CryptoThis - Bitcoin Difficulty Estimator

[uncensored-r/Bitcoin] In 2013, I built an algorithm that made predictions about BTC price fluctuations and mining diffi...

The following post by GangsterWisdom is being replicated because the post has been silently removed.
The original post can be found(in censored form) at this link: Bitcoin/comments/7g9dra
The original post's content was as follows:
My algorithm showed a "rubber banding" effect. With outliers excluded from my data, it was 94% accurate. With outliers included with my data, it was still 85% accurate.
When difficulty sees large gains, price (USD valuation) will rise steadily, then begin dropping sharply.
When BTC to USD sees large gains, difficulty will change at a slower rate at first, then drop sharply in terms of growth proportion to it's standard deviations of movement.
We are currently witnessing this rubber band lag on difficulty fueled by the giant price increase.
As difficulty drops, more miners will enter the market, and liquidity in the "minted" supply of Bitcoins will increase.
Ultimately, from an economics standpoint, this transition will act as a harmonious correction in either direction, for either rubber banding case.
Bitcoin has a built-in harmonic motion between the liquid market, USD valuation, difficulty, and supply/demand liquidity.
My algorithm lines up with most of the hedge fund guys throwing out large 5 figure valuations for 2018.
I would declare with a degree of certainty above 50% that we will see a valuation of between $12,500 and $20,000 in early spring/late winter.
This will be followed by a gradual decline until near mid-end of Summer.
At which point valuation will begin increasing again, and will hit more... asinine valuations, near the end of 2018. [[This timing range of Summer to Winter of 2018 is the most logical location for a major bubble and crash event, according my current algorithms.]]
The real threat of a bubble exists still, BUT, Bitcoin has developed a resistance to massive market swings, and as it's overall USD valuation increases, the risk is dropping steeply.
You must consider that these days, for Bitcoin's valuation to move $50 USD, requires BILLIONS of USD in trade transactions to occur.
Since mainstream Wallstreet isn't a heavy player in Bitcoin still, this makes BTC immune/resistant to flash crashes, as most long term HODLers are "indoctrinated" and won't fall prey to panic. (Yet, few players in the Bitcoin space are not and could not throw around hundreds of millions of dollars just to create a synthetic pump or crash, unlike 2011-2013 when some larger whales could tip the whole market.)
The amount of liquid capital in BTC owned by "panicky public" is becoming a negligible amount in proportion, and will soon cease having any real effect on day to day valuations.
Financiers, wall street, hedge funds. If anyone in your financial department has an opinion within the realm of the following:
"I don't understand it."
"It's a scam."
"It's not worth looking into."
"It is too volatile."
I would solemnly consider a one to one meeting with that employee. Bitcoin's market cap is higher than the majority of Fortune 500 companies annual revenue. Bitcoin's daily trade magnitudes are between 2 billion and 10 billion USD worth of DAILY active movement.
If an employee is refusing to even look into it, because they "don't understand" or "believe it is a scam"
Make them look into it, or fire their negligent ass. That level of ignorance is equally as bad, as if your company had a major competitor rising in their market space, and this employee refused to research that competitor at all.
That's the type of value movement going on now.
Tulip mania boomed and exploded in roughly 2-3 years.
This is NOT a tulip situation.
Bitcoin was established in 2010 and has had growth outpacing every other financial investment possible for the LAST SEVEN YEARS.
submitted by censorship_notifier to noncensored_bitcoin [link] [comments]

So there's a coin that has more solo miners than all the Bitcoins, Litecoin and Ethereum put together? And it scales to MILLIONS of mining modes using Wolfram research? #3 total node count behind BTC and ETH and in testnet? Stephen Wolfram and DIffie are advisers... You're joking right?

So there's a coin that has more solo miners than all the Bitcoins, Litecoin and Ethereum put together? And it scales to MILLIONS of mining modes using Wolfram research? #3 total node count behind BTC and ETH and in testnet? Stephen Wolfram and DIffie are advisers... You're joking right? submitted by finish-the-thought to CryptoCurrency [link] [comments]

Shamir vs. Diffie on Bitcoin

Shamir vs. Diffie on Bitcoin submitted by Egon_1 to Bitcoin [link] [comments]

@_cryptome_: Cryptome celebrated a Mother of Public Key Cryptography, Whitfield Diffie, yesterday, he in NYC to save Bitcoin from utter Ponzi depravity. @mattblaze

submitted by SpecialAgentRando to cryptome [link] [comments]

@_cryptome_: Bitcoin Ponzi Consensus Speakers May 14-16, NYC, wonderful variety of suits and geeks, pols and ceos. glams and hoods. Whit Diffie to muse on crypto rise and fall Icarus.

submitted by SpecialAgentRando to cryptome [link] [comments]

TIL about Elliptic curve Diffie–Hellman: Encrypted messaging using Bitcoin addresses is possible
During an interview with the NXT developers for Let's Talk Bitcoin, I learned that NXT has a protocol-specified, blockchain-contained encrypted messaging system using Elliptic Curves. So messages can be encrypted with your NXT (or Bitcoin) public/private key pair. I've always thought EC was just for message signing, but TIL it can also be used for key exchange.
Has anyone implemented this in such a way that a Bitcoin address is all you need to send an encrypted message to another Bitcoin user? If not I'm somewhat surprised.
Edit: I should've said bitcoin public keys, not addresses
submitted by pinhead26 to Bitcoin [link] [comments]

