Investor sicher: Bitcoin wird bis zum Jahresende um 230% ...

I was a guest on Blocktime YouTube show/podcast. Discussed a lot (Bitcoin Cash, BIP-91, etc), and talked about Monero specifically for last 30-35 minutes.

I was a guest on Blocktime YouTube show/podcast. Discussed a lot (Bitcoin Cash, BIP-91, etc), and talked about Monero specifically for last 30-35 minutes. submitted by bigreddmachine to Monero [link] [comments]

Segwit Reaches 80% of the Bitcoin Hashrate as Activation Looms - $30 Million: Ether Reported Stolen Due to Parity Wallet Breach - Billionaire Investor Tucks Away 1% of Net worth in Bitcoin - Peter Todd: Wait For 6 Confirmations After BIP 91 Activates

submitted by cryptocompare to cryptocompare [link] [comments]

11-20 17:42 - '[quote] Wrong, but if you look at github you can see that there arent more than 30 people who committed any significant amount last year. And if you look further at the agenda ( which BIPs/which stuff get approved), you...' by /u/prinzhanswurst removed from /r/Bitcoin within 73-78min

'''
So in your world 7 / 93 == most ?
Wrong, but if you look at github you can see that there arent more than 30 people who committed any significant amount last year. And if you look further at the agenda ( which BIPs/which stuff get approved), you can clearly see that its mostly going forward to LN, which ultimately benefits blockstream.
'''
Context Link
Go1dfish undelete link
unreddit undelete link
Author: prinzhanswurst
submitted by removalbot to removalbot [link] [comments]

BIP status updates & BIP 2 activation | Luke Dashjr | Nov 30 2016 /r/bitcoin_devlist

BIP status updates & BIP 2 activation | Luke Dashjr | Nov 30 2016 /bitcoin_devlist submitted by BitcoinAllBot to BitcoinAll [link] [comments]

BIP numbers | Marco Pontello | Dec 30 2015 /r/bitcoin_devlist

BIP numbers | Marco Pontello | Dec 30 2015 /bitcoin_devlist submitted by BitcoinAllBot to BitcoinAll [link] [comments]

RFC: HD Bitmessage address derivation based on BIP-43 | Justus Ranvier | Jun 30 2015 /r/bitcoin_devlist

RFC: HD Bitmessage address derivation based on BIP-43 | Justus Ranvier | Jun 30 2015 /bitcoin_devlist submitted by BitcoinAllBot to BitcoinAll [link] [comments]

[BIP Draft] Datastream compression of Blocks and Transactions | Peter Tschipper | Nov 30 2015 /r/bitcoin_devlist

[BIP Draft] Datastream compression of Blocks and Transactions | Peter Tschipper | Nov 30 2015 /bitcoin_devlist submitted by BitcoinAllBot to BitcoinAll [link] [comments]

[META] Mailing list etiquette Re: BIPS proposal for implementing AML-KYC in bitcoin | jl2012 at xbt.hk | Aug 30 2015

jl2012 at xbt.hk on Aug 30 2015:
Sorry to be off-topic but SNR of the mailing list is really getting
ridiculous.
Stop trolling and feeding the trolls.
Before you click "send", remember that your message will be sent to the
inbox of hundreds or thousands of people.
Ref:
http://lists.linuxfoundation.org/pipermail/bitcoin-dev/2015-August/010463.html
Vinyas via bitcoin-dev 於 2015-08-30 11:16 寫到:
No No
On Aug 30, 2015, at 14:47, s7r via bitcoin-dev
<bitcoin-dev at lists.linuxfoundation.org> wrote:
-----BEGIN PGP SIGNED MESSAGE-----
Hash: SHA256
2256 x NO
original: http://lists.linuxfoundation.org/pipermail/bitcoin-dev/2015-August/010754.html
submitted by bitcoin-devlist-bot to bitcoin_devlist [link] [comments]

[BIP Draft] Decentralized Improvement Proposals | Tomas | Dec 30 2015 /r/bitcoin_devlist

[BIP Draft] Decentralized Improvement Proposals | Tomas | Dec 30 2015 /bitcoin_devlist submitted by BitcoinAllBot to BitcoinAll [link] [comments]

[META] Mailing list etiquette Re: BIPS proposal for implementing AML-KYC in bitcoin | jl2012 at xbt.hk | Aug 30 2015 /r/bitcoin_devlist

[META] Mailing list etiquette Re: BIPS proposal for implementing AML-KYC in bitcoin | jl2012 at xbt.hk | Aug 30 2015 /bitcoin_devlist submitted by coincrazyy to BitcoinAll [link] [comments]

The Privacy Coin Guide Part 1

As interest picks up in crypto again, I want to share this post I made on privacy coins again to just give the basics of their evolution. This is only part 1, and parts 2 and 3 are not available in this format, but this part is informative and basic.
If you’re looking for a quick and easy way to assess what the best privacy coin in the current space is, which has the best features, or which is most likely to give high returns, then this is not that guide. My goal is to give you the power to make your own decisions, to clearly state my biases, and educate. I really wanted to understand this niche of the crypto-space due to my background and current loyalties[1], and grasp the nuances of the features, origins and timelines of technologies used in privacy coins, while not being anything close to a developer myself. This is going to be a 3-part series, starting with an overview and basic review of the technology, then looking at its implications, and ending with why I like a specific project. It might be mildly interesting or delightfully educational. Cryptocurrencies are young and existing privacy coins are deploying technology that is a work in progress. This series assumes a basic understanding of how blockchains work, specifically as used in cryptocurrencies. If you don’t have that understanding, might I suggest that you get it? [2],[3],[4] Because cryptocurrencies have a long way to go before reaching their end-game: when the world relies on the technology without understanding it. So, shall we do a deep dive into the privacy coin space?

FIRST THERE WAS BITCOIN

Cryptocurrencies allow you to tokenize value and track its exchange between hands over time, with transaction information verified by a distributed network of users. The most famous version of a cryptocurrency in use is Bitcoin, defined as peer-to-peer electronic cash. [5] Posted anonymously in 2008, the whitepaper seemed to be in direct response to the global financial meltdown and public distrust of the conventional banking and financing systems. Although cryptographic techniques are used in Bitcoin to ensure that (i) only the owner of a specific wallet has the authority to spend funds from that wallet, (ii) the public address is linked but cannot be traced by a third party to the private address (iii) the information is stored via cryptographic hashing in a merkle tree structure to ensure data integrity, the actual transaction information is publicly visible on the blockchain and can be traced back to the individual through chain analysis.[6] This has raised fears of possible financial censorship or the metaphorical tainting of money due to its origination point, as demonstrated in the Silk Road marketplace disaster.[7] This can happen because fiat money is usually exchanged for cryptocurrency at some point, as crypto-enthusiasts are born in the real world and inevitably cash out. There are already chain analysis firms and software that are increasingly efficient at tracking transactions on the Bitcoin blockchain.[8] This lack of privacy is one of the limitations of Bitcoin that has resulted in the creation of altcoins that experiment with the different features a cryptocurrency can have. Privacy coins are figuring out how to introduce privacy in addition to the payment network. The goal is to make the cryptocurrency fungible, each unit able to be exchanged for equal value without knowledge of its transaction history – like cash, while being publicly verifiable on a decentralized network. In other words, anyone can add the math up without being able to see the full details. Some privacy solutions and protocols have popped up as a result:

CRYPTONOTE – RING SIGNATURES AND STEALTH ADDRESSES

Used in: Monero and Particl as its successor RING-CT, Bytecoin
In December 2012, CryptoNote introduced the use of ring signatures and stealth addresses (along with other notable features such as its own codebase) to improve cryptocurrency privacy.[9] An updated CryptoNote version 2 came in October 2013 [10](though there is some dispute over this timeline [11]), also authored under the name Nicolas van Saberhagen. Ring signatures hide sender information by having the sender sign a transaction using a signature that could belong to multiple users. This makes a transaction untraceable. Stealth addresses allow a receiver to give a single address which generates a different public address for funds to be received at each time funds are sent to it. That makes a transaction unlinkable. In terms of privacy, CryptoNote gave us a protocol for untraceable and unlinkable transactions. The first implementation of CryptoNote technology was Bytecoin in March 2014 (timeline disputed [12]), which spawned many children (forks) in subsequent years, a notable example being Monero, based on CryptoNote v2 in April 2014.
RING SIGNATURES and STEALTH ADDRESSES

PROS

– Provides sender and receiver privacy
– Privacy can be default
– Mature technology
– Greater scalability with bulletproofs
– Does not require any third-party

CONS

– Privacy not very effective without high volume
-Does not hide transaction information if not combined with another protocol.

COINJOIN

Used in: Dash
Bitcoin developer Gregory Maxwell proposed a set of solutions to bring privacy to Bitcoin and cryptocurrencies, the first being CoinJoin (January 28 – Aug 22, 2013).[13],[14] CoinJoin (sometimes called CoinSwap) allows multiple users to combine their transactions into a single transaction, by receiving inputs from multiple users, and then sending their outputs to the multiple users, irrespective of who in the group the inputs came from. So, the receiver will get whatever output amount they were supposed to, but it cannot be directly traced to its origination input. Similar proposals include Coinshuffle in 2014 and Tumblebit in 2016, building on CoinJoin but not terribly popular [15],[16]. They fixed the need for a trusted third party to ‘mix’ the transactions. There are CoinJoin implementations that are being actively worked on but are not the most popular privacy solutions of today. A notable coin that uses CoinJoin technology is Dash, launched in January 2014, with masternodes in place of a trusted party.
COINJOIN

PROS

– Provides sender and receiver privacy
– Easy to implement on any cryptocurrency
– Lightweight
– Greater scalability with bulletproofs
– Mature technology

CONS

– Least anonymous privacy solution. Transaction amounts can be calculated
– Even without third-party mixer, depends on wealth centralization of masternodes

ZEROCOIN

Used in: Zcoin, PIVX
In May 2013, the Zerocoin protocol was introduced by John Hopkins University professor Matthew D. Green and his graduate students Ian Miers and Christina Garman.[17] In response to the need for use of a third party to do CoinJoin, the Zerocoin proposal allowed for a coin to be destroyed and remade in order to erase its history whenever it is spent. Zero-knowledge cryptography and zero-knowledge proofs are used to prove that the new coins for spending are being appropriately made. A zero-knowledge proof allows one party to prove to another that they know specific information, without revealing any information about it, other than the fact that they know it. Zerocoin was not accepted by the Bitcoin community as an implementation to be added to Bitcoin, so a new cryptocurrency had to be formed. Zcoin was the first cryptocurrency to implement the Zerocoin protocol in 2016. [18]
ZEROCOIN

PROS

– Provides sender and receiver privacy
– Supply can be audited
– Relatively mature technology
– Does not require a third-party

CONS

– Requires trusted setup (May not be required with Sigma protocol)
– Large proof sizes (not lightweight)
– Does not provide full privacy for transaction amounts

ZEROCASH

Used in: Zcash, Horizen, Komodo, Zclassic, Bitcoin Private
In May 2014, the current successor to the Zerocoin protocol, Zerocash, was created, also by Matthew Green and others (Eli Ben-Sasson, Alessandro Chiesa, Christina Garman, Matthew Green, Ian Miers, Eran Tromer, Madars Virza).[19] It improved upon the Zerocoin concept by taking advantage of zero-knowledge proofs called zk-snarks (zero knowledge succinct non-interactive arguments of knowledge). Unlike Zerocoin, which hid coin origins and payment history, Zerocash was faster, with smaller transaction sizes, and hides transaction information on the sender, receiver and amount. Zcash is the first cryptocurrency to implement the Zerocash protocol in 2016. [20]
ZEROCASH

PROS

– Provides full anonymity. Sender, receiver and amount hidden.
– Privacy can be default?
– Fast due to small proof sizes.
– Payment amount can be optionally disclosed for auditing
– Does not require any third-party

CONS

– Requires trusted setup. (May be improved with zt-starks technology)
– Supply cannot be audited. And coins can potentially be forged without proper implementation.
– Private transactions computationally intensive (improved with Sapling upgrade)

