Alipay released a concept version of mobile phone fraud prevention “don’t fool me, friends: where can I buy?

In April 1st, Alipay released a mobile phone administrative micro-blog promo, the mobile phone has three functions: forgery, theft, fraud, and a strange name: “don’t fool me”. In the survey, more than 90% of the respondents said, want to give parents to buy this mobile phone.

According to the video, “don’t fool me” mobile phone built-in artificial intelligence assistant and polygraph, can predict whether the call security, if there is a risk of fraud, authorization will enable automatic response function, according to the “routine” trick each other, the end of fraud. If the mobile phone is stolen, will activate the flight model to fly back to the master side directly.

Every April 1st, many technology companies will launch new products, such as Google’s Uber, a key called the unmanned bicycle tractor etc.. In these technology companies, Alipay can be described as a debris flow. They can not only open the brain hole, but also realizes the true concept of product: April Fool’s day in the past 7 years, there are 5 models has been achieved.

Alipay.com said, telecommunications fraud is a social problem, in order to reduce the damage caused by fraud, Alipay has been upgrading various anti cheat technology, also called as the fight against drunk driving against fraud”. In recent years, Alipay launched four anti cheat artifact: intelligent risk control, delay arrival 2, anti fraud detective, security guard, hope to the end of fraud.

At present, Alipay basically cover the suspected fraud warning, but in reality, there are still many users in the depth of the wind control system even cheated, pop up, will lead to blind cheated. This means that, to the end of fraud, in addition to a strong wind control system, also need to constantly improve the user’s awareness of fraud prevention. Alipay said it is hoping this video, more safety education, reduce the risk of fraud.

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Block chain two market report: new high rebound shock upstream, four with Yang

The thirteenth week of 2019 blockchain two Market Report

In March 24, 2019 -2019 year in March 30th

This report focuses on the content:

  • This week the market trend: shock up high, four with positive rebound

  • Nine exchange volume: the total turnover increased by 9.5%

  • Digital asset turnover week total trading activity in the high value:

  • Exchange wallet balance: BTC exchange balance increased 2.45%, USDT balance increased by 6.13%

  • OTC premium rate: to maintain positive USDT premium, short-term capital approach signs

  • Bitcoin VIX volatility shock rise, the market sentiment from fear to greed

  • Futures contract: short-term futures discount rate decreased, short sentiment persists

  • The macro perspective: all kinds of assets yield differentiation, bitcoin yields ranked first

  • Market summary

This report details:

1. this week the market trend: shock up high, four with positive rebound

At the time the report (March 30, 2019), Saturday the global block chain assets total market capitalization of $143 billion 600 million, $140 billion 500 million over the same period last week rose $3 billion 100 million, or 2.18%; the market volume of $33 billion 700 million, $31 billion 230 million over the same period last week rose 7.90%.

This week (March 24, 2019 to March 30, 2019) Bletchley 10 index closed at 461.62 points, 449.03 points over the same period last week increased by 2.8%; the Bletchley 20 index closed at 501.17 points, 467.96 points over the same period last week rose 7.1%; Bletchley 40 index closed at 74.47 points, 69.31 points over the same period last week rose 7.4%; Bletchley index closed at 198.01 points, compared with the same period last week 192.09 3.3% point rise.

This week the market closed up for the fourth consecutive week, the market turnover increased significantly, and the market value of small currency rebounded. This week the market hit a new high since May, at the beginning of the week the lower back after the shock rise, hitting 1480 billion, compared with last week rose to 2.18%, bitcoin also broke through $4100. From the amount of energy, the more offensive attack, but this is a populated area, the larger the market sell-off, if the disc is not broken, remember callback risk; the long term the market is close to the variable count, or to maintain the shock of rising prices.

Figure 1 this week the world’s total assets market value chain block

 Block chain secondary market report: new high rebound shock upstream, four with Yang

Source: CoinMarketCap, TokenMania

Figure 2 in the past three months the global block chain of digital assets total value changes

 Block chain secondary market report: new high rebound shock upstream, four with Yang

Source: CoinMarketCap, TokenMania

The past three months, the market is still in the 11 months since last year’s slump in the oversold rally, in 110 billion to 140 billion dollars in the whole box interval fluctuations, the market volume is shrinking sharply early; this week the market continued upward trend last week, $140 billion mark integer station to a new high, boosted market confidence in the market. Investment sentiment rebounded. The current encryption currency market is still a lack of sufficient demand to support incremental funding and user entry, market performance is more capital stock of the game results, with the IEO project on the line, the market heat has signs of abating, more funds will be shifted to the mainstream currency. The long term, the bitcoin currency is still the mainstream in the low valuation, investors will be able to set a stop point, along the direction of least resistance investment market.

This week the DragonEx platform wallet suffered hacking, causing the user and platform of stolen digital assets. Analysis of vulnerability to the center of the DVP platform, in this case the DragonEx exchange stolen the total value of assets of not less than 500 million; the well-known South Korean exchange Bithumb also because the attack caused loss of digital assets. The exchange of security incidents involving many currencies, no panic spread, did not cause large fluctuations in the market.

2. nine exchange volume total turnover rose 9.5%

This week the nine Exchange Week cumulative total turnover of 2736 billion yuan, compared with last week rose 237 billion yuan, rose to 9.5%, the market trading atmosphere rebounded, nine exchange total daily turnover in 391 billion yuan fluctuate.

From the transaction structure, turnover accounted for more than three of the exchange are Huobi (30.83%), Bithumb (19.26%), Binance (18.23%), the top three exchange trading volume accounted for 68.3% of total volume of nine exchange, the top three accounted for relatively increased by 2% last week; the week Binance cumulative volume last week rose 48.8%, Huobi this week, the cumulative volume last week rose 31.3%.

Figure 3 in the past two weeks nine exchange total volume change

 Block chain two market report: new high rebound shock upstream, four with Yang

Source: non small TokenMania.

Fig 4 Changes of nine exchange history total daily trading volume

 Block chain two market report: new high rebound shock upstream, four with Yang

Source: non small TokenMania.

From the perspective of time longer, the recent nine exchange total daily trading volume shrinking, basically in shock low range of 300 billion to 400 million range this year, taking into account the existing exchange amount of brush, the actual volume may be lower. Asset Management Co Bitwise through testing to identify false exchange brushes, statistics found that bitcoin spot trading volume in 95% forged.

From the global trading volume of LocalBitcoins, the recent global bitcoin field of foreign exchange trading volume in the $50 million under a slight concussion, last week fell 2.53% to $50 million 640 thousand; Chinese area bitcoin field foreign exchange trading volume fell 11.5% to 22 million 510 thousand yuan. From the regional structure, the relatively strong demand for bitcoin OTC demand in the Middle East and South America countries and regions of the overall decline in February; in addition, bitcoin demand in Indonesia in the last two weeks of field of foreign exchange trading volume fell sharply; the situation in Venezuela is still unstable, the OTC transaction volume rebounded BTC.

Figure 5 LocalBitcoins global trading volume

 Block chain secondary market report: new high rebound shock upstream, four with Yang

Source: Coin.Dance, TokenMania

Figure 6 LocalBitcoins Chinese regional trading volume

 Block chain two market report: new high rebound shock upstream, four with Yang

Source: Coin.Dance, TokenMania

Figure 7 LocalBitcoins Venezuela trading volume

 Block chain secondary market report: new high rebound shock upstream, four with Yang

Source: Coin.Dance, TokenMania

[note]: Nine exchange refers to the currency, coins, OKEX, fire CoinBase, Poloniex, Bitmex, Bittrex, Bitfinex, Bithumb

3. exchange rate: digital asset trading activity in the high

This week the 10 week cumulative 185% digital assets turnover rate, unchanged from last week; the week exchange rate for the highest 31%, the lowest is 24%, extreme difference 7 percentage points. Overall, nearly a month of market trading activity in the high.

Figure 8 nearly two weeks of the ten asset average exchange rate changes

 Block chain two market report: new high rebound shock upstream, four with Yang

Source: CoinMarketCap, TokenMania

The details of the exchange rate in Figure 9 this week, the ten major asset

 Block chain secondary market report: new high rebound shock upstream, four with Yang

Source: CoinMarketCap, TokenMania

This week ten digital asset turnover rate except EOS showed a slight wave trend, EOS turnover rose sharply on Wednesday. This week, the cumulative turnover of the top three were EOS (397%), LTC (374%), ETC (247%), the exchange rate changes last week to EOS (up 38%), LTC (+ 7%), ETC (down 39%); turnover ranked three respectively is ADA (39%), XRP (42%), XLM (88%); the exchange rate rise last week before three EOS (or 38%), ADA (or 19%), XRP (or 15%).

[note] the exchange rate is ten (BTC, ETH, currency XRP, XLM, BCH, EOS, LTC, ADA, ETC, DASH) the average daily value.

4. exchange wallet balance: BTC exchange balance increased by 2.45%, the balance of USDT increased by 6.13%

This week the exchange balance of BTC last week rose 2.45%, exchange USDT wallet balance at the beginning of the week decline and then rise, as of Saturday USDT exchange balance compared to last week rose 6.13%. The USDT amount in circulation (including ERC-20 USDT) was $2 billion 60 million, up 0.4% from last week.

Figure 10 the recent exchange of BTC balance and BTC price trend

 Block chain two market report: new high rebound shock upstream, four with Yang

Source: TokenMania

Figure 11 USDT exchange balance changes

 Block chain two market report: new high rebound shock upstream, four with Yang

Source: TokenMania

[note] exchange is covering wallet balance comprehensive data Bitfinex, OKEX, currency and other mainstream exchange

5. OTC premium rate: USDT maintain positive premium, short-term capital approach signs

OTC OTC premium rates reflect the price than the floor price premium level, but also capture the scattered field outdoor funds emotional tools. Generally speaking, the high premium rate means that the entry of outside capital to positive emotions, whereas the mean retail funds approach power is not high, even in the capital fled.