Shamir vs. Diffie on Bitcoin

Shamir vs. Diffie on Bitcoin submitted by MuchBitcoin to MuchBitcoin [link] [comments]

Diffie-Hellman Key Exchange in Bitcoin Transactions

submitted by MeanOfPhidias to math [link] [comments]

[ANN] RustCrypto: `k256` and `p256` v0.2.0: pure Rust secp256k1 and NIST P-256 ECDH and ECDSA (no_std/embedded-friendly)

Announcing v0.4.0 releases of these RustCrypto elliptic curve crates:
(see also ecdsa v0.7 and p384 v0.3)
The major notable new features in these releases are:

Elliptic Curve Diffie-Hellman

Key exchange protocol which establishes a shared secret between two parties.

Elliptic Curve Digital Signature Algorithm

Pervasively used public-key scheme for authenticating messages.

Notes on this release

These crates contain experimental pure Rust implementations of scalafield arithmetic for the respective elliptic curves (secp256k1, NIST P-256). These implementations are new, unaudited, and haven't received much public scrutiny. We have explicitly labeled them as being at a "USE AT YOUR OWN RISK" level of maturity.
That said, these implementations utilize the best modern practices for this class of elliptic curves (complete projective formulas providing constant time scalar multiplication).
In particular:
This release has been a cross-functional effort, with contributions from some of the best Rust elliptic curve cryptography experts. I'd like to thank everyone who's contributed, and hope that these crates are useful, especially for embedded cryptography and cryptocurrency use cases.
EDIT: the version in the title is incorrect. The correct version is v0.4.0, unfortunately the title cannot be edited.
submitted by bascule to rust [link] [comments]

Bitcoin predecessors that created some foundational principles for bitcoin

Bitcoin predecessors that created some foundational principles for bitcoin submitted by AlonShvarts to CryptoCurrency [link] [comments]

ABCMint is a quantum resistant cryptocurrency with the Rainbow Multivariable Polynomial Signature Scheme.

Good day, the price is going up to 0.3USDT.

ABCMint Second Foundation

ABCMint has been a first third-party organization that focuses on post-quantum cryptography research and technology and aims to help improve the ecology of ABCMint technology since 2018.

What is ABCMint?

ABCMint is a quantum resistant cryptocurrency with the Rainbow Multivariable Polynomial Signature Scheme.

Cryptocurrencies and blockchain technology have attracted a significant amount of attention since 2009. While some cryptocurrencies, including Bitcoin, are used extensively in the world, these cryptocurrencies will eventually become obsolete and be replaced when the quantum computers avail. For instance, Bitcoin uses the elliptic curved signature (ECDSA). If a bitcoin user?s public key is exposed to the public chain, the quantum computers will be able to quickly reverse-engineer the private key in a short period of time. It means that should an attacker decide to use a quantum computer to decrypt ECDSA, he/she will be able to use the bitcoin in the wallet.

The ABCMint Foundation has improved the structure of the special coin core to resist quantum computers, using the Rainbow Multivariable Polynomial Signature Scheme, which is quantum resisitant, as the core. This is a fundamental solution to the major threat to digital money posed by future quantum computers. In addition, the ABCMint Foundation has implemented a new form of proof of arithmetic (mining) "ABCardO" which is different from Bitcoin?s arbitrary mining. This algorithm is believed to be beneficial to the development of the mathematical field of multivariate.

Rainbow Signature - the quantum resistant signature based on Multivariable Polynomial Signature Scheme

Unbalanced Oil and Vinegar (UOV) is a multi-disciplinary team of experts in the field of oil and vinegar. One of the oldest and most well researched signature schemes in the field of variable cryptography. It was designed by J. Patarin in 1997 and has withstood more than two decades of cryptanalysis. The UOV scheme is a very simple, smalls and fast signature. However, the main drawback of UOV is the large public key, which will not be conducive to the development of block practice technology.

The rainbow signature is an improvement on the oil and vinegar signature which increased the efficiency of unbalanced oil and vinegar. The basic concept is a multi-layered structure and generalization of oil and vinegar.

PQC - Post Quantum Cryptography

The public key cryptosystem was a breakthrough in modern cryptography in the late 1970s. It has become an increasingly important part of our cryptography communications network over The Internet and other communication systems rely heavily on the Diffie-Hellman key exchange, RSA encryption, and the use of the DSA, ECDSA or related algorithms for numerical signatures. The security of these cryptosystems depends on the difficulty level of number theory problems such as integer decomposition and discrete logarithm problems. In 1994, Peter Shor demonstrated that quantum computers can solve all these problems in polynomial time, which made this security issue related to the cryptosystems theory irrelevant. This development is known as the "post-quantum cryptography" (PQC)

In August 2015, the U.S. National Security Agency (NSA) released an announcement regarding its plans to transition to quantum-resistant algorithms. In December 2016, the National Institute of Standards and Technology (NIST) announced a call for proposals for quantum-resistant algorithms. The deadline was November 30, 2017, which also included the rainbow signatures used for ABCMint.
submitted by WrapBeautiful to ABCMint [link] [comments]

