I was curious if we could get any more information about off-the-chain anonymous transactions?
If you would want to send a transaction off-the-chain, wouldn't that mean that you'd already have to have the coins in some storage held by a third party? That is, if I want to send 100 coins from my wallet to account X off-the-chain, then the public ledger would still have me as the owner of those 100 coins, and therefore, I could doublespend my coins. However, if my coins were not held in my wallet, but in a third party storage, then they would be accountable for validating this transaction without the blockchain.
Is the above thinking correct or is there another way to allow off-the-chain transactions?
Sorry it seems maybe there's some confusion as to how this works so let me try to clear it up a bit. I demonstrated it on the testnet in the youtube video which should give a pretty clear picture as to what I meant if you'd like to check it out
https://www.youtube.com/watch?v=Laq55dRPEKILet's use this example address we'll call NnJ13PNQaaSnPkxNlP3Ah3Aj34A You send 100 NEOS to it using the standard send. You visit the block explorer or look up the transaction on the block chain and you see that 100 NEOS was sent to NnJ13PNQaaSnPkxNlP3Ah3Aj34A. Now if you wanted to send another 100 but not show that you sent 100 to NnJ13PNQaaSnPkxNlP3Ah3Aj34A, you use Arbitrush. The coins are sent through the farm, then sent back out to the intended recipient, however on the block chain there's no record of you sending 200 coins to NnJ13PNQaaSnPkxNlP3Ah3Aj34A. NnJ13PNQaaSnPkxNlP3Ah3Aj34A might have 200 coins now, but as far as the block chain is concerned only 100 of those came from you.
It's not opening up a double-spend vulnerability because it's all technically kept on the block chain, but you, the sender are only accounted for as sending 100 to NnJ13PNQaaSnPkxNlP3Ah3Aj34A. The rest came from a random address from the farm.
I hope that cleared it up for you but if not please feel free to let me know where any confusion might be.
Best regards,
syntaks