Improved anonymity: To outsiders and the fellow mixing participants observing the blockchain, CoinParty’s threshold transactions are indistinguishable from other non-threshold transactions. Thus, CoinParty’s mixing transactions are anonymous among all contemptuous transactions with the same value. We conduct a quantitative analysis on the blockchain to show that this increases anonymity by orders of magnitude.



Plausible deniability: In [9] the authors briefly mention deniability as one desirable property for mixings. CoinParty is first among related approaches for mixing Bitcoins to provide its users with plausible deniability.



No fees: CoinParty issues multiple small transactions that do not require transaction fees. Since CoinParty is run in absence of any trusted third party, i.e., a service provider, no mixing fees are charged either. Related approaches require at least transaction or mixing fees.



Applicability: CoinParty is fully compatible with the existing Bitcoin network. We evaluate a proof-of-concept implementation in a real-world network setting to show that CoinParty incurs only small overheads even when scaling to large numbers of participants.

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Transaction fees. Unlike other decentralized Bitcoin mixing protocols, CoinParty does not bundle mixing transactions into one joint transaction with many inputs and outputs. Instead, CoinParty issues one transaction with one input and a few outputs per mixing input, i.e., n separate transactions. As of today, Bitcoin transactions smaller than 1 KB can be safely sent without fees [7]. Transactions in CoinParty do not exceed this size and would not require any transaction fees at all. If desired, transaction fees τ can be paid nevertheless. Input peers then commit at least ν +τ funds to Ti but only ν funds are transferred in the mixing transaction Ti ν→ Oπ(i).

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Wow pretty fascinating.I love the fact that they have taken away the need for transaction fees. (The coin mixer in dark wallet for example, need transaction fees.) And it's more anonymous than Coinjoin.They write that:On the fees they write specifically:I wonder how hard it would be to set something like this up. I would definitely use it on a regular basis.