Quote from: dbt1033 on March 12, 2015, 02:45:53 PM

Quote from: Shadow_Runner on March 12, 2015, 02:31:24 PM

What is Shadow Tokens? Can't find info at OP.

Spending Shadow
There are two ways in which Shadow tokens can be spent: they can be sent as Shadow tokens or
redeemed as SDC.
1. When sent as Shadow tokens, new tokens are minted for the recipient to the value of the
input Shadow minus the transaction fee.
2. When redeemed as SDC, new SDC is created to the value of the input Shadow minus the
transaction fee.
In both cases the input tokens become unspendable.
The transaction fee for spending Shadow is 100x greater than the fee for standard transactions. This
is to cover the cost of the extra activity required by the network to transmit, verify and store shadow
transactions, which are larger and require more processing than standard transactions.
In order to spend Shadow, we use ring signatures to sign the transaction[5][6]. Our scheme consists
of three functions, generateRingSignature, generateKeyImage, verifyRingSignature.
For efficiencys sake, when spending Shadow, we get a list of all anonymous outputs in the system,
then we remove coins that don't have enough same value outputs in the system, then we choose
the smallest coin or least number of smallest coins that can cover the amount + transaction fee.
Each Shadow coin has its own private key, so when spending Shadow, each coin or anonymous
input, will need to have its own ring signature generated, and will then have to be verified.
❖ generateRingSignature
➢ Executed by the sender / signer, when spending Shadow.
➢ After executing generateRingSignature, the ring signature will have to be verified.
➢ Takes an inputoutput / reference to the keyImage, the transaction hash, the ring size,
the secret key offset, the secret key for signing the transaction, a list of public keys for
all the coins or outputs in the ring signature and the ring signature, and a hash of the
transaction in which the signature is included (preimage).
❖ generateKeyImage
➢ Executed by the receiver, when receiving Shadow➢ The key image is revealed to the network to prevent a token from being spent more
than once.

From the Whitepaper

Basically, shadow is the anonymous component of SDC.

It is created by burning SDC. When it is redeemed, new SDC is created on the blockchain.

It is my understanding that as more and more Shadow is created, more and more anon inputs/outputs are also created, strengthening the anon component of the network as it is used over time.

^this
simply put this:

Quote from: LiteBit on March 12, 2015, 05:04:39 PM

Shadow Tokens are like SDC only private. They are 1:1

SDC is a public token traceable and linkable on the blockchain
SDT is a private token untraceable and unlinkable on the blockchain