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The Technology Behind Bitcoin Private

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By definition, bitcoin private (BTCP) basically refers to a privacy-centric bitcoin fork that has been hosted by another cryptocurrency named ZClassic (a privacy-oriented cryptocurrency based on Zero-Knowledge Proofs and forked from ZCash). The basic purpose of a hard fork is to validate the previously invalid blocks as well as transactions by changing the blockchain protocol radically. In 2017, several such hard forks of bitcoin (also known as bitcoin derivatives) made considerable impacts on the cryptocurrency market. Some of these hard forks include SegWit2X (presently rescinded), bitcoin gold (BTG), bitcoin cash (BCH), and many more. With these derivatives being slightly short of reaching the desirable market value, the idea of bitcoin private was coined by the end of 2017.

Bitcoin Forks

In the second week of December, the founder and developer of ZClassic as well as an alumnus of Massachusetts Institute of Technology, Rhett Creighton announces the launch of this new bitcoin fork with the intention of forming a bitcoin derivative that follows the rules of the existing bitcoin blockchain whilst incorporating the unique privacy features of ZeroCoin protocol (The same third version of ZeroCoin Protocol used by ZClassic).

One of the sui generis features of this protocol is that it allows the users of this cryptocurrency to remain completely anonymous during transactions. Consequently, the amount of transaction between the payer and the payee remains hidden in case of bitcoin private along with both of their specific blockchain addresses. This anonymity irrefutably makes the process of transaction much safer. With the market dominance of bitcoin decreasing significantly with the beginning of 2018 (from 85% to 34%) and the usual capriciousness of cryptocurrency, bitcoin private is specifically designed to offer more security to traders.

Here, the technology behind this ingenious bitcoin fork along with a few other related aspects will be discussed.

Bitcoin Private Technology

One of the main issues that bitcoin has been facing since its inception in 2008 is the issue of anonymity. Bitcoin has failed to provide absolute anonymity to its users that can account for the privacy as per the trader’s requirement. Instead anonymity, bitcoin provides a faux identity to its users. That’s why bitcoin private incorporates the ZClassic technology that is specifically known to offer anonymity. As mentioned earlier, ZClassic uses the third version of the ZeroCoin protocol where the blockchain address of each payer and payee in a transaction is hidden along with the amount of transaction as well.

Bitcoin Private Technology Block Diagram

Unlike other bitcoin hard forks, BTCP cites a perfect example of how the cryptocurrency should evolve in future with the successful implementation of ZClassic or similar technologies to attain unmitigated anonymity. This bitcoin derivative is capable of providing the following features because of ZClassic technology:

  1. Privacy: Bitcoin Private is a privacy-oriented hard fork and as the name suggests, it can successfully conceal the blockchain address of both payer and payee with the transacted amount. This privacy technology is known as zk-snarks, the selfsame technology used by ZClassic. Zk-snarks helps in publishing the payments on a blockchain with the transactional metadata and other vital information remaining unidentifiable.
  2. Peer-to-peer facility: Quite similar to bitcoin, zk-snarks also allows traders to take part in a peer-to-peer transaction facility without the interference of any intermediary like governmental organizations or banks. In the case of BTCP, the transactions are duly recorded on a public ledger after being meticulously verified by the network nodes and with the use of appropriate cryptographic codes.
  3. Greater speed: Besides being anonymous, the block size of bitcoin private is slightly greater (2 MB) than that of bitcoin (1 MB). As a result, the transaction speed of BTCP is considerably greater than bitcoin and other bitcoin-based hard forks.
  4. Open source: Unlike many other digital currencies, bitcoin private is open source. As a result, its entire codebase is visible and verifiable to its users and spread across different parts of the globe. This codebase is handled by adroit code developers all around the world and changed publicly according to the desiderata of the traders.
  5. Community-based approach: The community of bitcoin private is considerably large and spread across all parts of the globe. Different people with different set of skills are part of this community and all of them contribute something in developing and maintaining the technology of this bitcoin derivative. Because of this widespread community, the chances of technical faults while making important transactions get reduced significantly under the constant vigilance.