Figure 12 USDT USD against exchange rate

 Block chain secondary market report: new high rebound shock upstream, four with Yang

Source: Poloniex, TokenMania

Figure 13 USDT premium index

 Block chain secondary market report: new high rebound shock upstream, four with Yang

Source: CHAINEXT, TokenMania

This week the Poloniex exchange 1USDT against the 1USD all in the price premium status. The premium rate at the beginning of the week last week shock downward trend, on the bottom, then the shock upstream, the highest premium rate is 1.86%, the minimum premium rate 0.29%, closing at 1.46%. At the same time, this week USDT OTC premium index slightly upward, the highest reach 101.63 points to close at 101.56 . Nearly a month USDT premium level is not high, there is the possibility to approach outside the capital.

[note] USDT OTC discount or premium index is 100 USDT parity index greater than 100 represents USDT premium, less than 100 indicates that the discount of USDT.

6. bitcoin volatility index volatility shock rise, the market sentiment from fear to greed

Generally speaking, the level of fear of bitcoin price volatility index can be used to measure the market, the higher the value often reflects the trend of having the higher degree of divergence.

Figure 14 bitcoin volatility level BVOL24H

 Block chain two market report: new high rebound shock upstream, four with Yang

Source: BitMEX, TokenMania

Figure 15 Greed & fear index

 Block chain two market report: new high rebound shock upstream, four with Yang

Source: Alternative.me, TokenMania

This week, bitcoin price volatility index at the beginning of the week last week closing low, a shock rise. The opening value is 0.89, the highest value of 1.79, the lowest closing value of 1.39, 0.75, or 56.2%. At the same time, Greed & fear index over the same period increased from 44 to 56, the market rose to boost market confidence, the market sentiment from fear to greed.

7. futures contract: short-term futures discount rate decreased, short sentiment persists

From the perspective of futures contracts, long-term contract price of nearly two weeks of bitcoin in different period basically in the area below the spot price, a premium status, different period of contract basis is somewhat convergent, short-term bearish sentiment eased. From the term structure, this week OKEX week contract average premium discount rate 0.11%, down 0.35 percentage points; the average premium of 0.22% times a week contract, the discount rate fell 0.1 percentage points; quarterly contracts the average premium rate is 0.41%, the discount rate fell 0.18 percentage points; the average premium for 0.23% BitMEX sustainable contract. Overall, this week, bitcoin futures discount rate becomes smaller, the current price is consistent, suggesting that investors short-term bearish sentiment eased, but the overall market is still bearish.

Figure 16 in the past two weeks bitcoin futures and spot prices

 Block chain two market report: new high rebound shock upstream, four with Yang

Source: OKEX, BitMEX, TokenMania

Figure 17 in recent weeks bitcoin futures premium rate

 Block chain secondary market report: new high rebound shock upstream, four with Yang

Source: OKEX, BitMEX, TokenMania

[note] report futures premium rate according to the BitMEX data to calculate BXBT spot

8. macro perspective: all kinds of assets yield differentiation, bitcoin yields ranked first

From the perspective of asset allocation, digital currency worth as an alternative asset part configuration. All kinds of assets for investors, differentiation of asset returns reflects the importance of asset allocation. According to the demand for investment funds asset allocation among different asset classes, with the combination of asset classes in the same risk diversification, under the condition of a broader portfolio can usually bring higher long-term return.

This week the bitcoin income rate of 2.10%, the rate of return on various assets in the first place; all kinds of assets this week yields differentiation, U.S. stocks and the German DAX index rose in front, the S & P 500 index and the Nasdaq composite index rose 1.20% and 1.13% over the weekend, with the Hang Seng index last week fell 0.21%; flagging this week A stock market in the first half of the week, once fell 3000 points, and then shot up late to close out the sun on Friday, and Shenzhen stock index rose over 3%, the Shanghai index closed at 3090 points, but have not yet hit last week’s closing point. Domestic A shares have begun to adjust since last year, the market valuation of safety cushion is relatively high, in the long term, some opportunities exist for A shares of consumer goods, military, public utilities and other industries and strong anti cycle property.

Following last week’s fed expressed dovish stance, the United States since the 10 year Treasury yields fell to 15 month low of 2.34%, but the dollar is still strong, the dollar index has maintained a high of more than 95; but in the global economic recession fears the increasingly strong background of economic growth sensitive emerging market currencies are stronger impact, fell almost across the board this week; Turkey lira hit, Turkey overnight swap rate soared to 1200%, the Turkey stock index has two years the biggest decline. From the market performance, hedge funds are still keen on the dollar and other traditional havens; for digital currency market, external market risk aversion increased or will affect the admission of incremental funding.

Figure 18 this week all asset dynamic income rate comparison

 Block chain two market report: new high rebound shock upstream, four with Yang

Source: flush, TokenMania

The dynamic benefits of nearly three years of all kinds of assets rate comparison, bitcoin earnings performance thriving. The last three years bitcoin dynamic income rate is 926.67%, ranked first at the same time all kinds of assets, and other assets yield gap. In addition to digital currency, other assets yield performance differentiation, stocks performed relatively well, the S & P 500 index rose 37.93%, the Nasdaq composite index rose 59.48%; at the same time, the Hang Seng Index rose 42.64%, the Shanghai Composite Index rose 5.85%.

Figure 19 for nearly three years, all kinds of assets yield more dynamic

 Block chain two market report: new high rebound shock upstream, four with Yang

Source: flush, TokenMania

The strongest market volatility in the currency of the digital assets, and the rupture process of bubbles in the bubble, digital currency prices showed more soaring prices trend. Although digital currency market is still in a low volatility, the bull market also need longer time accumulation and brewing, but with foam extrusion, digital currency is still worth as an alternative asset allocation part.

9. market summary

Market trend: this week the market closed up for the fourth consecutive week, the market turnover increased significantly, and the market value of small currency rebounded. This week the market hit a new high since May, at the beginning of the week the lower back after the shock rise, hitting $148 billion, compared with last week Rose 2.18%, bitcoin has successfully exceeded $4100 mark, boost market confidence, the market sentiment rebounded. From the amount of energy, the more offensive attack, but here is the pre stack populated area, selling large, if the disc is not broken, remember callback risk; current encryption monetary market is still a lack of sufficient demand to support incremental funding and user entry, market performance is more capital stock of the game results, with each the IEO project on the line, the market heat there are signs of abating, more funds will be shifted to the mainstream currency; the long term, the current mainstream bitcoin currency is still in the low valuation, investors will be able to set a stop point, along the direction of small resistance of the investment market .

Trading volume: this week nine Exchange Week cumulative total turnover of 273 billion 600 million yuan, compared with last week rose 23 billion 700 million yuan, or 9.5%, market trading atmosphere rebounded, nine daily exchange total turnover of 39 billion yuan in the next wave. The recent global bitcoin field of foreign exchange trading volume in the $50 million under a slight concussion, last week fell 2.53% to $50 million 640 thousand; Chinese area bitcoin field foreign exchange trading volume fell 11.5% to 22 million 510 thousand yuan. From the regional structure, the relatively strong demand for bitcoin OTC demand in the Middle East and South America countries and regions of the overall decline in February; in addition, bitcoin demand in Indonesia in the last two weeks of field of foreign exchange trading volume fell sharply; the situation in Venezuela is still unstable, the OTC transaction volume rebounded BTC.

Exchange rate: this week ten digital asset turnover week a total of 185%, unchanged from last week; the week the highest turnover was 31%, the lowest was 24%, extreme difference of 7 percentage points. Overall, nearly a month of market trading activity in the high. This week ten digital asset turnover rate except EOS showed a slight wave trend, EOS turnover rose sharply on Wednesday. This week, the cumulative turnover of the top three were EOS (397%), LTC (374%), ETC (247%), the exchange rate changes last week to EOS (up 38%), LTC (+ 7%), ETC (- 39%).

Exchange wallet balance: this week the exchange balance of BTC last week rose 2.45%, exchange USDT wallet balance at the beginning of the week decline and then rise, as of Saturday USDT exchange balance compared to last week rose 6.13%. The USDT amount in circulation (including ERC-20 USDT) was $2 billion 60 million, up 0.4% from last week.

OTC premium rate: this week Poloniex exchange 1USDT against the 1USD all in the price premium status. The premium rate at the beginning of the week last week shock downward trend, Monday bottomed out, then the shock upstream, the highest premium rate of 1.86%, the lowest premium rate of 0.29%, closing at 1.46%. At the same time, this week USDT OTC premium index slightly upward, the highest reach 101.63 points to close at 101.56. Nearly a month USDT premium level is not high, there is the possibility to approach outside the capital.

Bitcoin price volatility index: this week the price of bitcoin volatility index at the beginning of the week last week closing low, a shock rise. The opening value is 0.89, the highest value of 1.79, the lowest closing value of 1.39, 0.75, or 56.2%. At the same time, fear & Greed index over the same period increased from 44 to 56, the market rose to boost market confidence, the market sentiment from fear to greed.

Futures contract: nearly two weeks of bitcoin in different period of long-term contract price in the area below the spot price, a premium status, different term contract basis is somewhat convergent, short-term bearish sentiment eased. From the term structure, this week OKEX week average discount 0.11% contract, the discount rate decreased by 0.35 percentage points; the average premium 0.22% times a week contract, the discount rate fell by 0.1 percentage points; quarterly contracts the average premium rate is 0.41%, the discount rate fell by 0.18 percentage points; the average premium for 0.23% BitMEX sustainable contract. Overall, this week, bitcoin futures discount rate becomes smaller, the current price is consistent, suggesting that investors short-term bearish sentiment eased.

