On Tue, 24 Oct 1995, Name Withheld by Request wrote:
The <--(blinding)--- payer <--(blinding)--- payee Bank --(unblinding)-> payer --(unblinding)-> payee --> payee spends money
The payee generates some digital coins, blinds them, and sends them to the payer. The payer then makes a withdrawl from his bank account, blinds the coins again (or not, it really doesn't matter) and sends them to the bank.
If the payer doesn't add a blinding factor, then the only blinding factor is the one known to the payee. The payee could reveal this blinding factor to the bank, destroying the payer's anonymity. Right?
The bank signs them, and returns them to the payer. The payer removes his blinding (if any) and sends them to the payee. The payee unblinds the coins and spends them at his leisure. Privacy for all involved.
David R. Conrad, conrad@detroit.freenet.org, http://www.grfn.org/~conrad Hardware & Software Committee -- Finger conrad@grfn.org for public key Key fingerprint = 33 12 BC 77 48 81 99 A5 D8 9C 43 16 3C 37 0B 50 No, his mind is not for rent to any god or government.