Privacy coins have rocketed this year, fueled by the increasing ease with which bitcoin transactions can be de-anonymized and traced to genuine globe identities. Zcash, which was a $10 coin in January, peaked at $376 in June, while monero began the year at $12 prior to reaching $136 in August. Now, testing of Confidential Transactions (CT) suggests that litecoin and bitcoin could stick to suit by adding a privacy layer.
Bitcoin and litecoin are the OGs of crypto, the latter basically a clone of BTC. This signifies that features which work on the litecoin network will frequently work on bitcoin and vice-versa. Segwit and the Lightning Network, for instance, each created their debut on litecoin. This week, it was announced that progress had been made with testing Confidential Transactions in an update posted by Coinjoin developer Greg Maxwell.
In previous testing, CTs had been 16x the size of normal transactions. Researchers Benedikt Bünz and Jonathan Bootle have now discovered a way to compress CTs so that the resulting output is only 3x the typical size. The basic premise with Coinjoin is that two customers can make a transaction simultaneously, as a result masking the inputs and outputs of each parties.
With regards to the new breakthrough with CTs, Maxwell explains:
This cuts the bloat factor down to ~3x for today’s site visitors patterns. Considering that the scaling of this method is logarithmic with the number of outputs, use of CoinJoin can make the bloat factor arbitrarily small.
This is a significant step forward, one particular which moves bitcoin and litecoin closer to adding this monero-like privacy function. Litecoin developer Charlie Lee was especially pleased, tweeting:
He then went on to list the positive aspects of CTs such as no new cryptographic assumptions, higher performance, or trusted setup needed. “All significant option schemes fail several of these criteria (e.g., arguably Zcash’s scheme fails every single one particular of them)” he finished.
It would be premature to recommend that Confidential Transactions will have Monero’s Riccardo Spagni, aka FluffyPony, quaking in his boots. Litecoin, as the smaller and nimbler sibling of bitcoin, could have CTs up and operating reasonably soon, and with no require for a tough fork. It seems unlikely that this function, if rolled out, would have Monero and Zcash customers flocking to Litecoin in their droves. And it appears even less most likely that CTs will be appearing in bitcoin any time quickly.
When bitcoin has born, it was widely noticed as an anonymous or at least pseudonymous currency that was virtually impossible to trace, provided certain precautions had been taken. As law enforcement became increasingly adept at mapping movements through the blockchain, even so, a string of busts ensued. These include alleged Dream industry kingpin Gal Vallerius, whose transactions had been traced to Localbitcoins.com, where he reportedly cashed out his deep internet earnings.
With bitcoin becoming courted by the investment banking business and attracting rising attention from CEOs and heads of state, untraceable transactions most likely are not going to win a show of hands. There are reputable and justifiable factors why it is desirable to be in a position to transact anonymously on the net.
Do you believe litecoin and bitcoin need to add privacy attributes? Let us know in the comments section below.
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Published at Thu, 16 Nov 2017 08:00:46 +0000