Regarding Mixing Service. Do we need such on-chain service that mixes coins with anonymity-reliability trade-off? 30% anonymity means 70% reliability to get all the coins back. Yes, it means that with 100% anonymity u could get 0% - 200% coins back.
can you elaborate on how the mixing service can work and why such high risks are involved?
the anonymity feature is quite important in my view.
I can't. I don't know the algo. It costs 1M NXT.
I think the above is the algo for zerocoin:
http://spar.isi.jhu.edu/~mgreen/ZerocoinOakland.pdfThey even have source code on top of bitcoin released, though my understanding is that it is a slow inefficient version.
I believe their algo is 100% annonymity and 100% coins received and implements a fully cash like behavior
1M NXT to port this to NXT does not sound unreasonable, it is a significant effort to understand the algo enough to port it properly.