Bitcoin Cash Development Kit and Ethereum Classic has come up with the ECIP-1046 to bridge the gap between Bitcoin and Ethereum’s little brother. With Dandelion, there is another approach to increasing Bitcoin’s privacy.
Bitcoin: Wallet security and dandelion privacy
As recently reported , Coinbase has filed a patent seeking to secure a centrally managed wallet. They want to build on shared access rights for a single private key. The approach is in line with Coinbase’s business model, which is not unjustly described by some as a “bitcion bank” as it is very centralized. For Bitcoin users, who want full autonomy over their own funds, this patent will not really appeal. It is more of an invention for Coinbase and other more centralized systems, such as Exchanges, that can better safeguard customers’ assets.
It is well known: Bitcoin has catch up in terms of privacy. As shown in the video recommendation of the week and in a separate article exists with Taproot a system that should increase this significantly. But Taproot is not the only approach. Another approach, whose GDP drafted about a month ago was called Dandelion – Dandelion. Dandelion has a special focus: unlike Taproot or Coin mixing, it’s not about blurring the tracks on Blockchain. Instead, Dandelion should anonymize the propagation of the transaction itself, that is, sending the transaction to the network. This is an important approach; A node to which you send a transaction can connect it to various data, including the IP address of the sender.
This is achieved by first sending a transaction to a single, randomly selected node which does not end up in the Mem pool but will be given away. So Dandelion forms the “trunk” of a transaction. This is why one speaks of the “Stem phase”, followed by the “Fluff phase”. In this all selected nodes send the named transaction to the Mem pool. Anyone who wants to know more about this approach can read a very detailed media post from Cryptonomy or the two originals .
Formal Verification of Smart Contracts and Bitcoin Cash Development Kits
Ethereum recently made a big investment in the news: Goldman Sachs, JP Morgan and others invested a total of 32 million in Axoni, which works on the AxLang programming language. AxLang is a Scala-based language used to develop smart contracts on Ethereum and Ethereum-like private blockchains. Why use a language other than Solidity? AxLang promises that the Smart Contracts are formally verifiable. That would increase the safety standard on the one hand. A study discussed a few months ago showed that as much as 3 percent of Smart Contracts on the Ethereum Blockchain. Smart contracts would actually be contracts.
Bitcoin Cash can be much more than “the real vision of Satoshi”. Admittedly, the first news (again) claims that. nChain announced that they want to release a new full-node implementation , much closer to Satoshi’s vision. The community reacted rather cautiously; For one thing, Craig Wright, nChain’s chief scientist, is a controversial figure. He claims to be Satoshi, and has championed several blockchain patents , which, from a critics’ point of view, speaks against the open source idea of Bitcoin Blockchain. Secondly, nChain Coingeek, who recently owned 30 percent of the hashing power in the Bitcoin Cash network, is extremely involved in this project. Decentralized is different.
But Bitcoin Cash does not do it justice, just by looking at these technical news. Bitcoin.com recently released a Bitcoin Cash SDK on Bitcoin.com , which should provide interested developers with the necessary tools to realize their ideas on the Bitcoin Cash Blockchain. It should also be possible through Wormhole to develop tokens and smart contracts. Such developments will help Bitcoin Cash significantly more than the plethora of “Bitcoin Cash is the Real Bitcoin” Tweets by Roger Ver.
More news on Altcoins: Ikarus, BOLT and bridges between Ethereum Classic and Bitcoin
Cardano has released Icarus this week . This is a wallet that, unlike Daedalus, does not require the download of the entire blockchain. This is a big step forward for the adaptation of Cardano, after all, not everyone wants to download the entire blockchain.
Earlier, Bitcoin’s quest for privacy was addressed. What about the anonymity of layer solutions like the Lightning Network? In any case, something is happening here. Only recently, the code for BOLT, an anonymous Lightning Network on Zcash was published on github . The idea behind BOLT is older and was originally proposed bythe Zcash founders . The anonymous Lightning Network will exploit two payment channel-related techniques: commitments – which hide the amount of a payment and blind signatures that allow the invisible signing of a transaction.
Ethereum Classic as a bridge builder: With the ECIP-1046, it should be possible to automatically track transactions on the blockchains of Bitcoin or Bitcoin Cash. “Interoperability” is one of the focal points of Ethereum Classic, in that regard, this bridge between Bitcoin and Ethereum Classic fits in well with the concept. One wants to realize this by analyzing the root of the Merkle tree.
New developments in the blockchain sector: First demo of the Binance DEX and BLS signatures
Beyond individual cryptocurrencies , Binance was able to show in a video the first version of their decentralized Exchange. Until now, this decentralized exchange has only one Command Line Interface. A first step in the direction of Binance DEX has definitely been taken.
In addition, it was once again about signatures. Signature is a very central topic for Bitcoin. Taproot and Lightning both require signatures, a Bitcoin transaction is generated by the signature from the sender’s private key and the recipient’s public key, and in multi-party asset management, multi-signature wallets are a recurring theme. In itself, Schnorr is the big buzzword when it comes to new signature systems for Bitcoin. Schnorr signatures promise several advantages over the classic ECDSA signatures. But even Schnorr signatures have their limits: for example, m-of-n multi-signatures in Schnorr are difficult to implement. These and other limits are to be solved byBLS signatures. BLS stands for David Boneh, Ben Lynn and Hovav Shacham, who presented this signature scheme in a paper. For some time now there is a new library that implements BLS signatures.
So after a tour through the technical news of this week, we returned to signatures. One sees again: Even beyond the prices, courses and opinions of any financial experts, the crypto world is still very exciting!