Raptoreum CoinJoin #
Raptoreum’s CoinJoin feature is a privacy-enhancing technology that works by mixing the transactions of multiple parties to obfuscate the trail of individual coins. A critical aspect of this is that the process involves the use of the Raptoreum Smartnode network. You can think of it as non-custodial privacy as a choice. This document provides a detailed look at how CoinJoin combines inputs using these Smartnodes, and ensures that coins never leave the user’s wallet.
How Raptoreum CoinJoin Works with Smartnodes #
Smartnode Involvement: #
- In Raptoreum’s network, Smartnodes are servers who have shown commitment to the network by locking 1.8 million RTM as collateral. Smartnodes facilitate various Raptoreum network features such as 51% protection (chainlocks, quorums), instant send and serving blockchain data and information to other nodes synchronizing with the network. For CoinJoin, Smartnodes facilitate the mixing of transactions.
- When a user wishes to perform a CoinJoin transaction, they send a request to the network. Smartnodes then take on the role of facilitating the mixing process without having custody of the coins at any point.
Combining Inputs without Transferring Ownership: #
- Users who opt to participate in CoinJoin transactions submit their transaction details to a selected Smartnode. This includes the inputs (coins to be mixed) and desired outputs (addresses for the mixed coins). It is then determined if the client joins an existing pool for mixing, or a new one is created.
- Importantly, the actual coins remain in the user’s wallet. Instead of sending coins anywhere, users merely provide cryptographic proof that they have the necessary funds for the inputs of the CoinJoin transaction.
Anonymity and Trust: #
- Smartnodes facilitate the transaction’s mixing process but do not have access to any significant identifying information. They help shuffle the inputs and outputs amongst participants, ensuring that the link between the two is obscured.
- Throughout this process, the Smartnodes cannot correlate transactions to specific users or ‘steal’ coins, as they never actually hold the coins or know which exact inputs correspond to which outputs.
The Basic Mechanics of CoinJoin on Raptoreum #
Transaction Formation: #
- Once a Smartrnode receives enough requests from users wishing to mix similar amounts of Raptoreum, it works to combine all the inputs into a single, large transaction with multiple outputs.
- Each participant’s inputs are listed, and new outputs corresponding to the desired mixed coins are created. The Smartnode then communicates this large transaction back to the users for them to sign.
Signing and Broadcasting:
- Each user signs only their inputs in the transaction, verifying that they authorize this particular use of their coins. Once all signatures are collected, the Smartnode broadcasts the completed, mixed transaction to the network.
- Notably, because users sign only their portion and no actual coins are moved to the Smartnode, the coins are never at risk of being stolen or misappropriated.
Why Use Raptoreum’s CoinJoin #
- Enhanced Privacy: By mixing transactions via Smartnodes, users benefit from a more anonymous set of transactions, making it considerably more challenging for third parties to trace specific coins or transactions back to them.
- Trustless Mixing: The design of CoinJoin on Raptoreum allows for a mixing process where trust is minimized. Users don’t need to trust the Smartnode with their coins, only with correctly facilitating the mixing process.
- Decentralization and Security: Using the Smartnode network distributes the mixing process across multiple nodes, ensuring no single point of failure and maintaining the decentralized ethos of the Raptoreum network.