No that's clear.. if it leaves liquid, of course it's not confidential anymore.. it needs to be settled on chain after all... the question is... is it possible in any way to trace back from the receiv...
The thing I can't stress enough is that only amounts are hidden. It is trivial to see sender and receiver in Liquid so can easily be traced in and followed the whole way out. Waiting and breaking it up does nothing to help this. It has the exact same traceability as doing a normal Bitcoin transaction.
You need to do one of the following:
1) Coinjoin/Whirlpool (Alice sent to either Bob, Charlie, or Dave)
2) Ring signatures + stealth addresses (Maybe Alice sent to [?])
3) Full ZKPs ([?] sent to [?])
These are the only things that would help resist or eliminate tracing. Liquid does none of this.
All someone has to do is follow your first transaction in, follow the multiple branches going thru and out of Liquid, add up the amounts that left and know you are extremely likely the same person.
You need to do one of the following:
1) Coinjoin/Whirlpool (Alice sent to either Bob, Charlie, or Dave)
2) Ring signatures + stealth addresses (Maybe Alice sent to [?])
3) Full ZKPs ([?] sent to [?])
These are the only things that would help resist or eliminate tracing. Liquid does none of this.
All someone has to do is follow your first transaction in, follow the multiple branches going thru and out of Liquid, add up the amounts that left and know you are extremely likely the same person.
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