Making bitcoin have fungibility/privacy again!!!

in #privacy6 years ago

No Fungibility for bitcoin is a serious problem. As long as a coin is "traceable" it is subject to less fungibility. How? Every bitcoin is the same right? By code yes! By "history" no. A public ledger keep track of every movement. Steem is in theory subject to this in theory unless a privacy addition is added. But by code steem can be just powered up and boom steempower. We also have a decentralized exchange so that why deceltzed exchanges are better . Another reason why we must move to decentralized exchanges. https://bisq.network/ is a good decentralized exchange that has fiat trading. Aka:
Western Union
US Postal Money Order
Cash Deposit
Transfer with same bank
And way more.......

Here how a bitcoin is not fungibility:
Let's say you sign up with Coinbase, You do some services and receive payment in Bitcoin. Those Bitcoins happen to be "dirty", either because the person that gave them to you used a darknet site, withdrew from a gambling site / hyip ponzi, or used a questionable mixer. You don't realize that and deposit the coins into your Coinbase wallet.

Subsequently your Coinbase account gets banned. If the coins were freshly mined there is no way that Coinbase would ban your account. While currently there isn't a direct difference in value between "clean" and "dirty" coins, the difference still exists.

Wait a second!!!!! I should be talking about how bitcoin could be made private/ have more fungibility with no hard fork. Let's go on!!!

  1. Segwit: Segwit does increase fungibility, making zero-conf transactions secure by to fixing tx malleability. It will also increase the adoption of side chains and the lightning network, two other ways to increase fungibility.

  2. Tumblebit: The Unlinkable Payment Hub=
    TumbleBit resembles CoinSwap but more decentralized. Basically unlike coinswap no one can steal your funds and it can have over the LN thus instant private transactions. However it will need to be funded so the more users aka locking up bitcoin to be mixed more privacy. All users locking up bitcoin can earn a % of LN fees.
    Mroe info: https://bitcoinmagazine.com/articles/with-tumblebit-bitcoin-mixing-may-have-found-its-winning-answer-1477423607/

  3. Schnorr signature aggregation will allow multiparty signatures to appear like single-party signatures and scale bitcoin by making transaction weigh less-by 25%. read more about it: https://medium.com/@SDWouters/why-schnorr-signatures-will-help-solve-2-of-bitcoins-biggest-problems-today-9b7718e7861c

  4. ZeroLink defines a pre-mix and a post-mix wallet and a mixing technique.
    Pre-mix wallet functionality can be added to any Bitcoin wallet without much overhead.
    However this is onchain. So bitcoin can enter LN with zerolink or a sidechain can be made. Side Chains are chains that are connected by bitcoin but operate in diff chains. Aka token in sidechain are tokens backed by bitcoin. 1 sidechain token=1 bitcoin
    So theoretically a bitcoin sidechain for zerolink. Zerolink>Tumblebit. But it slow and expensive. Zerolink sidechain =Monero. Tumbltbit> Bitcoin mixer bc it fast,private greater, fast! but has some gaps but should be much greater than dash privatesend

  5. LN using Tor! It hide your ip. It say but hey that what verge claims to do.... But anyway Onion LN hide the LN operator which is good for the mixing services on LN.

  6. This is a little diff:
    Confidential Transactions as a softfork. Read more about it: https://bitcoinmagazine.com/articles/confidential-transactions-how-hiding-transaction-amounts-increases-bitcoin-privacy-1464892525/
    It really complicated but in theory one the best privacy additions. This could be greater or = to zerolink

And that all. there more but those are the most interesting ones.

Learn about all of Core scaling solutions:
https://steemit.com/bitcoin/@sames/bitcoin-newest-scaling-method-adding-bech32-plus-others

Did you know that bitcoin has smart contracts now without clogging up the main chain!!!
Bitcoin’s ethereum killer-rsk.co= https://steemit.com/bitcoin/@sames/bitcoin-s-ethereum-killer-rsk-co

Did you know that bitcoin pow is somewhat actually green:
https://steemit.com/mining/@sames/bitcoin-mining-pow-the-truth
Basically since most energy produced is usually lost( due to the fact energy can't be stored efficiently or storing energy costs more than making more energy itself ) bitcoin mining gives another use for this energy preventing it from being wasted and giving it value. It also will force miners to use renewable resource because nonrenewable resource will keep on getting expensive. In fact here are already solar bitcoin farms. Yes not the best but the stats saying bitcoin mining is completely wasteful is not true.

Sign this petition to bring segwit to coinbase!!!
https://www.change.org/p/coinbase-coinbase-prioritize-segwit-implementation-on-the-coinbase-bitcoin-wallet-gdax-exchange?recruiter=847277407&utm_source=share_petition&utm_medium=twitter&utm_campaign=share_petition

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This post received a 0.840 SBD (11.42%) upvote from @upvotewhale thanks to @sames! For more information, check out my profile!

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