How to keep the last privacy in the era of network transparency

How to keep the last privacy in the era of network transparency
Before half of 2020, the word "data breach" appears extremely active. All over the world are plagued by data breaches, but also cause major losses.
In today's Internet era, any behavior you have on the Internet is likely to be recorded, and then through big data summary and statistical analysis, you can basically say: everything you know, the network knows. In a centralized system, the system platform operator can get all your data in the background. Based on the drive of business interests, they will use this data to commercialize applications: sell data and sell services.
The world is interconnected. This is the status quo and an irreversible development trend. In this interconnection, there are no boundaries in the future. In this near future where there are no borders and everything is connected, imagine that your alarm clock, electricity meter, mobile phone, mobile detector, and other things that are needed every day are interconnected, so that others can understand your situation. What a terrible thing it is, like being in a completely privacy-free environment, such a future, you,Suffocation? Should we have privacy?
In December 1948, the United Nations promulgated the Basic Law, "Universal Declaration of Human Rights," Article 12 of which stated personal privacy as follows:
No one's private life, family, residence and correspondence must be arbitrarily interfered, and his honor and reputation must not be attacked. Everyone has the right to legal protection against such interference or attacks.
In the electronic age, privacy is essential for an open society. Privacy is different from secret. Privacy is something that someone does not want to make public. The secret is something he doesn’t want anyone to know. Privacy is a power. It gives someone the right to decide what to disclose and what not to disclose.
In a distributed Internet environment, the privacy of individuals from a macro perspective mainly covers four aspects: node privacy, content privacy, link privacy, and tunnel privacy. Let's expand one by one and look at the specific content of the four dimensions of privacy.
1) Node privacy
Node privacy refers to the fact that in an open distributed environment, both parties interacting with each other do not know each other's sensitive information, such as IP address and MAC address, so as to achieve the purpose of not exposing each other. At the same time, it is impossible for other nodes to perceive the location of the sender and the receiver through network sniffing.
The following uses the Bitcoin network topology as an example to illustrate the importance of node encryption.
As of now, there are about 8,000 nodes in the entire Bitcoin network. Based on current technology, the cost of building a parallel sniffing network is very low. Some researchers have done statistics. When the topology sniffing network starts, after about 10 blocks height, it can basically infer the connection topology of the entire network. Coupled with the fixed time interval of gossip message propagation, it is basically possible to infer the general distribution position of the construction nodes of a transaction information, thereby destroying the privacy of the nodes.
2) Privacy of communication content
The privacy of communication content means that the communication content is only visible to both parties of the interaction. No one can intercept the data from the network, or without the authorization of both parties, no one can see the plain text of the communication.
3) Link privacy
Link privacy refers to the connection established by both parties in communication, which is encrypted; No one has the ability to use the link for data transmission without the relevant key. As shown in the figure below, a-> b, b-> c, c-> d, etc.
4) Tunnel privacy
In some cases, the communication between the nodes will be completed by one or more relay nodes. In this way, based on the transceiver node and the relay node, a communication tunnel is formed; tunnel privacy means that only the sending node has the right to send data from the sending node to the receiving node via the relay node. Under the premise of authorization, there is no way to complete the transmission of data. As shown above, a-> d, e-> h logical communication tunnel.
For the four privacy dimensions mentioned above, there is a general solution that can effectively protect the security. Although the communication efficiency needs to be improved, functionally speaking, it can already take into account the four dimensions. And in the following, for this general security idea, gives the possible dimensions for further optimization.
1. Description of General Encryption Network Solution
Firstly, each relay routing node in the encrypted network creates a routing descriptor, which contains some contact information, mainly IP addresses, ports, public keys, and other broadband capabilities. After the creation is complete, send this information to the directory server of the whole network (usually also become the Bootstrap node). Based on this information, the directory server generates a unique descriptor for the routing node for the entire network, which is stored on the directory server along with the descriptor information. In the following, we will describe in detail how the privacy of the encrypted network is protected from three aspects: networking topology, message structure and link transmission construction.
1) Network topology
As shown in the following figure, in an encrypted network, we recommend that clients, relay agents, relay routing nodes, directory servers, and possibly bridge nodes together form the entire network topology. When the client builds a communication link, the steps are as follows:
A. The client initiates a node request to the directory server;
B. The directory server generally recommends three nodes to the client from the directory table based on the weight selection algorithm. Logically, they are called entrance node, intermediate node and exit node.
C. After receiving effective feedback from the directory server, the client builds a complete tunnel link step by step according to the Response message.
2) Link establishment
Based on the above description, we know that a client can obtain three nodes of a link through the directory server: entrance node, intermediate node, and exit node.
A. The client uses the DH handshake protocol (Diffie-Hellman) to shake hands with the ingress node to generate a shared session key. Based on the shared key, the client sends a CREATE message to the entrance node;
B. After receiving the CREATE message, the entrance node will establish a link with the intermediate node based on the address of the intermediate node in the message and complete the key exchange;
C. Based on the segmented encrypted link and DH handshake protocol completed above, the client completes key negotiation with the intermediate node;
D. Similarly, based on the two-level encrypted tunnel established above, the client sends a CREATE message to the intermediate node to complete the establishment of the encrypted link between the intermediate node and the exit node;
E. Finally, the client completes the key negotiation between the client and the egress node based on the above three-level segmented encrypted link, and then completes the establishment of the entire onion tunnel link;
3) Message structure and transmission
Before the message is sent from the client, it will use the shared key negotiated with the exit node, intermediate node, and entrance node to encrypt from the inside out. The innermost message is encrypted using the shared key of the exit node, then the intermediate node, and finally the entrance node.
A. After the above message is sent from the client, the entrance node will judge the validity of the message based on the shared key negotiated and remove the outer encryption, and then send it to the intermediate node;
B. After receiving the message from the entrance node, the intermediate node will judge the validity of this message based on the shared key negotiated with the client and remove the encryption of this layer, and then send it to the exit node;
C. The exit node uses the shared key negotiated with the client and repeats the above steps. Eventually send the client's message to the real destination address.
2. Optimization for the above program
In the description of the above scheme, we can easily see that there are two obvious flaws, that is, the startup node is too centralized, which can easily lead to a single point of failure or suffer from a network hijacking attack. At the same time, because the data exchange is based on link exchange, when the network congestion is severe, it is easy to cause network service delay. Due to the single structure of the message, it also restricts the data in the link transmission process to a certain extent, and optimizes the transmission performance. Below we will give specific optimization ideas based on the above two points:
1) No central server
The aforementioned encrypted network node knows the existence of all relay and entry / exit nodes by connecting to the directory server. The optimized project node will know the existence of other nodes through the local network database (tentatively called NetDB). NetDB learns the existence of more nodes when connecting other nodes through the DHT algorithm. It is a distributed network database. It mainly provides router contact information and target contact information. Each piece of data is signed by the appropriate party and verified by anyone who uses or stores it.
2) Optimization of data exchange mode
The first point to note is that in the optimized encrypted network, there are two different links for the communication link of the two parties, that is, the entrance link and the exit link are different;
In the optimized encrypted network, the connection is broken up into data packets by the message mechanism (Message), after being cross-transmitted through different TCP or UDP tunnels, the receiver reassembles into a data stream, that is, the optimized encrypted network is based on Packet switching, packet switching can drive some implicit load balancing and help avoid congestion and service interruption.
Undoubtedly, open data sharing is the source of power for the development of data-related industries, but the existing data storage methods and network protocols have many shortcomings. Solving such problems has become a very important step on the road to the next generation of the Internet world. DSP Labs has always kept thinking and exploring the next generation Internet infrastructure. I believe that in the near future, DSP Labs can bring a new choice to the Internet world.
Find us:
Wechat: DSPLabs
submitted by DSP-Lab to u/DSP-Lab [link] [comments]

