Clear DefinitionsCoinShuffle
1 min read
Pronunciation
[koyn shuh-fuhl]
Analogy
Like a secret Santa draw where participants shuffle and draw names without a central organizer knowing who drew whom.
Definition
A decentralized CoinJoin protocol that enables peers to collaboratively create a joint transaction without a trusted coordinator, using cryptographic shuffling of output addresses.
Key Points Intro
CoinShuffle achieves trustless transaction mixing via peer-to-peer address shuffling.
Key Points
Decentralized: No single coordinator.
Shuffle phase: Peers permute encrypted output addresses in sequence.
Anonymity set: Larger groups yield stronger privacy.
Compatibility: Works with standard Bitcoin scripts.
Example
Participants run a CoinShuffle round: each encrypts their output address, passes buffer to next peer to shuffle, then jointly sign the combined transaction.
Technical Deep Dive
Uses layered encryption: each participant successively encrypts address with others’ public keys. After shuffle, addresses are revealed and transaction inputs/outputs assigned. Security proof relies on semantic security of encryption scheme.
Security Warning
Active adversaries can perform denial-of-service by dropping messages; require penalties or fallback rounds.
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