BCH is not limited to payment, it is still excellent in anonymity

BCH

Fungibility and anonymity are the most controversial topics in the field of cryptocurrency. Cryptocurrency transactions are designed to be anonymous and difficult to track, which is a headache for law enforcement agencies. With the popularization of blockchain technology, there are already specialized blockchain analysis companies trying to track and crack anonymous cryptocurrency transactions. These analysis companies are often funded by government funds.

Finding anonymity

Just like the tracking services of analytical companies, the anonymity technology of cryptocurrencies is also constantly developing. The anonymity and fungibility of cryptocurrencies are not developed for crime, but to protect personal privacy and freedom. At present, many cryptocurrencies have begun to pay attention to anonymity, among which Monero, Dash, and Zcash are the anonymous "three heroes" in the cryptocurrency circle. Whether it is technology, popularity, or attention, they are the highest and have led the trend of anonymity, but the times are developing, and their shortcomings are gradually exposed in practice.

Monero focuses too much on anonymity and weakens its payment function, becoming an intermediate asset that masks other cryptocurrency transactions. If the user's goal is anonymity, then they may use Monero to pay, otherwise, no one will be willing to use Monero as a payment method. The biggest risk of investing in Monero is substitutability. Once Monero loses its anonymity, it loses its value. Two companies have claimed to have two patents that can destroy the anonymity of Monero, but they have not been proven in practice.

Dash and Zcash are more functional than Monero, but they also have their own risks, as both allow their transactions to be private or non-private. The end result is that anonymous cryptocurrencies taint private cryptocurrencies, and users expose their exchanges without knowing it. This poses a great risk to users.

The beginning of Coinjoin

BCH is not limited to payment, but is also constantly trying to improve anonymity. Coinjoin can provide some privacy without changing its basic characteristics. In fact, this is just a matter of probability theory and cannot fully achieve anonymity. For example:

Suppose Alice, Bob, and Charles each have (1, 2, 3) BCH in their wallets, which can be checked on a block explorer. Now, suppose Alice, Bob, and Charles jointly decide to send BCH to other addresses of their property. Then, you track the joint transaction in the block explorer, which generates 5 addresses and the amount of BCH distributed in this way (1, 1, 2, 1, 1, 1). Coinjoin is a form of increasing the anonymity of transactions in this way.

Bitcoin’s limited anonymity

The most popular CoinJoin service is provided by Bitcoin Core's Wasabi Wallet. On the Wasabi website, the wallet performs trusted CoinJoin transactions over the Tor anonymity network. The CoinJoin coordinator cannot steal or violate the privacy of the participants. However, this requires merging the outgoing cryptocurrency, which is a limitation of the system. Another problem with Bitcoin's CoinJoin is that there is a cost to simply masking the transaction.

At first, BCH also decided to adopt Coinjoin to cover transactions, but at this time, BCH excellent developers such as Jonald, Mark and many others came in. JonaldFyookball was responsible for creating CashShuffle, a project very similar to Wasabi Wallet, but fundamentally different, he could develop a protocol that aims to truly become a payment method, fast, cheap and scalable, and make it all easy!

CashFusion--Anonymous Payment Function

Jonald was one of the key proponents of big blocks in the Bitcoin scaling debate, and therefore one of the developers responsible for BCH as the best cryptocurrency for payments. However, when he created CashShuffle, although it was more economical and feasible than Wasabi's Coinjoin, Jonald realized that integrating coin mixing was problematic, which led to research for something better.

So, another important player in establishing anonymity in BCH transactions enters the story, Mark B. Lundeberg, PhD in Physics from the University of British Columbia, whom Jonald defines as a genius! Mark has over 2,000 academic paper citations, with research in areas including; graphene, electronics, spintronics, electrodynamics, and plasmonics, but he is currently working on blockchain technology.

According to Jonald, Mark’s contribution was this thought: “While the actual number of Bitcoins increases with decimal precision, making matches even rarer, we will far exceed it because the total number of partitions is simply astronomical, and he realized that there is no need to mix coins anymore, but to increase the number of partitions with astronomical values!

Thus, CashFusion emerged, a system that provides a practical way to reorganize fragmented anonymous transactions in a secure environment, without the server being able to steal funds or compromise the privacy of users. Currently, the system can be found in the popular Electron Cash wallet with a single click to activate it. Use the wallet to participate in transactions, and several other CashFusion participants run in the background to provide many entries and exits, with an incredible number of possible combinations, so that it is almost impossible for anyone to know which entry and exit belongs to a specific user.

Therefore, BCH not only allows users to conduct anonymous transactions, but also retains the basic characteristics of distributed, decentralized peer-to-peer electronic currency. This allows users to gain more freedom and privacy, and also brings good news to people without bank accounts.