Users of Bitcoin Cash value their financial privacy. The community has built a powerful tool in the form of CashFusion, which coordinates CoinJoin transactions, in order to restore financial privacy. But over the last few months, the following problems have arisen with CashFusion:
- Many users are reporting a lack of fusion transactions. They are doing everything right, but the transaction formation is consistently failing. Despite many brilliant minds discussing it, there appears to be no clear solution.
- The protocol is complex. Despite many brilliant and well funded people making the attempt, it's only been incorporated into two wallets: Electron Cash and Pokket. And Pokket is no longer maintained.
- There is only a single server for coordinating fusions. More than one server is undesirable because that creates liquidity issues. And server hosting, in light of the recent OFAC listing of Tornado Cash, has caused the older server host to stop hosting it. A new server has been created, but the legal liability of hosting a coordination server is still problematic.
This Flipstarter campaign is not intended to criticize CashFusion. CashFusion is a valuable tool that will continue to provide value to the Bitcoin Cash community for the foreseeable future. This Flipstarter campaign seeks to compliment CashFusion by creating a second app for participating in CoinJoin transactions. It's bad for the utility of BCH if there is only a single tool for restoring financial privacy, and there is no alternative when that single tool has issues. The app funded by this Flipstarter can take some of the pressure off the CashFusion team.
$12,000 USD in Bitcoin Cash is sought to fund the initial development of a desktop app. This desktop app will run on Windows, Mac, and Linux. It will be a Bitcoin Cash wallet that will coordinate CoinJoin transactions, similar to CashFusion in Electron Cash. It's advantages are:
- No coordination server is used. The coordination happens peer-to-peer.
- The JavaScript libraries it uses can be easily exported to mobile wallets, web wallets, and other BCH apps.
- This protocol can easily be adapted to work with SLP tokens (or the new CashTokens protocol hitting mainnet in May 2023).
- Your privacy increases with the more rounds you participate in. Want more privacy? Send your UTXOs through more rounds.
- It's based on IPFS and the Bitcoin Cash blockchain, both of which are highly censorship resistant.