Found some good read ups to the Dust Attack:
https://bitcointalksearch.org/topic/bitcoin-dust-5269771https://bitcoin.stackexchange.com/questions/193/how-do-i-see-the-ip-address-of-a-bitcoin-transaction#:~:text=The%20blockchain%20doesn't%20store,down%20by%20some%20other%20means.&text=The%20Bitcoin%20protocol%20does%20not%20record%20this%20information%20by%20itself.
And most important is BIP 78
https://github.com/bitcoin/bips/blob/master/bip-0078.mediawikiMotivation
When two parties (later referred to as sender and receiver) want to transact, most of the time, the sender creates a transaction spending their own Unspent Transaction Outputs (UTXOs), signs it and broadcasts it on the network.
This simple model gave birth to several heuristics impacting the privacy of the parties and of the network as a whole.
Common input ownership heuristic: In most transactions, all the inputs belong to the same party.
Change identification from scriptPubKey type: If all inputs are spending UTXOs of a certain scriptPubKey type, then the change output is likely to have the same scriptPubKey type, too.
Change identification from round amount: If an output in the transaction has a round amount, it is likely an output belonging to the receiver.
We will designate these three heuristics as common-input, change-scriptpubkey, change-round-amount.
The problems we aim to solve are:
For the receiver, there is a missed opportunity to consolidate their own UTXOs or making payment in the sender's transaction.
For the sender, there are privacy leaks regarding their wallet that happen when someone applies the heuristics detailed above to their transaction.
Our proposal gives an opportunity for the receiver to consolidate their UTXOs while also batching their own payments, without creating a new transaction. (Saving fees in the process) For the sender, it allows them to invalidate the three heuristics above. With the receiver's involvement, the heuristics can even be poisoned. (ie, using the heuristics to intentionally mislead blockchain analysis)
Note that the existence of this proposal is also improving the privacy of parties who are not using it by making the three heuristics unreliable to the network as a whole.
