NAV COIN: Anonymous transactions explained (info)

in #navcoin4 years ago (edited)

 Nav  Coin has a 30 second block time. This means that a Nav Coin block on  the Nav Coin Blockchain is mined every 30 seconds. A Blockchain works  fairly simple. Transactions are made and the transaction data is put  into a block. A block is just a collection of transactions and data.  Miners verify a block and after the block gets added to the chain. 

Normal  Nav Coin transactions are very similar to Bitcoin transactions. This  means the transactions are recorded on the Nav Coin Blockchain and  verified by miners. Those transactions have a very low fee and fast  transaction time. Within 30 seconds the transactions are confirmed but  generally the coins will show up faster in the Receiver’s wallet. 

Nav  Coin users have the option to make anonymous transactions. The  connection between the Sender and Receiver is broken by using a  secondary Blockchain, the Subchain. By using a secondary Blockchain Nav  stays transparent and has all the benefits of Blockchain technology. Nav  Coin is decentralized, meaning there is no central point of operations  controlling everything and being a weak point to take Nav offline.

 The  Nav Coin anonymous transaction system is called “Navtech”. Navtech  makes use of two Blockchains to disconnect Sender and Receiver. The  connection between the Sender and Receiver is broken by using the  secondary Blockchain, the Subchain. It is a little more complicated than  that but with a short explanation, together with the Infographic below,  it should be possible to understand the basics. First it goes to know  that anonymous transactions are handled by Navtech Server cluster  consisting of incoming and outgoing servers. Those server clusters can  be setup by everyone and the software is open source.

Only  the Navtech clusters selected by the Sender are used for anonymous  transactions. A Sender can also decide to not make use of any third  party server cluster and setup an own server cluster. This will make  anonymous transactions cheaper, because no transaction fees for using  the Navtech server cluster have to be paid. Another benefit is being in  total control of the server cluster and not depending on any other  server operator.

So,  the anonymous transaction… Note that everything is automated after the  Sender confirms to send an anonymous transaction. Everything beyond this  point is done automated and outside of view from the Sender and  Receiver.

The Sender requests an anonymous transaction. An incoming server from the added Navtech server clusters is randomlyselected and contacted. The incoming server will verify if the  transaction can be processed (transaction size, maximum number of  transactions that can be handled by the server cluster, etc.). The  incoming server selects a random outgoing server in the Navtech server  cluster. See the image below. First randomly a pre-selected Navtech  server cluster is selected. After that a random incoming server from the  server cluster is selected and finally an outgoing server is randomly  selected.

The  Nav Coin is send from the Sender to the incoming server. The incoming  server puts the Nav Coin in a temporarily holding wallet. The incoming  server collects the data of the transaction, Receiver’s address and the  number of Nav Coin meant for the Receiver. So now the data and Nav Coin  have been separated by the incoming server. The incoming and outgoing  server communicate over the secondary Blockchain, the Subchain. To send  the data from the incoming server to the outgoing server, the data is  connected to SUB. SUB is a coin that travels over the Subchain. The  incoming server sends the data and SUB over the Subchain to the outgoing  server. The outgoing server now knows who to pay and how much to pay.

The  outgoing server is loaded with Nav Coin in a pool, the Navpool. The  outgoing server pays Receivers out of the Navpool. So, with the data and  Nav Coin the outgoing server is able to make the payment. The Nav Coin  is send to the Receiver. The payment is not done in one time. Imagine  the Sender sending 100 Nav Coin and the Receiver receiving 100 Nav Coin 2  minutes later, this will make the system vulnerable to meta-analysis.  For this reason the Nav Coin is send to the Receiver in a random amount  of transactions of arbitrary size. 

Now  the Nav Coin from the Sender is still in the holding wallet of the  incoming server. The Navpool of the outgoing server is in the minus  because of sending the Nav Coin to the Receiver out of the Navpool. 

The  transactions happen in cycles of 2 minutes. Every 2 minutes a Navtech  Server Cluster accepts transactions and processes them. The Nav Coin  from the holding wallet has to go to the Navpool to refill it. This  happens in the following transaction cycles. So the Nav Coin send by the  Sender is moved from the holding wallet to the Navpool.   

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I really like that Graphic Colvano... great work

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