How are Monero privacy features different from coin shuffling used in nxt/ardor? https://nxtwiki.org/wiki/Coin_Shuffling
CoinShuffle is a form of decentralized mixing. For simplicity's sake, you can consider it similar to CoinJoin. You can read the academic paper on CoinShuffle here.
A mixing approach has significant shortfalls compared to Monero's ring signature scheme:
- Users must communicate with each other. With Monero, you can include other users' outputs in your ring signature without any active communication.
- You must wait for these mixing transactions to be completed. This may take a while for a large number of funds.
- It is voluntary, so the entropy set of people participating in CoinShuffle is small. With Monero, every transaction contributes to the entropy set.
- Transacted amounts are still visible. With Monero, transaction amounts are hidden.