CONFIDENTIAL TRANSACTIONS

Used in: Monero and Particl with Ring Signatures as RING-CT
The next proposal from Maxwell was that of confidential transactions, proposed in June 2015 as part of the Sidechain Elements project from Blockstream, where Maxwell was Chief Technical Officer.[21],[22] It proposed to hide the transaction amount and asset type (e.g. deposits, currencies, shares), so that only the sender and receiver are aware of the amount, unless they choose to make the amount public. It uses homomorphic encryption[23] to encrypt the inputs and outputs by using blinding factors and a kind of ring signature in a commitment scheme, so the amount can be ‘committed’ to, without the amount actually being known. I’m terribly sorry if you now have the urge to go and research exactly what that means. The takeaway is that the transaction amount can be hidden from outsiders while being verifiable.
CONFIDENTIAL TRANSACTIONS

PROS

– Hides transaction amounts
– Privacy can be default
– Mature technology
– Does not require any third-party

CONS

– Only provides transaction amount privacy when used alone

RING-CT

Used in: Monero, Particl
Then came Ring Confidential transactions, proposed by Shen-Noether of Monero Research Labs in October 2015.[24] RingCT combines the use of ring signatures for hiding sender information, with the use of confidential transactions (which also uses ring signatures) for hiding amounts. The proposal described a new type of ring signature, A Multi-layered Linkable Spontaneous Anonymous Group signature which “allows for hidden amounts, origins and destinations of transactions with reasonable efficiency and verifiable, trustless coin generation”.[25] RingCT was implemented in Monero in January 2017 and made mandatory after September 2017.
RING -CONFIDENTIAL TRANSACTIONS

PROS

– Provides full anonymity. Hides transaction amounts and receiver privacy
– Privacy can be default
– Mature technology
– Greater scalability with bulletproofs
– Does not require any third-party

CONS

– Privacy not very effective without high volume

MIMBLEWIMBLE

Used in: Grin
Mimblewimble was proposed in July 2016 by pseudonymous contributor Tom Elvis Jedusorand further developed in October 2016 by Andrew Poelstra.[26],[27] Mimblewimble is a “privacy and fungibility focused cryptocoin transaction structure proposal”.[28] The key words are transaction structure proposal, so the way the blockchain is built is different, in order to accommodate privacy and fungibility features. Mimblewimble uses the concept of Confidential transactions to keep amounts hidden, looks at private keys and transaction information to prove ownership of funds rather than using addresses, and bundles transactions together instead of listing them separately on the blockchain. It also introduces a novel method of pruning the blockchain. Grin is a cryptocurrency in development that is applying Mimblewimble. Mimblewimble is early in development and you can understand it more here [29].
MIMBLEWIMBLE

PROS

– Hides transaction amounts and receiver privacy
– Privacy is on by default
– Lightweight
– No public addresses?

CONS

– Privacy not very effective without high volume
– Sender and receiver must both be online
– Relatively new technology

ZEXE

Fresh off the minds of brilliant cryptographers (Sean Bowe, Alessandro Chiesa, Matthew Green, Ian Miers, Pratyush Mishra, Howard Wu), in October 2018 Zexe proposed a new cryptographic primitive called ‘decentralized private computation.[30] It allows users of a decentralized ledger to “execute offline computations that result in transactions”[31], but also keeps transaction amounts hidden and allows transaction validation to happen at any time regardless of computations being done online. This can have far reaching implications for privacy coins in the future. Consider cases where transactions need to be automatic and private, without both parties being present.

NETWORK PRIVACY

Privacy technologies that look at network privacy as nodes communicate with each other on the network are important considerations, rather than just looking at privacy on the blockchain itself. Anonymous layers encrypt and/or reroute data as it moves among peers, so it is not obvious who they originate from on the network. They are used to protect against surveillance or censorship from ISPs and governments. The Invisible Internet Project (I2P) is an anonymous network layer that uses end to end encryption for peers on a network to communicate with each other.[32] Its history dates back to 2003. Kovri is a Monero created implementation of I2P.[33] The Onion Router (Tor) is another anonymity layer [34]) that Verge is a privacy cryptocurrency that uses. But its historical link to the US government may be is concerning to some[35]. Dandelion transaction relay is also an upcoming Bitcoin improvement proposal (BIP) that scrambles IP data that will provide network privacy for Bitcoin as transaction and other information is transmitted.[36],[37],[38]

UPCOMING

Monero completed bulletproofs protocol updates that reduce RINGCT transaction sizes and thus transaction fee costs. (Bulletproofs are a replacement for range proofs used in confidential transactions that aid in encrypting inputs and outputs by making sure they add to zero).
Sigma Protocol – being actively researched by Zcoin team as of 2018 to replace Zerocoin protocol so that a trusted setup is not required.[39] There is a possible replacement for zk-snarks, called zk-starks, another form of zero-knowledge proof technology, that may make a trusted set-up unnecessary for zero-knowledege proof coins.[40]

PART 1 CONCLUSION OF THE PRIVACY COIN GUIDE ON THE TECHNOLOGY BEHIND PRIVACY COINS

Although Bitcoin is still a groundbreaking technology that gives us a trust-less transaction system, it has failed to live up to its expectations of privacy. Over time, new privacy technologies have arrived and are arriving with innovative and exciting solutions for Bitcoin’s lack of fungibility. It is important to note that these technologies are built on prior research and application, but we are considering their use in cryptocurrencies. Protocols are proposed based on cryptographic concepts that show how they would work, and then developers actually implement them. Please note that I did not include the possibility of improper implementation as a disadvantage, and the advantages assume that the technical development is well done. A very important point is that coins can also adapt new privacy technologies as their merits become obvious, even as they start with a specific privacy protocol. Furthermore, I am, unfortunately, positive that this is not an exhaustive overview and I am only covering publicized solutions. Next, we’ll talk more about the pros and cons and give an idea of how the coins can be compared.

There's a video version that can be watched, and you can find out how to get the second two parts if you want on my website (video link on the page): https://cryptoramble.com/guide-on-privacy-coins/
submitted by CryptoRamble to ethereum [link] [comments]

Announcing: AMA with Core Developer Jeremy Rubin about BIP-119 (OP_CTV) on Thursday at noon Eastern

Hi /Bitcoin!
We're excited to announce an AMA with BIP-119 Author Jeremy Rubin to answer all your questions about BIP-119. We're announcing the AMA here now so you can put it on your calendar and give you a chance to review materials ahead of the AMA and come up with some tough questions for Jeremy!
At 11:30 AM EST on Thursday we'll post and sticky the thread in /Bitcoin, and questions will begin being answered at 12:00 PM EST. Questions will be answered regularly from 12:00 PM - 3:00 PM and questions outside that window will be answered asynchronously throughout the rest of the day.
Recommended resources to review before the AMA: - Chaincode Labs Podcast: https://podcast.chaincode.com/2020/01/30/jeremy-rubin-3.html
- BIP-119 Specification: https://github.com/bitcoin/bips/blob/mastebip-0119.mediawiki
- More Resources: https://utxos.org
submitted by logical to Bitcoin [link] [comments]

The Privacy Coin Guide Part 1

As interest picks up in crypto again, I want to share this post I made on privacy coins again to just give the basics of their evolution. This is only part 1, and parts 2 and 3 are not available in this format, but this part is informative and basic.
If you’re looking for a quick and easy way to assess what the best privacy coin in the current space is, which has the best features, or which is most likely to give high returns, then this is not that guide. My goal is to give you the power to make your own decisions, to clearly state my biases, and educate. I really wanted to understand this niche of the crypto-space due to my background and current loyalties[1], and grasp the nuances of the features, origins and timelines of technologies used in privacy coins, while not being anything close to a developer myself. This is going to be a 3-part series, starting with an overview and basic review of the technology, then looking at its implications, and ending with why I like a specific project. It might be mildly interesting or delightfully educational. Cryptocurrencies are young and existing privacy coins are deploying technology that is a work in progress. This series assumes a basic understanding of how blockchains work, specifically as used in cryptocurrencies. If you don’t have that understanding, might I suggest that you get it? [2],[3],[4] Because cryptocurrencies have a long way to go before reaching their end-game: when the world relies on the technology without understanding it. So, shall we do a deep dive into the privacy coin space?

FIRST THERE WAS BITCOIN

Cryptocurrencies allow you to tokenize value and track its exchange between hands over time, with transaction information verified by a distributed network of users. The most famous version of a cryptocurrency in use is Bitcoin, defined as peer-to-peer electronic cash. [5] Posted anonymously in 2008, the whitepaper seemed to be in direct response to the global financial meltdown and public distrust of the conventional banking and financing systems. Although cryptographic techniques are used in Bitcoin to ensure that (i) only the owner of a specific wallet has the authority to spend funds from that wallet, (ii) the public address is linked but cannot be traced by a third party to the private address (iii) the information is stored via cryptographic hashing in a merkle tree structure to ensure data integrity, the actual transaction information is publicly visible on the blockchain and can be traced back to the individual through chain analysis.[6] This has raised fears of possible financial censorship or the metaphorical tainting of money due to its origination point, as demonstrated in the Silk Road marketplace disaster.[7] This can happen because fiat money is usually exchanged for cryptocurrency at some point, as crypto-enthusiasts are born in the real world and inevitably cash out. There are already chain analysis firms and software that are increasingly efficient at tracking transactions on the Bitcoin blockchain.[8] This lack of privacy is one of the limitations of Bitcoin that has resulted in the creation of altcoins that experiment with the different features a cryptocurrency can have. Privacy coins are figuring out how to introduce privacy in addition to the payment network. The goal is to make the cryptocurrency fungible, each unit able to be exchanged for equal value without knowledge of its transaction history – like cash, while being publicly verifiable on a decentralized network. In other words, anyone can add the math up without being able to see the full details. Some privacy solutions and protocols have popped up as a result:

CRYPTONOTE – RING SIGNATURES AND STEALTH ADDRESSES

Used in: Monero and Particl as its successor RING-CT, Bytecoin
In December 2012, CryptoNote introduced the use of ring signatures and stealth addresses (along with other notable features such as its own codebase) to improve cryptocurrency privacy.[9] An updated CryptoNote version 2 came in October 2013 [10](though there is some dispute over this timeline [11]), also authored under the name Nicolas van Saberhagen. Ring signatures hide sender information by having the sender sign a transaction using a signature that could belong to multiple users. This makes a transaction untraceable. Stealth addresses allow a receiver to give a single address which generates a different public address for funds to be received at each time funds are sent to it. That makes a transaction unlinkable. In terms of privacy, CryptoNote gave us a protocol for untraceable and unlinkable transactions. The first implementation of CryptoNote technology was Bytecoin in March 2014 (timeline disputed [12]), which spawned many children (forks) in subsequent years, a notable example being Monero, based on CryptoNote v2 in April 2014.
RING SIGNATURES and STEALTH ADDRESSES

PROS

– Provides sender and receiver privacy
– Privacy can be default
– Mature technology
– Greater scalability with bulletproofs
– Does not require any third-party

CONS

– Privacy not very effective without high volume
-Does not hide transaction information if not combined with another protocol.