The macro perspective: this week the bitcoin income rate of 2.10%, in all kinds of assets yield ranked first; all kinds of assets this week yields differentiation, U.S. stocks and the German DAX index rose in front, the S & P 500 index and the Nasdaq composite index rose 1.20% and 1.13% over the weekend, the Hang Seng index fell 0.21% compared with last weekend. This week; A stock market in the first half of the week relatively sluggish, once fell 3000 points, and then shot up late to close out the sun on Friday, stock index and Shenzhen Component Index rose over 3%, the Shanghai index closed at 3090 points, but have not yet hit last week’s closing point. Domestic A shares have begun to adjust since last year, the market valuation of safety cushion is relatively high, in the long term, some opportunities exist for A shares of consumer goods, military, public utilities and other industries and strong anti cycle property.

Following last week’s fed expressed dovish stance, the United States since the 10 year Treasury yields fell to 15 month low of 2.34%, but the dollar is still strong, the dollar index has maintained a high of more than 95; but in the global economic recession fears the increasingly strong background of economic growth sensitive emerging market currencies are stronger impact, fell almost across the board this week; Turkey lira hit, Turkey overnight swap rate soared to 1200%, the Turkey stock index has two years the biggest decline. From the market performance, hedge funds are still keen on the dollar and other traditional havens; for digital currency market, external market risk aversion increased or will affect the admission of incremental funding.

This week’s events: this week, a bit on the HKEx listing plan prospectus expired, short-term setback. Then, the bit, the release of internal letter, announced the adjustment of organizational structure, chaired by Wang Haichao CEO, Jahnke group, Wu Jihan will continue to serve as chairman, board of directors, the company will focus on the main business of digital currency machine and AI chip. Bit, said the future will be at the right time, restart the listing.

This week the DragonEx platform wallet suffered hacking, causing the user and platform of stolen digital assets. Analysis of vulnerability to the center of the DVP platform, in this case the DragonEx exchange of stolen assets of not less than the total value of $5 million; the well-known South Korean exchange Bithumb for the attack led to loss of digital assets. The exchange of security incidents involving many currencies, but the panic is not spread, so far did not cause large fluctuations in the market.

 

Risk warning

Callback risk

Exchange security risks

The domestic and foreign regulatory policies than expected

Author: Yao Huawei TAMC Research Institute

Disclaimer

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The world’s 4 million bitcoins missing? This group of Cornell University scholars want to solve the problem

In February this year, one of Canada’s largest encryption currency trading platform QuadrigaCX founder Cotton (Gerald for Cotton) in India died suddenly, cold wallet missing key exchange, up to $150 million of client assets have been locked, shocked the entire encrypted currency in the world. After many efforts, 6 a cold wallet technicians finally successfully entered the QuadrigaCX, but found it was absolutely empty, people even suspect that cotton may be dead.

This amazing event is still unsolved mystery, but the situation was so outrageous that may occur, to keep the private key encryption currency is the core reason.

It is difficult to keep the private key encryption has been one of the biggest reason hinder the popularity of monetary, and lead to many of the assets had lost. According to statistics, since the bitcoin in 2009 years since the invention has a short period of about 10 years, the loss may have been staggering nearly 400 million, accounting for bitcoin total supply of about 2%. The most, especially small encryption currency retail, are highly dependent on the exchange center platform to store assets.

But, “we both have to the center of the bitcoin system perfect, everyone has the assets deposited in the Coinbase center of this platform, what is the meaning?” From New York Connell Institute of Technology (Cornell Tech) Professor Jules (Ari Jules) said.

A map and Connell Institute of Technology (Cornell Tech) Professor Jules (Ari Jules) (source: DeepTech)

This problem has inspired a group including Jules, from the famous encryption currency and intelligent contract (Initiative for Cryptocurrencies IC3 initiative and Contracts) the interest of researchers, and proposes a dynamic system for anti erosion design of secret sharing solutions, CHURP, want to change this has caused nearly 400 million bitcoins loss the problem.

Nearly 400 million bitcoins may have been permanently lost, worth more than $150

This is according to the New York block chain research firm Chainalysis estimated in 2017. Chainalysis detailed statistical analysis by bitcoin block chain address record all transactions after the judgment, there are about 3 million 790 thousand pieces bitcoin may have been permanently lost, including bitcoin inventor in holding this hearing 1 million. This is equivalent to the current account for the total bitcoin 17-23%. Even if the current currency fell to about $4000, 3 million 790 thousand bitcoin value of more than $15 billion, more than the entire GDP in hungary. And this is only the 2017 year number.

In the figure, there are about 379 million bitcoins may have been permanently lost (source: Chainalysis)

There are many reasons for the encryption currency lost, but it is difficult to keep the private key, easily lost, is one of the main reasons. Bitcoin private key is a series of numbers and characters of the password control is not only the asset, and holder’s identity information. Lost private key will often bring severe and irreversible consequences.

Therefore, many encryption currency holders holding assets safety center of choice such as Coinbase, in the exchange of currency. Coinbase founder Brian Armstrong said that the whole storage platform bitcoin total circulation 1%.

The storage of the crypto currency center, against the chain block to the center of the spirit

Needless to say, this leads to highly centralized phenomenon, not only violates the blockchain core spirit to the center, and in fact did not solve the problem of private key storage. The center of the platform and rely on bring all sorts of hacker theft, embezzlement, more platform collapse. But why, the private key encryption currency custody issues so hard to solve? Even many experts, and even block chain technology master, often also can choose to use the exchange center of custody?

The leading members of an exclusive interview with DeepTech CHURP research team, Connell Institute of Technology Professor Jules (Ari Jules) and two doctoral students (Sai Krishna Deepak Maram Duparc) and Zhang Fan (Fan Zhang), the first exposure of the project anticipated. It is worth mentioning that contains the sails, this team has more than half of all domestic Tsinghua and Peking graduate, well-known computer security Daniel, University of California at Berkeley professor Song Xiaodong (Dawn Song) also participated in the study.

A map, CHURP research team members (Sai Krishna Deepak Maram Duparc) and Zhang Fan (Fan Zhang) (source: CHURP)

“Dimension switch” in innovative ways to cutting the encrypted information, the private key is no longer easy to crack

The research team said on DeepTech, in the center of the storage scheme, alternative to mainstream thinking of the past in the industry is the secret sharing (secret sharing). It is by a group of n block chain board together keeping the encrypted information, the attacker must break the node to a certain number of successful.

The private key encryption currency as an example, the holder can be private key information in a decentralized manner, entrusted to a committee composed of many nodes, a single node cannot obtain complete key information, is only responsible for the custody of the work.

But if the encrypted information can only be shared with the fixed node, lengthen the time, the attacker is still very easy to gradually erode the whole network. At the same time, it also can handle most of the block in the real world chain system will have node loss (node churn), where each node can join or exit the system at any time, leading committee will change over time.

Therefore, many commercial or in the development of block chain system, using proactive secret sharing (Proactive secret, sharing, PSS), regularly update the node information, the attacker can force unless sufficient node corrosion in a very short time, otherwise unable to penetrate the system.

But the research team pointed out that this is only half the problem. Zhang Fan explained, PSS assumes that the attacker can not break in a short time a large part of the committee. But if when the node loss occurs, the attacker only needs to capture a small part of each committee, once conquered the number of nodes exceeds the threshold, the attack was successful. This is, PSS is not completely safe.

Explain with examples of private key encryption currency, assuming that a key to the three node system and keep updated once a day node, but the key way of segmentation. So if an attacker can break the day of a node, then he break in the very next day as long as any node break a new node, actually you can crack.

The source: CHURP

Therefore, the key of innovation is to propose a CHURP called “dimension switch” (dimension-switching) approach, will reach the purpose of encryption further segmentation information, avoid the attacker to easily break the updated node.

The research team’s words, this is equivalent to a temporary “dilution” (dilute) encryption information, and then through the initiative (proactivze), re aggregation (concentrate again) process, complete recovery of encrypted information.

The source: CHURP

Jules said, this concept, the first is currently only the first grade class Dr di Parke’s thought, his innovative ideas and past similar programs are not exactly the same.

Deepak explained, we observed that most of the existing systems are unable to handle nodes may join or leave the committee, but if the Committee node cannot change, then the system will not be called to the center of the. As to the center of the world, is likely to flow node.

“So the question is, how do we to go to the center of the stored encrypted information? “Deepak said to DeepTech,” this is our proposed CHURP motivation, hoping to create a truly decentralized and efficient secret sharing solutions.”

CHURP is “CHUrn-Robust Proactive secret sharing” referred to. In short, CHURP can be performed safely in a dynamic environment setting secret sharing, so many nodes can keep long time Committee confidential information, including encryption key currency.

In addition, CHURP communication complexity is far lower than the similar previous solutions, in the optimistic conditions can achieve zero node failure results. According to the experimental results of the research team, with 100 nodes as an example, the efficiency can be up to 2300 times.

The source: CHURP

Technically, CHURP made several important innovations, including:

A new type of high efficiency active (proactivization) architecture

A (two yuan non symmetric polynomials) effectively change the secret sharing threshold (secret- sharing thresholds) technology is a effective polynomial commitment scheme (polynomial commitment scheme) prevention mechanism failed to initialize a secret key in non permissive block chain point-to-point network between the low cost chain communication technology

CHURP also echoed one of the 6 major challenges in IC3, namely security (confidentiality). “This is basically the block chain has not yet been solved the main technical problems,” Jules said, “no company wanted to put their secrets on the block chain, this problem must be solved, otherwise the blockchain cannot become practical.”

