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Did you get a chance to see @1440000bytes (floppy disk guy)'s post about privacy in Ark?
We are aware of ways to make the inherent client-server interactions more privacy-preserving. They are hard to build without covenants, so they aren't very relevant currently.
With covenants it would be possible to make the round protocol more privacy-preserving so that the server cannot link the inputs with the outputs. We came up with a way to do it without covenants as well, but it comes with some extra work required for all users during all rounds, which can add latency to the already fragile interactive process.
With covenants it would be possible to make the round protocol more privacy-preserving so that the server cannot link the inputs with the outputs.
It's already possible to do this without covenants. For example, Wasabi's coinjoin coordinators cannot link the inputs with the outputs.
We came up with a way to do it without covenants as well, but it comes with some extra work required for all users during all rounds, which can add latency to the already fragile interactive process.
I'm already aware of how you could add privacy to Ark right now without using covenants, my question was "How would covenants make adding privacy to Ark easier?"
Spark publishes all activity that happens in side their Spark server. We think that is a terrible decision.
Our server doesn't publish any more data than it strictly has to. We only share VTXO-specific information with the owners of the VTXOs.
We run our server similarly to how privacy-aware VPNs run their servers: we keep only the data we have to keep for the protocol to function and try to remove data as soon as we can reasonably do that.
We will obviously have to comply with law enforcement whenever that is relevant, but being proactive in not keeping data we don't need is best we can do there.