COINJOIN

Used in: Dash
Bitcoin developer Gregory Maxwell proposed a set of solutions to bring privacy to Bitcoin and cryptocurrencies, the first being CoinJoin (January 28 – Aug 22, 2013).[13],[14] CoinJoin (sometimes called CoinSwap) allows multiple users to combine their transactions into a single transaction, by receiving inputs from multiple users, and then sending their outputs to the multiple users, irrespective of who in the group the inputs came from. So, the receiver will get whatever output amount they were supposed to, but it cannot be directly traced to its origination input. Similar proposals include Coinshuffle in 2014 and Tumblebit in 2016, building on CoinJoin but not terribly popular [15],[16]. They fixed the need for a trusted third party to ‘mix’ the transactions. There are CoinJoin implementations that are being actively worked on but are not the most popular privacy solutions of today. A notable coin that uses CoinJoin technology is Dash, launched in January 2014, with masternodes in place of a trusted party.
COINJOIN

PROS

– Provides sender and receiver privacy
– Easy to implement on any cryptocurrency
– Lightweight
– Greater scalability with bulletproofs
– Mature technology

CONS

– Least anonymous privacy solution. Transaction amounts can be calculated
– Even without third-party mixer, depends on wealth centralization of masternodes

ZEROCOIN

Used in: Zcoin, PIVX
In May 2013, the Zerocoin protocol was introduced by John Hopkins University professor Matthew D. Green and his graduate students Ian Miers and Christina Garman.[17] In response to the need for use of a third party to do CoinJoin, the Zerocoin proposal allowed for a coin to be destroyed and remade in order to erase its history whenever it is spent. Zero-knowledge cryptography and zero-knowledge proofs are used to prove that the new coins for spending are being appropriately made. A zero-knowledge proof allows one party to prove to another that they know specific information, without revealing any information about it, other than the fact that they know it. Zerocoin was not accepted by the Bitcoin community as an implementation to be added to Bitcoin, so a new cryptocurrency had to be formed. Zcoin was the first cryptocurrency to implement the Zerocoin protocol in 2016. [18]
ZEROCOIN

PROS

– Provides sender and receiver privacy
– Supply can be audited
– Relatively mature technology
– Does not require a third-party

CONS

– Requires trusted setup (May not be required with Sigma protocol)
– Large proof sizes (not lightweight)
– Does not provide full privacy for transaction amounts

ZEROCASH

Used in: Zcash, Horizen, Komodo, Zclassic, Bitcoin Private
In May 2014, the current successor to the Zerocoin protocol, Zerocash, was created, also by Matthew Green and others (Eli Ben-Sasson, Alessandro Chiesa, Christina Garman, Matthew Green, Ian Miers, Eran Tromer, Madars Virza).[19] It improved upon the Zerocoin concept by taking advantage of zero-knowledge proofs called zk-snarks (zero knowledge succinct non-interactive arguments of knowledge). Unlike Zerocoin, which hid coin origins and payment history, Zerocash was faster, with smaller transaction sizes, and hides transaction information on the sender, receiver and amount. Zcash is the first cryptocurrency to implement the Zerocash protocol in 2016. [20]
ZEROCASH

PROS

– Provides full anonymity. Sender, receiver and amount hidden.
– Privacy can be default?
– Fast due to small proof sizes.
– Payment amount can be optionally disclosed for auditing
– Does not require any third-party

CONS

– Requires trusted setup. (May be improved with zt-starks technology)
– Supply cannot be audited. And coins can potentially be forged without proper implementation.
– Private transactions computationally intensive (improved with Sapling upgrade)

CONFIDENTIAL TRANSACTIONS

Used in: Monero and Particl with Ring Signatures as RING-CT
The next proposal from Maxwell was that of confidential transactions, proposed in June 2015 as part of the Sidechain Elements project from Blockstream, where Maxwell was Chief Technical Officer.[21],[22] It proposed to hide the transaction amount and asset type (e.g. deposits, currencies, shares), so that only the sender and receiver are aware of the amount, unless they choose to make the amount public. It uses homomorphic encryption[23] to encrypt the inputs and outputs by using blinding factors and a kind of ring signature in a commitment scheme, so the amount can be ‘committed’ to, without the amount actually being known. I’m terribly sorry if you now have the urge to go and research exactly what that means. The takeaway is that the transaction amount can be hidden from outsiders while being verifiable.
CONFIDENTIAL TRANSACTIONS

PROS

– Hides transaction amounts
– Privacy can be default
– Mature technology
– Does not require any third-party

CONS

– Only provides transaction amount privacy when used alone

RING-CT

Used in: Monero, Particl
Then came Ring Confidential transactions, proposed by Shen-Noether of Monero Research Labs in October 2015.[24] RingCT combines the use of ring signatures for hiding sender information, with the use of confidential transactions (which also uses ring signatures) for hiding amounts. The proposal described a new type of ring signature, A Multi-layered Linkable Spontaneous Anonymous Group signature which “allows for hidden amounts, origins and destinations of transactions with reasonable efficiency and verifiable, trustless coin generation”.[25] RingCT was implemented in Monero in January 2017 and made mandatory after September 2017.
RING -CONFIDENTIAL TRANSACTIONS

PROS

– Provides full anonymity. Hides transaction amounts and receiver privacy
– Privacy can be default
– Mature technology
– Greater scalability with bulletproofs
– Does not require any third-party

CONS

– Privacy not very effective without high volume

MIMBLEWIMBLE

Used in: Grin
Mimblewimble was proposed in July 2016 by pseudonymous contributor Tom Elvis Jedusorand further developed in October 2016 by Andrew Poelstra.[26],[27] Mimblewimble is a “privacy and fungibility focused cryptocoin transaction structure proposal”.[28] The key words are transaction structure proposal, so the way the blockchain is built is different, in order to accommodate privacy and fungibility features. Mimblewimble uses the concept of Confidential transactions to keep amounts hidden, looks at private keys and transaction information to prove ownership of funds rather than using addresses, and bundles transactions together instead of listing them separately on the blockchain. It also introduces a novel method of pruning the blockchain. Grin is a cryptocurrency in development that is applying Mimblewimble. Mimblewimble is early in development and you can understand it more here [29].
MIMBLEWIMBLE

PROS

– Hides transaction amounts and receiver privacy
– Privacy is on by default
– Lightweight
– No public addresses?

CONS

– Privacy not very effective without high volume
– Sender and receiver must both be online
– Relatively new technology

ZEXE

Fresh off the minds of brilliant cryptographers (Sean Bowe, Alessandro Chiesa, Matthew Green, Ian Miers, Pratyush Mishra, Howard Wu), in October 2018 Zexe proposed a new cryptographic primitive called ‘decentralized private computation.[30] It allows users of a decentralized ledger to “execute offline computations that result in transactions”[31], but also keeps transaction amounts hidden and allows transaction validation to happen at any time regardless of computations being done online. This can have far reaching implications for privacy coins in the future. Consider cases where transactions need to be automatic and private, without both parties being present.

NETWORK PRIVACY

Privacy technologies that look at network privacy as nodes communicate with each other on the network are important considerations, rather than just looking at privacy on the blockchain itself. Anonymous layers encrypt and/or reroute data as it moves among peers, so it is not obvious who they originate from on the network. They are used to protect against surveillance or censorship from ISPs and governments. The Invisible Internet Project (I2P) is an anonymous network layer that uses end to end encryption for peers on a network to communicate with each other.[32] Its history dates back to 2003. Kovri is a Monero created implementation of I2P.[33] The Onion Router (Tor) is another anonymity layer [34]) that Verge is a privacy cryptocurrency that uses. But its historical link to the US government may be is concerning to some[35]. Dandelion transaction relay is also an upcoming Bitcoin improvement proposal (BIP) that scrambles IP data that will provide network privacy for Bitcoin as transaction and other information is transmitted.[36],[37],[38]

UPCOMING

Monero completed bulletproofs protocol updates that reduce RINGCT transaction sizes and thus transaction fee costs. (Bulletproofs are a replacement for range proofs used in confidential transactions that aid in encrypting inputs and outputs by making sure they add to zero).
Sigma Protocol – being actively researched by Zcoin team as of 2018 to replace Zerocoin protocol so that a trusted setup is not required.[39] There is a possible replacement for zk-snarks, called zk-starks, another form of zero-knowledge proof technology, that may make a trusted set-up unnecessary for zero-knowledege proof coins.[40]

PART 1 CONCLUSION OF THE PRIVACY COIN GUIDE ON THE TECHNOLOGY BEHIND PRIVACY COINS

Although Bitcoin is still a groundbreaking technology that gives us a trust-less transaction system, it has failed to live up to its expectations of privacy. Over time, new privacy technologies have arrived and are arriving with innovative and exciting solutions for Bitcoin’s lack of fungibility. It is important to note that these technologies are built on prior research and application, but we are considering their use in cryptocurrencies. Protocols are proposed based on cryptographic concepts that show how they would work, and then developers actually implement them. Please note that I did not include the possibility of improper implementation as a disadvantage, and the advantages assume that the technical development is well done. A very important point is that coins can also adapt new privacy technologies as their merits become obvious, even as they start with a specific privacy protocol. Furthermore, I am, unfortunately, positive that this is not an exhaustive overview and I am only covering publicized solutions. Next, we’ll talk more about the pros and cons and give an idea of how the coins can be compared.

There's a video version that can be watched, and you can find out how to get the second two parts if you want on my website (video link on the page): https://cryptoramble.com/guide-on-privacy-coins/
submitted by CryptoRamble to privacycoins [link] [comments]

The Privacy Coin Guide Part 1

As interest picks up in crypto again, I want to share this post I made on privacy coins again to just give the basics of their evolution. This is only part 1, and parts 2 and 3 are not available in this format, but this part is informative and basic.
If you’re looking for a quick and easy way to assess what the best privacy coin in the current space is, which has the best features, or which is most likely to give high returns, then this is not that guide. My goal is to give you the power to make your own decisions, to clearly state my biases, and educate. I really wanted to understand this niche of the crypto-space due to my background and current loyalties[1], and grasp the nuances of the features, origins and timelines of technologies used in privacy coins, while not being anything close to a developer myself. This is going to be a 3-part series, starting with an overview and basic review of the technology, then looking at its implications, and ending with why I like a specific project. It might be mildly interesting or delightfully educational. Cryptocurrencies are young and existing privacy coins are deploying technology that is a work in progress. This series assumes a basic understanding of how blockchains work, specifically as used in cryptocurrencies. If you don’t have that understanding, might I suggest that you get it? [2],[3],[4] Because cryptocurrencies have a long way to go before reaching their end-game: when the world relies on the technology without understanding it. So, shall we do a deep dive into the privacy coin space?

FIRST THERE WAS BITCOIN

Cryptocurrencies allow you to tokenize value and track its exchange between hands over time, with transaction information verified by a distributed network of users. The most famous version of a cryptocurrency in use is Bitcoin, defined as peer-to-peer electronic cash. [5] Posted anonymously in 2008, the whitepaper seemed to be in direct response to the global financial meltdown and public distrust of the conventional banking and financing systems. Although cryptographic techniques are used in Bitcoin to ensure that (i) only the owner of a specific wallet has the authority to spend funds from that wallet, (ii) the public address is linked but cannot be traced by a third party to the private address (iii) the information is stored via cryptographic hashing in a merkle tree structure to ensure data integrity, the actual transaction information is publicly visible on the blockchain and can be traced back to the individual through chain analysis.[6] This has raised fears of possible financial censorship or the metaphorical tainting of money due to its origination point, as demonstrated in the Silk Road marketplace disaster.[7] This can happen because fiat money is usually exchanged for cryptocurrency at some point, as crypto-enthusiasts are born in the real world and inevitably cash out. There are already chain analysis firms and software that are increasingly efficient at tracking transactions on the Bitcoin blockchain.[8] This lack of privacy is one of the limitations of Bitcoin that has resulted in the creation of altcoins that experiment with the different features a cryptocurrency can have. Privacy coins are figuring out how to introduce privacy in addition to the payment network. The goal is to make the cryptocurrency fungible, each unit able to be exchanged for equal value without knowledge of its transaction history – like cash, while being publicly verifiable on a decentralized network. In other words, anyone can add the math up without being able to see the full details. Some privacy solutions and protocols have popped up as a result:

CRYPTONOTE – RING SIGNATURES AND STEALTH ADDRESSES

Used in: Monero and Particl as its successor RING-CT, Bytecoin
In December 2012, CryptoNote introduced the use of ring signatures and stealth addresses (along with other notable features such as its own codebase) to improve cryptocurrency privacy.[9] An updated CryptoNote version 2 came in October 2013 [10](though there is some dispute over this timeline [11]), also authored under the name Nicolas van Saberhagen. Ring signatures hide sender information by having the sender sign a transaction using a signature that could belong to multiple users. This makes a transaction untraceable. Stealth addresses allow a receiver to give a single address which generates a different public address for funds to be received at each time funds are sent to it. That makes a transaction unlinkable. In terms of privacy, CryptoNote gave us a protocol for untraceable and unlinkable transactions. The first implementation of CryptoNote technology was Bytecoin in March 2014 (timeline disputed [12]), which spawned many children (forks) in subsequent years, a notable example being Monero, based on CryptoNote v2 in April 2014.
RING SIGNATURES and STEALTH ADDRESSES

PROS

– Provides sender and receiver privacy
– Privacy can be default
– Mature technology
– Greater scalability with bulletproofs
– Does not require any third-party

CONS

– Privacy not very effective without high volume
-Does not hide transaction information if not combined with another protocol.