Jules said, the general requirements of the user to keep the secret key is not reasonable, and we rely on the past to the center of the platform storage mode, also lost the most fundamental blockchain significance. If we want to achieve true to the center, then this is definitely one of the technical problems to be solved. In addition, he further pointed out that CHURP is also widely with digital signatures, Oracle (Oracle Machine), networking devices, and block chain related applications with more privacy.

Although the research team said, CHURP currently has no business plan clear, will serve as an open source project promotion. But team members Zhang Fan told the DeepTech that CHURP will remain in the open mode, attract more block chain project uses, and now has been incorporated into the created by Song Xiaodong Oasis Labs public chain project development plan.

In fact, New York is located in the island of Roosevelt Connell Institute of Technology (Cornell Tech) was established in 2011, is to promote the innovation ecosystem of New York one of the goals, how to attach considerable importance to the transformation of scientific research. As Jules is from industry, at Cornell Polytechnic campus was established after the input of academic candidates. But he had just launched in world-class information security solutions at RSA public key encryption technology (acquired by EMC) office.

But strictly speaking, although the CHURP made a key innovation, but still can not completely solve the problem of private key storage. The key part of CHURP is to propose an innovative scheme to make a committee can be dynamic, and can effectively keep the secret key. But in addition there are other issues need to be solved, such as how to form a committee, how users will provide the key board, and how to keep the key distribution committee mechanism etc..

At present, many of the new block chain project has adopted a new consensus mechanism, called POS (Proof of Stake, does not require proof of interest mechanism), large mining mill chain transaction verification, but through a specific node (node), equivalent to the Committee (committe) organization, responsible for the production of new block. Such as Algorand, EOS and other stars belong to such projects.

But the two kinds of encryption currency the most traditional, but also the most mainstream, bitcoin and Ethernet are still using square, called PoW (Proof of Work, proof of work) consensus. This means that the chain has no native committee mechanism, similar to the CHURP scheme to apply, also need a lot of further development work.

Popular science garden 05 bitcoin trading circulation: |

Bitcoin is how come? Either you from mining, or transfer to others you. The one we have introduced mining, here we have to introduce the transaction, you and your friend is how bitcoin transfers.

We look at the normal bitcoin transfer is what:

I turn to Bob 10 coins, I only need the client or bitcoin bitcoin trading platform, enter my bitcoin wallet address, Xiaoming bitcoin wallet address, out of bitcoin and the number of charges, and then quietly waiting for the miners finished processing the transaction information, can complete the transfer.

This process is easy and convenient, but many people may question a question, that is: bitcoin is how to transfer in a no administrator, no central server, so that we can carry out transactions in a safe environment inside? The following we introduce in detail the principle behind the bitcoin trading hidden.

A wallet.

Before the introduction of bitcoin transfer principle, we need to know “what is the wallet.”. Wallet address is real and tangible things in the bitcoin transfer. Popular speaking, “wallet address” can be understood as a bank card, a bank card is bitcoin payment transfer “certificate”, recorded between the platform and the platform, purse and wallet, purse and platform of information transfer.

However, only the bank card is not enough, each bank card has two important information, a bank card, a bank card password. Similarly, bitcoin wallet address also involves two important information: as a public key and a private key. The correspondence between them, so we can understand:

Bank card – bitcoin wallet address;

Bank card – bitcoin public key;

Bank card password: bitcoin private key;

Belong to the public and private key cryptography “asymmetric encryption algorithm” category, but the bitcoin system is using a non symmetric encryption algorithm, to ensure the security of transactions. Here we introduce in detail.

Two, the private key and public key

A private key and a public key, we can understand from the literal meaning, while the private key is needed, private, your own, absolutely confidential; the public key is public. This is just like your bank card password must be kept confidential, and your bank card number can be known, it is printed on the bank card, who can see.

(a) private key

We just talked about, the private key, it is equivalent to the bank card password, therefore, the private key is to strictly confidential. It is no exaggeration to say, who mastered the private key, who mastered the bitcoin address on the reins, so the private key must be good protection.

The private key is a string of characters of random system formed, because the private key number set large enough to inexhaustible, so the private key is difficult to break. One explanation is that the probability of crack is smaller than the private key by thunder. This means that you do not say, others are almost impossible to break out of your private key.

 Popular science garden 05 bitcoin trading circulation: | “Private key” is a “non symmetric encryption algorithm concept” inside, corresponding to another concept, called: “public key”.

(two) public key

The public key can be understood as “bank card”. The relationship between the public and private key is very close: the public key is formed according to the private key according to the calculation, we can calculate the public key private key. This makes the public and private key, formed a unique corresponding relation:

When you use one key to encrypt information, only matching the other key can decrypt. It is this relationship only based on the correspondence, they can be used to verify the identity of the sender of information, can also be absolutely confidential.

 Popular science garden 05 bitcoin trading circulation: | (three) a private key and a public key is how to operate

The introduction of the concept of “private and public key cryptography” bitcoin system, to ensure two things:

First, this is my bitcoin can be correctly transferred to the payee, and will not turn the wrong object collection;

Second, is to let the recipients know, this is my bitcoin to his, and not others to his.

Here we give an example, in the bitcoin system, private and public key is how collocation of cooperation:

Now I want to turn Xiaoming 10 coins, I want to make sure that the 10 bitcoins can be transferred to the right and will not be transferred to Alice and Bob, Jen; at the same time, I have to let Xiao Ming know the 10, bitcoin is I to his, not red and a flower to his.

In this process, the bitcoin system will shorten my transaction information into a fixed length string, the string can be regarded as this transaction information “”. Then, the private key will be attached to the “abstract”, the formation of a “digital signature”. This “digital signature” includes the transaction information to me, I also implied the private key, therefore, the digital signature can prove that I is me, not red, not a flower.

 Popular science garden 05 bitcoin trading circulation: | After the transaction information and the digital signature will broadcast to the miners, miners waiting for verification. At this time, the public began to play a role. Because the public key is the whole network open, everyone can get my key, so I can certainly know the public key of the miners. The miners will be verified with my key, see my key and my digital signature can match. If they match, it shows the deal is really from me.

In fact, public and private, is simple to understand: since it is encrypted, it is certainly not want others to know my message, so I can only be decrypted, so we can conclude that the public key for encryption, decryption key for.

For example: I use the public key to encrypt the information of Xiao Ming, Xiao Ming with your private key can decrypt.

Similarly, since it is signed, it is certainly not like someone posing as my identity, I can only release the digital signature, so we can conclude that the private key for signature, the public key is responsible for verification.

For example: I send the information to Bob, I add my own private key information in the form of digital signature, the public key to verify my Xiaoming, verify the success prove that I send the information.

Here, we simply summarize the above content. We mainly talked about a few words: private key, public key, wallet address, digital signature, we sort out the relationship between them:

(1) the private key is randomly generated by the system, the public key is obtained by the calculation of the private key, wallet address is obtained from the public key computation, namely: – public – private key wallet address, such a process;

 Popular science garden 05 bitcoin trading circulation: | (2) digital signature is calculated by the transaction information + private key information, because the digital signature implied private key information, so can prove their identity.

The private key and public key cryptography are category, belong to “non symmetric encryption algorithm in the elliptic curve encryption algorithm”, is using this algorithm, in order to ensure the safety of the transaction. However, in the case of bitcoin transactions, encryption and decryption, verify it to these miners, we don’t understand these processes.

(four) APP Wallet

This part is the APP wallet a little added content. Because we are now a lot of people are using APP wallet, so we make a simple introduction.

APP wallet is equivalent to the private key, wallet address and other data block chain management tool. Cold and hot Wallet Purse Wallet a cold wallet is offline, never connected, usually appear in some form of entities, such as a small book; hot wallet is connected to the Internet, we use the APP wallet is hot wallet.

summary

Bitcoin transactions in this section we through two contents for everyone to do a show. We can find that the bitcoin system mainly uses a hash algorithm in cryptography and asymmetric encryption algorithm to ensure the safety of the transaction: Based on transaction information of the whole network open, one-way hash algorithm is the protection of the parties to the transaction information privacy; asymmetric encryption algorithm can guarantee the transaction process, your bitcoin is as to the other pocket.

06 | Science Garden bitcoin: China has inadequacy was hard to hide

Bitcoin is a decentralized currency system, this system requires all network nodes to jointly safeguard and record transactions. If so, it must solve some of the problems in the world is not in the center of the problem, also must face some of the world is not in the center of risk risk.

The first problem is the problem of system security.

We say, in the bitcoin world, all information is through the hash algorithm, and then to form code. Then, the code where there must be loopholes, loopholes will give hackers an opportunity.

In early 2010, bitcoin recent time, a hacker using bitcoin core software vulnerabilities, create unlimited billions of bitcoins.

This is like a person in possession of the printing presses, very scary. Hackers or direct black into our computer, steal our private key, will let us suffer heavy losses.

The second question is, transaction speed is too slow

Bitcoin system, a second handle up to 7 transactions, this speed is obviously unable to meet the normal transaction demand.

You know we are using Alipay, Taobao, WeChat, second can handle hundreds of thousands or even millions of transactions, a transaction only needs 1-2 seconds to successfully, if bitcoin do daily use of money, so we pay a penalty on WeChat, at least 1-2 days can successfully, let a person very crazy.

Third, bitcoin mining power consumption is too large

We talked about before, need professional mining machine, professional machine is very high, but the power consumption is huge, and now in the market, buy a machine hard back in a year.

Therefore, there is doubt that such a large power consumption to maintain a trading system so slow, what is the significance?

