent secret key, and the sender-recipient relation disclosure necessitates the collaboration of 'a threshold number (t) of members out of the total (n)'. This mechanism introduces a layer of security and decentralized control, ensuring that no single entity possesses full access to the committee's secrets.

PivotSwap's Privacy Mixer functionality directly contributes to making cryptocurrency transactions more secure and anonymous. Here's how:

  • Increased privacy: The aggregated nature of transactions makes it significantly more challenging for malicious actors to intercept or manipulate individual transactions, thereby safeguarding the integrity of the user's financial activities.

  • Enhanced anonymity: Through its mixing and redistribution processes, the Privacy Mixer thwarts attempts to trace the origin or destination of funds. This can be important for users who are concerned about surveillance or who want to protect their financial activities from prying eyes.

  • Reduced risk of censorship: By making it more difficult to trace cryptocurrency transactions, Privacy Mixers can help to reduce the risk of censorship.

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