COINJOIN

Used in: Dash
Bitcoin developer Gregory Maxwell proposed a set of solutions to bring privacy to Bitcoin and cryptocurrencies, the first being CoinJoin (January 28 – Aug 22, 2013).[13],[14] CoinJoin (sometimes called CoinSwap) allows multiple users to combine their transactions into a single transaction, by receiving inputs from multiple users, and then sending their outputs to the multiple users, irrespective of who in the group the inputs came from. So, the receiver will get whatever output amount they were supposed to, but it cannot be directly traced to its origination input. Similar proposals include Coinshuffle in 2014 and Tumblebit in 2016, building on CoinJoin but not terribly popular [15],[16]. They fixed the need for a trusted third party to ‘mix’ the transactions. There are CoinJoin implementations that are being actively worked on but are not the most popular privacy solutions of today. A notable coin that uses CoinJoin technology is Dash, launched in January 2014, with masternodes in place of a trusted party.
COINJOIN

PROS

– Provides sender and receiver privacy
– Easy to implement on any cryptocurrency
– Lightweight
– Greater scalability with bulletproofs
– Mature technology

CONS

– Least anonymous privacy solution. Transaction amounts can be calculated
– Even without third-party mixer, depends on wealth centralization of masternodes

ZEROCOIN

Used in: Zcoin, PIVX
In May 2013, the Zerocoin protocol was introduced by John Hopkins University professor Matthew D. Green and his graduate students Ian Miers and Christina Garman.[17] In response to the need for use of a third party to do CoinJoin, the Zerocoin proposal allowed for a coin to be destroyed and remade in order to erase its history whenever it is spent. Zero-knowledge cryptography and zero-knowledge proofs are used to prove that the new coins for spending are being appropriately made. A zero-knowledge proof allows one party to prove to another that they know specific information, without revealing any information about it, other than the fact that they know it. Zerocoin was not accepted by the Bitcoin community as an implementation to be added to Bitcoin, so a new cryptocurrency had to be formed. Zcoin was the first cryptocurrency to implement the Zerocoin protocol in 2016. [18]
ZEROCOIN

PROS

– Provides sender and receiver privacy
– Supply can be audited
– Relatively mature technology
– Does not require a third-party

CONS

– Requires trusted setup (May not be required with Sigma protocol)
– Large proof sizes (not lightweight)
– Does not provide full privacy for transaction amounts

ZEROCASH

Used in: Zcash, Horizen, Komodo, Zclassic, Bitcoin Private
In May 2014, the current successor to the Zerocoin protocol, Zerocash, was created, also by Matthew Green and others (Eli Ben-Sasson, Alessandro Chiesa, Christina Garman, Matthew Green, Ian Miers, Eran Tromer, Madars Virza).[19] It improved upon the Zerocoin concept by taking advantage of zero-knowledge proofs called zk-snarks (zero knowledge succinct non-interactive arguments of knowledge). Unlike Zerocoin, which hid coin origins and payment history, Zerocash was faster, with smaller transaction sizes, and hides transaction information on the sender, receiver and amount. Zcash is the first cryptocurrency to implement the Zerocash protocol in 2016. [20]
ZEROCASH

PROS

– Provides full anonymity. Sender, receiver and amount hidden.
– Privacy can be default?
– Fast due to small proof sizes.
– Payment amount can be optionally disclosed for auditing
– Does not require any third-party

CONS

– Requires trusted setup. (May be improved with zt-starks technology)
– Supply cannot be audited. And coins can potentially be forged without proper implementation.
– Private transactions computationally intensive (improved with Sapling upgrade)

CONFIDENTIAL TRANSACTIONS

Used in: Monero and Particl with Ring Signatures as RING-CT
The next proposal from Maxwell was that of confidential transactions, proposed in June 2015 as part of the Sidechain Elements project from Blockstream, where Maxwell was Chief Technical Officer.[21],[22] It proposed to hide the transaction amount and asset type (e.g. deposits, currencies, shares), so that only the sender and receiver are aware of the amount, unless they choose to make the amount public. It uses homomorphic encryption[23] to encrypt the inputs and outputs by using blinding factors and a kind of ring signature in a commitment scheme, so the amount can be ‘committed’ to, without the amount actually being known. I’m terribly sorry if you now have the urge to go and research exactly what that means. The takeaway is that the transaction amount can be hidden from outsiders while being verifiable.
CONFIDENTIAL TRANSACTIONS

PROS

– Hides transaction amounts
– Privacy can be default
– Mature technology
– Does not require any third-party

CONS

– Only provides transaction amount privacy when used alone

RING-CT

Used in: Monero, Particl
Then came Ring Confidential transactions, proposed by Shen-Noether of Monero Research Labs in October 2015.[24] RingCT combines the use of ring signatures for hiding sender information, with the use of confidential transactions (which also uses ring signatures) for hiding amounts. The proposal described a new type of ring signature, A Multi-layered Linkable Spontaneous Anonymous Group signature which “allows for hidden amounts, origins and destinations of transactions with reasonable efficiency and verifiable, trustless coin generation”.[25] RingCT was implemented in Monero in January 2017 and made mandatory after September 2017.
RING -CONFIDENTIAL TRANSACTIONS

PROS

– Provides full anonymity. Hides transaction amounts and receiver privacy
– Privacy can be default
– Mature technology
– Greater scalability with bulletproofs
– Does not require any third-party

CONS

– Privacy not very effective without high volume

MIMBLEWIMBLE

Used in: Grin
Mimblewimble was proposed in July 2016 by pseudonymous contributor Tom Elvis Jedusorand further developed in October 2016 by Andrew Poelstra.[26],[27] Mimblewimble is a “privacy and fungibility focused cryptocoin transaction structure proposal”.[28] The key words are transaction structure proposal, so the way the blockchain is built is different, in order to accommodate privacy and fungibility features. Mimblewimble uses the concept of Confidential transactions to keep amounts hidden, looks at private keys and transaction information to prove ownership of funds rather than using addresses, and bundles transactions together instead of listing them separately on the blockchain. It also introduces a novel method of pruning the blockchain. Grin is a cryptocurrency in development that is applying Mimblewimble. Mimblewimble is early in development and you can understand it more here [29].
MIMBLEWIMBLE

PROS

– Hides transaction amounts and receiver privacy
– Privacy is on by default
– Lightweight
– No public addresses?

CONS

– Privacy not very effective without high volume
– Sender and receiver must both be online
– Relatively new technology

ZEXE

Fresh off the minds of brilliant cryptographers (Sean Bowe, Alessandro Chiesa, Matthew Green, Ian Miers, Pratyush Mishra, Howard Wu), in October 2018 Zexe proposed a new cryptographic primitive called ‘decentralized private computation.[30] It allows users of a decentralized ledger to “execute offline computations that result in transactions”[31], but also keeps transaction amounts hidden and allows transaction validation to happen at any time regardless of computations being done online. This can have far reaching implications for privacy coins in the future. Consider cases where transactions need to be automatic and private, without both parties being present.

NETWORK PRIVACY

Privacy technologies that look at network privacy as nodes communicate with each other on the network are important considerations, rather than just looking at privacy on the blockchain itself. Anonymous layers encrypt and/or reroute data as it moves among peers, so it is not obvious who they originate from on the network. They are used to protect against surveillance or censorship from ISPs and governments. The Invisible Internet Project (I2P) is an anonymous network layer that uses end to end encryption for peers on a network to communicate with each other.[32] Its history dates back to 2003. Kovri is a Monero created implementation of I2P.[33] The Onion Router (Tor) is another anonymity layer [34]) that Verge is a privacy cryptocurrency that uses. But its historical link to the US government may be is concerning to some[35]. Dandelion transaction relay is also an upcoming Bitcoin improvement proposal (BIP) that scrambles IP data that will provide network privacy for Bitcoin as transaction and other information is transmitted.[36],[37],[38]

UPCOMING

Monero completed bulletproofs protocol updates that reduce RINGCT transaction sizes and thus transaction fee costs. (Bulletproofs are a replacement for range proofs used in confidential transactions that aid in encrypting inputs and outputs by making sure they add to zero).
Sigma Protocol – being actively researched by Zcoin team as of 2018 to replace Zerocoin protocol so that a trusted setup is not required.[39] There is a possible replacement for zk-snarks, called zk-starks, another form of zero-knowledge proof technology, that may make a trusted set-up unnecessary for zero-knowledege proof coins.[40]

PART 1 CONCLUSION OF THE PRIVACY COIN GUIDE ON THE TECHNOLOGY BEHIND PRIVACY COINS

Although Bitcoin is still a groundbreaking technology that gives us a trust-less transaction system, it has failed to live up to its expectations of privacy. Over time, new privacy technologies have arrived and are arriving with innovative and exciting solutions for Bitcoin’s lack of fungibility. It is important to note that these technologies are built on prior research and application, but we are considering their use in cryptocurrencies. Protocols are proposed based on cryptographic concepts that show how they would work, and then developers actually implement them. Please note that I did not include the possibility of improper implementation as a disadvantage, and the advantages assume that the technical development is well done. A very important point is that coins can also adapt new privacy technologies as their merits become obvious, even as they start with a specific privacy protocol. Furthermore, I am, unfortunately, positive that this is not an exhaustive overview and I am only covering publicized solutions. Next, we’ll talk more about the pros and cons and give an idea of how the coins can be compared.

There's a video version that can be watched, and you can find out how to get the second two parts if you want on my website (video link on the page): https://cryptoramble.com/guide-on-privacy-coins/
submitted by CryptoRamble to CryptoCurrencies [link] [comments]

The Privacy Coin Guide Part 1

As interest picks up in crypto again, I want to share this post I made on privacy coins again to just give the basics of their evolution. This is only part 1, and parts 2 and 3 are not available in this format, but this part is informative and basic.
If you’re looking for a quick and easy way to assess what the best privacy coin in the current space is, which has the best features, or which is most likely to give high returns, then this is not that guide. My goal is to give you the power to make your own decisions, to clearly state my biases, and educate. I really wanted to understand this niche of the crypto-space due to my background and current loyalties[1], and grasp the nuances of the features, origins and timelines of technologies used in privacy coins, while not being anything close to a developer myself. This is going to be a 3-part series, starting with an overview and basic review of the technology, then looking at its implications, and ending with why I like a specific project. It might be mildly interesting or delightfully educational. Cryptocurrencies are young and existing privacy coins are deploying technology that is a work in progress. This series assumes a basic understanding of how blockchains work, specifically as used in cryptocurrencies. If you don’t have that understanding, might I suggest that you get it? [2],[3],[4] Because cryptocurrencies have a long way to go before reaching their end-game: when the world relies on the technology without understanding it. So, shall we do a deep dive into the privacy coin space?