The fourth problem is the attitude of supervision problem

Now the various countries for bitcoin attitude polarization is very serious: in support of the country, many retail stores accept bitcoin pay with bitcoin ATM; do not support the country strictly to suppress it, talk about the color.

 06 | Science Garden bitcoin: China has inadequacy was hard to hide

If the measured bitcoin in a monetary system, it must exist all kinds of problems, but we can not deny the bitcoin light. Bitcoin representative, is not only a new set of “decentralization” monetary system, also represents the origin of block chain technology, as well as a new ideology, profound influence.

From bitcoin own functions — monetary perspective:

Bitcoin is by far the largest digital currency, it is an important application of the block chain in the age of 1, is the first application of the blockchain: bitcoin in the premise to the center under the realization of the digital currency, in the circulation of phase function, which is a new means of payment.

From the bottom of the block chain bitcoin perspective:

With bitcoin gradually increasing the attention, the block chain as the underlying technology it is more and more widely known, the block chain had been separated from the digital currency, penetrated into many commercial areas, different industries are hoping to bitcoin this technology applied to our real life, through the application of every kind of scene, let we have a better experience.

From bitcoin in terms of ideology:

Bitcoin launched a great storm of thought. Bitcoin “to the center” and the consensus mechanism in the present society, the center of which is a kind of new ideology. Throughout history, the Renaissance or the enlightenment or, these are the ideological change in the specific historical conditions, the popularity of these new ideas, new consciousness needs a long period of time, can be accepted by all the people.

From the impact of bitcoin:

Digital currency has been accepted by some countries market, gave birth to a large number of digital currency trading platform, the emergence of a large number of copycat copycat coins and coins, these evolved into a new financing model, writing riches myth, however, it also causes the coins, coins and other air MLM flooding digital currency name banner deception behavior.

In short, bitcoin sketched out a grand blueprint, namely: the future of the currency is no longer dependent on the central bank issued, but the monetary unification of globalization. However, from the current situation, as the representative of bitcoin blockchain 1.0 era, only to meet the basic functions of digital currency, also cannot spread to other industries.

But anyway, in a word, bitcoin: China has inadequacy, it is difficult to cover up.

07 | World of Warcraft science garden out of the etheric Fang

Bitcoin opened a chain block 1 times, 1 times the significant feature is to provide a different way of thinking, value transfer: transfer of value is no longer dependent on this center of institutions like banks.

During this period, with bitcoin is more and more well known, many people began to use bitcoin ideas, so there are a lot of copycat.

 Popular science garden 07 | playing world of Warcraft play out of the etheric Fang The source code and the copycat bitcoin currency is similar, so called copycat coins. But this period of copycat coins, and what no substantive breakthrough, that is to say, lack of bitcoin, they still have not improved, what breakthrough.

However, it does not exist the problem of bitcoin bitcoin unchecked, many people within the community, hope to be able to solve these problems through a variety of techniques, the bitcoin system the transformation of perfect.

        07 | World of Warcraft science garden out of the etheric Fang Among them, a Russian boy named Vitalik Buterin (transliteration: butrin), his lack of urgently hope to make up for the bitcoin system as soon as possible.

A juvenile addiction, evolutionary path

Say, contact bitcoin butrin experience a little dramatic, when he was 13 years old, is a typical youth addiction, addicted to inextricably bogged down in World of Warcraft. One day, the World of Warcraft game, suddenly cancelled his favorite magicians “Siphon Life” skills, he is very angry, repeatedly to contact the reduction of this skill, but the company does not agree with the game.

 07 | World of Warcraft science garden out of the etheric Fang Then, butrin began to reflect on the Internet as a participant in the game, game player is very weak, strong is the game developers, they are a game center. One of the biggest drawbacks of this service center is that everything is the developer has the final say. The game player can only choose the passive acceptance, or leave.

 07 | World of Warcraft science garden out of the etheric Fang Butlin through the “World of Warcraft” game realized the shortcomings of the center, he began to find the way of breaking the center. Butlin from his father, programmers recognize bitcoin and block chain, and had a strong interest in, so he decided to drop out from University of Waterloo, to travel around the world, learning and the world blockchain enthusiasts to exchange.

At that time, bitcoin enthusiasts are best for the bitcoin increase more functionality, making bitcoin 2. But Butlin believes that the establishment of a new programming language is a pressing matter of the moment of bitcoin.

 07 | World of Warcraft science garden out of the etheric Fang So, only 19 year old butrin wrote a new white paper, the white paper is “white paper” the prototype of the etheric fang.

Butlin mentioned in the white paper: hope to generic programming language based on the application to create a wide variety of transactions, such as social networking, games……

These ideas have strong repercussions in the bitcoin community, more and more people to join the workshop in the design of ethernet. Finally, this project is Butlin named “etheric square”, because “Ether” is a kind of scientific theory has not been proven material, implied expectations of project Butlin.

In June 2015, officially released the etheric fang.

After two years, the birth of the etheric Fang crypto currency “ether coin” became very popular after the bitcoin digital assets sought after, butrin from a boy into a green hand chain block “V God God class character”.

Two, the etheric Fang Road to success

Ethernet currency prices in 2017 as a whole over 85 times; by the foundation of the etheric Fang ICO in 2017 became the most popular way to raise public funds, through the global ICO raised more than $4 billion;

In 2017, the global electronic money market value soared from $18 billion to $560 billion;

At the beginning of 2017, JP Morgan chase, the Chicago stock exchange group, Microsoft, Intel, Accenture and other more than 20 top global financial institutions and technology companies set up enterprise Ethernet Alliance workshop.

There the activation potential of the etheric square block behind the chain, why?

The etheric Fang bad place is not only the blockchain upgraded operating system, so that we can develop application chain on this basis, but also can let you in a particularly simple way to release their tokens.

Preset and bitcoin trading system operation, Ethernet square is a programmable block chain. Ethernet square allows the user to create his own, to meet their needs, with different degrees of complexity.

From this point of view, the etheric Fang is a platform, the equivalent of this platform has been built a relatively complete system, similar to Android, apple, application developers can develop software in this system.

The ICO project is mostly based on the development of the application of Ethernet Fang, developers need to run the project in the workshop on Ethernet, Ethernet need to pay money. The result is that the ICO project is more, the ecology will be more abundant, user groups will also be expanded, it will continue to increase the demand for money “ether ether, currency prices soared.

Three, Fang Ethernet consensus mechanism

The consensus mechanism of Ethernet is different and bitcoin fang. As we mentioned, bitcoin is decided by consensus mechanism of POW accounting right, although the safety index of POW was higher, but the energy consumption and the cost of mining are huge, slow processing speed of transaction.

Then, the ether bitcoin’stechnology workshop will further enrich and put forward the mining mechanism, namely: proof of interest (PoS).

The etheric Fang proposed “proof of interest” is similar to the mechanism of shareholder owned, more people are more easy to get right is based on cash accounting, quantity and holding time of interest distribution system. The core logic POS mechanism is: who holds the coin, who has control over the network.

 07 | World of Warcraft science garden out of the etheric Fang Note that in POS, there is still a force of mining, the need to calculate the force to solve a math problem, but the difficulty of mathematical problems and Chibidaigou “money age”, holding the currency currency held longer, the difficulty is more simple, more likely to dig coins.

 07 | World of Warcraft science garden out of the etheric Fang Breakthrough four, Ethernet Square: intelligent contract

The biggest feature is the etheric Fang introduced “smart contracts”. Intelligent contract is what? Intelligent contract is defined a set of trading rules in the code.

In daily life, we usually signed paper contract, fulfil paper contract need center institutions, is the court to carry out supervision. The etheric Fang’s intelligent contract “, is performed automatically by the program to the center of the.

This is called a “smart” contract account account, it will only be in accordance with the code to execute. The scope of application of this technology is very extensive, involving: insurance, equity, trust, etc., can be said to those who need to trust based activities can be the application of this technique.

        07 | World of Warcraft science garden out of the etheric Fang Five, the meaning of the etheric Fang

Ethernet square development today, is not so smooth. Spent 2017 glorious period, up to now, in the face of the bear market, some initial tokens issued project about bear tired, have to cash out. God is in the etheric Fang founder V get various rumors, there often he would withdraw from the etheric outflow square, he run away this rumor.

Nevertheless, square block chain technology for Ethernet, is indeed a breakthrough, it represents the blockchain 2 times. If bitcoin represents 1 times the blockchain, provides new ideas and new methods for the transfer of value; then, on behalf of the etheric Fang block chain 2 times, then let the block chain business applications become possible.

In an interview with the LongHash | planet completed ten million financing, runaway Prince Gong Yuzuo blockchain “Temple of science and technology”

Author Qin Xiaofeng |

| editor Lu Xiaoming

Speaking of old coins ring, many people may refer to Li Xiaolai and Shen Bo, but to mention the “Ming Gong” may be a lot of people are not familiar with. Compared to the real name, another name for Gong Ming may better known as “runaway Prince gong”.

2010, Gong Ming began to pay attention to the encryption currency, then use the “runaway Prince Gong” network of digital currency translation silently overseas news and forecast the price trend, scanty attention bitcoin was Chinese encryption currency area.

In 2012, Gong Ming began to invest in bitcoin. “I bought 50 yuan coins, now financial indeed are free.” Gong Ming to the daily planet Odaily said, but for the specific rate of return, it did not disclose.

In January 2018, Gong Ming and Chen Yanfeng and from the United States Emily Parker, jointly invested millions of yuan to set up a block chain platform LongHash. In the past year, LongHash incubator more than 20 block chain projects from around the world.

The daily planet Odaily exclusively learned that LongHash has completed ten million yuan the first round of financing, by HashKey Group and distributed capital lead investor.

