Topic: I think I've thought of a new coin that it is completely private. (Read 186 times)

Even though the idea is flawed (which already addressed well by @bob123), don't be discouraged to share your idea.

However, you must know there's no thing such as completely private, there has to be weakness that could be exploited. For example, privacy of monero transaction could be waked if the wallet choose decoy input poorly.

The topic of anonymous coins is not new, but when I look back on anonymous coins I don't see any future for them. DASH, MONERO, DEEP ONION, BLACKCOIN ... and many more cryptonight projects in previous years. The government discourages them from being stored, they also prohibit their use. If you want anonymity then you can still use the bitcoin mixer services or use tornado cash for ethereum.

Monero combines multiple pearls of cryptography, i.e. zero knowledge proofs and blind signatures to achieve the privacy preserving properties it has.
There are a few easier to understand articles on how monero works on the internet.

You don't need to doubt anything, it is mathematically proven.




Addresses do not exist on a technical level in bitcoin.
And the blockchain is what makes it final and tamper-proof.

How are you going to solve this if not with a tamper-proof form of storage (e.g. blockchain) ?




Encrypted for the recipient?
How will it be verified? Who sees the amount? Who checks whether the amount sent is indeed the amount received?
Who makes sure that i am not sending 1 coin to an address which receives 2? Where do the checks take place?



Signing and verifying? Like a chain of signatures?
You could define a "coin" as a chain of signatures (e.g. signed transactions), and then.. you would basically have bitcoin again.




It won't.
You can not create a trustless and decentralized system which is fully private or anonymous without advanced cryptography.
That's what zero knowledge proofs, blind signatures, etc.. are for.

You can not take the concept of bitcoin, change a few things without having any idea on how this can work (i.e. without having an idea on how "coins" and transactions are defined, verified, etc..) and expect to have a private/anonymous coin.

No offense here, but if you don't fully(!) understand how monero works, you'll never be able to create a concept for an anonymous coin.

Guess this belongs to the Altcoin Discussions board rather than Bitcoin.

I think it's more correct to say the difference between those would be the fact that the ledger would be private instead of public.

There already are a few coins that already hide inputs, outputs and/or txs. For example, if you take a look at a tx from one of the latest Monero blocks, you cannot really see much. The amount of XMR that has been spent is confidential and you do not have much info to look after if you were to analyze it.

I think BEAM (here's an explorer, but I can't open it without JS) hides even more information about txs and has addresses that expire after a certain amount of time. As far as I know, it doesn't even store tx details. Like, if you were to receive some BEAM and you restore your wallet, you would have no information about previous records - all you get is the total balance.. and that's crazy, to say the least. Not sure about the legitimacy of their project, but this feature is certainly awesome from a privacy perspective.

leaving technical things aside, let's talk about legality, if everything indicates the future of cryptocurrencies Is towards a legalized market, I speak of a market where each exchange will have to have a license, each wallet will probably ask people to do KYC and have a license and governments periodically supervise exchanges, so how do you think anonymous currencies will look? because in my opinion anonymous currencies will not have a prominent place in a future of mass adoption and a regulated market, because it is difficult to have mass adoption without having a regulated market and it is also difficult for there to be a regulated market and have anonymous currency.

I never understood how monero and zcash work and I don't know if they work that way, I highly doubt it.

The new coin will be like bitcoin. People will provide their addresses to get paid. Miners will mine for the coinbase. What is the difference with bitcoin? Blockchain.

Blockchain right now is a bunch of files anyone can read. A public ledger that is readable to anyone. When you make a bitcoin transaction you choose your inputs and create outputs based on the address you want to send. An example:

Address A unlocks from input A -> Locks funds on output B with the Address B.

The structure of a bitcoin transaction looks like this:

Then we hash this thing with SHA256 and the result is:

The problem is that this is just a hash. A "name". A way to differ transactions. (instead of naming them tx1, tx2, tx3)

So in blockchain the structure is saved and we can see who sent to who. I propose a new way of cash that would make transactions invisible.

The sender, instead of sending the structure of a bitcoin transaction to all the nodes can now send it encrypted with elliptic curve cryptography.

The receiver will provide the public key to the sender. The sender will encrypt it and then share it to nodes. The new structure of a transaction will look like this:

Now comes the hard part. How exactly can someone confirm that he has a coin? I'm not fully sure about this, but I think that by signing and verifying. I'm stuck at here thought. I'm not 100% sure that a coin like that could work. The only way to find the total funds of an address would be to decrypt all the transactions that have been verified by the address. But again, you can't find the total funds, you can only find the total transactions you "own". 

Please, correct me if I've made mistakes. Also, this is just a thought, don't get mad if those statements are incorrect.