Bitcoin Core suggested improved Confidential Transactions

According to Gregory Maxwell, Bitcoin Core developer, using the Confidential Transactions, the size of a typical bitcoin transaction can be reduced by 20 times
15 November 2017   594

The Confidential Transactions  technology received a new development impulse.

The technology, which was first announced in 2015 by Dr. Adam Beck, uses the so-called "Pederson's obligations" and assumes that it is possible to make the transferable amount visible only to the direct participants of the transaction or the third party assigned to them.

However, such transactions are not in themselves a universal solution, since they hide only the amount of the transfer, and not the address of the sender and the recipient.

A new approach to the issue was suggested by Bitcoin Core developer Gregory Maxwell. His model involves using the CoinJoin method to combine transaction outputs into one large transaction, which will hide the links between users from outside observers.

As Maxwell says, in this case the amount of payment will be available only to the "sender, recipient and those to whom they will provide special keys for viewing information."

In addition to increased privacy, the proposed method solves another important task related to the issue of scaling. In particular, it allows you to significantly optimize the weight of transaction confirmation.

It is necessary to understand that the technology of Confidential Transactions, in the background of all its advantages, is rather resource-intensive. It is this problem that Maxwell decided, optimizing a number of indicators.

The primary advantage of this approach is that it can be constructed without any substantial new cryptographic assumptions (e.g., only discrete log security in our existing curve), that it can be high performance compared to alternatives, that it has no trusted setup, and that it doesn't involve the creation of any forever-growing unprunable accumulators. All major alternative schemes fail multiple of these criteria (e.g., arguably Zcash's scheme fails every one of them).

Gregory Maxwell
Developer, Bitcoin Core

Charlie Lee, creator of Litecoin, found this technology very interesting.

According to Maxwell, the size of a typical bitcoin transaction using the advanced technology of Confidential Transactions can be reduced by about 20 times.

Wyoming Passed Bill Exempting Utility Tokens from Securities Laws

The Wyoming House of Representatives has unanimously approved a bill exempting utility tokens from securities laws  
20 February 2018   82

On Monday, House Bill (HB) 70 passed the House 60 to 0 and will now head to the Senate. The bill exempts utility tokens from securities laws. This will attracts ICO’s launches to the state and will make the state a favorable environment for blockchain startups.

According to the bill, the utility token must meet three conditions:

  1. The token’s issuer must not market it as an investment;

  2. The token must be exchangeable for goods and services, for example, startups must have a working product or service at the time the tokens are issued;

  3. The token’s issuer must not actively make efforts to create a secondary market for the token by entering into a repurchase agreement or agreeing to locate buyers for the token.

It is important to note that there are four more cryptocurrency and blockchain-related bills currently moving through the Wyoming legislature.

HB 19 passed the House of Representatives on Monday and is now awaiting introduction in the Senate. The bill exempts cryptocurrency from the state’s money transmitter act.

HB 101 has passed its second reading in the House and, if it passes its final hearing, will then go to the Senate. This bill will allow companies to create and use blockchains for the purpose of storing records and conducting inter-office communication.

HB 126 has just passed its second reading in the House. It will allow the creation of series LLCs.

Senate File (SF) 111 passed a vote to introduce on Friday and is now headed to a committee hearing. This bill will exempt cryptocurrency assets from state property taxes.