Odaily Star daily interview with runaway Prince Gong Gong Ming, the following is the interview:

Q1: The market is in a bear market, why can LongHash get tens of millions of dollars of financing, financing process smoothly?

Gong Ming: we are at the end of last year, the completion of the financing, financing generally relatively smooth.

The main reason is two, one is relatively close to us and HashKey and distributed capital relations, we know for a long time. I also stay in this industry for a long time, we believe that I will be in the long battle block chain line, so more attention to what will happen in the future, our cooperation is a long-term cooperation.

Secondly, we and HashKey and distributed capital of the concept is the same. We believe that for the block chain industry, a global framework of incubator service industry excellent start-up project is necessary, so we made this project. In addition, in the international Chinese voice is especially small, we hope to have a voice in the global industry chain block. Let the foreigners know, Chinese not only currency speculation in the industry, we will be a long-term commitment to promote the healthy development of the industry.

Q2:LongHash industrial ecological planning is what? This financing after the success of the next step what is the plan?

Gong Ming: in the past year, we have established a global incubator architecture, we hope that in the future more mining influence or potential outstanding projects, these projects help to grow. At the same time, we also hope to help the team to do some community operators in the industry globalization. This is the purpose of financing in order to produce much more profound influence in the global fast, this is also the focus of our next step.

Q3: the same is the incubator, LongHash is different from other block chain incubator is characterized by what?

Gong Ming: first of all, we are a truly global framework of incubator. The total number of global LongHash team has more than 30 people, currently has offices in Shanghai, Hongkong, Singapore, Switzerland, Berlin and Tokyo. These offices are currently in the real operation, can provide incubator space to the project. We have a good relationship with regulators in many countries, and obtained from Singapore, Japan and other government support and endorsement.

Secondly, we will provide different incubation mode according to different projects can help the project docking technology team, investors, the global community.

In addition, we are involved in a number of early development of the industry, the block chain has a profound understanding, we also have our own core technology development team, in the business model, providing technical support for the start-up team. At present in the world, I do not see the block chain can reach the level of our incubator.

Q4:LongHash investment standard and the hatching process is what?

Gong Ming: first we will of the project evaluation and selection. Over the past year, there are more than 100 applications to our project.

The main source of several projects: one is the incubator of our offices in the world, the contact number of broad, we will take the initiative to look for some projects, the local project will find our evaluation; two is held by some Hackathon (hackathons), to find some good seedling is three; because I personally in the industry for a long time, many people will put some good projects onto me.

Secondly, through the audit assessment project will enter the incubator, we will provide office, business model architecture, technology, operations and other support. Of course also includes financial help, general subsidy standard is 5 to 100 thousand dollars.

Q5: some time ago to see you have published an article on “all assets issued” the article, it will not be too far?

Gong Ming: before we can hardly imagine everyone from the media, it seemed impossible at the time, is the highest, but now it seems that once could not have become a reality.

The development of analogy “everyone from the media, I think everyone. This is the inevitable direction of assets”. Everyone send assets, is a great concept, is not the same as everyone ICO. For example, can be sent to the chain of human physiological data, these data assets can purchase transactions, I think it will be a very big market in the future.

Let all the information is exposed to the sun, but it is difficult to scale to spread rumors. When everyone has the right to send assets, assets issued will also reduce the sense of the sacred and mysterious, so that everyone has the psychological prevention.

Of course, I am not opposed to regulation, only when we have a new regulation of things, perhaps should not make it into the regulatory framework of the original, smarter way is to adopt a new way of supervision according to the characteristics of the things. Maybe we can follow the Internet, from the first audit after the release of “transition to the” first after the release of the audit”.

Q6: how do you see the current focus of IEO, such as an Launchpad currency and fire currency Prime?

Gong Ming: the last round of the block chain into the bear market, a big reason is the market a lot of bad projects, led to the ICO bubble burst. I think so far, the lack of high-quality projects of the whole industry, the current fundamentals have not changed, no matter your name is IEO, ETO (early bird wheel tokens issued) or ICO, the premise must be a good project. The project is not good but it is skyrocketing, funds set.

I the biggest dark network Dream Market will close at the end of the month, the dark network decide on what path to follow?

According to bitcoin news. The biggest dark network market Dream Market announced that it will shut down in April 30th, and will be transferred to the partnership service.

 I the biggest dark network Dream Market will close at the end of the month, the dark network decide on what path to follow?

Why die?

In the “Silk Road” after the era, whether it is running time or the supplier’s reputation, Dream Market in the dark in the net very good reputation, known as the “dark network most reliable market”. Look, it does not seem to be affected by law enforcement agencies and hackers extortion.

However, the prosperity of simmering below the surface. In the dark network technology forum, Dream Market official explained that the reason is forced to shut down, the past 7 weeks, Dream Market continued to suffer a DDOS attack, the attacker and to extort 400 thousand dollars.

The so-called DDOS attacks, distributed denial of service attack (distributed denial-of-service attack), is a kind of network attack techniques. The attacker to multiple computers together as an attack platform to attack a target, its purpose is to make the target computer network system or the depletion of resources, the service is temporarily interrupted or stopped, the normal users can not access.

Dream Market official said it was suffered such attacks, resulting in the intermittent web service, had to shut down the website maintenance.

In Dream Market announced the closure, there is news that it has been the law enforcement departments control. According to foreign media reports securityaffairs, in Dream Market announced the closure of the same day, law enforcement agencies from Europe, Canada and the United States announced to the outside world, they through the “SaboTor” action and arrested 61 people and 50 for illegal activities, the dark network account closed.

Although Dream Market explained that he was not run away, just normal maintenance, commitment to the new website “will be as good and Dream Market”. And to remind the majority of users do not have FUD (Fear, Uncertainty, Doubt) of negative news. However, users are not buying, shortly after the announcement, the withdrawal of funds from Dream Market users have (encryption currency). But the site has again downtime, occasionally pop up page loading.

Triumph of the Nerds

Founded in 2013, Dream Market, the start is just one of thousands of ordinary dark network market. It can become the dark network big boss, in addition to the “strength”, and luck.

For the dark network, determine the fate of three things: law enforcement, DDOS attacks, depression website. In general, the dark network but the life of a year, Dream Market can survive for so long, powerful enough to prove its soundness.

But before 2017, Dream Market ranked second in the net in the dark. In July 2017, American law enforcement agency Europol, joint Holland police closed the biggest dark net black AlphaBay, shortly after third Hansa and fourth RAMP have been seized by the police. Dream Market became the only a “fruit”, the other three sites of the suppliers and users have become the biggest come in a throng, the dark network market.

The fall, Market also has been previously Dream law enforcement program. The supplier Gal Vallerius landed in Atlanta Airport in 8 2017 was arrested, the court sentenced him to imprisonment for 20 years.

Heirs

Dream Market will be shut down, perhaps for the rest of the dark net market a good thing. After all, the dark network demand still exists, a trading platform is not what the big problem seems to both buyers and sellers.

As for the successor to the Dream Market, which would be the original site of assets and product retained, it is unclear; how to adopt new sites to prevent DDOS attacks, also a question mark.

However, from the current trend, the fight against the dark network intensity is indeed increasing, leaving the dark net living space may become more and more small.

Encryption currency because of its anonymity has been much favored dark net. The “dark web the most popular is bitcoin (BTC), followed by Monroe (XMR) currency, bitcoin cash (BCH), Ethernet (ETH), Fang (XRP) and Dash reboxetine currency coins, currently does not see EOS.” The security team said the fog slowly.

In the dark net battered situation, many people think that encryption currency prices will slump, but from the current situation, the rise and fall of the dark net effect on the price of money seems to reduce encryption.

“Dirty little secret” lightning network: smart lock Hashi contract time can ensure payment security?

This article from Medium, the original author is bitcoin unlimited (Bitcoin Unlimited) chief scientist Peter R. RIzun

The daily planet Odaily translator | Moni

Bitcoin lightning network (Lighting Network) concept is bitcoin network lightning in the famous release developer Joseph Poon and Thaddeus Dryja: “scalable real-time payment chain” (The Bitcoin Lightning Network: Scalable Off-Chain Instant Payments) is proposed in the white paper, is essentially a hash lock (Hashed Time Lock intelligent contract Contract) to safely handle “0” to confirm a trading mechanism, through the ingenious arrangement of “intelligent” contract, the user can not confirm the transaction in the lightning network.

Lightning network payment channel through the hash lock time to achieve intelligent contract – this is actually limited by the intelligent transfer contract, the two sides agreed to freeze the transfer side a sum of money, and provide a hash lock will launch party transaction token locked within the prescribed time, if someone can provide before generating the payment encryption and proof, agreed before the hash value, to complete the transaction.

However, time locked network intelligent lightning hash contract really as we imagined so perfect? On this planet, Jun (WeChat: o-daily) to tell you an answer through the analysis of Peter R. RIzun. First of all, the Peter R. RIzun design three fictional man: Alice, Bob, and Carol, to explain the problem of intelligent hash lock time contract by lightning network transactions between them.

The lightning channel can be seen as the stretch of a string of beads between two people (see Figure 1), Alice to Bob if you want to pay a fee equivalent to one of the beads themselves pushed to Bob. If there is a lightning channel network between Bob and Carol, then Alice can Bob to Carol payment, equivalent to: Alice push one bead to Bob, then Bob is pushing a bead to Carol. Here we will find a problem existing in the basic rules of lightning network flow, namely the beads can move from one side to the other, but is unable to leave the “rope their attachment”.

