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ZCash Will Be a Truly Anonymous Blockchain-Based Currency

spectrum.ieee.org

41–50 of 285 posts

Re: ZCash Will Be a Truly Anonymous Blockchain-Based Currency

#41
post #28

Earlier quoted context omitted.

Given that the previous comment is referring to state actors, you have the courts to defeat the 5$ wrench. For more direct criminal elements, you can make it difficult enough that its not worth them going through the effort to use the 5$ wrench and wait while you have to fetch the key. Beyond that, you're no worse off than you were versus carrying cash. The only thing electronic cards might have advantage over this i…

Ok, so you're in court, and the courts just gonna be like, 'ok, we'll just ignore our orders to make you pay because it's crypto currency'? I don't think you understand what happens when you defy court orders... Also, mostly this will be used for tax issues, where guess what, the burden is on you to prove that your income was only X, so the more crypto shit you have the easier it is for the prosecution to say you hav…

Your question was how do you defeat the 5$ wrench, not how do you tell them tax-man to f himself.

If state actors use the 5$ wrench, that's illegal and consequently you have the defense of the courts to counter that behavior. Civil forfeiture is dependent on being able to "prosecute" your stuff, rather than you. So if they can't seize it, they have to go after you directly, which puts the burden of proof on the prosecution to demonstrate that the money is unlawfully possessed. The fundamental principle of the US court system is "innocent until proven guilty", so you don't have to prove what your income is, they have to prove it. You only need to counter their claims.

Re: ZCash Will Be a Truly Anonymous Blockchain-Based Currency

#42

Here's a question: I can see the value in an anonymized blockchain for use by individuals... ...but, is there a reason that anonymity would be good for use in a blockchain for use by businesses? Or, is it categorically better for a business-centric blockchain to have the most identity possible?

Zooko's mentioned interest from banks/finance because they need privacy, too. I haven't asked about this because I'm not really into business.

Re: ZCash Will Be a Truly Anonymous Blockchain-Based Currency

#44
post #39

Another altcoin. This one has a 10% pre-mining cut for the founders: "Zcash's monetary base will be the same as Bitcoin's — 21 million Zcash currency units (ZEC, or ⓩ) will be mined over time. 10% of that reward will be distributed to the stakeholders in the Zcash Company — founders, investors, employees, and advisors. We call this the “Founders Reward”." Here's a list of the other 709 altcoins.[1] 373 of them are st…

Yup, it's a clever idea, but wait for someone to be the Litecoin to their Tenebrix.

Re: ZCash Will Be a Truly Anonymous Blockchain-Based Currency

#45
post #20

Earlier quoted context omitted.

Not familiar with Zcash specifically, but it should work the same as Bitcoin. You cannot initiate a transaction without the (password protected) private key of the wallet containing BTC. If the victim of civil forfeiture refuses to provide the password and private key there is nothing that can be done to acquire the money. This is good because it changes the game from the "government takes your money and you have to…

Some attempts to plug that hole: https://en.wikipedia.org/wiki/Deniable_encryption

So there's an idea: a wallet format that lets you decrypt with any of one or more passphrases, with each passphrase giving a different set of addresses.

Re: ZCash Will Be a Truly Anonymous Blockchain-Based Currency

#46
post #4

We need something better than money. I don't know what that is, but I think focusing on creating new forms of tokens won't enable any radical change.

I'm convinced that reputation based economics are a natural successor to currency with enough automated means of coordinating transactions.

Disclaimer: I may be extremely biased from spending the majority of my time trying to figure out how to put that into practice.

Re: ZCash Will Be a Truly Anonymous Blockchain-Based Currency

#47
ZCash requires a trusted setup, takes a 20% fee from miners, and active mixing requires 8GB of RAM.

https://blog.okturtles.com/2016/03/the-zcash-catch/

http://weuse.cash/2016/06/09/btc-xmr-zcash/

If you are interested in anonymous blockchains, I highly encourage you to look into Monero. It meets or exceeds that of ZCash. And Monero's RingCT is currently implemented and in use on TestNet with a target "go-live" this January.

Re: ZCash Will Be a Truly Anonymous Blockchain-Based Currency

#48
post #11

Earlier quoted context omitted.

How does it defeat the $5 wrench?

Multisignature wallets mean that you can beat the credentials out of a person and still not be able to access the coins. You would have to figure out who else had keys and beat then too. Raising the difficulty a non-trivial level.

Ok, but how does that protect ME from that $5 wrench?

Re: ZCash Will Be a Truly Anonymous Blockchain-Based Currency

#49
post #36

"But in ZCash, the miners only get to keep ninety percent of those coins. The rest gets dumped into accounts controlled by the ZCash company" This alone makes me extremely sceptical.

Unlike Bitcoin, where Satoshi probably mined 5% of all BTC before other people noticed? Or unlike Bitcoin, where developers get paid by layering centralized startups on top?

Until proven otherwise, Satoshi still didn't touch his original mined coins…

Re: ZCash Will Be a Truly Anonymous Blockchain-Based Currency

#50
post #36

"But in ZCash, the miners only get to keep ninety percent of those coins. The rest gets dumped into accounts controlled by the ZCash company" This alone makes me extremely sceptical.

Unlike Bitcoin, where Satoshi probably mined 5% of all BTC before other people noticed? Or unlike Bitcoin, where developers get paid by layering centralized startups on top?

Or Ethereum where the founders reserved 12.5% of the presale to themselves. I had no problem with that, and the Zcash incentives seem better than the Ethereum ones because they're effectively vesting over years.
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