Proof Of Work Explained

Proof Of Work Explained
A proof-of-work (PoW) system (or protocol, or function) is a consensus mechanism that was first invented by Cynthia Dwork and Moni Naor as presented in a 1993 journal article. In 1999, it was officially adopted in a paper by Markus Jakobsson and Ari Juels and they named it as "proof of work".
It was developed as a way to prevent denial of service attacks and other service abuse (such as spam on a network). This is the most widely used consensus algorithm being used by many cryptocurrencies such as Bitcoin and Ethereum.
How does it work?
In this method, a group of users competes against each other to find the solution to a complex mathematical puzzle. Any user who successfully finds the solution would then broadcast the block to the network for verifications. Once the users verified the solution, the block then moves to confirm the state.
The blockchain network consists of numerous sets of decentralized nodes. These nodes act as admin or miners which are responsible for adding new blocks into the blockchain. The miner instantly and randomly selects a number which is combined with the data present in the block. To find a correct solution, the miners need to select a valid random number so that the newly generated block can be added to the main chain. It pays a reward to the miner node for finding the solution.
The block then passed through a hash function to generate output which matches all input/output criteria. Once the result is found, other nodes in the network verify and validate the outcome. Every new block holds the hash of the preceding block. This forms a chain of blocks. Together, they store information within the network. Changing a block requires a new block containing the same predecessor. It is almost impossible to regenerate all successors and change their data. This protects the blockchain from tampering.
What is Hash Function?
A hash function is a function that is used to map data of any length to some fixed-size values. The result or outcome of a hash function is known as hash values, hash codes, digests, or simply hashes.
The hash method is quite secure, any slight change in input will result in a different output, which further results in discarded by network participants. The hash function generates the same length of output data to that of input data. It is a one-way function i.e the function cannot be reversed to get the original data back. One can only perform checks to validate the output data with the original data.
Nowadays, Proof-of-Work is been used in a lot of cryptocurrencies. But it was first implemented in Bitcoin after which it becomes so popular that it was adopted by several other cryptocurrencies. Bitcoin uses the puzzle Hashcash, the complexity of a puzzle is based upon the total power of the network. On average, it took approximately 10 min to block formation. Litecoin, a Bitcoin-based cryptocurrency is having a similar system. Ethereum also implemented this same protocol.
Types of PoW
Proof-of-work protocols can be categorized into two parts:-
· Challenge-response
This protocol creates a direct link between the requester (client) and the provider (server).
In this method, the requester needs to find the solution to a challenge that the server has given. The solution is then validated by the provider for authentication.
The provider chooses the challenge on the spot. Hence, its difficulty can be adapted to its current load. If the challenge-response protocol has a known solution or is known to exist within a bounded search space, then the work on the requester side may be bounded.
· Solution–verification
These protocols do not have any such prior link between the sender and the receiver. The client, self-imposed a problem and solve it. It then sends the solution to the server to check both the problem choice and the outcome. Like Hashcash these schemes are also based on unbounded probabilistic iterative procedures.
These two methods generally based on the following three techniques:-
This technique depends upon the speed of the processor. The higher the processor power greater will be the computation.
This technique utilizes the main memory accesses (either latency or bandwidth) in computation speed.
In this technique, the client must perform a few computations and wait to receive some tokens from remote servers.
List of proof-of-work functions
Here is a list of known proof-of-work functions:-
o Integer square root modulo a large prime
o Weaken Fiat–Shamir signatures`2
o Ong–Schnorr–Shamir signature is broken by Pollard
o Partial hash inversion
o Hash sequences
o Puzzles
o Diffie–Hellman–based puzzle
o Moderate
o Mbound
o Hokkaido
o Cuckoo Cycle
o Merkle tree-based
o Guided tour puzzle protocol
A successful attack on a blockchain network requires a lot of computational power and a lot of time to do the calculations. Proof of Work makes hacks inefficient since the cost incurred would be greater than the potential rewards for attacking the network. Miners are also incentivized not to cheat.
It is still considered as one of the most popular methods of reaching consensus in blockchains. Though it may not be the most efficient solution due to high energy extensive usage. But this is why it guarantees the security of the network.
Due to Proof of work, it is quite impossible to alter any aspect of the blockchain, since any such changes would require re-mining all those subsequent blocks. It is also difficult for a user to take control over the network computing power since the process requires high energy thus making these hash functions expensive.
submitted by RumaDas to u/RumaDas [link] [comments] - A simple client-side cryptographic tool suite

