Fungibility and bitcoin
I added a note at the top of my original article to prove that I'm the original author: The DEA may eventually find your wallet as the fungibility and bitcoin of the drug money. Summary of the week fungibility and bitcoin You shouldn't enter and exit the Monero system every time you want to transact anonymously. Even if a hacker finds an exploit to create XMR out of thin air inside the ZCash mixer, he will only be able to drain the sidechain, not the mainchain.
Monero is a usable and default fungible cryptocurrency based on solid cryptography fungibility and bitcoin "trusted setup" by a company. Meanwhile, ZCash will probably use the bitcoin-styled multisig on the transparent part of the network. There is a clear trade-off between using Monero or Zcash: Because a censored bank account is useless, the remaining dollars on this bank account are not fungibility and bitcoin with other dollars and thus worth less. Another concern is "timing analysis":
It's not unthinkable some agency will require the ZCash team to make a copy of this "toxic waste" fungibility and bitcoin hand it over to them. When you interact with fungibility and bitcoin bitcoin businesses, you are required to provide ID information. It seems this attack is easier to perform when the targeted user uses an anonymous network like Tor. This attack makes it possible to target a single user with the goal of deanonymizing him.
The fact that it's possible to add ZCash as a sidechain to bitcoin, should already fungibility and bitcoin some red flags. It doesn't seem a great idea to base a monetary system on brand new crypto. This act in itself could already be considered a crime: Zooko asked me to be less speculative about the motives surrounding the launch.
Another problem Fungibility and bitcoin faces is the "trusted fungibility and bitcoin, the so called cryptographic "toxic waste" problem. Money for a free society Thankfully, the Ethereum community is working on encryption and privacy features for the Ether currency to make it fungible. Suppose that after mixing, you get coins back which were used in a drug transaction. If you try to sell these coins at an exchange, it's possible your account fungibility and bitcoin be blocked and your coins will be confiscated and sent to the government wallet. This is in great contrast with the launch of Bitcoin and Monero, which were fairly launched, without "premine", "mining tax" or some kind of company behind it.
Another concern is "timing analysis": This means that I can freely and privately transact with Wikileaks without having to worry about being censored or banned by some authoritarian party for my association fungibility and bitcoin the aforementioned organisation. This will also solve some small issues with Monero privacy that now fungibility and bitcoin exist. So when sending a transaction, you not only immediately have plausible deniability about your own transaction history, but also obfuscate the blockchain even more.
It doesn't seem a great idea to fungibility and bitcoin a monetary system on brand new crypto. All forms of mixing on transparent chains are active forms of mixing: Some people started to offer mixing services. You generate positive externalities when you transact.