Replying to Avatar waxwing

Very clear presentation from Vorick on why partial anonymity sets are problematic in privacy cryptocurrencies:

https://youtu.be/yq_cOVHr8Pg

An interesting nuance is that the suggested solution actually substantially worsens the big flaw with these systems: the unprunable state gets even larger.

The suggested solution where everyone consistently churns isn't a real solution. The fewer people use KYC'd services, the less powerful on chain analytics become.

Compared to Bitcoin's privacy model and the state of Bitcoin's privacy, this "doom" scenario is hyperbole. Amounts are still hidden. Receiver privacy is still fairly strong.

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'Compared to bitcoin's privacy it's hyperbole' - but he wasn't doing that. He was comparing it to zcash, or any system with full anon set.