ERC-1400: New token standard for security tokens

With ERC-1400 Adam Dossa, Pablo Ruiz, Fabian Vogelsteller and Stephane Gosselin have created a new token standard. Unlike the well-known ERC-20 or the two standards ERC-723 and ERC-1155, which are related to CryptoKitties and video games respectively, the focus here is on security tokens.

In the concept presented, the authors present a token that is compatible with ERC-20 or the recently published ERC-777. In addition, it should have various additional features that make it suitable for securities from a regulatory point of view. For example, it should be possible to transfer funds from outside or retrieve lost or stolen assets.

Bitcoin formula: CTOR or the optimum transaction order

Little has happened at Bitcoin formula this week. Apart from a hackathon in Amsterdam announced for the end of October, CTOR attracted attention. This is the Canonical Transaction Ordering Rule, which will come into force with the Bitcoin formula Hard Fork in November. This rule is intended to specify the arrangement of transactions in blocks. Currently, the only requirement is that the transactions are arranged in a causally meaningful manner, i.e. that the inputs and outputs follow each other logically. With CTOR, the transactions are now also sorted alphabetically according to their transaction ID. Only the Coinbase transaction is listed before all others. This is not only readable, but is intended to provide long-term performance improvements for full nodes with shared UTXO records (current account balances, simply put).

Volatility minimization with Abra, new dPOW on Nano and new crypto currency with Mimblewimble
The paper from Cardano is somewhat under the wheels with regard to the distribution of rewards. In this paper, Lars Brünjes et al. present what a fair proof-of-stake system could look like without centralization.

The volatility of crypto currencies is a well-known problem. How, not a few ask, should an alternative monetary system be created if the volatility is too high? One solution is the use of Qubic, IOTA’s smart contract solution. In Abra, the associated programming language, one could implement financial tools that hedge against price fluctuations. In the classical financial market, options are used for this purpose, something similar is suggested in the linked article.

Nano, Maker DAO, MimbleWimble and Bitcoin trader

The distributed proof-of-work system of Nano is to be revised. In principle, Bitcoin trader in the Nano network takes over their proof of work, since everyone maintains their own block chain. For services with high transaction rates such as faucets or tipbots, however, this is uneconomical. Here is the idea that the proof of work can be calculated by others – for a small fee.

In Maker, formerly known as MakerDAO, the so-called Voting Proxy Contract has now been published. The aim of this is that all maker token holders must be significantly shorter online and still be able to participate in the governance. He can now set up a hot wallet solely for the voting, which he then uses as a proxy for his securely stored MKR tokens. In the meantime, there has also been an election about this system, in which the overwhelming majority voted for the basic principles of governance of Maker.

A few months ago we reported on MimbleWimble, a novel protocol focusing on anonymity. Besides Grin, the implementation presented in the linked article, there is also Beam. Unlike Grin, Beam, according to the white paper, sees itself primarily as a store of value and not as a commodity. The Public Testnet was recently released. With the clients downloadable via Github, everyone can now get an idea of this anonymity solution.

Stable Coins, Stable Coins, Stable Coins
The cryptopendant to the apple tree that everyone is supposed to plant before the end of the world is apparently the stable coin. Several efforts for new forms of stable coins made the rounds. The Gemini Dollar and Paxos have already been the subject of an article. Both are ERC-20 tokens on the blockchain, secured by dollars in FDIC-insured bank accounts. It sounds a bit like “Tether on Ethereum”.

In addition to these two stable coins, Ndau has also made a name for himself this week. Ndau is a stable coin, which according to developers relies on a “Blockchain Policy Council”. What one hears so far as information sounds strongly like a delegated proof-of-stake system. You can’t hear any more than that, except that the project promises to be a long-term store of value. All in all, it sounds like a collection of buzzwords.

CarbonUSD go into a little more detail and emphasize that their stable coin based on Hedera

Mix and Anonymize Bitcoin Transactions

We asked the CoinMixer team about Bitcoin mixes and the anonymization of Bitcoin payments.

