The basic principle of delivering privacy and anonymity is the long-time known mathematical scheme - “zero-knowledge proof”. The principle is following: the task has a solution, it is observed as true, but there is no need to present the proof and the steps of the solution. In this case the coin packages are compared to envelopes – no one knows what is inside, the amount can be divided or added to another envelope, but everything is not to be determined.
To support the group of developers a fan of the idea has developed an exchange service and is waiting for the coin to launch. Still, prof. Green warns users from big investments in the coin on the first stages of existence – there might be bugs and other problems that will be solved after gaining some experience. He refers on Zerocoin as an experiment and states that the initiative is not aimed to provide lots of money to the developers; it is enough to for them to succeed and to watch the recognition of their idea by the online society. Let us wish them luck!
It is not surprising that the Bitcoin supporters are also splitting on the matter of anonymity. Some anarchists are working on the idea of a Dark Wallet that would provide anonymity to existing coins of a user by a simple single click. Still the developers of Zerocoin are not afraid to be compared with this group of activists – the new currency has to prove viability by gaining enough users and a value different from several cents per unit. The price hurdle is one of the most important many alternative money types are stumbling upon.
The developers say that they are not going to fight against the existing leader of the alternative coin world due to the inability to integrate the invention in it. The new aim is to see if the new value could successfully develop and reach the level of Dogecoin, popular due to an Internet gig, or even gain real appreciation as the Bitcoin. They understand why their previous goal could not be reached – crimes, money laundering and black market platforms of the web have reduced the interest of the users towards 100% anonymity. The inability to leave traces seems to Bitcoin users not that necessary and valuable in case of wallet hacking and other types of virtual robberies.
The developers of the product from the Johns Hopkins University Information Security Institute, in Baltimore - Ian Miers, Christina Garman, Matthew Green, and Aviel Rubin have decided to choose a different path and started the rebranding of the idea. Zerocoin is going to be an independent digital currency to be fully launched in May of 2014. The announcement was made by Prof. Green at the Real World Crypto conference on Monday in New York. He sees it as the next step of the evolution of the Zerocoin. The network and all service are going to be separate and independent from other currencies, as well as from Bitcoin. The functions will be actually the same, the coin will be generated by mining, the blockchain will register the presence of new coins, but the owners and deals will be untraceable. Prof. Green also voiced his satisfaction on the point of development of the new coin – there is no need to keep it relevant to the Bitcoin technology, no factor is limiting possible changes and additions.
The Zerocoin technology was created in the middle of the past year. The initial idea was to become a part of the existing cryptographic currency Bitcoin to provide more anonymity to users and performed transactions. It should have been an add-on that would reduce proof size by 98% - an extraordinary value that cannot be repeated by any other alternative currency. This good intention has failed due to the controversy of the result – the most famous and valuable virtual coin on the market has already suffered violations, frauds and crimes.
Enigma Delays Release of 'Discovery' Protocol on Ethereum Mainnet
Engima, the startup seeking to bring privacy to the world of public blockchains, is delaying the launch of its mainnet as part of a wider reworking of its developmental roadmap.
The company had pre
Just a Cycle? Big Bitcoin Miners Stay Positive in Face of Market Slump
Despite the downturn in the crypto markets so far in 2018, executives from several bitcoin mining firms have said this scenario has been seen before and they are not deterred by current low prices.
Quick Brew? BitFury's Coffee Machine Accepts Bitcoin Via Lightning Network
Blockchain firm Bitfury has come up with a novel product aimed to make it easier to pay for products with bitcoin.
To that end, a specialized engineering team within the company has developed a cof
Coinbase Disputes Claims in New York Attorney General's Exchange Report
A recent report published by the New York Office of the Attorney General (OAG), which claimed several cryptocurrency exchanges it investigated are vulnerable to market manipulation, has drawn backlash
Bitfury Reveals New Generation of Bitcoin ASIC Chips
Bitfury Group has developed a new, more efficient bitcoin mining chip, the firm announced Wednesday.
The Bitfury Clarke application-specific integrated circuit (ASIC) chip "offers the strongest per
US Lawmakers 'Strongly Urge' IRS to Update Crypto Tax Guidance
A group of U.S. lawmakers has called on the nation's Internal Revenue Service (IRS) to release comprehensive guidance for taxpayers earning gains on cryptocurrency investments or transactions.
Brazil Moves to Probe Banks After Crypto Exchanges Denied Services
Brazil's antitrust watchdog is investigating whether the major banks in the country worked together to close off access to cryptocurrency services.
The Administrative Council for Economic Defense (
Japan Lost $540 Million to Crypto Hacks in First Half of 2018
After news broke yesterday of yet another hack of a cryptocurrency exchange in Japan, the country's police authority has released figures revealing the rise in such attacks this year.