What is CashFusion?

CashFusion is an innovative privacy protocol for Bitcoin Cash that introduces a decentralized approach to CoinJoin. Unlike traditional CoinJoin protocols, which require equal amounts for mixing, CashFusion accommodates outputs of varying sizes. By leveraging principles from Combinatorics, CashFusion significantly increases the number of potential configurations after a mixing transaction, enhancing security by making it challenging for malicious actors to trace the origin of funds.

Endorsed by a security audit conducted by Kudelski Security, CashFusion is designed to offer a secure and effective solution for financial obfuscation. The protocol takes advantage of Bitcoin Cash's low transaction fees, enabling continuous mixing and remixing of a user's entire wallet balance at minimal costs. This practice results in an impenetrable anonymity set, providing users with heightened privacy and peace of mind.

CashFusion operates as a fully decentralized privacy protocol, allowing users to create multi-party transactions with other network participants. This process obscures real spending and complicates the tracking of coins by chain-analysis companies. It is intended for confidential business purchases, personal privacy, and increasing overall coin fungibility.

Unlike traditional coin mixing services, CashFusion eliminates the need for users to trust a central service and avoids additional fees. Additionally, the protocol does not pose a risk of lost funds.

CashFusion does not claim to offer the same level of privacy as coins like Monero but aims to provide a practical and user-friendly privacy tool within the Bitcoin Cash ecosystem. The protocol can be used in conjunction with additional privacy tools, contributing to an evolving application layer for Bitcoin Cash focused on improving privacy and fungibility.

The protocol's security features include protection against potential theft by servers, support for Tor to hide user IP addresses, and a recommendation for users to spend fewer coins together for better privacy. CashFusion employs a client-server model where servers coordinate user participation, but the developers do not run fusion servers. In the future, the community may encouraged to run more CashFusion servers, but initially, fewer but more reliable servers are preferred to prevent users from being spread too thin.

CashFusion challenges the common assumption that CoinJoins require equal amounts for privacy. While traditional mixing solutions like ZeroLink and Whirlpool limit mixing to equal amounts, CashFusion aims to provide privacy through CoinJoins without this restriction. The protocol's approach involves creating more inputs and outputs in a CoinJoin transaction, making it harder for blockchain analysts to trace the original configuration. Additionally, CashFusion includes a feature allowing users to chop up outputs into smaller chunks, further enhancing privacy.

Select CashFusion statistics are available here.

CashFusion is currently available for use with Electron Cash and Stack Wallet.