CoinMixer.se exists since 2015 and anonymizes Bitcoin trader payments

In the German Bitcoin trader community the knowledge is full of gaps in many places. Many comments reveal that a lot of users can use Bitcoin, but they don’t really know how Bitcoin trader works and what traces it leaves behind.

CoinMixer says that everyone has the right to make their payments private. Bitcoiners must take measures to improve Bitcoin’s anonymity. After all, traces cannot be removed later.

We wanted to get to the bottom of the matter in more detail and therefore turned directly to the team at the German-language platform CoinMixer. In the following interview you will learn everything you wanted to know about CoinMixing:

How did the idea to create a crypto trader CoinMixer come about?

The emergence of new companies to analyse and evaluate crypto trader transactions has caused us great concern. We believe that Bitcoin should bring the freedom to use money without censorship. No one needs to know who I’m paying money to, and no one needs to justify not wanting to become a transparent crypto trader.

BTC-ECHO: What is your goal?

We want to enable our users to anonymise their Bitcoin in an uncomplicated way. We respect the privacy of our customers and delete logins as quickly as possible. There is also no need to create an account.

BTC-ECHO: How many people are working on the project?

We are a well-rehearsed, international team.

BTC-ECHO: For which markets are you available?

Everywhere. Any Bitcoin user can use CoinMixer.se.

BTC-ECHO: How exactly does mixing work?

Quite simple: We exchange Bitcoin of our users for Bitcoin in our “pool”. There are already mixed Bitcoins in the pool. The user is paid out in Bitcoin, which can no longer be specifically assigned to anyone by our internal mixer. In addition, these paid out Bitcoin have no connection to the Bitcoin address from which the Bitcoin was paid.

BTC-ECHO: What advantage does the service give me?

It prevents a blockchain analysis of payments. Many people want to purchase services anonymously, for example a VPN. It would be insane to buy it with Bitcoin, which are confused with one’s own identity. However, many of our users are convinced that all Bitcoin payments should be made anonymously.

BTC-ECHO: Bitcoin is “anonymous” by nature, isn’t it?

Bitcoin is pseudonymous. If a Bitcoin address is linked to an identity, a blockchain analysis can be used to determine where payment was made. For example, it can be tracked if a Bitcoin exchange has paid out. The Bitcoin exchanges naturally store who pays where. Any Bitcoin address could sooner or later be associated with a service. Persecution is still in its infancy. Bitcoin leaves traces forever, only caution can prevent this. Retroactively it is no longer possible.

BTC-ECHO: Is it safe?

Security is a matter of trust. The most important resource for a Bitcoin mixer is its good reputation. We take the following measures:

– A “Letter of Guarantee” is created for each mix. This is a letter signed with our PGP key that says “If you send x Bitcoin to Bitcoin address 1, then after y hours we will send your Bitcoin to Bitcoin address(es) 2,3…”. With this Letter of Guarantee you can cryptographically prove that CoinMixer.se has to send the Bitcoin. If a Letter of Guarantee should ever appear which was not followed by corresponding payments in the blockchain, our reputation would be ruined.
– Trust only develops with time. You can also mix small amounts of Bitcoin. If you have to mix a larger amount of Bitcoin, you can do so in small steps for your own safety.

BTC-ECHO: What does anonymisation cost me?

CoinMixer.se charges a random fee of 1-3 %. On the one hand we pay for the service and the costs of the large amount of internal Bitcoin transactions. On the other hand, the fee also protects against traceability: Finally, a blockchain analysis can also be done by the payment amount. Example: First 1.15827 Bitcoin is deposited in one place, and one hour later 1.15827 Bitcoin is paid to another address. We always advise to use multiple payout addresses, the fee helps with further obfuscation.

BTC-ECHO: Thank you very much for the interesting interview.

Do you already have experience with mixing and anonymizing Bitcoin payments? Would you like to share it with us in the comment function m