FIRST THERE WAS BITCOIN

Cryptocurrencies allow you to tokenize value and track its exchange between hands over time, with transaction information verified by a distributed network of users. The most famous version of a cryptocurrency in use is Bitcoin, defined as peer-to-peer electronic cash. [5] Posted anonymously in 2008, the whitepaper seemed to be in direct response to the global financial meltdown and public distrust of the conventional banking and financing systems. Although cryptographic techniques are used in Bitcoin to ensure that (i) only the owner of a specific wallet has the authority to spend funds from that wallet, (ii) the public address is linked but cannot be traced by a third party to the private address (iii) the information is stored via cryptographic hashing in a merkle tree structure to ensure data integrity, the actual transaction information is publicly visible on the blockchain and can be traced back to the individual through chain analysis.[6] This has raised fears of possible financial censorship or the metaphorical tainting of money due to its origination point, as demonstrated in the Silk Road marketplace disaster.[7] This can happen because fiat money is usually exchanged for cryptocurrency at some point, as crypto-enthusiasts are born in the real world and inevitably cash out. There are already chain analysis firms and software that are increasingly efficient at tracking transactions on the Bitcoin blockchain.[8] This lack of privacy is one of the limitations of Bitcoin that has resulted in the creation of altcoins that experiment with the different features a cryptocurrency can have. Privacy coins are figuring out how to introduce privacy in addition to the payment network. The goal is to make the cryptocurrency fungible, each unit able to be exchanged for equal value without knowledge of its transaction history – like cash, while being publicly verifiable on a decentralized network. In other words, anyone can add the math up without being able to see the full details. Some privacy solutions and protocols have popped up as a result:

CRYPTONOTE – RING SIGNATURES AND STEALTH ADDRESSES

Used in: Monero and Particl as its successor RING-CT, Bytecoin
In December 2012, CryptoNote introduced the use of ring signatures and stealth addresses (along with other notable features such as its own codebase) to improve cryptocurrency privacy.[9] An updated CryptoNote version 2 came in October 2013 [10](though there is some dispute over this timeline [11]), also authored under the name Nicolas van Saberhagen. Ring signatures hide sender information by having the sender sign a transaction using a signature that could belong to multiple users. This makes a transaction untraceable. Stealth addresses allow a receiver to give a single address which generates a different public address for funds to be received at each time funds are sent to it. That makes a transaction unlinkable. In terms of privacy, CryptoNote gave us a protocol for untraceable and unlinkable transactions. The first implementation of CryptoNote technology was Bytecoin in March 2014 (timeline disputed [12]), which spawned many children (forks) in subsequent years, a notable example being Monero, based on CryptoNote v2 in April 2014.
RING SIGNATURES and STEALTH ADDRESSES

PROS

– Provides sender and receiver privacy
– Privacy can be default
– Mature technology
– Greater scalability with bulletproofs
– Does not require any third-party

CONS

– Privacy not very effective without high volume
-Does not hide transaction information if not combined with another protocol.

COINJOIN

Used in: Dash
Bitcoin developer Gregory Maxwell proposed a set of solutions to bring privacy to Bitcoin and cryptocurrencies, the first being CoinJoin (January 28 – Aug 22, 2013).[13],[14] CoinJoin (sometimes called CoinSwap) allows multiple users to combine their transactions into a single transaction, by receiving inputs from multiple users, and then sending their outputs to the multiple users, irrespective of who in the group the inputs came from. So, the receiver will get whatever output amount they were supposed to, but it cannot be directly traced to its origination input. Similar proposals include Coinshuffle in 2014 and Tumblebit in 2016, building on CoinJoin but not terribly popular [15],[16]. They fixed the need for a trusted third party to ‘mix’ the transactions. There are CoinJoin implementations that are being actively worked on but are not the most popular privacy solutions of today. A notable coin that uses CoinJoin technology is Dash, launched in January 2014, with masternodes in place of a trusted party.
COINJOIN

PROS

– Provides sender and receiver privacy
– Easy to implement on any cryptocurrency
– Lightweight
– Greater scalability with bulletproofs
– Mature technology

CONS

– Least anonymous privacy solution. Transaction amounts can be calculated
– Even without third-party mixer, depends on wealth centralization of masternodes

ZEROCOIN

Used in: Zcoin, PIVX
In May 2013, the Zerocoin protocol was introduced by John Hopkins University professor Matthew D. Green and his graduate students Ian Miers and Christina Garman.[17] In response to the need for use of a third party to do CoinJoin, the Zerocoin proposal allowed for a coin to be destroyed and remade in order to erase its history whenever it is spent. Zero-knowledge cryptography and zero-knowledge proofs are used to prove that the new coins for spending are being appropriately made. A zero-knowledge proof allows one party to prove to another that they know specific information, without revealing any information about it, other than the fact that they know it. Zerocoin was not accepted by the Bitcoin community as an implementation to be added to Bitcoin, so a new cryptocurrency had to be formed. Zcoin was the first cryptocurrency to implement the Zerocoin protocol in 2016. [18]
ZEROCOIN

PROS

– Provides sender and receiver privacy
– Supply can be audited
– Relatively mature technology
– Does not require a third-party

CONS

– Requires trusted setup (May not be required with Sigma protocol)
– Large proof sizes (not lightweight)
– Does not provide full privacy for transaction amounts

ZEROCASH

Used in: Zcash, Horizen, Komodo, Zclassic, Bitcoin Private
In May 2014, the current successor to the Zerocoin protocol, Zerocash, was created, also by Matthew Green and others (Eli Ben-Sasson, Alessandro Chiesa, Christina Garman, Matthew Green, Ian Miers, Eran Tromer, Madars Virza).[19] It improved upon the Zerocoin concept by taking advantage of zero-knowledge proofs called zk-snarks (zero knowledge succinct non-interactive arguments of knowledge). Unlike Zerocoin, which hid coin origins and payment history, Zerocash was faster, with smaller transaction sizes, and hides transaction information on the sender, receiver and amount. Zcash is the first cryptocurrency to implement the Zerocash protocol in 2016. [20]
ZEROCASH

PROS

– Provides full anonymity. Sender, receiver and amount hidden.
– Privacy can be default?
– Fast due to small proof sizes.
– Payment amount can be optionally disclosed for auditing
– Does not require any third-party

CONS

– Requires trusted setup. (May be improved with zt-starks technology)
– Supply cannot be audited. And coins can potentially be forged without proper implementation.
– Private transactions computationally intensive (improved with Sapling upgrade)

CONFIDENTIAL TRANSACTIONS

Used in: Monero and Particl with Ring Signatures as RING-CT
The next proposal from Maxwell was that of confidential transactions, proposed in June 2015 as part of the Sidechain Elements project from Blockstream, where Maxwell was Chief Technical Officer.[21],[22] It proposed to hide the transaction amount and asset type (e.g. deposits, currencies, shares), so that only the sender and receiver are aware of the amount, unless they choose to make the amount public. It uses homomorphic encryption[23] to encrypt the inputs and outputs by using blinding factors and a kind of ring signature in a commitment scheme, so the amount can be ‘committed’ to, without the amount actually being known. I’m terribly sorry if you now have the urge to go and research exactly what that means. The takeaway is that the transaction amount can be hidden from outsiders while being verifiable.
CONFIDENTIAL TRANSACTIONS

PROS

– Hides transaction amounts
– Privacy can be default
– Mature technology
– Does not require any third-party

CONS

– Only provides transaction amount privacy when used alone

RING-CT

Used in: Monero, Particl
Then came Ring Confidential transactions, proposed by Shen-Noether of Monero Research Labs in October 2015.[24] RingCT combines the use of ring signatures for hiding sender information, with the use of confidential transactions (which also uses ring signatures) for hiding amounts. The proposal described a new type of ring signature, A Multi-layered Linkable Spontaneous Anonymous Group signature which “allows for hidden amounts, origins and destinations of transactions with reasonable efficiency and verifiable, trustless coin generation”.[25] RingCT was implemented in Monero in January 2017 and made mandatory after September 2017.
RING -CONFIDENTIAL TRANSACTIONS

PROS

– Provides full anonymity. Hides transaction amounts and receiver privacy
– Privacy can be default
– Mature technology
– Greater scalability with bulletproofs
– Does not require any third-party

CONS

– Privacy not very effective without high volume

MIMBLEWIMBLE

Used in: Grin
Mimblewimble was proposed in July 2016 by pseudonymous contributor Tom Elvis Jedusorand further developed in October 2016 by Andrew Poelstra.[26],[27] Mimblewimble is a “privacy and fungibility focused cryptocoin transaction structure proposal”.[28] The key words are transaction structure proposal, so the way the blockchain is built is different, in order to accommodate privacy and fungibility features. Mimblewimble uses the concept of Confidential transactions to keep amounts hidden, looks at private keys and transaction information to prove ownership of funds rather than using addresses, and bundles transactions together instead of listing them separately on the blockchain. It also introduces a novel method of pruning the blockchain. Grin is a cryptocurrency in development that is applying Mimblewimble. Mimblewimble is early in development and you can understand it more here [29].
MIMBLEWIMBLE

PROS

– Hides transaction amounts and receiver privacy
– Privacy is on by default
– Lightweight
– No public addresses?

CONS

– Privacy not very effective without high volume
– Sender and receiver must both be online
– Relatively new technology

ZEXE

Fresh off the minds of brilliant cryptographers (Sean Bowe, Alessandro Chiesa, Matthew Green, Ian Miers, Pratyush Mishra, Howard Wu), in October 2018 Zexe proposed a new cryptographic primitive called ‘decentralized private computation.[30] It allows users of a decentralized ledger to “execute offline computations that result in transactions”[31], but also keeps transaction amounts hidden and allows transaction validation to happen at any time regardless of computations being done online. This can have far reaching implications for privacy coins in the future. Consider cases where transactions need to be automatic and private, without both parties being present.

NETWORK PRIVACY

Privacy technologies that look at network privacy as nodes communicate with each other on the network are important considerations, rather than just looking at privacy on the blockchain itself. Anonymous layers encrypt and/or reroute data as it moves among peers, so it is not obvious who they originate from on the network. They are used to protect against surveillance or censorship from ISPs and governments. The Invisible Internet Project (I2P) is an anonymous network layer that uses end to end encryption for peers on a network to communicate with each other.[32] Its history dates back to 2003. Kovri is a Monero created implementation of I2P.[33] The Onion Router (Tor) is another anonymity layer [34]) that Verge is a privacy cryptocurrency that uses. But its historical link to the US government may be is concerning to some[35]. Dandelion transaction relay is also an upcoming Bitcoin improvement proposal (BIP) that scrambles IP data that will provide network privacy for Bitcoin as transaction and other information is transmitted.[36],[37],[38]

UPCOMING

Monero completed bulletproofs protocol updates that reduce RINGCT transaction sizes and thus transaction fee costs. (Bulletproofs are a replacement for range proofs used in confidential transactions that aid in encrypting inputs and outputs by making sure they add to zero).
Sigma Protocol – being actively researched by Zcoin team as of 2018 to replace Zerocoin protocol so that a trusted setup is not required.[39] There is a possible replacement for zk-snarks, called zk-starks, another form of zero-knowledge proof technology, that may make a trusted set-up unnecessary for zero-knowledege proof coins.[40]

PART 1 CONCLUSION OF THE PRIVACY COIN GUIDE ON THE TECHNOLOGY BEHIND PRIVACY COINS

Although Bitcoin is still a groundbreaking technology that gives us a trust-less transaction system, it has failed to live up to its expectations of privacy. Over time, new privacy technologies have arrived and are arriving with innovative and exciting solutions for Bitcoin’s lack of fungibility. It is important to note that these technologies are built on prior research and application, but we are considering their use in cryptocurrencies. Protocols are proposed based on cryptographic concepts that show how they would work, and then developers actually implement them. Please note that I did not include the possibility of improper implementation as a disadvantage, and the advantages assume that the technical development is well done. A very important point is that coins can also adapt new privacy technologies as their merits become obvious, even as they start with a specific privacy protocol. Furthermore, I am, unfortunately, positive that this is not an exhaustive overview and I am only covering publicized solutions. Next, we’ll talk more about the pros and cons and give an idea of how the coins can be compared.