Receiving and Distribution of Bitcoin Private

Although this hard fork hasn’t released its whitepaper yet, BTCP has announced the distribution procedure of bitcoin private tokens to its users. According to that announcement, bitcoin private is to be distributed through an airdrop occurring on a 1:1 basis for both bitcoin and ZClassic holders. It will definitely not be issued to the bitcoin holders themselves. This innovative approach is likely to make a pivotal impact in the existing cryptocurrency market.

To receive bitcoin private, it is preferable to store a certain amount of ZClassic along with some bitcoin cash in your private wallet. That way, receiving some BTCP would be ensured. For finding some ZClassic, the only exchange you should look for is Bittrex.

The total circulating supply of this bitcoin-based hard fork is about to be 18.5 million which can be extended to 21 million at most.

The Future of Bitcoin Private and Its Impact on ZClassic

With the successful implementation of zk-snark technology, bitcoin private is likely to make a considerable impact on this volatile cryptocurrency market. The news of the announcement of this bitcoin fork alone has singlehandedly caused a massive price surge for ZClassic (from $2 to $218) in January 2018. As the only way to receive bitcoin private is to convert the existing ZClassic or bitcoin cash and ZClassic is the cheapest among the three, such price surges for ZCL is more likely to happen in future as well.

ZClassic Price Surge

On the other hand, the decentralized, fast, and anonymous bitcoin private could satisfy the market with features that can be found neither in bitcoin nor its any other derivatives.

Conclusion

Despite the fact that the cryptocurrency market can be in a topsy-turvy situation in the blink of an eye and no cryptocurrency exchange hasn’t offered their support to BTCP yet; with the latest technological advancements it is making over the other existing bitcoin forks, bitcoin private has the possibility to become a popular cryptocurrency in terms of total market capitalisation and usage.

EDIT: The original article indicated an airdrop to holders of bitcoin cash and ZCash. This has been changed to holders of bitcoin and ZClassic. 

Featured image courtesy of Shutterstock. 

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.5 stars on average, based on 9 rated postsHira Saeed is a tech geek girl with a passion to write on latest technology trends. She is the Founder of Tech Geeks community in Pakistan and also runs her copywriting and social media agency, Digital Doers. Follow her on @heerasaeed.




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4 Comments

4 Comments

  1. MinerMatt17

    January 20, 2018 at 5:28 am

    If we have Zcash and Bcash in a hardware wallet, why would we need Zclassic as well?

    Thanks!

  2. niconei

    January 20, 2018 at 6:28 am

    This article is confusing
    quoting from https://btcprivate.org/
    “How do I receive BTCP?
    When the hard fork occurs, a snapshot of all existing ZCL and BTC holdings will occur. Anyone holding ZCL or BTC in a wallet or supported exchange will be credited Bitcoin Private (BTCP) at a 1:1 ratio. For example, if you hold 15.4 ZCL and 0.1 BTC, you will receive 15.5 BTCP.”
    It does not talk anything about Bitcoin Cash ….
    why here in this articule BCH is mentioned ?

  3. deejayefem

    January 20, 2018 at 2:11 pm

    its bitcoin not bitcoin cash

  4. tommudd

    March 8, 2018 at 7:54 pm

    Today is March the 8th and I have still not received my BTCP in Bittrex. does anyone know why?

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Altcoins

Crypto Market Cap Falls Below $200 for the First Time Since November Amid ICO Backlash

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Cryptocurrencies extended their selloff overnight Tuesday, as the total market capitalization pierced below $200 billion for the first time since November. The decline was far-reaching and severe, with 78 of the top 80 altcoins recording double-digit percentage losses.

