Introducing CashFusion for eCash, a powerful and simple-to-use privacy protocol. CashFusion is now accessible as an opt-in privacy feature built directly into the Electrum ABC wallet, allowing users to obfuscate the origin and destination of their eCash $XEC transactions.
What is CashFusion and How Does it Work?
CashFusion is a non-custodial privacy protocol. Unlike coin mixing services that directly swap coins, CashFusion works by shuffling multiple #eCash coins together. A simple analogy would go like this: Imagine a group of people coming together to put their eCash coins into a large, anonymized pool to mix them up. Then, everyone takes out their share of coins again, obfuscating their coin’s traces in the process. This is a fully non-custodial way to achieve pretty good privacy on top of a transparent blockchain. Due to eCash’s sub-cent fee environment, this solution is also super feasible, enough for multiple rounds of fusing!
Here's how CashFusion achieves transaction privacy in more detail:
Combining Inputs and Outputs: CashFusion automatically creates transactions with other users. These transactions combine all participants' XEC inputs and outputs, effectively breaking the link between where the funds came from and where they are going.Jumbo-Sized Shuffling: CashFusion shuffles these combined XEC transactions, but with a twist. Instead of individual transactions, it creates massive, "jumbo-sized" transactions that encompass all the participants' inputs and outputs. This significantly increases the number of possible combinations within the shuffled transaction.Breaking the Trace: Due to the astronomical number of possible input/output combinations within these large XEC transactions, it becomes essentially impossible for anyone to track which specific inputs originated from your wallet and which outputs were sent back to you. This effectively disrupts the chain of information and obscures the flow of funds.Tor Network Integration: An extra layer of anonymity comes from CashFusion's use of the Tor network. Tor anonymizes communication between users by hiding their IP addresses. This prevents the server from potentially linking transaction components based on IP information, further enhancing user privacy.
Once your coins have been through one or more Fusion transactions, they are considered "fused" and can be freely spent without the privacy concerns associated with a transparent blockchain. Note that the transaction will still be publicly visible, but it’ll be virtually impossible to trace it back to your wallet.
CashFusion Use-cases
CashFusion gives users control over their privacy. They can choose when to use it for enhanced confidentiality. For example, if someone is paid in XEC and then goes to make a retail purchase, they may not want the retailer to be able to see their salary payments. CashFusion helps to obfuscate this link to their private wallet address. Similarly, businesses using eCash for payments can benefit from CashFusion, as it can help prevent competitors from easily seeing all of their transactions with suppliers and customers.
How to Use CashFusion for XEC coins?
Currently, CashFusion is available for use with the Electrum ABC and StackWallet (3rd-party) eCash wallets. We expect compatibility to expand to more wallets in the future. To fuse your XEC coins, simply follow the instructions below.

Step #1: Download the Electrum ABC eCash wallet for your Windows, MacOS, or Linux operating system.

Step #2: Click the CashFusion icon in the lower right corner to activate it. If prompted to download Tor, click ‘Yes’ to download and install Tor. Now CashFusion works silently in the background. To ensure maximum privacy for all your transactions, it's recommended to keep your wallet open until your coins are fused. You can also use Electrum ABC with CashFusion on daemon mode, making it convenient to leave it “always on”, and easy to run on a remote server.

Step #3: After going through CashFusion, your coins are ready to spend whenever you need them. To retain your privacy, activate the checkmark on “spend only fused coins”.
CashFusion and a More Private eCash
CashFusion now has stable liquidity and regular fusions taking place, fulfilling a key milestone in the eCash Usability Roadmap. The protocol’s innovative technology offers a valuable layer of anonymity, benefiting both business owners seeking to shield financial activities and individuals prioritizing transaction privacy. We're excited to see how CashFusion strengthens the eCash ecosystem.
The Future of Privacy on eCash: Zero-Knowledge Subnet
Privacy is fundamental to sound money, and eCash’s commitment to user privacy extends beyond CashFusion. Part of the eCash roadmap is to develop a Zero-Knowledge Subnet (ZK-Subnet). This cutting-edge technology will offer users optional, bulletproof privacy on par with top privacy coins. With a ZK-Subnet, users can flexibly choose the level of privacy that best suits their needs. Pushing fully anonymous ZK transactions on an optional subnet also keeps the base protocol fully compliant, as a publicly transparent blockchain.
This tiered approach provides a comprehensive privacy solution for eCash. CashFusion offers a convenient and accessible option for everyday use, while a future ZK-Subnet caters to those requiring the strongest possible anonymity. This combination empowers users and positions eCash as a leader in user-centric privacy features within the cryptocurrency landscape.
Originally Published: https://e.cash/blog/opt-in-privacy-a-cash-fusion-guide-for-ecash