From the linked document:
Quote
Bitcoin recipients can have perfect anonymity: they can create a new address at any time to receive a payment and there's nothing to connect that address to the recipient's identity or other Bitcoin addresses. Senders have to work harder to achieve that objective.
If we assume that participants can use existing anonymizing networks to exchange messages, we can design a mixnet to provide payment senders with the ability to send coins without identifying themselves.
If we assume that participants can use existing anonymizing networks to exchange messages, we can design a mixnet to provide payment senders with the ability to send coins without identifying themselves.
This idea or one like it has very likely been discussed before. I've certainly seen people suggesting using Bitcoin exchanges as single-stage coin exchangers to limit the traceability of a transaction. This is mainly a suggestion for how to standardize that concept to allow for a scalable mixnet. It's a very rough and general document at the moment, but I think it's a good starting point for discussion.