Introduction

The Coin Shuffle protocol tries to solve the problem of privacy in the decentralized network by providing a trustless way to shuffle tokens between multiple addresses in a way that the history of the shuffling is untraceable.

Protocol is based on the UTXO (unspent transaction output) model (which is used, for example, in Bitcoin). In this model, each token is represented by a transaction output - proof that a certain amount of tokens was sent to a certain address (usually, a hash of the transaction in which UTXO was created).

The Coin Shuffle protocol enables a group of users to combine their unspent transaction outputs (UTXOs) and shuffle them in a manner that ensures the resulting tokens are sent to different addresses in batch while keeping the association between the original inputs and the new outputs confidential.