So recently people have been asking how Skycoin reaches anonymity whilst having a public ledger? In the following post I'm going to try and clear some things up on the privacy coin SkyCoin and how that works. As i'm not a tech genie you have to bear with me as I'm going to try my best.
Skycoin uses CoinJoin which was first proposed by Gregory Maxwell for Bitcoin transactions which is an anonymization method. In Gregory's own words:
“When you want to make a payment, find someone else who also wants to make a payment and make a joint payment together.”
When a joint payment is made there's no way to relate inputs and outputs in one transaction and thus the exact direction of the money remains unkown.
The CoinJoin-protocol thus guarrantees privacy even though its ledger is public the transactions are obscured. Anyone administering chain analysis would see a tangled mess if anything.
Via an action called coinjoin you can mix your Skycoins with other people's transactions in a way that obscures from which address and to which address the coins are heading. Anyone administering chain analysis would see a tangled mess if anything.
Skycoin offers native support for advanced CoinJoin features.
Okay wasn't that bad as I expected. If you want to learn more about SkyCoin which is more than just a privacy coin. I'll leave some resources for you:
ANNArticleWebsiteDistribution plan & BlogTelegram