There's a video version that can be watched, and you can find out how to get the second two parts if you want on my website (video link on the page): https://cryptoramble.com/guide-on-privacy-coins/
submitted by CryptoRamble to ethtrader [link] [comments]

My Trezor (MEW?) account got compremised, funds were stolen

Hello ladies and gentleman,
I hope you can help me out somehow. I put it in bitcoin as well despite its ethereum but its about trezor and the btc part is involved. In mid september all my ethereum and ethereum based stuff was cleared from my MEW accounts for roughly 38k USD. Trezor couldnt help me at all and we went through all the topics and questions they had which lead to nothing exept an basic answer “your seeds got compromised in the past“, which doesn’t make any sense and I will explain why.
Lets say, Im a person with some basic tech knowledge and worked as admin and I use common sense to handle my crypto stuff which is part of my business and daily task since 2 years.I check all things again before sending. Adress, amount etc and never had any problems before.I never was on a fake page where I had to give my seed or passphrases inI dont open spam mails nor use my new laptop for something else then work, like visiting porn sites or shady stuff or use cracks etc. I didnt even found a malitous cookie after checking everything. The laptop I used was 3 months old and set up on my own with windows, firwall, antivir and anti malware stuff. Things I am doing form me and my friends since year 2000. No cracks used for programms, everything legal. I use a trezor one since then which is updated accordingly when the tool or page prompts me. I used to use chrome as my default browser (which i learned, over the past months trying to figure out what might have happened, is one oft the worst browsers).
No one has my seedsno one knows my pin to entert the trezorI dont store any of this information onlineI dont know my private keys from trezor
So what happened was that september 9 in the evening, a few hours after I sent some usdt deposit to my adress, I want to check if everything is there, login to my MEW account (online, not offline and url was correct. no addon used, just the shortcut in my browser which i safed there and always used and later checked i fit was linked to something else which wasnt), and the account was empty. Three ethereum adresses where i stored some coins, eth and usdt.
I realised that every transaction below happened while i was standing infront of my laptop (checked time happening), trezor connected cause i did some btc transaction before and chatted to customers on different chat tools like telegram or skype. Obvsly without signing any transaction at all everything was sent to other adresses. It seemed someone got the keys to those adresses before. Now, I dont even know my private keys to those adresses which are stored in trezor right? I wasnt logged into MEW before this incident for about 1.5 days. The btc part on my trezor is MUCH more valuable, but still there. After trezor couldnt help me about what happened and MEW treated me like the standard idiot who gets highjacked and then wonders why his money is gone, I went trough so many possibilities. For the most time I thought some kind of KRACK attack happened.
The only problem is trezor says they dont extract the private keys. Some gurus in this topic ( i read on reddit here) say its possible to get them from the network. Even parts are enough to encrypt the whole key after a while which would underline the timeline that it took 6 days from working in this hotel and having the unusual situation with the sending (down explained) till the accs got cleared.
The hotel incident happened the week before my accounts got cleared. I was visitting friends and coworking agents in Vietnam and stayed in a red doorz hotel in Ho Chi Minh. Using the Hotel Wifi and a nvpn.net VPN I sent some usdt funds via MEW to a befriended customer and something very stranged happened, which I never had before.I sent 4k usdt to a customer and the transaction took 13 min working working working and then failed. I’ve never had something like that. We thought it might be because of eth network or so but we never had that before, me and him sending a lot transactions every day.
Then i copied all details in again and send another 4k and somehow he recieved both!
check the screen. The one transaction processed nearly 13 min then failed. 2min later i sent a new one and without any evidence in this screen he recieved both.
https://s19.directupload.net/images/200121/27e8uyd3.jpg
later
https://s19.directupload.net/images/200121/3todak3u.png
So he sent me back the additional 4k and I shut down everything not thinking about this much anymore. Only when the accounts got cleared I was searching for any unusual happenings which could have let to this because pretty much all other “typical“ mistakes people normally do we could exclude. If somehow my seeds got compromised why only the ETH stuff? The btc parts on the trezor had much much more value. I never searched for trezor page on the web and used a link to access my wallets or to do updates. I always used the trezor bridge and made a shortcut to my wallet in my browser. For MEW i always used the same shortcut in my browser which worked pretty fine for the past years an everytime when setting the browser or pc new i checked it all before.
Because of the unusual thing which happened in Vietnam I flew back there (from philippines) prepared with tools and checking because I couldnt let go and I didnt find any other plausible cause. I even got back my old room. In this hotel there are three hotel wifi network and I remeber 100% that I used the 2nd one before cause it had the strongest signal. Anyway. I switched on wireshark and later on Fiddler, repeated all steps I used to do before. Checking if some rerouting, dns poisening or readressing or so is happening. Nothing unusual happened in the first when entering MEW (I sent some bait funds there).
In the 2nd network I used in september the trezor basically totally freaked out. He didnt let me enter MEW, I had to reenter my pin up to 5 times sometimes, It gave me error messages in MEW or it took 30 fucking seconds to enter it. Trezor writes about this:
“When you enter an invalid PIN a few times, the Trezor adds a forced waiting time between attempts.You can see this feature on the photo where the Trezor is making you wait for 15 seconds before another attempt.This countdown is then multiplied by the factor of two until you reach the 16th invalid PIN entry. After that, the device automatically wipes its memory - deleting all data from it.
The behavior of your Trezor at MEW is undoubtedly not standard or in any form pleasantly functional. Nevertheless, it also isn't anything superbly unusual or unexpected, taking poor internet connection into account.“
The thing is, the pin is 6 digits but pretty basic and I never ever entered it wrong. And I used the strongest wifi and could open webpages very easily .
As well as: “Sadly, this does not tell us anything about how your funds could be compromised. None of this could have ever exposed your private keys or made your device vulnerable in any way.
The Reddit thread you linked discusses cracking BIP-39 passphrases, which is irrelevant to your case. Cracking such passphrases assumes the person trying to break the wallet already has full possession of the recovery seed (recovery words). See, a passphrase is not your recovery seed or some additional password on your device. It is an extension of the seed, and it is also 100% useless without controlling the full seed.
The only threat you are exposed to when using Chrome is using Google itself. When googling "trezor" or "trezor wallet", you might stumble upon a phishing site which will present itself as a genuine Trezor website and force you to go through a fake "recovery" process. There you'd give out your recovery seed, which subsequently grants full access to your wallet and funds.
It's reasonable to assume that malware could guide you to such a website. To this day, we are not aware of any such incident ever happening, and even then, there are protections in place to defend you against phishing attempts.“
Basically, something I never did and all funds would haven been gone then.
I checked the 3rd network as well, and like the 1st nothing special happened. Only in the 2nd.
These are the funds and how the got cleared off the wallets.
I always show last transaction from me to the adress as well on the screens. So adress:
0x253ABB6d747a9404A007f57AaDEc1cA2b80694a1
They withdrew this:
1k USDT and the small amount ETH to send stuff
https://s19.directupload.net/images/200121/sg2lumg8.png
adress:
0x01fd43a713D8F46FF9a7Ed108da2FF74884D8400
They withdrew this:Majority of USDT and small eth for sending stuff
https://s19.directupload.net/images/200121/arycubto.png
adress:
0xf73c8C30072488d932011696436B46005504A7aeThey withdrew this:
Majority of ETh, then all coins from valueable to worthless and then some rest eth
https://s19.directupload.net/images/200121/urbgm2y5.png
https://s19.directupload.net/images/200121/rdkod59h.jpg
So this is what happened at 12th september between 16:49 and 17:15. Sick to see that all happened between 16:49 and 17:00 and its like someone came back checking and saw the 0.014 eth and withdrew it 17:15. Around 10pm i discovered what happened.
So, do you have any ideas? Questions? Feel free to guess or ask Im glad for everything which might lead to what might have happened. I somehow can’t let go off the feeling something inbetween the network, MEW and trezor ist he cause, but what do I know.
submitted by The_Wave13 to Bitcoin [link] [comments]

Understanding SegWit

Understanding SegWit
https://preview.redd.it/tb8bvi3nec351.png?width=1920&format=png&auto=webp&s=2c02d9d52f7b00d460ad0ccf87d069e1fc2d31b2
The First layer scaling solution is comprised of 3 different scaling mechanisms:
· Sharding
· Hard fork
· SegWit
In my last two articles, I have already covered Hard Fork and Sharding. So here in this article, I will focus on the last scaling solution i.e SegWit.
What is SegWit?
SegWit stands for Segregating Witness
i.e separating the signatures from the transactions.
In this process, certain parts of a transaction are removed, which will free up space so that more transactions can be added to the chain. The idea behind using this method is to overcome the block size limit of blockchain transactions. In simple terms, SegWit changed the way data are stored, therefore helping the Bitcoin network to run faster and more smoothly.
It was suggested as a soft fork change in the transaction format of Bitcoin in the Bitcoin Improvement Proposal number BIP141.
Problem Statement
In the Bitcoin platform, Blocks are getting generated every 10 minutes and are constrained to a maximum size of 1 megabyte (MB). As the number of transactions is increasing, more blocks need to be added to the chain. But due to the block size constraint, only a certain number of transactions can be added to a block. The weight of the transactions can cause delays in processing and verifying transactions. Sometimes, it takes hours to confirm a transaction as valid. This can slow down further when the network is busy.
The Solution
To overcome the block size limit issue and to enhance the transaction speed, the transaction is divided into two segments. Removing the unlocking signature (witness) from the original portion and appending it as a separate structure at the end. The original portion will still have the sender and receiver data, and the new "witness" structure would contain scripts and signatures. The original data segment would be counted normally, but the new "witness" segment becomes one-fourth of its original size.
Digital signature accounts for 65% of the space in a given transaction.
SegWit is backward compatible, which means nodes that are updated with the SegWit Bitcoin protocol can still work with nodes that haven’t been updated.
SegWit measures blocks by block weight.
The formula used to calculate block weight:
(tx size with witness data stripped) * 3 + (tx size)
Since segregated witness creates a sidechain where witness data is stored, it prevents transaction IDs from being altered by dishonest users. It also addresses signature malleability, by serializing signatures separately from the rest of the transaction data, so that the transaction ID is no longer malleable.
History
Pieter Wuille, a bitcoin developer, first proposed the concept of SegWit.
On 24 July 2017 as a part of the software upgrade process i.e Bitcoin Improvement Proposal (BIP) 91, the concept of Segregated Witness is activated at block 477,120.
Within one week of implementation, the bitcoin price seen a spike of 50%. The transaction usage rate using SegWit further increased from 7% to 10% in the first week of October. As of February 2018, SegWit transactions exceed 30%.
However, a group of China-based bitcoin miners were unhappy with the implementation and later forked to created Bitcoin Cash.
Lightning Network - Layer 2 solution
Lightning Network operates on top of bitcoin and is referred to as a “Layer 2” component. It is an off-chain micropayment system that is designed to enhance the transaction speed in the blockchain network.
SegWit acts as a base component for the Lightning Network. By implementing SegWit, the transaction malleability issue can be prevented which will allow this secure payment system to process millions of transactions per second in the Bitcoin network.
Advantages of SegWit:
· Prevents transaction malleability problem.
· Prevents signature malleability problem.
· Helps in scaling the bitcoin network.
· Increases block size.
· Reduced transaction fees.
· Acts as a base for the lightning protocol.
Conclusion
There is no doubt that Bitcoin technology is very revolutionary but like any other technology, it has certain drawbacks as well as challenges. Scaling is one of them which has restricted in large scale applications adopted. It is capable of processing only 7-10 transactions per second on the base layer. Many developers, researchers from the Bitcoin community are working hard to overcome the problem. SegWit along with the Lightning Network together aiming to allow Bitcoin to process millions (or more) transactions per second. But the real scenario will depend on the success of future projects.

Read More: A Guide to Smart Contracts
submitted by RumaDas to BlockChain_info [link] [comments]

Presentation Crypto Accelerator - new project !

