[Cryptography] Bitcoin theft and the future of cryptocurrencies

James A. Donald jamesd at echeque.com
Sun Dec 24 04:36:25 EST 2017


On 12/20/2017 3:27 PM, grarpamp wrote:
> Bitcoin is nowhere near private or anonymous.
> Genuine cryptographic privacy needed for that, such as found in
> the Zerocash (Zcash) family of coins,

We already are facing big trouble over scaling.  Zerocash is too damned 
slow.

I suggest that rather we should employ the coinjoin algorithm.

Your client wallet uses its durable public key and the other client 
wallet's durable public key to establish a secure connection through the 
full peers maintaining the blockchain.  They agree on a new public key 
to which value will be transferred.

They then connect up to other client wallets also attempting to perform 
a transaction and perform a coinjoin, so that what shows up in the 
blockchain is that a random bunch of pseudonymous people transferred 
value to another random bunch of pseudonymous people.

Instead of the blockchain showing Ann transferring money to Edward, 
coinjoin shows Ann and Bob and Carol transferring value to Dave and 
Edward and Fay.

This protects the blockchain from the blood diamonds attack.

Every atom of gold is guaranteed by the laws of physics to be absolutely 
indistinguishable from every other atom of gold, but every uncut diamond 
is unique.  So if the state does not like you, it is apt to declare your 
uncut diamons to be "blood diamonds"   Pretty soon, the state is going 
to declare some bitcoins to be "blood bitcoins".  Coinjoin, like 
zerocash, makes equality of bitcoins a fact of mathematics, rather than 
a policy of humans.

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