NIX Ghost Vault is the first privacy feature based on the Ghost Protocol that makes user’s coins completely private from the chain. The procedure for ghosting NIX is simple and can be performed at any time, so users can transfer NIX from the wallet to the vault and send them to a new location leaving no traces. This feature needs to be used with caution as it is experimental although being successfully heavily tested in testnet.
Ghost Vault privacy storage is only available for NIX, fundamentally representing a location where users can send their coins to in order to keep them stored privately on the chain and to enable sending them privately as well; the longer those coins are held in the vault, the more private they become. The vault was activated at block 53.000, along with NIX PoS upgrade.
The procedure of Ghosting NIX goes as it follows: NIX Coins go through the Ghost Protocol process, in which the original coins are minted into Zercoins. They are progressively allocated into an accumulator with every other user’s minted coins, so what is of public knowledge is the number of zerocoins there are minted into the accumulator, and since this vault holds every user minted coins, none of them can be tied to a single wallet. Once the user decides to send coins from the Ghost Vault to another location, the Ghost Protocol is applied one last time, making sure no traces are left behind in order to guarantee a completely anonymous transaction.