What Is Bitcoin Private (BTCP)?
Bitcoin Private For most of written history, transactions have been private and fairly anonymous. The information of a transaction was only disclosed to the sender and the recipient. Recently, the large majority of financial transactions have become facilitated by technology, making it increasingly difficult to maintain financial privacy. The most common methods of payment (e.g. credit/debit card, Apple Pay, etc.) result in all the information of a transaction being stored digitally. While there are immense benefits that come with these transaction methodologies, it should not preclude the utility of financial privacy for the average consumer.
Considering how often breaches occur within large financial institutions resulting in significant leaks of personal and financial information, it is clear there is a need for financial privacy options.1,2 Furthermore, various financial institutions have been caught selling customer data,3 as well as blocking legal transactions with no valid legal basis. In October 2008, Bitcoin Private Nakamoto released the academic article titled “Bitcoin A Peer-to-Peer Electronic Cash System” in which the foundation for the
first cryptocurrency was detailed.
Bitcoin Private vision was to create a currency which enabled removal of third party institutional control of transactions, limited inflation, and monetary freedom through anonymity. Since the launch of Bitcoin in 2009, over 1000 different cryptocurrencies have been created and immense progress has been attained. Indeed, many new cryptocurrencies far outpace Bitcoin in terms of transaction speed and fees. Regardless, Bitcoin still remains the most popular cryptocurrency due to its first mover advantage and significant number of base-pairs available for trading.
Bitcoin Private Storage Key Points
|Coin Name||Bitcoin Private|
|Circulating Supply||4,785,761.00 BTCP|
|Source Code||Click Here To View Source Code|
|Explorers||Click Here To View Explorers|
|Twitter Page||Click Here To Visit Twitter Group|
|Whitepaper||Click Here To View|
|Official Project Website||Click Here To Visit Project Website|
For Bitcoin Private, a “fork-merge” is proposed, whereby the UTXOs of two crypto currencies are combined into one blockchain. This will formally happen off of the Zclassic blockchain, since zk-SNARKs and Bitcoin Private transactions are fundamentally part of this new blockchain. One can liken the solving of a blockchain to a chain-growth polymerization mechanism when the next block is solved, the blockchain grows, just as a polymer grows upon the reactive addition of monomer to the polymer chain end. Additionally, the Bitcoin Private clients will support blockchain pruning and SPV techniques like Electrum in order to reduce the burden of the blockchain on user devices.
However, while longer polymer chains are generally desirable as they impart increased toughness on the resulting plastic, increasing the blockchain size results in increased storage consumption as well as significantly longer node sync times. Fortunately, this snapshot will only need to retrieve the address state from Bitcoin and Z classic at a single point in time, which will be carried to the new chain. This approach is effective and results in a significant reduction in storage required by the blockchain, in this case reducing it from 157 GB to only 10 GB (at launch).
As discussed in the introduction, mining of Bitcoin is predominantly performed by ASICs, specialized instruments capable of significantly Bitcoin Private GPUs. Unlike GPUs, ASICs are far more difficult to acquire and have led to significant centralization of Bitcoin mining. Indeed, Igor Homakov has suggested that over 60% of Bitcoin network hash rate is located in China.12 Meanwhile, ASIC resistant algorithms are far more likely to be decentralized as GPUs are more readily available throughout the world.
Decentralization of the network hash allows for significantly more democratization of the blockchain, decreased susceptibility to a 51% attack, and ensures that the cryptocurrency generated via mining, as well as associated fees collected, are spread throughout the community as evenly as possible. This further prevents the ability of a few miners to influence the blockchain development as well as manipulate the market via mining significantly large amounts of the cryptocurrency.
Transparent vs. Shielded Transactions
Bitcoin Private is an amalgamation of two transaction systems transparent and shielded transactions. Transparent transactions operate on the same principles as Bitcoin – input, output, amount, and signature. Sources of all funds, destinations, and amounts are stored transparently on the blockchain. Shielded transactions, conversely, encrypt these details into a special section of a block called the JoinSplit. These transactions are verifiable but indecipherable to third-party observers.
When spending shielded notes, the integrity of the blockchain is kept via a specialized zero-knowledge proof algorithm called Bitcoin Private. This algorithm runs a series of computations to show the input values sum to the output values for each shielded transfer. Then, the sender proves that they have the private spending keys of the input notes, giving them the authority to spend.