How TumbleBit Builds On CoinSwap To Improve Bitcoin Privacy And Fungibility
An innovation called TumbleBit that improves the privacy and fungibility of bitcoin transactions was presented at the Bitcoin Scaling conference in Milan, reports NASDAQ. TumbleBit builds on the CoinSwap intermediary solution with added layers of cryptography to improve both the privacy and fungibility of bitcoin transactions. The fact that the transaction history of each bitcoin is traceable puts all bitcoins’ fungibility at risk. “Tainted” bitcoins can be valued less than other bitcoins, possibly undermining bitcoin’s value proposition as money. A key problem for fungibility and privacy....
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Bitcoin right now is not really anonymous. Monitoring the unencrypted peer-to-peer network, analyzing the public blockchain or Know Your Customer (KYC) policies and Anti-Money Laundering (AML) regulations can reveal a lot about who is using Bitcoin and for what. This is not great from a privacy perspective. For example, Bitcoin users might not necessarily want the world to know where they spend their money, what they earn or how much they own; similarly, businesses may not want to leak transaction details to competitors. Additionally, the fact that the transaction history of each bitcoin....
There are lots of development projects in the bitcoin space. One of them may help the cryptocurrency’s fungibility significantly. A proof-of-concept called Tumblebit has the bitcoin community excited because it may provide a trustless anonymous payment hub. The Progression Towards a Fungible Digital Asset. Privacy and fungibility is an essential....
A cohort of developers discussed CoinJoin and CoinSwap on stage during the Bitcoin 2022 conference to highlight the main characteristics of these Bitcoin privacy tools.
A slimming down of the bitcoin protocol called Mimblewimble generates a blinding factor that can prove ownership of bitcoins, making private keys unnecessary, and offering a solution to the need to balance bitcoin privacy against fungibility while also improving scalability, according to a white paper that appeared mysteriously on a bitcoin research site authored by a person using a pseudonym, according to Nasdaq. Privacy and fungibility are at odds in bitcoin because anyone can trace transactions over the blockchain, and as the number of transactions increases, the verification cost can....
TumbleBit is one of the most promising privacy-enhancing technologies being built on top of Bitcoin right now. It allows users to mix their coins fully anonymously, without requiring trust in any third party. An advanced version of the technology, which requires Segregated Witness, can even be utilized as a second-layer payment hub to reduce transaction costs and speed up confirmation times. After TumbleBit was first proposed in an academic paper and subsequently presented at the Scaling Bitcoin workshops in Milan, NBitcoin lead developer Nicolas Dorier built an early version of the....