Here's that explanation:
WTF so the only thing I can see is Alty sends the coin to POSA #1 node, the POSA#1 node sends the coin to Joe and then Joe finds a Posa #2 node...then the Posa #2 sends the coin BACK to Joe???
what the hell is the point of that and how is it anonymous?
We're going to make another diagram to explain this better with visuals. The key is things are being sent to temporary addresses. I'll come up with something better soon.
Think of it like this.
You -> PosA Node #1 -> Receiver (temp address) -> PoSA Node #2 -> Actual Receiver Address
PoSa Node #1 and #2 knows its safe to send to the Receiver temp address because of block escrow, a new transaction in the blockchain that is verified by all peers just like how normal transactions are.
It's ANON because PoSA Node #2 uses different 'cloak' then what he received to send money to you breaking the trace.
You could think of it like this.
Bob has $50, wants to send $50 to alice. All his dollars are tainted with the letter B. If you send the money to alice you can see the B's and you know it's from Bob.
If the money from PoSA Node#2 came from someone else (different traces) and was sent to the receiver it's Anon. Essentially Alice see's money with different letters on it, say C or something.
This is what is happening in the final steps, this does require that the PoSA Nodes actually have the money to send so balance checks would be in place.
I asked in the thread, but was completely ignored....
1. I asked.... How can the #1 rich list address send out anon coins? For that matter... How can the top 10 easily send out anon coins? If it's one transaction, I don't think it's that hard to trace who sent to who especially if you are the large address?
2. Another question is are all the coins sent out as one transaction? So, if I send out some really unique coins amount, isn't it easy to trace? Say 50.12345678... You will see someone send out that exact amount and someone else receiving that exact amount within 10 blocks (# of escrow blocks).
