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(Answered) Is Coinjoin (Bitcoin Privacy) integrated into Incognito?

#1

Have folks heard about the CoinJoin method and how it aims to preserve privacy for Bitcoin transactions?

I came across this summary on how it works:

  • CoinJoin is a network operation where transaction inputs, i.e., the amounts to be sent, from several senders are combined into a single transaction and sent to multiple recipients on the network.

This was an excerpt from this site: https://phemex.com/academy/what-is-bitcoin-coinjoin

My question is… (Please note I’m not a techy person)
Could the Incognito wallet leverage it’s own network in a similar way to carry out a Coinjoin when withdrawing BTC out of the wallet to an external BTC address?

I.E. Incognito would break up the withdrawal transactions into smaller multiple outputs from different BTC addresses making it difficult for blockchain analytics companies to trace the origins.

I see this being an additional privacy feature that could be integrated into the Incognito wallet for BTC.

I’d be willing to pay some additional PRV for this Coinjoin operation inorder to preserve my BTC transaction privacy.

It would become another use case of PRV thus adding utility value to the PRV token (price go up).

Also, some other win-wins:

  1. This feature could be used to promote the Incognito App as the easiest app to cleanse BTC transaction history via Coinjoin. It would bring more people into the Incognito ecosystem.
  2. It would increase activity on the Incognito chain, thus equating to more earnings for Node operators.

Thoughts anyone?

#2

I haven’t read into this yet but my understanding is the network needs to wait until X amount of BTC is available to send it out all at once. That would mean users might have to wait sometime before their transaction is processed.

A way to solve this could be to offer the instant un-shield or the delayed cheaper un-shield as 2 separate options.

Let’s see what the devs think regarding this.

#3

CoinJoin is supported on the first day of the new decentralized Bitcoin bridge (aka Portal).

The transaction inputs are a mash-up of various shielding record transactions.

Outputs for unshielded requests that are handled in the same time interval are also batch processed.

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#4

Thanks for the replies @cuong and @Jared.

Here’s some breaking news about Coinjoin (14 Mar 2022) -
https://www.theblockcrypto.com/post/137668/bitcoin-mixing-service-coinjoin-starts-blacklisting-btc-tied-to-illegal-activity

Excerpt…

  • Bitcoin mixing service CoinJoin has started blacklisting bitcoin tied to illegal activity in a move derided by some advocates of crypto privacy. CoinJoin, a bitcoin mixing service that’s part of the privacy-focused Wasabi Wallet, will start blocking bitcoin tagged with certain identifiers, according to an announcement on Sunday.

Key takeway for me…
This illustrates the importance of moving towards a decentralised network. I’m glad Incognito is headed down the decentralisation path and hence why I’m a huge fan of this project and will continue to support this network by running some vNodes.

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