Read this explainer on Incognito, one of the first projects to use a ‘side-chain’ approach to privacy. You might click on some links to get more detail as needed. Answer the questions and post your answers below:
- How does “shielding” work on Incognito?
- What privacy technology does Incognito use for shielded transactions?
- If Alice shields BTC with Incognito, who is the ‘receiver’ of her Bitcoin transaction?
- Suppose Alice shields BTC, sends it to Bob on Incognito, and then Bob un-shields the same amount. How do we find Bob’s anonymity set? (How many people he could have received BTC from?)