Figure 1:Alice can send a payment to Carol, but need to be routed through the Bob deal. Because the “rope” beads can not leave their attachment, Bob can be connected to the Alice that “rope” add a bead, and then in connection with the Carol of the root “rope” to reduce a pearl.

This is in fact the lightning on the network flow of funds, but this model does not tell us why the lightning online payment is safe and reliable. For example, if the Bob remains Alice pushed to his beads, and then has to send Carol a bead, what will happen?

In fact, this is the purpose of writing this paper, looking for “what makes lightning payment become ‘trust (trustless)? “The answer to this question. In addition, at the end of this paper, we will reveal the lightning network a dirty little secret: Lightning online micro payment is not entirely to “trust” – routing node may be lost customer funds.

(Note: Star Jun block chain to trust is that the user does not need to believe any third party. Transaction processing system or technical users to trust is very safe and smooth, both parties can secure transactions, but does not need to rely on trusted third party).

Hash lock time intelligent contract (HTLCs)

In order to explain what is stopping Bob has been retained Alice send one beads, and do not place to send a beads to Carol, we need to introduce a physical analogy in the lightning channel network “lock (locks)”.” Lock “can be placed in the Alice, Bob and Carol attached the” rope “and on the limit of beads move only when certain conditions are met,” lock “will be opened. Hash time using lightning network to pay in the intelligent lock contract contains two types of “lock” (see Figure 2):

The first is to provide the correct password when the lock can be opened “” we call “hash lock (hash-lock)”.

The second is in a period of time delayed open automatically after the “lock” – which we call “time lock (TIME-LOCK)”.

Figure 2: when the hash value reaches a specified value (in this case 45f8), enter the password to open the hash lock; and time lock is opened in a specified time after the will (in this case, 48 hours).

Now, let us go back to the Alice to pay a to Carol through the example of Boc beads. In order to make the payment transaction to “trust”, Alice, Bob and Carol need to be online at the same time, but also in accordance with the parties have set a good way to participate in the transaction.

First of all, Alice Carol must come up with a password, and tell her the password hash value. Let us suppose that this came up with the password is “boondoggle”, and the corresponding hash value is “45f8”. Next, Alice to set up a hash lock between her and Bob, and the lock must be in the input hash value is “45f8” password can be opened. At this time, Alice and Bob are unable to open the hash lock, because they do not know the password. The Alice will be to the hash lock push a bead, will she finally set a time locked in their beads, and set it to 48 hours after opening (Fig. 3).

In Figure 3, after Carol secret password hash value in the understanding of Alice, you can set a hash lock, and thus protect his transfer to the Bob tokens (the token will be routed to Carol). Alice will use the time to lock the lock token, if Bob fails to complete the payment within 48 hours, she will put the money back.

If you can find the Carol password in 48 hours, Bob will be able to get from the Alice beads. At the same time, Bobby also know (because Alice will tell him) Carol will release this password for one of his beads. In order to induce Carol action, Bob can be placed in the same hash lock between him and Carol, which placed a bead on his own, then Bob can then set another time lock (Fig. 4). He knew that if you want the Carol to open the hash lock and take the beads, Carol must enter the password: obviously, the password will be set to the Bob and Alice hash open password lock.

Figure 4: if Carol announced the Alice password in 48 hours before the end, then Bob will see Alice for his token. Bob will set the same hash lock, and then push a token to Carol, and a time to lock the token. The only way to get Carol Bob this token is released, hash Bob need to get tokens from Alice where the password lock.

Carol saw the beads to get their own, then enter the password “boondoggle” (Bob in the lock can see and remember), the lock CUP confirmed the password is “boondoogle” the hash value is 45f8, and then open the lock. Next, Carol put the beads along the rope to his side (Figure 5).

Figure 5, Carol announced its own password, and then open the lock out tokens.

After obtaining the Carol password, unlock the Bob Alice to their beads in the same way (Fig. 6), the payment transaction is completed.

In Figure 6, after obtaining the Carol password, Bob can now get Alice to their beads, the entire payment transactions are therefore completed.

You may wonder why Bob would be the first to participate in the whole process of the people? Because if Carol did not participate in the cooperation, Bob beads have been frozen, until the lock time expired. But in the actual transaction, Alice sent to Bob capital may than she gave Carol a little more money, because Alice want to use this way as Bob costs, or to avoid unnecessary risks. After the payment of the completion of the transaction, Bob account balance before the deal was completed more than a point, which also inspired him to finish the transaction (or similar transaction).

Of course, you may want to know why you want to use the time to lock in the whole process of lightning in network transactions. In fact, if the payment transaction failed due to various reasons, the parties involved in the transaction time lock can make their money back. For example, imagine if Alice beads are transferred to the Bob and add a hash lock and lock time, Bob suddenly don’t handle the deal at the time of cooperation, the lock can help get their Alice sent to the Bob beads, because as long as she can lock the waiting time expires. In the meantime, Bob did not steal the beads, because he needs to Carol IMA and Bob Carol, if not to transfer a string of words, he will not be able to get the password, so the Bob must turn out a bead to get a bead.

If you are interested in the payment process of lightning network, can further discuss if one of the parties in different steps in less cooperation, Alice, Bob and Carol will not be because of other behavior risk of capital loss.

The dirty little secret of lightning network

Lightning network has little secret a few people know that dirty, if you want to know what is the secret, and the secret of the lightning online payment transaction will have what effect we need to dig out.

Now let us recall that when Alice through Bob sent to Carol when a payment transaction, which is also a “intermediate state” (Figure 7). We will directly use bitcoin to explain, the channel state comprises three output:

1, Alice bitcoin;

2, Bob bitcoin;

3, the transaction process (in flight) “bitcoin.

In Figure 7, the lightning channel state trading network contains three output: Alice bitcoin, Bob bitcoin and bitcoin transaction process “.

The question is: if the transaction process is lower than the value of bitcoin bitcoin dust (dust) threshold, at this time the cost is not in the channel state trading said third output! In other words, if the payment amount is too small, you can not use the hash lock and time lock to protect the deal. (Note: o-daily star Jun is the dust amount is too small to spend UTXO, they need to pay fees higher than the value of their own, so take out dust.)

In order to explain the lightning network how to deal with this problem, I must confess a problem, a case of “rope” began on the number of beads are not fixed. In fact, each “rope” on the side there should be a “basket”, the “basket” label is “miners cost”, which contains a very small part.” In the basket “value will be confirmed by the token channel state trading miner statement, and then channels state will be pushed to the block chain. That is to say, there is a part of “rope” from the beads will move to the “basket”, or from “basket” back to the “rope”, but this happens only when the ends of the channel are agreed to occur.

For a small payment transactions, Alice and Bob only “transaction values in the process of” move to “cost” in the basket instead of using the hash lock to lock the lock and time value (Fig. 8). Bob believes that Alice will cooperate with him, and when he announced Carol password, “transaction process value” will be from his “basket” cost out.

In Figure 8, if the “transactions” bitcoin is lower than the dust threshold, you cannot use the hash lock intelligent contract mechanism, because in the case of broadcast channel state transaction cannot be excavated, this “transaction process” tokens will be dumped into a “basket” in charge of miners.

Bob can then be “value” in the transaction process to dump second cost “basket” he and Carol share, and promised if they know the password after will put the “basket” to Carol. Carol told Bob this secret, then Bob and Carol put together a “cost basket” in the payment transfer to the Carol side. Next, Bob returned to the Alice side, Carol told her the secret, then, if all goes well, Alice will cooperate with Bob, to one side of the transaction process value “from the” basket “taken out and put the rope on Bob.

Hash time with the previously described intelligent lock contracts, the prevention depends on trust. For example, Carol can be revealed to Bob password, then Bob will remain in the “fee payment basket”, then go directly to Alice and tell her the password can get the payment.

In this case, Carol recourse is very limited: what do her either, and accept the loss, or close her with Bob channel. But close with Bob channel and can not help themselves, because that she ought to receive the money has already been sent to the miners.

Although the problem sounds very trivial, but in reality it can really work. Of course, Bob is not what special motivation does not give money to Carol, but if he does not give it, is not what good for themselves, because the miners will retain the extra money, the money will not remain in the hands of Bob. Not only that, if Bob really do this — that does not put Alice through their own money to send to the Carol Carol, Carol is likely to close the channel, which means that the Bob is not to be trusted. It seems that Bob damage seems to be relatively limited, in addition to the payment of the transaction amount, and is building a new lightning channel cost (because Carol has closed channel).

Why “lightning network dirty little secret concern

Lightning this network “dirty little secret” is very worthy of attention, because it reveals the first layer (L1) problem (friction) has been transferred to the second layer (L2), forced the second layer protocol to implement solutions to complex and difficult to understand. In this case, these solutions will change the lightning network “to trust nature: for the payment transaction is higher than the threshold, dust, Alice, Bob and Carol are not because of any other behavior and the loss of funds; and for less than the threshold of the payment transaction dust Alice, Bob and Carol, it is possible because of each other the fault and loss of funds, obviously, this and people’s understanding of lightning network security payment transaction mode is not the same.

One might argue that:

“We are talking about a small micro payment, so who cares about this problem?”

However, this idea is wrong, the following two reasons:

1, using the block chain as the high cost of clearing layer bitcoin core expansion plan will enhance the dust threshold. In fact, the amount of dust is too small not to spend trading output, spend them out to pay the high cost of the chain on the value of their own, so take out dust. But if the dust threshold increase, such as $100, then the world’s most bitcoin transactions may become “dust”;

2, some small and micro payment transaction can occur quickly and continuously lost (such as occurred lightning attacks, routing) may cause significant losses.

Imagine the future of the payment transactions have occurred in the lightning on the network, the first layer of transaction cost has been more than 100 U.S. dollars, the main chain is lower than the dust output will be $100 is not what value, because the chain cost is higher than the amount of the transaction itself.