Hey everyone! My apologies in advance from the plug, but I just wanted to show off my project, It has no ads, no trackers, and does not ask for money.


I got sick of bouncing around from site to sketchy site while trying to perform the simplest of cryptographic operations: things like hashing a string, converting base64, or encrypting a string. Each site had their own way of doing things as well, with a large portion of them POSTing all of the data to the server for it to do the calculations (a major no-no for those unfamiliar). Even some of the good sites were single-purpose with clunky UIs and forgettable URLs. I have yet to meet anyone who has memorized every OpenSSL command, myself included.
There's no shortage of crypto implementations in Javascript, but they're usually implemented in the background of a larger application, not presented in plain form for users to take advantage of as they please.
For these reasons, I decided to make my own collection of tools. All client side, easy to use, mobile friendly, and compatible with OpenSSL! Most tools also include DIY instructions for self-serve. All source code is on GitHub and all libraries are attributed to their authors. Rule #1 of crypto is to never roll your own crypto, so only outside libraries were used for that.


I hope at least some of you find these tools as useful as I do! I'm always open to suggestions for improvement. Thanks for reading!
submitted by rotorcowboy to privacytoolsIO [link] [comments] - A simple client-side cryptographic tool suite

Hey everyone! My apologies in advance from the plug, but I just wanted to show off my project, It has no ads, no trackers, and does not ask for money.


I got sick of bouncing around from site to sketchy site while trying to perform the simplest of cryptographic operations: things like hashing a string, converting base64, or encrypting a string. Each site had their own way of doing things as well, with a large portion of them POSTing all of the data to the server for it to do the calculations (a major no-no for those unfamiliar). Even some of the good sites were single-purpose with clunky UIs and forgettable URLs. I have yet to meet anyone who has memorized every OpenSSL command, myself included.
There's no shortage of crypto implementations in Javascript, but they're usually implemented in the background of a larger application, not presented in plain form for users to take advantage of as they please.
For these reasons, I decided to make my own collection of tools. All client side, easy to use, mobile friendly, and compatible with OpenSSL! Most tools also include DIY instructions for self-serve. All source code is on GitHub and all libraries are attributed to their authors. Rule #1 of crypto is to never roll your own crypto, so only outside libraries were used for that.


I hope at least some of you find these tools as useful as I do! I'm always open to suggestions for improvement. Thanks for reading!
submitted by rotorcowboy to cryptography [link] [comments]

Words from the founders of ABCardO

The family of public-key cryptosystems, a fundamental breakthrough in modern cryptography in the late 1970s, has increasingly become a part of our communication networks over the last three decades. The Internet and other communication systems rely principally on the Diffie-Hellman key exchange, RSA encryption, and digital signatures using DSA, ECDSA, or related algorithms. The security of these cryptosystems depends on the difficulty of number theory problems such as Integer Factorization and the Discrete Log Problem. In 1994, Peter Shor showed that quantum computers could solve each of these problems in polynomial time, thus rendering the security of all cryptosystems based on such assumptions impotent. In the academic world, this new science bears the moniker Post-Quantum Cryptography (PQC).
In August 2015, the National Security Agency (NSA) published an online announcement stating a plans to transition to quantum-resistant algorithms. In December 2016, the National Institute of Standards and Technology (NIST) announced a call for proposals of quantum resistant algorithms with a deadline of November 30th 2017.
In light of the threat that quantum computers pose to cryptosystems such as RSA and ECC, the once-distant need to develop and deploy quantum-resistant technologies is quickly becoming a reality. Cryptocurrencies like Bitcoin are new financial instruments which are created to make financial transactions more efficient, cheaper, and decentralized. Their fundamental building blocks are cryptographic algorithms such as ECC digital signatures which are used to perform various functions to ensure the integrity and security of the whole system. However, the use of ECC signatures and other similar cryptographic algorithms means that quantum computing could pose a fatal threat to the security of existing cryptocurrencies, which deploy number theory-based public key cryptosystems extensively.
The mission of the ABCMint Foundation is to successfully develop quantum-resistant blockchain technology. We also look to promote and support fundamental research for quantum computing technology and post-quantum algorithms.
submitted by prelude406 to ABCardO_PQC [link] [comments]

Who invented blockchain?

