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For a specifc fungible token, like a stablecoin, I think

it is possible to create a tumbler just like Cashfusion.

What do you guys think?

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Not sure if it wouldn't be easier just to modify CashFusion for this purpose? Creating a centralized mixer might be very easy, but is it worth the effort?

Also CF is already audited. The risk of making critical mistakes should be lower.

its possible but currently not enough liquidity. also i think cashfusion is too centralized, we should keep thinking of alternative coinjoins like using nostr relays or something

JF
its possible but currently not enough liquidity. ...

You will never get enough liquidity for effective fusion without a single point of convergence. Multiple fusion pools split the liquidity into parts, which makes mixing ineffective. Also CF is a more powerful, next generation CoinJoin algorithm.

JF
its possible but currently not enough liquidity. ...

Maybe if somebody could make multiple CF servers talk to each other and exchange client data so they can essentially work as a big single server, that would improve it.

Shadow Of Harbringer 👁️🧀
Maybe if somebody could make multiple CF servers t...

hah, that is basically what I suggested a year ago to do, it is the simple solution.

Tom
hah, that is basically what I suggested a year ago...

This will work for some time, maybe 6 months to 2 years, until some bored script kiddie starts rolling cheater servers. Then some anti-grifter code will need to be introduced, like there is in BitTorrent and Bitcoin

Shadow Of Harbringer 👁️🧀
Maybe if somebody could make multiple CF servers t...

You can replace the server with clients talking to each other dht style, like with libp2p, though last time I looked the python implementation of libp2p was alpha version

Licho
You can replace the server with clients talking to...

Decentralization is a super-hard problem. This is why we needed Satoshi and a blockchain to solve it. I am pretty much 98,9% certain that your proposed scheme will not work. But I could be wrong.

Shadow Of Harbringer 👁️🧀
Decentralization is a super-hard problem. This is ...

It's not decentralized consensus, it's just decentralized communication. It's done basically everywhere, with the most familiar example of AtomicDex orderbook. People do it this way.

Licho
It's not decentralized consensus, it's just decent...

That's the thing: You cannot communicate in a decentralized way and establish consensus, because there will be trolls, saboteurs, clowns and CIA agents running the clients. This is why Proof Of Work is needed and what is it for: to achieve consensus in a decentralized way. But I am having an idea...

Licho
It's not decentralized consensus, it's just decent...

How about we mint "Fusion Consensus CashToken" using another PoW algorithm to achieve consensus in fusion? That would be very cheap to do. Consensus could potentially be achieved through incentives (value inputted) this way.

Licho
You can replace the server with clients talking to...

It's not so simple. First of all, the information hiding wouldn't be equivalent in the blame phase, but more importantly: how do Alice and Bob find each other if neither wants their IP address to be public?

JF
It's not so simple. First of all, the information...

oh, right. dht but over tor. Open bazaar was doing it, wasn't it?

JF
It's not so simple. First of all, the information...

I didn't think of the blame phase. So the server can mess with it?

JF
It's not so simple. First of all, the information...

Good point. So, decentralized protocols like that would make you ditch part of your privacy. Having a centralized server over TOR solves the issue

Licho
oh, right. dht but over tor. Open bazaar was doing...

Still, even over TOR, the people who have public IPs (no NAT) would have to display their IPs. That would disincentivize anybody with a public IP to use it. And you cannot connect 2 peers which are both behind NAT to each other directly. Not a simple problem at all, is it?

Licho
oh, right. dht but over tor. Open bazaar was doing...

Unless we are talking everybody setting up a TOR hidden service, but this is another layer of complication, much harder than just using TOR to connect to others (Peer -> Onion Hidden service).

Shadow Of Harbringer 👁️🧀
Still, even over TOR, the people who have public I...

1) people displaying their IPs over tor? What are you talking about? 2) nat traversal is a thing and I think several methods are there in the libp2p

Licho
1) people displaying their IPs over tor? What are ...

1) Duh, exit node? Peer -> Tor Relay -> Tor Exit Node -> Clearnet? 2) There is no NAT traversal if you disable UPnP, which I do, always, on all my routers. I expect many other people do too, I consider it a security nightmare

Licho
1) people displaying their IPs over tor? What are ...

1a) 2 Peers cannot just connect directly each other through TOR. Are you sure you know how TOR works exactly? On TOR, First Peer -> Relay -> Relay -> Relay -> Last Peer connection is not possible. Unless second Peer is a TOR Hidden Onion service

Licho
Tor to tor doesn't go through exit

TOR does not do a magical NAT traversal, how did you think TOR works?

Licho
I didn't think of the blame phase. So the server c...

no , the server hides information from the players , and the players hide information from the server. the information is effectively sharded so no one has complete information about which components belong to players in the case of blame. if you don't have a server, you would necessarily accept that the blame phase would involve sharing some of this information between the players.

Licho
so a compromised server is dangerous

...which is why there is only 1 server now

JF
not really

So if the server revealing it's knowledge is safe, then I still have to learn more about the blame procedure

This sounds extremely clever. But wake me up when it gets integrated directly over TOR so it works Out Of The Box.

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