(1) people who send BTC in the "ring signature sidechain" (RSSC), taint their BTC who are not entering the RSSC. If their identity is matched with the same identity as who put BTC in the RSSC, this person can become "flagged".
No, it's possible to trustlessly
coinswap in and out of such a system, with no detectable connectivity. And there are many reasons to use such a sidechain, such as improved smart contracting. I consider improved fungiblity to be an essential basic feature.
Unfortunately, it's appears that it isn't possible to trustlessly swap in and out of monero because the developers of bytecoin didn't carry across smart contract functionality which they didn't understand. Perhaps the capability could be added later.
Heya! Thanks for stopping by the thrilling altcoin section of bitcointalk!
I just read through coinswap - and granted, the reason I'm awake reading things is because I couldn't sleep so, grain of salt and all that.
I agree - any means to increase fungibility is a win. But based on my understanding of coinswap, this protocol would be human-centric? I.e., I'd have to arrange with some sentient thing (be it another human or a centralized service) to make it happen?
I should read your link with morning eyes.