/biz/ - Business & Finance

>>55515078
>>55515667
Also just a side-note, the exact issue above is different, but still similar. The problem with L2 or opt-in "crypto privacy solutions" in general is that they are inherently inferior to Monero. This includes everything like TornadoCash, CoinJoins, LN "privacy", MimbleWimble.
The base for privacy in cryptocurrencies relies on the inability to distinguish transaction senders and receivers. Receiver privacy is easy with new one-time addresses. Despite this, the larger "crypto-sphere" hasn't learnt this and Monero stands as the most popular crypto that forces new receive addresses.
On the other hand, sender privacy must mean transactions to be indistinguishable. But obviously, at least the signatures are going to differ. So what you have is anonymity sets instead, or how large is the pool of probable senders. With Monero it's not just ring signatures that ensure that you cannot know who sent the transaction, but instead it's the fact that each member of that ring is roughly indistinguishable from each other. Same scripts, same fee algorithm, same transaction structure.
That is why p2pool miner outputs, tx_extra, and even custom fees hurt Monero privacy. They create these new "anonymity puddles" of distinguishable transactions, which if small enough, will be seen through like a bit cloudy water by ChainAnalysis.
Opt-in privacy tools will inherently have an increased cost of entering whether explicit (like CJ fees or more demanding math in general) or implicit (risk of getting associated with unwanted inputs) so they will always be a small fraction of the usage. Given the chance, most people will opt for the default option, as we've seen play out with Zcash. Less supported efforts will not receive any much more than that. So no matter how uniform they make the anonymity set, it will be small, incredibly so in contrast to Monero.