Designed to offer privacy while retaining income transparency (no tax avoidance). A payment system for existing currencies.
Customers send money to exchange with public key and receive signed public key in exchange as a “coin”. Can then sign transaction to a merchant with the coin. Merchant then submits transaction to the exchange to receive real money.
We use blind signatures such that the customer can send an encrypted message to the exchange, which can then be signed, and then decrypted by the consumer in such a way that the signature is preserved. This way the signature can be verified later without the exchange knowing which customer generated the coin. This uses a cut-and-choose scheme to ensure that the customer cannot lie about the value of the coin they get signed.