In a previous thread I proposed a very simple idea.
https://bitcointalk.org/index.php?topic=1149993
Basically, imagine an altcoin that enforced this simple rule :
1) You can only pay to an empty/non-existent address. A new address.
2) Each address can only spend once.
( This is how Satoshi originally envisaged people using bitcoin )
and then
3) CoinShuffle your txns.
I am now going to make another simple addendum to the scheme.
Let us say you are using Lamport Signatures (quantum secure). These are hash based signatures that can only be used once. To use them again is cryptographically insecure.
So once you have spent an output in some txn, you can never use that key again. Therefore, delete that public/private key from your wallet..
Keys are generated in a non-deterministic way. You cannot re-create all of them with a brain wallet. This would destroy the whole point.
Once that key has been used, and then deleted, it will never, EVER, appear anywhere again. It is mathematically impossible. You cannot retrace, recreate or restore it.
In conclusion :
We have a coin that always spends from addresses that have never been used before, sending coins to addresses that have never been seen before. The TXNs are coin shuffled, and once you have spent those inputs/outputs, the private keys are deleted (permanently) so that there is no evidence that they ever belonged to you in the first place. Your wallet would only have the private keys for unspent txn outputs you control.
I contend a very high level of anonymity could be achieved using just this simple design.
https://bitcointalk.org/index.php?topic=1149993
Basically, imagine an altcoin that enforced this simple rule :
1) You can only pay to an empty/non-existent address. A new address.
2) Each address can only spend once.
( This is how Satoshi originally envisaged people using bitcoin )
and then
3) CoinShuffle your txns.
I am now going to make another simple addendum to the scheme.
Let us say you are using Lamport Signatures (quantum secure). These are hash based signatures that can only be used once. To use them again is cryptographically insecure.
So once you have spent an output in some txn, you can never use that key again. Therefore, delete that public/private key from your wallet..
Keys are generated in a non-deterministic way. You cannot re-create all of them with a brain wallet. This would destroy the whole point.
Once that key has been used, and then deleted, it will never, EVER, appear anywhere again. It is mathematically impossible. You cannot retrace, recreate or restore it.
In conclusion :
We have a coin that always spends from addresses that have never been used before, sending coins to addresses that have never been seen before. The TXNs are coin shuffled, and once you have spent those inputs/outputs, the private keys are deleted (permanently) so that there is no evidence that they ever belonged to you in the first place. Your wallet would only have the private keys for unspent txn outputs you control.
I contend a very high level of anonymity could be achieved using just this simple design.
The issue is coin taint. unique addresses that are spent together are linked together, and 3rd party coin-shuffle implementations already exist for bitcoin,
Also you are forgetting a proxy level. IE running all nodes though a darknet such as i2p. otherwise transactions can be linked to the ip of the origin node