Now the network lightning there is another problem: even if the payment of $50 may not be able to achieve the “trust”, because if the $50 less than the threshold value under the condition of dust Trading (taking into account the 50 dollar cost chain is higher than the amount of the transaction itself, may also be in the first layer protocol so the future set the dust threshold policy is reasonable), hash lock time intelligent contract cannot be used for protection under $50 payment transactions, which means that users may be due to his fault caused the loss of $50.

Of course, if in order to avoid the dirty little secret “caused by missing (loop hole) cycle, developers can try to dust que value is set to 1 dollars, so most lightning network transactions can continue to use hash lock time intelligent contract to ensure financial security. But the problem is that when the dust threshold setting the lower, the output will not be spent.

Some people think that the routing node may result in the loss of customer funds, if the future costs of dust threshold increase, the lost funds may be relatively large. I also do not agree with this view, because the whole purpose of lightning network payment routing is to make money trading, usually route will use their cost advantage to attract more liquidity, more trading volume of nodes, the cost is also more natural. Now, developers have been aware of the lightning network may not allow all users to route payment transactions, for ordinary users, developers more is to encourage them to use non advertising channels for payment transactions, and never put yourself into a routing.

If the future of lightning on the network costs are higher, so a routing center (hub) can supervise the effective control to the users of funds. However, routing center is not reliable, for a single user, if the payment transaction is not protected hash lock time intelligent contract, it is difficult to block chain liquidation and recover the funds. Not only that, if the user balance and chain costs at the same level, the user will be trapped in routing center. In fact, from a “bad” channel is not worth it, because to do so would allow users to lose all their money.

In addition, the center also set some specific conditions such as routing, for anti money laundering (AML) and “know your customer (KYC)” without transfer of onion routing (onion-routing) information. If the customer cannot meet these specific conditions, the routing center will indefinitely lock customer funds. As a result, users of their only choice is either on the block chain liquidation, or lost all the money, it is not at all true choice! Even more frightening is that the routing center can also set the high cost, if the user wants to get their own money, will have to pay the money, they have no choice.

The future, the connection state is better, but charged high cost chain lightning network routing center must be regulated, because they have been able to “managed to control the customer funds (custodial control)”.

Therefore, we can not imagine such a rule out:

When the payment amount on the two lower than the amount of the payment transaction in the first layer can be implemented, the transaction cannot be “to trust”.

If the underlying block chain is not constrained by lightning, the network is very may not work like that expected.

The last word

The future, when most bitcoin transactions have occurred in the lightning on the network, and the block chain also charge high fees, people may find the lightning network and expectations are very different, in addition to the “dirty little secret”, other potential problems include network lightning:

1, lightning network expansion is a transaction, rather than the user. Run the complete lightning network transaction verification node cost is still high;

2, the first layer problem (friction) will affect the second layer interchangeability (fungibility), the existence of “position dependent tokens (position-dependent) value;

3, liquidity by lightning network transactions, most of the “state of wealth” is actually unable to obtain payment, failure is inevitable;

4, if the lightning network shop, routing becomes more and more difficult: the routing center network will reduce the lightning centralized routing and mobility problems;

5, for the use of unmanaged wallet users, the experience is always terrible: the user needs to receive funds at present, and then hire watchtower (watch towers) “to monitor channel fraud, and subscribe to the source routing service to send payment transactions, and even a dynamic backup channel state prevent data corruption.

6, systemic risk: the lightning channel network (hot wallet) to lock a lot of tokens, so as to ensure sufficient liquidity;

7, when the reward blocks run out, the total cost of miners on the first layer will not be enough to ensure the safety of block chain.

05, science garden bitcoin trading circulation:

Bitcoin is how come? Either you from mining, or transfer to others you. The one we have introduced mining, here we have to introduce the transaction, you and your friend is how bitcoin transfers.

We look at the normal bitcoin transfer is what:

I turn to Bob 10 coins, I only need the client or bitcoin bitcoin trading platform, enter my bitcoin wallet address, Xiaoming bitcoin wallet address, out of bitcoin and the number of charges, and then quietly waiting for the miners finished processing the transaction information, can complete the transfer.

This process is easy and convenient, but many people may question a question, that is: bitcoin is how to transfer in a no administrator, no central server, so that we can carry out transactions in a safe environment inside? The following we introduce in detail the principle behind the bitcoin trading hidden.

A wallet.

Before the introduction of bitcoin transfer principle, we need to know “what is the wallet.”. Wallet address is real and tangible things in the bitcoin transfer. Popular speaking, “wallet address” can be understood as a bank card, a bank card is bitcoin payment transfer “certificate”, recorded between the platform and the platform, purse and wallet, purse and platform of information transfer.

However, only the bank card is not enough, each bank card has two important information, a bank card, a bank card password. Similarly, bitcoin wallet address also involves two important information: as a public key and a private key. The correspondence between them, so we can understand:

Bank card – bitcoin wallet address;

Bank card – bitcoin public key;

Bank card password: bitcoin private key;

Belong to the public and private key cryptography “asymmetric encryption algorithm” category, but the bitcoin system is using a non symmetric encryption algorithm, to ensure the security of transactions. Here we introduce in detail.

Two, the private key and public key

A private key and a public key, we can understand from the literal meaning, while the private key is needed, private, your own, absolutely confidential; the public key is public. This is just like your bank card password must be kept confidential, and your bank card number can be known, it is printed on the bank card, who can see.

(a) private key

We just talked about, the private key, it is equivalent to the bank card password, therefore, the private key is to strictly confidential. It is no exaggeration to say, who mastered the private key, who mastered the bitcoin address on the reins, so the private key must be good protection.

The private key is a string of characters of random system formed, because the private key number set large enough to inexhaustible, so the private key is difficult to break. One explanation is that the probability of crack is smaller than the private key by thunder. This means that you do not say, others are almost impossible to break out of your private key.

“Private key” is a “non symmetric encryption algorithm concept” inside, corresponding to another concept, called: “public key”.

(2) public key

The public key can be understood as “bank card”. The relationship between the public and private key is very close: the public key is formed according to the private key according to the calculation, we can calculate the public key private key. This makes the public and private key, formed a unique corresponding relation:

When you use one key to encrypt information, only matching the other key can decrypt. It is this relationship only based on the correspondence, they can be used to verify the identity of the sender of information, can also be absolutely confidential.

(three) a private key and a public key is how to operate

The introduction of the concept of “private and public key cryptography” bitcoin system, to ensure two things:

First, this is my bitcoin can be correctly transferred to the payee, and will not turn the wrong object collection;

Second, is to let the recipients know, this is my bitcoin to his, and not others to his.

Here we give an example, in the bitcoin system, private and public key is how collocation of cooperation:

Now I want to turn Xiaoming 10 coins, I want to make sure that the 10 bitcoins can be transferred to the right and will not be transferred to Alice and Bob, Jen; at the same time, I have to let Xiao Ming know the 10, bitcoin is I to his, not red and a flower to his.

In this process, the bitcoin system will shorten my transaction information into a fixed length string, the string can be regarded as this transaction information “”. Then, the private key will be attached to the “abstract”, the formation of a “digital signature”. This “digital signature” includes the transaction information to me, I also implied the private key, therefore, the digital signature can prove that I is me, not red, not a flower.

After the transaction information and the digital signature will broadcast to the miners, miners waiting for verification. At this time, the public began to play a role. Because the public key is the whole network open, everyone can get my key, so I can certainly know the public key of the miners. The miners will be verified with my key, see my key and my digital signature can match. If they match, it shows the deal is really from me.

In fact, public and private, is simple to understand: since it is encrypted, it is certainly not want others to know my message, so I can only be decrypted, so we can conclude that the public key for encryption, decryption key for.

For example: I use the public key to encrypt the information of Xiao Ming, Xiao Ming with your private key can decrypt.

Similarly, since it is signed, it is certainly not like someone posing as my identity, I can only release the digital signature, so we can conclude that the private key for signature, the public key is responsible for verification.

For example: I send the information to Bob, I add my own private key information in the form of digital signature, the public key to verify my Xiaoming, verify the success prove that I send the information.

Here, we simply summarize the above content. We mainly talked about a few words: private key, public key, wallet address, digital signature, we sort out the relationship between them:

(1) the private key is randomly generated by the system, the public key is obtained by the calculation of the private key, wallet address is obtained from the public key computation, namely: – public – private key wallet address, such a process;

(2) digital signature is calculated by the transaction information + private key information, because the digital signature implied private key information, so can prove their identity.

The private key and public key cryptography are category, belong to “non symmetric encryption algorithm in the elliptic curve encryption algorithm”, is using this algorithm, in order to ensure the safety of the transaction. However, in the case of bitcoin transactions, encryption and decryption, verify it to these miners, we don’t understand these processes.

(4) APP Wallet

This part is the APP wallet a little added content. Because we are now a lot of people are using APP wallet, so we make a simple introduction.

APP wallet is equivalent to the private key, wallet address and other data block chain management tool. Cold and hot Wallet Purse Wallet two: cold wallet is offline, never connected, usually appear in some form of entities, such as a small book; hot wallet is connected to the Internet, we use the APP wallet is hot wallet.

summary

Bitcoin transactions in this section we through two contents for everyone to do a show. We can find that the bitcoin system mainly uses a hash algorithm in cryptography and asymmetric encryption algorithm to ensure the safety of the transaction: Based on transaction information of the whole network open, one-way hash algorithm is the protection of the parties to the transaction information privacy; asymmetric encryption algorithm can guarantee the transaction process, your bitcoin is as to the other pocket.