Presentation Crypto Accelerator - new project !
https://preview.redd.it/c5lcfkrzjo251.png?width=640&format=png&auto=webp&s=641b851a40c80acece90bc5673f474399b3de085
Speaker: Boris Siomin, the head of the International Department in WEBTOKENPROFIT.
The webinar recording is on the official WTP channel https://youtu.be/uwYnufyIxwA
Crypto Accelerator is one of the best platforms and services of the WEBTOKENPROFIT.
Registration - https://crypto-accelerator.io/partne5470
What is the Crypto Accelerator?
  1. Mining WEC coins.
  2. Mining profit + 50% per annum — you can get 50% more in a year.
  3. You can get profit by means of ACC coins.
  4. You can withdraw your profits at any time (in dollars using Perfect Money and Payeer, commission 5%).
  5. All profits are added to one balance — you can see all statistics, do all operations and transactions on one dashboard.
Licenses
There are four types of licenses: Silver, Gold, Platinum and VIP licenses. They start from $30 up to $15,000. You can buy any license and start getting profit. But you should buy WEC coins for dollars. After it, you can start working with the service.
ACC accelerator features:
- 300,000 of ACC coins have been generated at start.
- 150,000 ACCs were sold to first partners.
- ACC is a coin that can be sold.
- Limited number of ACCs — ACC is generated in the personal account by means of the referral program. There are four levels of generating ACC coins. For example, the first license gives you a possibility to get profit from the first level; the next one — from the two levels and so on.
The licenses differ in the following aspects
  1. purchase price;
  2. validity period;
  3. restriction on the purchase/ sale of ACC accelerator;
  4. referral program depth.
Marketing of Crypto Accelerator
• Referral points are accrued in ACC facilities.
• Referral points depend on the kind of the license.
• When a partner purchases the license more expensive than invator’s one referral, points are not accrued.
ACC accelerator power
Why the price of ACCs is rising or falling?
If you sell this coin, the price raises! It sounds perfect!
 ACC price on the exchange is formed to capacity sales.
 ACC price falls by the by 3% if there wasn’t a single sale or purchase transaction per day.
 Trade commission is 1% only.
How to replenish your deposit?
It could be done by Perfect Money, Payeer, Bitcoin, Ethereum, Prizm and Bip.
The number of possibilities to replenish the balance would be only increased in future.
WEBTOKENPROFIT is a self-sustaining system that can help everyone to earn money!
Registration - https://crypto-accelerator.io/partne5470
submitted by Valentyn_Crypto to u/Valentyn_Crypto [link] [comments]

Bylls — the Canadian Bitcoin bill payment service by Bull Bitcoin — celebrates its 6th birthday

I sometimes find it hard to believe that it has already been 6 years since the public launch of Bylls on January 13 2014. What started out as a simple and humble “garage startup”, the world’s first Bitcoin bill payment service, evolved into so much more.
Bylls eventually became the company that people know today as Bull Bitcoin, and it is from Bylls’ UASF advocacy that sprouted the Cyphernode open-source project. I also like to think of Bylls as a “bitcoin culture” institution that served as the vanguard of the Bitcoin Maximalist and Cypherpunk movements within the Bitcoin exchange and payments industry.
Happy Birthday Bylls! 🎂

What is Bylls?

For those of you who don’t know about Bylls, here’s a short summary:

Short history of world’s first Bitcoin bill payment service

Bylls was founded in 2013 by Eric Spano, a Montreal entrepreneur part of the original Bitcoin Embassy team. Eric, one of my earliest and most influential mentors, is a true Bitcoin OG. Check out his 2014 Bitcoin Ted Talk or his 2019 Podcast on Tales From the Crypt which describes in great detail the inception of Bylls.
When Bylls was launched, I was Public Affairs Director at the Bitcoin Embassy, the world’s first physical Bitcoin hub (a 14,000 square feet building downtown Montreal). Bylls was effectively a one-man operation, with Eric doing pretty much everything himself. I wasn’t directly involved with the company, but Bylls was one of the startups in the Embassy’s incubator program, so I was helping out in various ways. My first “public appearance” in the Bitcoin industry was actually to man the Bylls booth at the Toronto Bitcoin Expo in 2014!
In 2015, Eric was offered a huge career opportunity that he couldn’t accept without stepping down from running Bylls. It was to me an inconceivable tragedy for Bitcoin to let Bylls quitely close down. For the past 2 years, whenever somebody asked me “what can you do with Bitcoin?”, I would always reply “well, for starters, you can pay all your bills in Canada, even your taxes and your credit card”. What was I going to say now?
I had just founded my company Satoshi Portal Inc. with the aim of developing a non-custodial Bitcoin exchange (which eventually became Bull Bitcoin). And so, I acquired Bylls from Eric and it immediately became the focus of all my energy. For the first year, our team consisted of only 2 people including our lead developer Arthur which is still working on Bylls features to this day. From the beginning until today, we are still 100% self-funded. We grew organically and slowly. My philosophy on entrepreneurship and startup scaling is articulated in this medium post.It has been an incredibly intense journey. I cannot think of a more challenging professional experience than being a startup founder and entrepreneur in the Bitcoin industry. The number of Bitcoin startups that have perished since is a stark reminder. Some of them sank quietly, but many went down in flames taking down their users with them. The fact that Bylls is still standing — without VC funding and with its reputation intact — is my proudest achievement.
Over the past 4 years. we completely redesigned the software, continuously adding new features, but the core of the service remained the same. Most importantly, we added the ability for users to pay any individual or business in Canada by creating a personal biller from their bank details. Previously, they were limited to Bylls’ biller list of around 9000 billers.
One of the defining moments in the history of Bylls was UASF. Bylls was one of the first Bitcoin companies to support BIP-148 for the activation of Segwit (second after Bitconic). Not only that, but we were the first to run a public BIP-148 block explorer and public UASF electrum server. We had done a “seppuku pledge” regarding BIP-148, meaning that we would only accept coins from the UASF segwit chain and would pay the Bitcoin market price for them. If UASF had failed, we would not have survived. This cemented our ideology of “skin-in-the-game”. We would never compromise on our values, no matter the cost. Our policy on forks (2017) was described here. But the jist of it is:
Satoshi Portal is a Bitcoin-only company and does not conduct any transaction in any altcoin, including altcoins that are the result of a fork of the Bitcoin blockchain and which can be spent with Bitcoin private keys. This includes, but is not limited to, the coins commonly referred to as BCash, Segwit2X, BGold, Clams and Lumens.We strongly oppose the “New York Agreement” and will under no circumstance ever recognize the Segwit2X blockchain (and BTC1 client) as Bitcoin, regardless of market response or hashing power. In the unlikely event that an overwhelming majority of the Bitcoin ecosystem migrates to the Segwit2X blockchain, Satoshi Portal will continue nevertheless to support the Bitcoin blockchain.
Following the UASF/NO2X “war” in 2017, we devoted a large prortion of ressources to building Cyphernode, an open-source project that makes it very easy for startups to build and deploy Bitcoin applies without any third-parties, using exclusively their own full nodes. We are still developing this project today and plan on actively maintaining it in the future.
It is also worth noting that Bylls has never accepted any altcoins and was one of the first company to pledge never to accept altcoins in the future, leading to what became the “Bitcoin-Only” movement. We were also the first Bitcoin exchange and payment processing company, to our knowledge, that has integrated coinjoin as part of its processes.

Unbanking yourself with Bylls

The coolest feature of Bylls is that you can pay pretty much all your expenses with Bitcoin without needing to go through a bank account. In Canada, you can obtain a credit card without having it linked to a bank account. In 2016, the last of my personal bank accounts was closed due to my activities in the Bitcoin industry. I decided not apply at another bank and try the experiment of living completely unbanked. I’m happy to report it was a success, and serves as a powerful testament for the use-cases provided by Bylls.
I really like the idea of not owning any fiat. You can pay pretty much all daily expenses with a credit card, and pay back the debt with Bitcoin. Of course you have fiat-denominated debts which conveniently tends to diminish in price over time.
You can withdraw cash from a credit card and pay it off instantly with Bylls, so you can get access to cash at any time, in any country across the world, without having a bank account. The only inconvenience is the cash advance fee.
When you have to pay larger amounts such as rent or whatever services don’t accept cash or credit card, you can find the biller in the Bylls list or ask the recipient for his banking details, the same as you would for a wire transfer.

The future of Bylls

Many people ask us if we intend to expand outside of Canada. The answer is, unequivocally, no. We will always be a Canada-only, Bitcoin-only company. That doesn’t mean that we stop working hard to improve our services. We will continue to be the first to integrate the cutting-edge Bitcoin technologies that
Here is are some of the features you can expect in 2020:
Thanks for reading! 🎂
Yours truly,
Francis
Original post here: https://medium.com/bull-bitcoin/bylls-the-canadian-bitcoin-bill-payment-service-by-bull-bitcoin-celebrates-its-6th-birthday-ef6d22acdf2a
submitted by FrancisPouliot to BitcoinCA [link] [comments]

The Decade in Blockchain — 2010 to 2020 in Review

2010

February — The first ever cryptocurrency exchange, Bitcoin Market, is established. The first trade takes place a month later.
April — The first public bitcoin trade takes place: 1000BTC traded for $30 at an exchange rate of 0.03USD/1BTC
May — The first real-world bitcoin transaction is undertaken by Laszlo Hanyecz, who paid 10000BTC for two Papa John’s pizzas (Approximately $25 USD)
June — Bitcoin developer Gavin Andreson creates a faucet offering 5 free BTC to the public
July — First notable usage of the word “blockchain” appears on BitcoinTalk forum. Prior to this, it was referred to as ‘Proof-of-Work chain’
July — Bitcoin exchange named Magic The Gathering Online eXchange—also known as Mt. Gox—established
August —Bitcoin protocol bug leads to emergency hard fork
December — Satoshi Nakamoto ceases communication with the world

2011

January — One-quarter of the eventual total of 21M bitcoins have been generated
February — Bitcoin reaches parity for the first time with USD
April — Bitcoin reaches parity with EUR and GBP
June — WikiLeaks begins accepting Bitcoin donations
June — Mt. Gox hacked, resulting in suspension of trading and a precipitous price drop for Bitcoin
August — First Bitcoin Improvement Proposal: BIP Purpose and Guidelines
October — Litecoin released
December — Bitcoin featured as a major plot element in an episode of ‘The Good Wife’ as 9.45 million viewers watch.

2012

May — Bitcoin Magazine, founded by Mihai Alisie and Vitalik Buterin, publishes first issue
July — Government of Estonia begins incorporating blockchain into digital ID efforts
September — Bitcoin Foundation created
October — BitPay reports having over 1,000 merchants accepting bitcoin under its payment processing service
November — First Bitcoin halving to 25 BTC per block

2013

February — Reddit begins accepting bitcoins for Gold memberships
March — Cyprus government bailout levies bank accounts with over $100k. Flight to Bitcoin results in major price spike.
May —Total Bitcoin value surpasses 1 billion USD with 11M Bitcoin in circulation
May — The first cryptocurrency market rally and crash takes place. Prices rise from $13 to $220, and then drop to $70
June — First major cryptocurrency theft. 25,000 BTC is stolen from Bitcoin forum founder
July — Mastercoin becomes the first project to conduct an ICO
August — U.S. Federal Court issues opinion that Bitcoin is a currency or form of money
October — The FBI shuts down dark web marketplace Silk Road, confiscating approximately 26,000 bitcoins
November — Vitalik Buterin releases the Ethereum White Paper: “A Next-Generation Smart Contract and Decentralized Application Platform
December — The first commit to the Ethereum codebase takes place

2014

January — Vitalik Buterin announces Ethereum at the North American Bitcoin Conference in Miami
February — HMRC in the UK classifies Bitcoin as private money
March — Newsweek claims Dorian Nakamoto is Bitcoin creator. He is not
April — Gavin Wood releases the Ethereum Yellow Paper: “Ethereum: A Secure Decentralised Generalised Transaction Ledger
June — Ethereum Foundation established in Zug, Switzerland
June — US Marshals Service auctions off 30,000 Bitcoin confiscated from Silk Road. All are purchased by venture capitalist Tim Draper
July — Ethereum token launch raises 31,591 BTC ($18,439,086) over 42 days
September — TeraExchange launches first U.S. Commodity Futures Trading Commission approved Bitcoin over-the-counter swap
October — ConsenSys is founded by Joe Lubin
December — By year’s end, Paypal, Zynga, u/, Expedia, Newegg, Dell, Dish Network, and Microsoft are all accepting Bitcoin for payments

