Connect with us

Bitcoin

The Technology Behind Bitcoin Private

Published

on

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 Some of these hard forks include SegWit2X (presently rescinded), bitcoin gold (BTG), bitcoin cash (BCH), and many more.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.

// -- Discuss and ask questions in our community on Workplace.

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).

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //

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.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
6 votes, average: 3.33 out of 56 votes, average: 3.33 out of 56 votes, average: 3.33 out of 56 votes, average: 3.33 out of 56 votes, average: 3.33 out of 5 (6 votes, average: 3.33 out of 5)
You need to be a registered member to rate this.
Loading...

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.




Feedback or Requests?

3 Comments

3 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

You must be logged in to post a comment Login

Leave a Reply

Analysis

Technical Analysis: Majors Stage Rally but Strong Levels Still Ahead

Published

on

The cryptocurrency segment has recovered from a broad correction today in early trading, with the most valuable coins all turning into green during the session, despite the bearish start to the overnight session. With bottom-to-top gains of up to 15%, the rally helped in easing the worries of bulls, especially in the case of the relatively weaker coins.

// -- Discuss and ask questions in our community on Workplace.

Bitcoin and most of the largest altcoins remained stable during the selloff, and BTC recaptured the $10,000 level quickly after trading as low as $9600 overnight. The initial rally topped out near $10,400, and the coin is trading back near the $10,000 level, as the bullish momentum faded away somewhat.

BTC/USD, 4-Hour Chart Analysis

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //

That said, we expect the uptrend to continue even if the correction could still carry Bitcoin lower. Further strong support is found between $9000 and $9200, while targets are ahead at $11,300, $13,000, and $14,250.

ETH/USD, 4-Hour Chart Analysis

Ethereum showed strength during the bounce again after yesterday, together with the early leaders of the rally, and although the coin dipped below the $845 level in the second half of the session, the signs remain positive for bulls. Support levels are now found at $780, $740, $625 and $575, while resistance is ahead near $910 and $1000.

(more…)

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.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
6 votes, average: 4.83 out of 56 votes, average: 4.83 out of 56 votes, average: 4.83 out of 56 votes, average: 4.83 out of 56 votes, average: 4.83 out of 5 (6 votes, average: 4.83 out of 5)
You need to be a registered member to rate this.
Loading...

4.7 stars on average, based on 113 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.




Feedback or Requests?

Continue Reading

Analysis

Crypto Update: Encouraging Bounce before the Weekend

Published

on

The correction that started out in the major lagging altcoins and spread to the leaders of the market yesterday is weakening, with a nice rally today in early trading in most of the majors.  Although the segment is not out of the woods just yet, the bullish signs which have been present ever since the lows three weeks ago still persist.

// -- Discuss and ask questions in our community on Workplace.

Bitcoin stayed clear of the key $9000-$9200 support zone, for now at least, which would be an ideal bottom for the correction, but as we noted long-term investors should accumulate the coin during the correction, as the short-term momentum is already back to neutral. The $10,000 level is still in the focus, while the next major resistance is found at $11,300 and the prior rally high near $11,750 is also ahead as an obstacle.

BTC/USD, 4-Hour Chart Analysis

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //

The early leaders of the rally, Litecoin and Ethereum Classic are once again showing strength and that could signal that the next leg higher already started. That said, with several coins still stuck in broader downtrends, investors should still expect a bumpy road, with the occasional volatile sell-off.

Litecoin got very close to the $180 support that we have been monitoring throughout the correction, but it quickly bounced above the $200 level again, as the broad bounce started after testing the previously dominant declining trendline. So far, the price action in the coin is consistent with a new uptrend and we still expect LTC to lead the market higher.

LTC/USD, 4-Hour Chart Analysis

Ethereum Showing Positive Signs Again

ETH/USD, 4-Hour Chart Analysis

After yesterday’s early signs of relative strength, the second largest coin is now clearly showing evidence of accumulation, as it quickly recovered above the $845 level following the selloff after the US close. The coin established a new support near $780, and as the MACD is close to providing a bullish cross, it might signal the bottom of the correction.

Despite the bullish price action across the board, even in the recently lagging XRP and IOTA, the correction could still continue, but we still advise traders and investors to look for entry points as we expect the recovery to continue, although traders should still use smaller positions in the relatively weaker coins.

Stay tuned for our detailed technical analysis later on today.

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.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
6 votes, average: 5.00 out of 56 votes, average: 5.00 out of 56 votes, average: 5.00 out of 56 votes, average: 5.00 out of 56 votes, average: 5.00 out of 5 (6 votes, average: 5.00 out of 5)
You need to be a registered member to rate this.
Loading...

4.7 stars on average, based on 113 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.




Feedback or Requests?

Continue Reading

Analysis

Technical Analysis: Correction Continues but Coins Remain Stable

Published

on

It’s been another mixed session for cryptocurrency investors as judging by only the price action, the segment suffered losses across the board, but comparing the current sell-off to the January plunge reveals that the majors are much more resilient this time around.

// -- Discuss and ask questions in our community on Workplace.

The largest digital currencies are holding on to most of the gains of the recent weeks, and the price action near the crucial support zones is also encouraging. With all that said, the correction is not over yet, and further losses are still in the cards, but barring a substantial change in price action, the coins will likely continue the rally.

BTC/USD, 4-Hour Chart Analysis

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //

Bitcoin has been trading around the key $10,000 level all day long, and, so far, a clear break-down has been averted. The short-term momentum indicators are now in neutral territory regarding the most valuable coin, and that could mean that a bottom is close, and investors should already add to their holdings here. Further strong support is found between $9000 and $9200, while targets are ahead at $11,300, $13,000, and $14,250.

XMR/USDT, 4-Hour Chart Analysis

Correlation between the majors has increased during the sell-off, but there are still clear outperformers and laggards, adding to the bullish case. Monero remains among the strongest coins from a technical perspective, trading right at the lower boundary of the bullish consolidation pattern, with the $280 price level holding up for now. The coin faces strong resistance near $300 and $335, but we expect the uptrend to continue with the next target being ahead at $400, while further support is found at $240.

(more…)

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.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
9 votes, average: 4.33 out of 59 votes, average: 4.33 out of 59 votes, average: 4.33 out of 59 votes, average: 4.33 out of 59 votes, average: 4.33 out of 5 (9 votes, average: 4.33 out of 5)
You need to be a registered member to rate this.
Loading...

4.7 stars on average, based on 113 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.




Feedback or Requests?

Continue Reading

Recent Comments

Recent Posts

A part of CCN

Hacked.com is Neutral and Unbiased

Hacked.com and its team members have pledged to reject any form of advertisement or sponsorships from 3rd parties. We will always be neutral and we strive towards a fully unbiased view on all topics. Whenever an author has a conflicting interest, that should be clearly stated in the post itself with a disclaimer. If you suspect that one of our team members are biased, please notify me immediately at jonas.borchgrevink(at)hacked.com.

Trending