Crypto Market Update

Roughly $26 billion was wiped from the cryptocurrency market overnight, a sign that the bears were firmly in control and not giving up their position anytime soon. The market bottomed at $189.6 billion late Monday and has since recovered to around $193 billion. Twenty-four hours ago, coins were collectively worth more than $217 billion.

Below are two snapshots of the crypto top-50, as reported by CoinMarketCap.

Although the declines were largely concentrated in altcoins, bitcoin also experienced a tumultuous overnight session, with prices coming within $100 of a new yearly low. The bitcoin price bottomed at $5,858.60 on Bitfinex but has since recovered above $6,100.

Ethereum’s downward spiral intensified Tuesday, with prices crashing to fresh 14-month lows. At press time, ether was down 16.6% at $267. The second-largest cryptocurrency by market cap has shed more than 35% over the past seven days.

The Market’s Next Move

The rout in altcoins has left bitcoin with a 54.1% share of the total cryptocurrency market – the highest since December. Although this gives bitcoin a stronger gravitational pull on other digital assets, it’s also an indicator that investors are shifting their portfolios away from more speculative altcoins and tokens.

As Bloomberg pointed out on Monday, Ethereum’s massive decline could be a sign that ICOs are cashing out. If this is true, ether could face a deeper short-term correction as token offerings fizzle out.

Biswa Das, the head of quantitative hedge fund BloomWater Capital, said the following of ICOs:

“These startups are raising a lot of funds but they don’t have treasury management or enough cash management experience, so they’re selling too early and causing a lot of pressure in the market. It was fine last year but right now the market is so fragile that it causes a lot of pressure.”

The cryptocurrency market has lost a staggering $140 billion since June 1, and a look at bitcoin’s technical chart suggests more pain could be on the way. The bitcoin price faces a critical support test at $5,800; a break below that level could expose the digital currency, and the broader market, to new yearly lows as early as this week.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.6 stars on average, based on 544 rated postsSam Bourgi is Chief Editor to Hacked.com, where he specializes in cryptocurrency, economics and the broader financial markets. Sam has nearly eight years of progressive experience as an analyst, writer and financial market commentator where he has contributed to the world's foremost newscasts.




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Bitcoin

Bitcoin Price Stabilizes Above $6,000 as Altcoins Get Rearranged

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Bitcoin has emerged as the victor from the bloody chaos of the past week, but perhaps only by default. The 5% losses incurred by BTC in the past seven days would be considered a poor week at the markets in a different climate; but within the current context BTC looks positively bullish in comparison to its nearest competitors.

Bitcoin Stabilizes Above $6,000

Bitcoin’s fall over the last 24 hours didn’t come quite so fast or as hard as that of the altcoins, although it did eventually drop below $6,000 at one point during the night. At around 03:00 UTC the BTC coin price sunk to the $5,970 range, but by the time people were waking up for breakfast the $5,000’s had been rejected and BTC was back up above $6,000.

With just under 18% of BTC trades coming against USDT Tether, it seems the price dip was more a case of cautious hands taking refuge in USDT for the night while the storm cleared. After a 40% drop off in volume overnight, BTC is now starting to gear up for more, as the daily volume has grown from $4.1 billion to $5.3 billion in the last six hours.

A quick glance at the market cap beyond Bitcoin is enough to justify the most dramatic of language, and once again one of the worst periods in recent times has fallen on ‘Monday Bloody Monday’.

Altcoin Top-Ten Rearranged

Everything looks different in the top ten this morning, with several pieces of altcoin furniture having been rearranged during the night’s turmoil. All of a sudden Stellar (XLM) finds itself in 5th spot, while EOS has been kicked down to 6th spot for the first time since its ICO ramped up to completion in early 2018. EOS has incurred 17.8% losses in the last 24 hours, descending to a coin price of $4.27 at the lowest point of the night.

Further down the pack, USDT Tether has jumped into 8th spot and is battling it out with Cardano (ADA), which plunged 24% today before stabilizing at net losses of 19%. ADA coins dipped to levels not seen since early November 2017 when they reached a value of $0.086 this morning, although they’ve since rebounded to the $0.09 range at the time of writing.

