The development team behind zcoin, a privacy-focused cryptocurrency built on the Zerocoin protocol, has announced a project to create a decentralized coin mixer for ether transactions.
The idea is that these tokens could be sent to another user, converted back into the base currency and spent without revealing the private token's owner.
Running such a system on ethereum opens up the possibility of both leveraging the platform's smart contract functionality and eliminating the need for a trusted third party to handle the mixing, as is currently the case with bitcoin mixers.
As the zcoin post explained:
While the highest levels of anonymity in the cryptocurrency space are currently associated with standalone currencies such as zcash, dash and monero, the zcoin mixer is representative of a small but growing trend in privacy projects focused on ethereum.
Another such example, ZoE (Zcash on ethereum), similarly showed that there are fruitful avenues to explore in bringing anonymity technology to the distributed computing platform.
Correction: An earlier version of this article referred to the Zerocash protocol. Zcoin is built on the Zerocoin protocol.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.