Initially, Bitcoin Cash transactions were assumed to be untraceable assets. However, this notion was later found to be a fallacy. Due to its transaction linkability, Bitcoin could infer the identity of participating parties by looking at the ledger and deducing identities using known addresses. If transactions are highly linkable, it means regulation could be introduced to restrict interactions with ‘tainted coins. This greatly affects Bitcoin Cash’s fungibility. To preserve Bitcoin’s fungibility, every coin must be indistinguishable from the other.

This implies, fungibility and privacy are strongly correlated. The compatible coexistence of these two is important to ensure long-lasting feasibility of Bitcoin Cash as a world currency.

Lately, privacy in digital currency transactions has been under speculation. A good number of BCH proponents have expressed their interest in bitcoin cash fungibility and the concept of integrating anonymity in transactions. As a result, projects like Tokenshuffle and Cash Shuffle have been introduced.

In a recent development, Chris Troutner, developer of Bitcoin cash introduced a new shuffling platform called Tokenshuffle. This new protocol concept aims to anonymize BCH transactions.

Tokenshuffle is a light wallet that utilizes two types of cryptocurrency mixing protocols, Troutner explained. Troutner has published his gist on Github and hopes to build an open source application after receiving some important community feedback.

“This protocol is loosely based on the ideas in Coinjoin and Coinshuffle and is intended to be implemented as a light-weight web app that people can anonymously interact with.”

He added, “It leverages new token protocols built on top of Bitcoin Cash like Wormhole, though other token protocols could be used.”

A diagram of the Tokenshuffle process

Cash Shuffle project, on the other hand, was designed as a platform for Bitcoin Cash privacy-enhanced transactions, based on the CoinShuffle protocol. It was implemented to increase anonymity in BCH transactions. The project’s website claimed that the protocol could not read information tied to transactions mixed nor can the server steal funds.

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