How TumbleBit Builds On CoinSwap To Improve Bitcoin Privacy And Fungibility

An innovation called TumbleBit that improves the privacy and fungibility of bitcoin transactions was presented at the Bitcoin Scaling conference in Milan, reports NASDAQ.
TumbleBit builds on the CoinSwap intermediary solution with added layers of cryptography to improve both the privacy and fungibility of bitcoin transactions.
The fact that the transaction history of each bitcoin is traceable puts all bitcoins’ fungibility at risk. ‘Tainted’ bitcoins can be valued less than other bitcoins, possibly undermining bitcoin’s value proposition as money.
A key problem for fungibility and privacy for the cryptocurrency is that the addresses can be linked. Blockchain analysis can reveal the addresses of parties to a transaction.
CoinSwap Offers Improvement
CoinSwap, proposed by developer Peter Maxwell on the Bitcointalk forum in 2013, uses a payment intermediary to break a link in the transactions. If Person A pays a bitcoin to an intermediary, and the intermediary pays a different bitcoin to Person B, Person A will have effectively paid one bitcoin to Person B, but no link exists between their addresses on the blockchain.

This post was published at Crypto Coins News on 30/10/2016.