2015

January — Coinbase opens up the first U.S-based cryptocurrency exchange
February — Stripe initiates bitcoin payment integration for merchants
April — NASDAQ initiates blockchain trial
June — NYDFS releases final version of its BitLicense virtual currency regulations
July — Ethereum’s first live mainnet release—Frontier—launched.
August — Augur, the first token launch on the Ethereum network takes place
September — R3 consortium formed with nine financial institutions, increases to over 40 members within six months
October — Gemini exchange launches, founded by Tyler and Cameron Winklevoss
November — Announcement of first zero knowledge proof, ZK-Snarks
December — Linux Foundation establishes Hyperledger project

2016

January — Zcash announced
February — HyperLedger project announced by Linux Foundation with thirty founding members
March — Second Ethereum mainnet release, Homestead, is rolled out.
April — The DAO (decentralized autonomous organization) launches a 28-day crowdsale. After one month, it raises an Ether value of more than US$150M
May — Chinese Financial Blockchain Shenzhen Consortium launches with 31 members
June — The DAO is attacked with 3.6M of the 11.5M Ether in The DAO redirected to the attacker’s Ethereum account
July — The DAO attack results in a hard fork of the Ethereum Blockchain to recover funds. A minority group rejecting the hard fork continues to use the original blockchain renamed Ethereum Classic
July — Second Bitcoin halving to 12.5BTC per block mined
November — CME Launches Bitcoin Price Index

2017

January — Bitcoin price breaks US$1,000 for the first time in three years
February — Enterprise Ethereum Alliance formed with 30 founding members, over 150 members six months later
March — Multiple applications for Bitcoin ETFs rejected by the SEC
April — Bitcoin is officially recognized as currency by Japan
June — EOS begins its year-long ICO, eventually raising $4 billion
July — Parity hack exposes weaknesses in multisig wallets
August — Bitcoin Cash forks from the Bitcoin Network
October — Ethereum releases Byzantium soft fork network upgrade, part one of Metropolis
September — China bans ICOs
October — Bitcoin price surpasses $5,000 USD for the first time
November — Bitcoin price surpasses $10,000 USD for the first time
December — Ethereum Dapp Cryptokitties goes viral, pushing the Ethereum network to its limits

2018


January — Ethereum price peaks near $1400 USD
March — Google bans all ads pertaining to cryptocurrency
March — Twitter bans all ads pertaining to cryptocurrency
April — 2018 outpaces 2017 with $6.3 billion raised in token launches in the first four months of the year
April — EU government commits $300 million to developing blockchain projects
June — The U.S. Securities and Exchange Commission states that Ether is not a security.
July — Over 100,000 ERC20 tokens created
August — New York Stock Exchange owner announces Bakkt, a federally regulated digital asset exchange
October — Bitcoin’s 10th birthday
November — VC investment in blockchain tech surpasses $1 billion
December — 90% of banks in the US and Europe report exploration of blockchain tech

2019

January — Coinstar machines begin selling cryptocurrency at grocery stores across the US
February — Ethereum’s Constantinople hard fork is released, part two of Metropolis
April — Bitcoin surpasses 400 million total transactions
June — Facebook announces Libra
July — United States senate holds hearings titled ‘Examining Regulatory Frameworks for Digital Currencies and Blockchain”
August — Ethereum developer dominance reaches 4x that of any other blockchain
October — Over 80 million distinct Ethereum addresses have been created
September — Santander bank settles both sides of a $20 million bond on Ethereum
November — Over 3000 Dapps created. Of them, 2700 are built on Ethereum
submitted by blockstasy to CryptoTechnology [link] [comments]

Hardware Wallet: Open Source or Secure Chip?

Hardware Wallet: Open Source or Secure Chip?

Don’t be the 2nd u/Zhoujianfu

Recent one or two years, it appears that the open source and secure chip have been a pair of opposite and incompatible practices. That’s really confusing to hardware wallet users, especially newbies — how to choose a good hardware wallet? Seemingly, to select a qualified wallet has simply become an option of choosing either open-source wallet or secure-chip wallet?
“Open source” and “Secure chip” are not at the same level. They should not be compared and debated as a pair.
In this article, we want to make it clear in plain words to those who still suffer from choosing a well-content hardware wallet.

https://preview.redd.it/01e5r6a4x7k41.jpg?width=935&format=pjpg&auto=webp&s=392e000ebb04a866df4aa93292efeee49e9cf88f
First of all, one of the main purposes of wallet “open source” is to prove the team’s innocence. The purpose of the “secure chip” is to strengthen “physical security”. With different targets, comparison between the two implementations is not making any sense.
1 Why does a hardware wallet team need to prove itself innocent?
In the crypto world, you either trust a third party or trust yourself. If you trust others absolutely, you can put your cryptos in the third party platform and no need to bother yourself managing wallets. However, if you want to HODL the coins in your own hands. You should choose a wallet which it can prove its own innocence.
If a wallet is not open sourced, you should totally trust the third party. Now that you trust a third party, why don’t you trust an exchange like Coinbase whose revenue is much healthier than any wallet team.
Only by opening source code can you know:
“What programs on earth are running on the wallet…”
“How the private key is generated…”
“How the transaction signature is performed…”
By open source, you don’t need to trust the manufacturer of the hardware wallet. You only need the hardware and the open-sourced programs on it. That’s all you need.
Therefore, for a hardware wallet, opening source code is a precondition rather than a option.
2 What’s “physical security”??
Simply put, “physical security” is the difficulty a thief can take your coins away from your hardware wallet when a thief got the hardware in itself.
From this perspective, all hardware wallets are not able to ensure the 100% physical security, including the popular hardware wallet — Ledger, who was reported by Wallet.Fail that it was successfully physically attacked.
The first target of a hardware wallet is not physical security, but “network security”.

https://preview.redd.it/q9er0e3gx7k41.png?width=774&format=png&auto=webp&s=94acc4e3a1b76cacec2e5dd83f951b0502094e39
Your hardware wallet should be prevented from being compromised by a hacker from, let’s say, Iceland or somewhere you don’t know. In this case, “Cold” (offline) comes at the first place. In terms of “cold”, BitHD, Trezor and Ledger are all safe and reasonable hardware wallet solution.
3 What we should do to improve the physical security?
Secure Chip standards form the traditional financial industry do help to strengthen physical security. It can increase the difficulty of physical attacks after your hardware wallet being stolen. However, a more reasonable way to prevent such physical attacks is not using a secure chip, but using a “Passphrase Account”.
The correct use of Passphrase Account can prevent you from losing any assets even if the seed/mnemonics is stolen, and you do not need to worry too much about losing your hardware wallet.

BitHD Passphrase Account
Therefore, from a physical security perspective, a “Passphrase Account” that strictly complies with the BIP specification can perfectly solve all problems. If a hardware wallet manufacturer focuses too much on “Secure Chip”, and gives up opening source, which means putting their users in a situation of trusting third parties, we think that is really tail wags the dog.
Through the discussion above, you should be able to logically understand “Why hardware wallets must be open sourced” now. And “Passphrase Accounts are more reasonable physical security solutions for hardware wallets than Secure Chip .” Do not be confused by some manufacturers mistake concept.
4 Finally, let ’s talk about Josh Jones(@zhoujianfu)
The BTC whale lost 1547 BTC and more than 60,000 BCH 2 weeks ago. He is actually a typical example. At first, he trusted a third party (the world ’s largest Bitcoin exchange MtGox). Unfortunately, he lost more than 40,000 BTC. And this time it is said that they trusted a less reliable SIM card wallet solution and lost more than $30 million. This case is an alarm bell for everyone. By correctly choosing a hardware and software open source software, a reasonable architecture, a safe and reliable hardware cold wallet, and using a good password account function, you can truly be foolproof.
Again, keep your asset safe and do not regret of losing them in the bull market.
Hardware wallet open source refers to the hardware design and firmware source code are both open sourced. Capable users can make hardware wallet device and compile and package the firmware version in the hardware wallet.
submitted by BITHD-ColdWallet to u/BITHD-ColdWallet [link] [comments]

Did you know: Classic actually needs just ~70% hash power to succeed!

That's right, these are the facts:
So what is the actual chance of this happening? I've put some numbers into probability calculator and for 70% of hashing power this probability is 5%, given that 1000 blocks take about 1 week to mine, it has a chance to succeed 5% every week, this means:
have 70% of hashing power coming from Classic for 20 weeks and it's almost certain this will happen! The longer Classic has a significant portion of hash rate, the lower the actual percentage it needs to achieve 750/1000 blocks.
What do you guys say, good, bad?
you can fact-check here: http://calculator.tutorvista.com/binomial-probability-calculator.html
EDIT: I made a mistake in my calculation, the actual figure is 72.8% NOT 70% to get the results above (5%/week chance), thanks to everybody who fact-checked and corrected me.
submitted by mushner to btc [link] [comments]

Offenes Geheimnis, so sichern sich Trader Bitcoin bis zu 30% günstiger! Bitcoin and Money (Bitcoin und Geld) - YouTube Building on Bitcoin - A Drivechain BIP Mit 30 in Rente? So viele bitcoins brauchst du 2020! BITCOIN bis ENDE 2020 noch auf $ 30.000 US-Dollar !

Während wir uns dem Halving im Mai nähern, nimmt Bitcoin an Stärke zu und bietet optimistische Perspektiven. Das berühmte Stock-to-Flow-Modell prognostiziert neue Allzeithochs bis Ende Jahr Am 16. April erreichte Bitcoin 7000 US-Dollar, schaffte es, diesen Kurs übers Wochenende zu halten und baute wahrscheinlich während der letzten vier Tage auf diesem neuen Unterstützungsniveau auf. Steigt der Bitcoin Kurs jetzt heftig an oder wird er nun stark fallen? Finde es in unserer Analyse heraus!. In der letzten Bitcoin Kurs Prognose schrieben wir:. „Nun ist der Bitcoin Kurs auf dem ... PayPal sagt ja zu Bitcoin: Integration bereits in 2021; Bitcoin (BTC) bezwingt 12.000 US-Dollar: Die Rallye beginnt ; Jetzt handeln: Plus500. Schnelleinstieg für den Handel von Krypto CFDs. Kryptowährungen handeln bei einem der führenden Anbieter für Krypto CFDs. Bitcoin $ 12,835.30 6.96%. Ethereum $ 395.02 6.42%. Tether $ 0.999722 0.23%. XRP $ 0.256011 4.32%. Bitcoin Cash $ 267.21 10.09% ... Due to the constraints set by BIP 34, BIP 66 and BIP 65, we only have 0x7FFFFFFB possible nVersion values available. This restricts us to at most 30 independent deployments. By restricting the top 3 bits to 001 we get 29 out of those for the purposes of this proposal, and support two future upgrades for different mechanisms (top bits 010 and 011). When a block nVersion does not have top bits ... FRANKFURT (Dow Jones)--Das Statistische Bundesamt (Destatis) verschiebt die Veröffentlichung des deutschen Bruttoinlandsprodukts (BIP) für das dritte Quartal um zwei Stunden. Laut Mitteilung von ...

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Offenes Geheimnis, so sichern sich Trader Bitcoin bis zu 30% günstiger!

Aprende sobre Bitcoin,Blockchain,Alcoins,tokens etc. Sobre mi: Hola mi nombres es Alexis como lo pudiste haber notado, inicie en las inversiones de las cript... Skip navigation Sign in. Search Skip navigation Offenes Geheimnis, so sichern sich Trader Bitcoin bis zu 30% günstiger! In diesem Video gehe ich auf eine technische Möglichkeit ein, mit Hilfe derer sich v... Kann Bitcoin in diesen Jahr noch die 30.000 US-Dollar knacken Wie bist Du darauf vorbereitet wenn Bitcoin und Altcoin's an der Spitze sind * Ledger Hard-Ware...

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