Author: Chris Belcher 2019-08-08 20:06:07
Published on: 2019-08-08T20:06:07+00:00
In a recent email, the writer explains that the V^2 term is the only thing in the scheme that provides any Sybil protection. In a JoinMarket coinjoin, privacy is not ruined if only one maker is controlled by an evil entity - it is only ruined when all makers are controlled by one entity. Therefore, consolidation into fewer makers is not as bad as having no sybil protection. The V^2 term penalizes sybil attacks and does more good than harm.The writer also addresses concerns about exchanges running makers, explaining that they can do this today with JoinMarket, and the proposed fidelity bond scheme doesn't make it worse. It is an underlying assumption of JoinMarket that coinjoining power is proportional to bitcoin ownership. If those big exchanges find that coinjoins involving them included just one maker controlled by someone else, then their aim of deanonymization will have failed. They would have to explain to their regulators why they helped hide the origin and destination of some black market money.
Updated on: 2023-06-13T20:23:46.218165+00:00