Who invented blockchain?
Strange it may seem, but the concept of blockchain was invented long before Satoshi Nakamoto created Bitcoin as A Peer to Peer Electronic Cash System.
Let’s take a look at the events preceding Bitcoin’s blockchain appearance.
  • The idea takes its roots from coding and deciphering. Early in the 1940s, a British mathematician Alan Turing, who was the first known cryptographer, deciphered the Enigma Machine. At the same time, the Americans decoded the Purple Code, a Japanese ciphering machine.
  • In the 1970s, Martin Hellman and Whitfield Diffie invented a special algorithm which split the encrypted keys into a pair — a private and a public key.
  • Then, in 1992, W. Scott Stornetta, Stuart Haber added Merkle Tree to the cryptography concept, boosting security, performance, and efficiency.
  • However, this technology was not used, and the patent ended in 2004, four years before Bitcoin appeared.
  • In 2004, a scientist and cryptographer Hal Finney introduced a system called RPoW, which was Reusable Proof Of Work. The system operated by getting a non-exchangeable Hashcash based PoW token and in return created an RSA-signed token that could then be transacted from person to person.
  • RPoW solved the double-spending problem by keeping the ownership of tokens registered on a trusted server. It also allowed users worldwide to verify its correctness and integrity in real-time.
  • In 2009, Satoshi Nakamoto introduced his white paper Bitcoin: A Peer to Peer Electronic Cash System. The technology that underpinned the Bitcoin was called blockchain. It solved the problem of trust because each time a transaction was made, it was bundled together with other transactions and stored in a block. The block was then placed on the chain, which couldn’t be changed.
  • Based on the Hashcash PoW algorithm, but rather than using tools trusted computing function like the RPoW. The double-spending protection was provided by a decentralized peer-to-peer protocol for verifying and tracking the transactions. In simple words, Bitcoins are “mined” for a reward using the proof-of-work mechanism by miners and after verified by the decentralized nodes in the network.
submitted by y0ujin to NovemGold [link] [comments]

Has anyone here ever actually read CSW's patents? I just did and had a good LOL.

Sorry craig, but your patent for using a diffie hellman key exchange to send a private key isn't any more enforceable than a patent on using SSL to send emails.
You can't just take someone else's invention, get a patent for using that invention on bitcoin, and expect it to be an enforceable patent. That is every single one of Craig's patents right there.
submitted by autisticchadlite to btc [link] [comments]

Tachyon Protocol Technical Guide #2 Tachyon Security Protocol

In our last article, we explored the fundamentals of TBU (or Tachyon Booster UDP). TBU is the core of Tachyon’s architecture which will replace the Application, Transport and Internet layers of the conventional TCP/IP protocol.
What Is TBU? How Does TBU Work?
The core of Tachyon Protocol includes four parts — TBU(Tachyon Booster UDP), TSP(Tachyon Security Protocol)…
Today we will take a look at TSP, or Tachyon Security Protocol. As the name suggests, TSP is that part of Tachyon which ensures that the ecosystem remains safe from hackers and user data remains hidden from the outside world. The two main weapons in TSP’s arsenal are Asymmetric end-to-end Encryption and Protocol Simulation Scheme.
ECDHE-ECDSA Asymmetric end-to-end Encryption
The data that you send over the Internet passes through a host of servers, routers, and devices. There’s simply no way of knowing how secure any of these data gateways are. For all you know, your data might be intercepted by hackers at multiple points.
The most reliable safeguard against this problem is end-to-end encryption, which scrambles user data such that only the recipient can make any sense out of it. Even if a hacker intercepts this data, it would seem all gibberish. It’s only when the data reaches its correct destination that it is unscrambled and the original message is revealed.
Let’s say at a birthday party, Jim wants to send a secret message to his friend Rob; but the party is teeming with other kids, and he can’t risk the secret being let out. Luckily for Jim, both he and Rob have been taking French classes outside their school hours. Jim jots down the message in French on a piece of paper, and asks the other kids to relay it over to Rob. Now even if any of his friends open the chit, he won’t be able to make any meaning out of it. Smart move, Jim!
Ordinary point-to-point networking suffers from 2 major threats:
1.Network Sniffing

