CoinChain: Effective Coin Mixing Tool for Anonymous CryptoCurrency

Abstract

Many anonymous cryptocurrencies have been introduced to address the privacy issue in Bitcoin. Compared to traditional security schemes like hashing and encryption, the security measurement for cryptocurrency is less precise. In hashing, there is a direct security challenge, such as reproducing a hash collision. However, in anonymous cryptocurrency, a direct security challenge is not precise. Many anonymous cryptocurrency proposals address this issue in the form of cryptographic proof. This paper describes a brief evolution of anonymous cryptocurrency, followed by a brief description of CoinChain Protocol. This paper also proves that CoinChain has a high anonymity set. A methodology and code to produce a simulated blockchain from a list of actual transactions for any third party to decipher is also described. If a third party can correctly decipher the simulated blockchain into actual transaction, then the privacy aspect of the cryptocurrency is consider broken.