Quote from: MuFaza on August 19, 2014, 06:36:41 AM

Quote from: threecats on August 19, 2014, 05:46:26 AM

I was discussing the teleporting with someone and their point was that for a large corporation, doing payments through an off-blockchain intermediary like coinbase or bitpay essentially performs the same obfuscating function as teleporting. To what extent is this argument flawed?

Well I'm sure it does create some obfuscation when exchange of funds and bitcoins are done within exchange. Althou it is totally centralized and there are real risks of thefts (gox?) and information leaks.

What I'm saying is that we can't really see what each player are doing inside exchange from blockchain point of view. Teleport however utilizes decentralized exchange (instadex) that hides transactions between sender and receiver. When comparing to centralized exchange outsiders can't even see that company has sent or received bitcoins from exchange. They can only see balance increasing or decreasing.

Can someone correct if I misunderstood something.

edit: James was faster again Sad

Actually there is a lot of difficulty to even know who controls a telepod. Of course when it is first created, the creator is known. Unless it is created by withdrawing directly from an offshore exchange or mixing service. Let us assume it is known that you created a telepod.

Now, especially in a big company where trusted teleports can be used, what division has the telepod after a week and ZERO cloning events on the blockchain? The finance division funds the telepods using the publicly known address. Now telepods scatter internally throughout the company (not using instantDEX, just using the privacy servers built into BTCD core). Or is it all in the control of the super secret R+D group, or was it used to pay a vendor who trusts the company, at least until the end of the month when they tally up the accounts receivable, or did the CFO lose it all in a poker game?

There is really no way to know where telepods transfered via trusted teleports are and even the normal teleports that are cloned, who did the cloning? In fact, which cloning is linked to wiley coyote's original set of telepods? Assuming there are hundreds of other companies/people teleporting at the same time, it all gets mixed up and being a company they can take a week to transfer the amount so one weeks worth of clonings provides the anon set for the company's funds.

No govt agency, no private detective agency, or bribery will be able to trace back the telepods if they cannot even tell who is controlling the telepod! Assuming the telepods were transmitted using M of N multisend, then even an attacker with enormous Internet packet monitoring abilities will just get a close to random noise chance of guessing where the funds were sent.

So, while using human weaknesses like bribery could chip away at the privacy, realistically the amount of effort has gone up by orders of magnitude, you might as well try to mine BTC on your PC. Unlike ring signatures whose anon set is set to around 10 and is already causing large blockchain bloat, Teleport anon set grows as the usage grows. Without limit. If

James

P.S. Oh, and all this privacy will only require some minimal deposit of BTCD that is staking. Not sure what the objection is once the risk of software bugs is eliminated.