Why would ppl move from eth to xmr?
I think if anything, it would be the other way around. Ethereum has essentially cloned Monero at this point.
Ring signature mixer part of the test.py script now includes creating an instance of a ring signature verification contract which is designed as a mixer: five users send their public keys in alongside a deposit of 0.1 ETH, and then withdraw the 0.1 ETH specifying the address with a linkable ring signature, simultaneously guaranteeing that (i) everyone who deposited 0.1 ETH will be able to withdraw 0.1 ETH exactly once, and (ii) its impossible to tell which withdrawal corresponds to which deposit. This is implemented in a way that is compliant with the gas checker, providing the key advantage that the transaction withdrawing the 0.1 ETH does not need to be sent from an additional account that pays gas (something which a ring signature implementation on top of the current ethereum would need to do, and which causes a potential privacy leak at the time that you transfer the ETH to that account to pay for the gas); instead, the withdrawal transaction can simply be sent in by itself, and the gas checker algorithm can verify that the signature is correct and that the mixer will pay the miner a fee if the withdrawal transaction gets included into a block.
https://github.com/ethereum/pyethereum/blob/serenity/ethereum/ringsig.se.pyBasic stages of course, but concept is solid nonetheless.
I envision that over time, the difficulty to unearth an anonymized transaction will become greater for a ring-sig dApp than a cryptonote running on it's own seperate blockchain, and it shall make more sense for users to run dAPPS instead.. for several reasons:
1) Hashrate securing cryptonote chains is dwindling, whilst ETH is increasing,
2) tx volume on cryptonote chains are dwindling, whilst ETH looks set to rise, various monetization facets of the chain means there should be constant demand for gas-consuming contracts . Legitimization of ETH is a good thing. Holding ETH is not inherently standout, whilst holding a coin dedicated to private transactions. is more 'suspicious'. It might be sad that things are this way, but that's a reality.. with XMR, BBR etc you are actually have quite a small circle of users. If ETH gets more traction your ring sig swap might be a drop in the oceon
3) If/when the introduction of p2p decentralized ETH exchanges takes off, like etherex the risk of co-opting a centralised exchange becomes lower. This is a major weakness for Monero, boolberry et al right now, who have a more or less single point of failure from US based exchange subject to the whims of regulators and agencies there
tl;dr
if ETH continues to gain mindshare and implements a working ring-sig dAPP on Serenity, the need for a seperate cryptonote coin (and seperate mining securitization) becomes less pronounced
This is especially important if BTC begins to lose ground to ETH, in which case the ability to both hold and mix the same token directly through a dAPP is much more sensible than what is happening now, sending btc to poloniex to trade for xmr and being exposed to extra pricing fluctuations