Hackers can use Network Sniffing tools to intercept and analyze the data flowing over computer network links. Most of these Sniffers work mainly with TCP/IP packets, but more sophisticated tools can work lower in the network hierarchy and even intercept Ethernet frames.
To counter such data hacking techniques, TSP creates encryption keys in insecure channels (where data points are unfamiliar with the credentials of each other) by implementing ECDH — ECDSA and Ephemeral Key. ECDH — ECDSA are a class of cryptographic algorithms which come under what is known as Elliptic Curve Cryptography.
TSP also uses AES (Advanced Encryption Standard) to ensure that even if the message is intercepted, the attacker wouldn’t be able to read it. In addition to this, a set of hash algorithms, such as HMAC, SHA2 and Keccak, are deployed so that in case the attacker is able to alter the data, the message would be automatically ignored.
In some instances, although the attacker is unable to decode the message, he might still be able to acquire some statistical feature information from it. TSP safeguards against this through a combination of different techniques, such as using a public symmetric encryption key, adding random data to the transmitted message, and encrypting the information part (such as the frame byte of the data packet).
Moreover, the likelihood of an encryption key being deciphered increases with multiple usages. TSP avoids any such risks by automatically renegotiating the encryption key after the connection transmits a certain length of data.
  1. Man-in-the-middle Attack (MITM)
In MITM, the attacker actually pretends to be one of the communicating parties and intercepts the communication. In 2018, well known hardware wallet manufacturer Ledger became the victim of MITM attacks. A piece of malware that made its way into the user’s computer would simply modify the “Bitcoin receive address” as displayed on the Ledger Wallet app. The satoshis that were supposed to make their way to the user’s wallet ended up being directed to the attacker’s public address instead.
TSP protects against MITM attacks by using ECDH (or Elliptic-Curve Diffie–Hellman), a key agreement protocol that allows two parties to establish a shared secret communication over an insecure channel. This makes it possible for the identities of both parties to be verified before any data is transmitted. Through ECDH, each of these parties generates an elliptic-curve public-private key pair. As long as this private key is not exposed, MITM attacks can be prevented.
Protocol Simulation Scheme
A distinct feature of TSP is the Protocol Simulation Scheme, which allows Tachyon to simulate well known communication protocols, such as UDP, TCP, HTTP, HTTPS, FTP and SMTP. So while Tachyon encrypts data packets using its own TBU protocol stack (discussed in our last article), anyone who intercepts this data would assume that the data belongs to the communication protocol being simulated.
Though Protocol Simulation, TSP guarantees that the real content of the communication is concealed, in order to avoid information unwarranted interception and exposure. It also fools firewalls and other third party applications into letting Tachyon data flow unhindered — a feature that is really useful in Tachyon’s VPN application.
Today, HTTP/HTTPS is the most commonly used communication protocol in the World Wide Web. However, in most cases, the data that is transmitted is completely unencrypted, which makes it vulnerable to hacking. Moreover, HTTP-based communication checks neither the identity of the node with which communicating is being established, nor the integrity of the message being transmitted.
In case of Tachyon, not only is the data encrypted in multiple levels, but the nature of the data packet is concealed as well. For example, in case of SMTP simulation, the data will resemble an ordinary e-mail; while in case of HTTPS simulation, the data traffic will appear like the user is visiting a website such as Google or BBC News.
submitted by Rlindras to Crypto_General [link] [comments]

Exclusive: Introducing Shared Memos

Exclusive: Introducing Shared Memos

DropBit Wallet Exclusive: Introducing Shared Memos

Hey All!
In continuing with the mission to make using and sending Bitcoin more user friendly, the DropBit app has released its feature to Securely Send Memos. This is a unique to our wallet feature that significantly enhances the user experience for those users who send or receive multiple Bitcoin transactions in their wallet.
Many wallets offer the ability to add local memos to a wallet transaction, but no other wallet solution offers the capability to securely share memos between sender and recipient. The DropBit user has the ability to decide at each transaction if they want to share the memo with the recipient or if they just want to keep the memo private, on their own wallet. Not only does DropBit allow this powerful capability, it does so while keeping the messages encrypted and secure.
The shared memo feature works for both Android and iOS, allowing users to decide with each transaction if they want to add a memo and keep it to themselves, or securely share the memo with the recipient. This brings Bitcoin closer to the standard and ease of use of some FIAT wallets, like Cash App and Venmo, in which the memo is an important part of the transaction experience. Gone are the days where recipients and senders are left guessing which transaction was sent or received for which reason while looking at their transaction history.
For power users, or even merchants, this becomes even more important as memos give an ability to catalog activity between the user and recipient. In the comparison graphic below, you can see the image on the right is much more helpful when looking at transaction history.
Left: Transactions listed from BRD Wallet. Right: Transactions with Secure Shared Memos from DropBit

Transactions with Securely Shared Memos
Some other wallets allow you to add a memo to a transaction, but it only shows up on the memo creator’s wallet. DropBit allows for this capability as well, but there is a lot of power in being able to share this memo with the Bitcoin recipient.
Safe and Secure
As important to us as enhancing the utility and user experience of Bitcoin transactions are to us, ensuring that privacy remains unaffected by the features we implement is most important.
Shared memos are encrypted by using the Elliptic-curve Diffie-Hellman Ephemeral (ECDHE) key agreement protocol and AES-256-CBC. ECDHE requires two keys in order to work: our API stores a receiver’s address and corresponding public key, the sender generates an ephemeral key pair. The ECDHE shared secret is used to encrypt the memo which is then temporarily stored by our API. When the receiver sees a new transaction for that address it checks for any memos and the process is performed in reverse using the ephemeral public key and the corresponding private key for that address.
International Accessibility + Open Source Transparency coming soon…
In the coming weeks, DropBit will be made available in almost every country globally. We have heard from countless people who want to use DropBit around the world and soon that restriction is lifted. Additionally, we’ll be working on localizing languages and native currency to a handful of countries in the coming months.
Finally, we have also heard the requests for open source and we are in the final testing phase to open source the DropBit Wallet. Verification is essential in the Bitcoin space, and we are happy to open our solution up to the world so they can have the confidence to make DropBit one of their primary Bitcoin wallet solutions.
submitted by coin_ninja_com to Bitcoin [link] [comments]

