by Andrew Poelstra, Adam Back, Mark Friedenbach, Gregory Maxwell, and Pieter Wuille | April 2017
The authors address the issue of privacy loss in Bitcoin and suggest a way of blinding asset tags so that no relationship between output asset types can be inferred. The paper includes an appendix with mathematical proofs of the theorems outlined.
Up to now, we have considered a single asset (for example Bitcoin) and transactions which move this asset from one holder to another. Consider an extension of this scheme which supports multiple non-interchangeable asset types (for example, BTC and a USD proxy) within single transactions. This increases the value of the chain by allowing it to serve more users, and also enables new functionality, such as atomic trades of different assets.