The Blockchain that Brings Privacy to the Masses

In 2009, Satoshi Nakamoto launched Bitcoin unto the world, and with it, a know-how with the potential to outline the subsequent century: blockchain.

As a default, blockchains safe transactions with a stage of privateness exceeding that which is achievable by way of centralized fee networks. Consensus mechanisms corresponding to Proof of Work (PoW) and Proof of Stake (PoS) present strategies for decentralized consensus, permitting cryptocurrency networks to settle transactions with out a centralized authority.

Nonetheless, specialists amongst the cryptocurrency group are expressing concern over whether or not this stage of privateness is sufficient given developments in trendy anti-privacy applied sciences.

Blockchain: Non-public or Not?

Banks and centralized fee networks like Visa haven’t any selection however to report private transaction information – sender and receiver names, quantities, occasions, places, and infrequently the kinds of items or providers bought – to be able to facilitate the motion of cash and defend customers from fraud.

Whereas blockchains are advantaged on this regard, the privateness they supply isn’t good. Sender and receiver pockets addresses, in addition to transaction quantities, are saved completely on blockchains for all to see. Bitcoin.org describes how this is applicable to the Bitcoin community:

“All Bitcoin transactions are public, traceable, and completely saved within the Bitcoin community. Bitcoin addresses are the one info used to outline the place bitcoins are allotted and the place they’re despatched. These addresses are created privately by every person’s wallets. Nonetheless, as soon as addresses are used, they change into tainted by the historical past of all transactions they’re concerned with. Anybody can see the stability and all transactions of any handle.”

To fight this, many have turned to tumbling providers that ship transactions by way of a plethora of pockets addresses in an try to obfuscate transaction origins and locations. Nonetheless, each researchers and adversaries have had 12 years to crack high-volume blockchain transaction tracing. In the present day, blockchain evaluation software program makes it potential to quickly hint tumbled transactions and affiliate pockets addresses with one another.

Additional, most individuals enter the cryptocurrency market by way of centralized exchanges like Coinbase which require their members to cross KYC (Know Your Buyer), a course of used to confirm the identities of people in accordance with rules. Which means all transaction chains originating from centralized exchanges are traceable and simply tied to their members’ actual identities.

Clearly, an improve is required if our monetary privateness, and to an extent, our freedoms, are to outlive trendy blockchain tracing methods and encroaching rules.

Bettering Blockchain Privateness

Some cryptocurrency initiatives, aptly named “privateness cash”, have taken it upon themselves to unravel the privateness gaps in previous-generation blockchain protocols.

Monero, Zcash, and PIVX are well-liked choices, however concern over whether or not they have stored up with evolving privateness wants grows inside the cryptocurrency group. Many safety specialists are as an alternative turning to Navcoin, a future-oriented privateness venture that helps public transactions by way of its NAV token and fully non-public transactions by way of its xNAV token.

xNAV makes use of Navcoin’s self-developed privateness protocol “blsCT” to guard transaction information from prying eyes. BlsCT does so by combining all transactions inside a block into one, then distributing xNAV tokens to wallets with out revealing their addresses or balances to the general public. This successfully breaks the hyperlink between transaction inputs and outputs, making it inconceivable to determine which wallets participated through which transactions.

xNAV takes person privateness even additional by fixing a risk issue that the majority cryptocurrency customers are usually not conscious of: IP tracing.

When a transaction is shipped by way of a cryptocurrency community, the sender’s IP is revealed to neighboring nodes. Which means transactions may be related to IP addresses, making it potential to hint the bodily origination of transactions.

xNAV solves this utilizing one other revolutionary know-how, Dandelion++. With it, sender IP addresses are initially despatched to a single node, which then connects to a special node and acts as the unique sender. This chain continues a random variety of occasions, obfuscating the unique sender’s IP handle, making it inconceivable to correlate transactions with IP addresses.

A Excessive Utility Privateness Platform

Whereas Navcoin’s privateness protocols are spectacular, they aren’t the one causes behind Navcoin’s latest consideration.

Navcoin will quickly start providing privateness as a service, transitioning right into a excessive utility privateness platform that can be utilized by different cryptocurrencies to realize complete privateness. This can drastically enhance the demand for Navcoin, as all community charges might be paid with it.

As a part of its choices, Navcoin’s platform will help Non-public Tokens and NFTs, permitting customers to mint NFTs together with tokens pegged to the values of different property, all with the identical privacy-preserving features utilized by xNAV.

The implications of this are broad – together with the potential for customers to mint non-public variations of cryptocurrencies, and commerce privately, eradicating KYC from the method of gaining publicity to mainstream cryptocurrencies like Bitcoin and Ethereum.

As revolutionary as it’s, blockchain know-how wants an improve if it’s going to maintain up with the anti-privacy ways of establishments and adversaries. Navcoin leads the best way with xNAV, an revolutionary privateness coin that solves as we speak’s privateness issues.