1) Is the mixing tx "instant"? How long will it take for the mixing tx according to block time, 1 block, 2 block, 3 block, or 10 blocks, 100 blocks? What I mean is the "mixing process", not the confirmation time.
2) If I want to pay a merchant and want to send the coins via xnode "mixing" service, can I show and verify my tx to the merchant? If my understanding is right, the tx input to the merchant is not my address.
3) As a middleman, if some illegal tx, for example, drug service, is transferred through my wallet, so I'm so risky to open the xnode.
I think I haven't understand xnode logic, so please correct me about the above questions.
Thank you.
I have no idea about #1 obviously so I'll just comment on the other two points from my perspective.
If you are dealing with a 'merchant' who is going to require confirmation of payment - or who you are concerned with defrauding you based on claims of non-payment - then you will most likely be wanting to avoid anonymous payments under any circumstances. However, despite the fact that it would largely invalidate the 'anonymous' aspect - you could add signed message with a previously agreed upon 'identifier' to prove it was you to the recipient.
Again - the real-world cases where you don't want anyone to know who you sent money to, but you want to be able to prove the fact that you sent money to them... it's pretty much a catch-22.
As far as #3, unless you are also being a middle-man for the
drugs themselves (mule) - you are doing nothing different than the routers and switches at all the ISPs along the route between nodes that the data is travelling - with no logged information identifying the parties on either end, and no way of being able to 'read' the purpose of the payment, I can see no legal precedence for prosecution.
Were all Bitcoin wallets responsible for Silkroad? They were essentially providing proof of payment for those transactions after all... which is all you would really be doing as an xnode.