this post was submitted on 29 Jul 2023
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NanoFusion (digitalcashtools.com)
submitted 1 year ago* (last edited 1 year ago) by [email protected] to c/[email protected]
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NanoFusion is a pretty neat project that attempts to add an additional layer of privacy by implementing a trustless mixing protocol.

I am investigating more about it. The github repo has not been updated since 2021, so I'm not sure about what the current status is.

According to the github project, step (1) of the trustless mixing algorithm is the following:

  • create an account that can only send funds if all the parties sign the send transaction.

If anyone understands how that is done without sharing private keys, please let me know because I'm having a hard time understanding that.

Another doubt that I have is: how is it possible to pre-sign the Mix -> Out transactions if the hashes of the blocks to be signed are only known after the mixer signs the receive blocks?

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[–] [email protected] 3 points 1 year ago* (last edited 1 year ago)

Thank you!

The Nault explanation was practical but it did not get into the details of what is actually happening behind the scenes. However, by clicking through the links I eventually arrived to PlasmaPower's musig-nano.

The README.md of this repository points out precisely where the original algorithm was described:

Maxwell, Gregory, et al. "Simple schnorr multi-signatures with applications to bitcoin." Designs, Codes and Cryptography 87.9 (2019): 2139-2164.

A slightly more compact blog post about the algorithm is also referenced:

https://blog.blockstream.com/en-musig-key-aggregation-schnorr-signatures/

I will try to find the time to read through these. It will probably require a good amount of focus to understand them... Again, thank you for pointing me in the right direction!