Mixcoin: Anonymity for bitcoin with accountable mixes

J Bonneau, A Narayanan, A Miller, J Clark… - … Cryptography and Data …, 2014 - Springer
Financial Cryptography and Data Security: 18th International Conference, FC …, 2014Springer
We propose Mixcoin, a protocol to facilitate anonymous payments in Bitcoin and similar
cryptocurrencies. We build on the emergent phenomenon of currency mixes, adding an
accountability mechanism to expose theft. We demonstrate that incentives of mixes and
clients can be aligned to ensure that rational mixes will not steal. Our scheme is efficient and
fully compatible with Bitcoin. Against a passive attacker, our scheme provides an anonymity
set of all other users mixing coins contemporaneously. This is an interesting new property …
Abstract
We propose Mixcoin, a protocol to facilitate anonymous payments in Bitcoin and similar cryptocurrencies. We build on the emergent phenomenon of currency mixes, adding an accountability mechanism to expose theft. We demonstrate that incentives of mixes and clients can be aligned to ensure that rational mixes will not steal. Our scheme is efficient and fully compatible with Bitcoin. Against a passive attacker, our scheme provides an anonymity set of all other users mixing coins contemporaneously. This is an interesting new property with no clear analog in better-studied communication mixes. Against active attackers our scheme offers similar anonymity to traditional communication mixes.
Springer
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