Further down still and IOTA was temporarily kicked down to 12th spot, behind TRON, as it recorded 24% losses for the day alone. TRON isn’t much better off, with losses similarly approaching the 24% mark.

While Ethereum won’t be displaced any time soon, it has been shaken as bad as any coin in the top ten today, with 20% losses coming as ETH falls to a coin price not seen since September 2017 at $256.58. Despite a rebound to $264 at the time of writing, Ethereum is still down nearly 40% over the last seven days.

Featured image courtesy of Shutterstock. 

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.4 stars on average, based on 37 rated postsGreg Thomson is a full-time crypto writer and digital nomad. He eats ICOs for breakfast and bleeds altcoins. Wherever he lays his public key is his home.




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Analysis

Crypto Update: Altcoin Crash Continues, Ethereum Hits $250 as Bitcoin Holds Up

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The cryptocurrency segment endured another ugly overnight session, with the major altcoins plunging by double digits across the board yet again. The total value of the market is now handily below the $200 billion mark after the latest selloff, and despite the deeply oversold momentum readings, there is still no sign of even a short-term bottom, and our trend model continues to flash red too.

While Liteocin and Monero provided a glimmer of hope for bulls during the initial phases of the current leg lower, the coins that are among the laggards from a long-term perspective followed the broader market below support later on. With no bullish leadership forming, the strong downtrend is still dominant and traders should still remain defensive, despite the already heavy losses in the segment.

That said, in time, a more durable bottom is likely close, thanks to the negative sentiment and the oversold environment, but percentage-wise, further steep losses could be ahead.

ETH/USD, 4-Hour Chart Analysis

Ethereum is still in the epicenter of the decline, with a more than 15% daily decline, as the coin quickly got below the $275 level just after violating the $300 support, and even touched 4250 in early trading. The second largest coin fell through key zones without even a blink, and that points to forced liquidations in the market.

The coin is still on sell signals on both time-frames and traders still shouldn’t enter new positions. Support is now found at $260 and $230, while resistance is ahead between $275 and $280, and near $300.

BTC/USD, 4-Hour Chart Analysis

While sellers have been trying to push Bitcoin below the $6000 level amid the altcoin rout, the coin always managed to bounce back so far, and it continues to hold up clearly above the structurally important $5850 level.

The coin is still in a bullish secular trend and while the long-term picture is overwhelmingly bearish in the segment, the strength of the largest coin might be the basis of a coming recovery.  That said, the short-term downtrend is clearly negative in the BTC, and traders shouldn’t enter new positions. Resistance is still ahead at $6275, $6500, $6750, and $7000, while initial support is at $6000, while further support is found between $5000 and $5100.

Relentless Selling in Altcoins

XRP/USDT, 4-Hour Chart Analysis

Ripple still resembles a falling knife, similarly to most of the majors, and the coin continues to slide lower, as last week’s break-down led to a series of support breaches. The coin is now down by 40% in a bit more than a week, and it is currently testing the strong support zone near $0.26 after spiking briefly below it overnight. Should XRP hold above the spike low, traders could be looking for signs of a bottom, but for the coin is still on a clear sell signal.

XMR/USDT, 4-Hour Chart Analysis

With the smaller coins also being hammered lower, there is no real hiding place beside BTC in the segment, and yesterday’s slightly strong coins also broke down overnight. Monero violated the key long-term support near $80, which served as a base for the late-2017 run-up, and the coin is trying to hold its ground above that after the spike lower. While the downtrend is clearly intact, and the short- and long-term sell signals are in place, a recovery above $90, could point to the exhaustion of sellers.

Featured image from Shutterstock

Disclaimer:  The analyst owns cryptocurrencies. He holds investment positions in the coins, but doesn’t engage in short-term or day-trading, nor does he hold short positions on any of the coins.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.6 stars on average, based on 317 rated postsTrader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.




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