Cryptographer's Panel at RSA Conference 2015: Extensive Discussion of Bitcoin Throughout

Cryptographer's Panel at RSA Conference 2015: Extensive Discussion of Bitcoin Throughout submitted by luftderfreiheit to Bitcoin [link] [comments]

The Diffie-Hellman key exchange, and how it's used in many different privacy-oriented Cryptocurrencies.

Let's talk about Paint.
Everyone can see you have the color Yellow, and I want to create a secret paint color that only we know the recipe to; but since everyone is listening, we can't talk about it.
So I'm going to take your Yellow, and I'm going to add my secret Blue. The result is a special Green paint; I give you this Green paint, and tell you it's really important.
You do the same thing; you take your Yellow, and you add your secret - Red. The result is a special Orange paint; you give this to me.
Here's the magic: I add my secret Blue to your special Orange, and you add your secret Red to my special Green. The result is we end up with the same color - and nobody who intercepted our messages knows how it was made.
This is the concept behind the Diffie-Hellman key exchange, and the underlying nature of Stealth Addressing.
A Stealth Address, or sometimes an SA for short, uses a public "color" and two private "colors". In the case of Monero:
(small note: we don't actually have any gremlins mixing paint in Monero. We use something called Elliptic Curve Cryptography instead.)
Okay wait, but what are you talking about?
We just made a transaction, that you, as a receiver, can prove happened - and nobody else even knows! We just had a super secret transaction!
Oh okay! But if all we need are Stealth Addresses, why do we use Monero?
Stealth addresses only work in entirety if you don't know any inside information. Unfortunately, you still know who I am - and what's worse, is I can actually still tell when you next spend your Monero. That's why we need things such as Ring Signatures, RingCT, and Kovri.
Oh okay. But what about Quantum Computers?
Two things. First, Quantum computers are just buzzwords. They really don't do too many world ending things, and we have much bigger problems than /Doomero. But, even if it's the end of Monero as a currency, your previous transactions are still safe, because Monero uses something called zero-knowledge proofs in some of its methods that make it mathematically and cryptographically entirely impossible to verify with certainty certain parts about a transaction.
What about Bitcoin Private?
I will stab you.
submitted by OsrsNeedsF2P to Monero [link] [comments]

Mining Difficulty Explained [2019] Public key cryptography - Diffie-Hellman Key Exchange ... Crypto Mining Difficulty 101 - Everything You Need to Know The Diffie-Hellman Key Exchange in Python Shamir vs. Diffie on Bitcoin

Bitcoin-Mining ist ein Geschäft mit einer sehr grossen Konkurrenz. Mining macht nur Sinn, wenn Sie es aus Spass machen und es Ihnen nicht so wichtig ist, ob Sie Profit daraus schlagen. Es ist aber auch möglich, dass Sie es sehr effektiv betreiben und davon profitieren. Aktuelle Bitcoin Nachrichten. Kryptografie bildet den Kern des Bitcoins, und nur wer sie versteht, begreift, weshalb der Bitcoin so unglaublich sicher ist. Das Problem ist nur, dass moderne Kryptographie ziemlich schwer zu durchschauen ist und man sich schneller, als einem lieb ist, einen dicken Knoten in die Gehirnwindungen hineindenkt. Zum Glück hat dieses Blog Leser, die nicht nur… The Bitcoin difficulty chart provides the current Bitcoin difficulty (BTC diff) target as well as a historical data graph visualizing Bitcoin mining difficulty chart values with BTC difficulty adjustments (both increases and decreases) defaulted to today with timeline options of 1 day, 1 week, 1 month, 3 months, 6 months, 1 year, 3 years, and all time Bitcoin - Wie geht es weiter bei BTCUSD? vom 19.10.2020, 06:45 Uhr. Bild: In den letzten Wochen gab es noch keine trendentscheidende Kursbewegung beim Bitcoin und daher befindet sich ... Bitcoin's mining difficulty adjusts with every 2,016th block. Depending on the speed at which these blocks are mined, this happens roughly once every two weeks. If blocks are created faster than usual, the difficultly tends to increase, thus preventing miners from overproducing coins (and vice versa). The metric plunged 15.95 percent — the second-biggest drop in Bitcoin's history ...

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Mining Difficulty Explained [2019]

The history behind public key cryptography & the Diffie-Hellman key exchange algorithm. We also have a video on RSA here: New video every Tuesday! Today we are taking a look at the Gekkoscience NewPac USB miner. We'll check all the hardware you need for setting it up, discuss so... Difficulty is a value used to show how hard is it to find a hash that will be lower than target defined by system. The Bitcoin network has a global block difficulty. Valid blocks must have a hash ... From RSA Conference 2015, Cryptography Panel In this episode, I talk with legend of cryptography, Whitfield Diffie. Whit was working on cryptography long before Bitcoin existed, building the foundations for which Bitcoin relies upon. We ...