BITCOIN 2 - The Scalable Bitcoin Fork With Private Transactions and Instant Verified Payments
A storm has hit the investment market which we are not going to recover from. Crypto investment is that storm. With strict capital controls in place by most countries to control the flow of money and charge high taxes, cryptocurrency gained usage in circumventing capital controls and taxes, leading to an increase in demand. Cryptocurrency has been able to present an easy to use digital alternative to fiat currencies. Offering frictionless transactions and inflation control, investors have been prudent enough to add these currencies in their diversified portfolios as an asset, as the size of the market does not represent a systemic risk. Cryptocurrency employs the use of cryptography that assures high-security processes and verifies transactions personal to each user. Hence, counterfeiting and anonymous transactions are impossible to achieve.
While this revolution is gaining wide acceptance, Bitcoin 2 is a scalable Bitcoin Fork with private transactions and instant verified payments has arrived.
About Bitcoin 2
Bitcoin is a worldwide payment system that allows for transactions with this currency. The main difference between traditional payment systems is that the Bitcoin system has no central processing and processing - all operations occur exclusively within the same customer network.
Bitcoin 2 is a Bitcoin-based community-centric cryptocurrency with a focus on decentralization, privacy, speed, scalability and real-world use. It utilizes an energy efficient Proof of Stake protocol and a second-tier Masternode network to handle transactions that confirm in a second.
Bitcoin 2 is continuously striving to achieve instantaneous private transactions, and fungibility in order to remain as one of the most advanced cryptocurrencies.
In layman’s term, Bitcoin 2 is basically a form of online digital money that can be easily transferred all around the world in a blink of an eye with nearly non-existent transaction fees. You can convert your money into Bitcoin 2 and just hold to earn rewards similar to interest, trade on an exchange to buy other digital currencies or buy goods or services online and offline where it is accepted.
It is not owned or governed by any single person or organization and its network is secured by nodes all around the world by its users.
The goal of Bitcoin 2 is to be an advanced digital currency that is fast, secure, decentralized & private.
SOLUTION - THE ZEROCOIN PROTOCOL (zBTC2)
To overcome this issue, Bitcoin 2 has implemented a well known highly-vetted protocol called Zerocoin with many custom enhancements allowing blockchain-level transaction anonymity in the way of unlinkability.
We call this zBTC2, where BTC2 is a unit of Bitcoin 2 and z prefix is for Zerocoin.
What zBTC2 provides is a protocol-level coin mixing service using zero knowledge proofs to sever the link between the sender and the receiver with 100% anonymity and untraceability. This means that each coin that gets sent using zBTC2 is now 100% fungible as it has no determinable history attached to them.
The use of zBTC2 also means your balance can be masked to avoid being targeted by potential thieves. This is a very unique feature that nearly no other cryptocurrency currently in the market possesses.
Bitcoin 2 zBTC2 accumulators are encrypted using RSA-2048 challenge generated keys which negates the need for a developer trusted setup and means that no individual knows the factors. This means that everyone’s privacy is ensured through the use of zBTC2.
BENEFITS OF USING zBTC2*zBTC2 can hide your coin balance from prying eyes protecting you from being targeted.
*So your zBTC2 balance isn’t linked to any particular address.
*zBTC2 can hide the transaction history of the coins being sent.
*Source & target addresses aren’t visible making it private, safe & fungible.
*zBTC2 anonymous transactions are very fast.
*It takes as little as 0.5 seconds to mint and 2.5 seconds to spend zBTC2.
*Automatic conversion to zBTC2 is disabled by default, but can be turned on if wanted.
*It means that you can always send a fully transparent transaction when required.
Why Bitcoin 2?
Sending old Bitcoin can be more expensive than wire transfer and slow compared to other crypto currencies. Transactions can also be tracked. With all the battles about what to do, the big improvements on Bitcoin come slowly if at all.
So Bitcoin 2 should be born. Bitcoin 2 solves the problem and is also fast enough to be accepted as a payment method by retail stores and grocery stores due to the SwiftTX feature.
HOW ANONYMITY IS ACHIEVE
*Mint (convert) your BTC2 into zBTC2 denominations.
*Spend (send) your zBTC2 as BTC2 to any internal or external Bitcoin 2 address
Essentially the zerocoin protocol pools combine all the zBTC2 that people have converted (minted) from their BTC2 balance into set denominations and uses them to send when a spend is initiated. Keep in mind that the pooling does not mean that everyone’s zBTC2 is stored in a centralized location. Rather, the public ledger (decentralized blockchain) keeps track of how many zBTC2s have been created and the amounts are displayed by the Bitcoin 2 Core Wallet
When you want to send (spent) some zBTC2 amount to a Bitcoin 2 address, your wallet sends a zero-knowledge proof to the blockchain that allows the zBTC2 to be converted back to BTC2 and sent to the target address all in a single step.
Since zBTC2 spending creates brand new coins if a spender can provide zero-knowledge proof that he/she has coins in the accumulated pool (accumulator), the coin’s transaction history from its previously associated addresses become unlinked and thus results in an untraceable transaction.
Finally, a simple analogy. Think of zBTC2 as casino chips. You give your 100 dollar bill (i.e. BTC2) to the cashier and you get some 1x$10, 2x$20, 1x$50 dollar chips (i.e. zBTC2). This means that you no longer own that particular 100 dollar bill you exchanged and instead have “proof” that you still own $100. Now when you need 50 dollars of it back as fiat (BTC2), you give your chips (zBTC2) back to the cashier and the cashier delivers a brand new uncirculated 50 dollar bill to a recipient of your choosing.
Technical Specs (in Bitcoin 2 Core v2.0)
Key Features: Custom accumulator check pointing system
Accumulator Encryption: RSA-2048
zBTC2 Denominators: 0.05, 0.2, 1, 5, 20, 100, 500, 2000
Mint time: >= 0.5 seconds
Spend time: >= 2.5 seconds
Maximum single Spend limit: 34,000 BTC2
Maximum single Spend denomination count limit: 17
Maximum block size: 4 MB
Fees (mint): 0.001 BTC2 per minted zBTC2 denomination.
Fees (spend): No fee to spend zBTC2 back to BTC2. (In other words no fee to send zBTC2.)
Minimum BTC2 confirmation count required to mint zBTC2:6
Minimum zBTC2 confirmation count required before spend:20
Maturity requirement before zBTC2 can be spent: 1 new identical denomination mint added to accumulator after yours is added.
Bitcoin 2 uses the latest thoroughly tested Proof of Stake algorithm. Greatly reducing electricity use compared to Bitcoin.
Be a part of this incredible project. Download the whitepaper for the full scoop.
Till next time…
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Disclaimer: This article was published in terms of the bounty campaign. I am not a project team member or its representative but a supporter of this incredible project.