Sender submits a transaction which goes to a relayer which in turn submits it to a smart contract. The relayer is chosen in a completely decentralized manner through staking of $SPIN tokens. Sender receives a random key note and a hash of the key note is submitted to the smart contract.
After submission, the withdrawer should wait for sometime for greater anonymity and assimilation into a crowd of transactions.
The receiver submits the Key note to the smart contract which matches it to the hash and then sends ADA or other Cardano native tokens to the specified address after authentication.
Now Anonymous transactions will be possible on Cardano blockchain. SpinADA breaks the on-chain link between senders and receivers of Cardano native tokens on the blockchain. This gives complete privacy and security in a completely decentralized manner.
It uses a Zero Knowledge proof protocol known as zk-SNARK , developed by the good fellows at Zcash, to ensure secure anonymous transactions of Cardano assets on the blockchain. It uses a Smart contract which accepts Cardano tokens and then allows anyone with a proof of knowledge to withdraw those tokens through the use of Cryptographic key notes.
When a sender submits a transaction, he receives a Key Note and a corresponding hash is received by the Smart contract. When a withdrawer furnishes the right Key note, it is matched with the hash to output the corresponding submitted tokens.
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