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 Some of these hard forks include SegWit2X (presently rescinded), bitcoin gold (BTG), bitcoin cash (BCH), and many more.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

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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).

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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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Blockchain

Justin Sun Plans To Buy BitTorrent

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Justin Sun, the CEO of TRON, is finalizing an agreement to buy BitTorrent, inc. Most people know BitTorrent as the creator of the popular torrenting client, uTorrent, which at its peak had over 100 million users.

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According to Torrentfreak.com, BitTorrent has been in a steady decline to some poor decisions and potentially illegal missteps by their management.

In an interview with BitTorrent founder Bram Cohen, the management was painted by Cohen as incompetent narcissists who had no business plan and no idea what they were doing besides chasing some nebulous idea of celebrity endorsement.

This can be seen in Cohen’s statement, “They were just incompetent fuckups. I mean they’re losers. Basically, Accel took their share in BitTorrent and pretty much just gave it away to these total strangers who they didn’t know. And not only gave away their stock but gave away control of the company.

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Human beings are a bunch of starfuckers, right? The United States has become this celebrity-obsessed culture, and everyone’s all about, oh, we’ll gain access. That’ll be great, and we’ll make money off of it, everybody thinks this.”

It is against this backdrop that Sun’s alleged acquisition is taking place. The TRON projects alleged goal is to “decentralize the web.” Owning one of the most recognizable brands aligned with these goals would be a major coup for the ambitious CEO.

This is due to the fact that the most likely use case of uTorrent by TRON would be to simply parlay its user base into usage of the TRON blockchain.

Since a huge part of TRON’s model relies on advanced content search for media files, simply making use of the uTorrent brand but integrating it with Tron’s decentralized search would instantly transform TRON into one of the most actively utilized blockchains on earth.

The information stems from the fact that BitTorrent changed their company name recently to Rainberry according to their chief product officer. “Rainberry Inc is the official name of the company; it was changed right around the start of 2017.” He stressed that it was a purely corporate decision and that none of the existing product brands would change.

Despite this blanket denial, it seems like the acquisition was proceeding swiftly, and was even overcoming some initial hurdles. BitTorrent had already tried to find a better acquisition offer during the first round of negotiations, to the point that Justin Sun took them to court in an attempt to stop them from negotiating with other buyers.

However, it seems that these initial roadblocks have been overcome, as a new company called Rainberry Acquisition, (BitTorrent recently changed their official company name to Rainberry) was formed and registered directly to Justin Sun. How Sun plans to integrate the platform with Tron is an open question, but it is likely to result in some interesting synergies.

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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Analysis

Long-Term Cryptocurrency Analysis: Correction Deepens but Leaders Remain Stable

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As the major cryptocurrencies got hit hard this week, losing around 20% on average, the long-term picture in the segment got close to an entry point for investors. The overbought readings that developed during the late-April rally are now cleared and although the short-term trends are still clearly negative, we still expect the coins to resume the recovery. With that in mind, long-term investors could start accumulating the relatively stronger coins.

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On a negative note, even the leaders violated key support levels during this week’s selloff, but the secular long-term trends are not yet in danger. The prior leaders Ethereum, EOS, and IOTA are still in the center of attention, as we expect them to form a bottom soon. Bitcoin and the other relatively weak coins, like Litecoin, Monero, Dash, and NEO are still lagging the form a technical perspective, but they are also well above the support levels that would indicate an end of the secular bull market.

BTC/USD, Daily Chart Analysis

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Bitcoin is below the key $7650-$7800 support level and it remains the biggest drag on the market, despite a brief period of relative strength this week. The upper boundary of the base pattern that we identified in April is found near $6150, with a weaker zone around $6500, and with the short-term trend clearly being negative, the latter might be tested before a bottom forms. Further resistance is ahead at $8400, $8700, and between $9000 and $9200, and traders and investors still shouldn’t enter positions here.

ETH/USD, Daily Chart Analysis

Ethereum is testing the $555-$575 support zone after violating the $625-$645 range, with the declining short-term pattern being intact. A bottom near the $500 would still keep the recovery intact, but the correction low might already be in, and investors could already add to their holdings here. Further resistance zones are ahead between $735 and $780 and near $845, while support is found near $450.

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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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Bitcoin

John McAfee Just Made Some Bold Predictions for Bitcoin, Bitcoin Private

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Technologist and crypto bull John McAfee has made a series of eyebrow-raising predictions concerning bitcoin and bitcoin private. While McAfee is no stranger to gutsy calls, his new forecast sees bitcoin prices doubling in a matter of weeks. And yes, the forecast came after the Wednesday price collapse.

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McAfee Raises the Stakes on Bullish Bets

In a Thursday tweet, McAfee predicted the market will “turn” before June 12, which was the original date of the planned summit between U.S. President Donald Trump and Kim Jong-un of North Korea. McAfee’s algorithm expects a Korea deal to get signed on that day even as Trump signaled on Thursday for the cancellation of the meeting.

According to the post, McAfee expects bitcoin to surpass $15,000 in June before dipping again in July. Bitcoin bottomed below $7,300 on Thursday. It was last seen trading at $7,563.

Bitcoin private, the so-called meta currency that ‘merge-forked’ from bitcoin and Zclassic, is expected to hit $200  by the end of July. At the time of writing, BTCP was trading at $25.61, having gained more than 33% over the past 24 hours.

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BTCP entered circulation in early March as a fork from Zclassic, which itself forked from bitcoin. Bitcoin private is therefore seen as a ‘fork of a fork of a fork.’

McAfee also expects EOS to jump to $32 by the end of July from its current level of $12.48. EOS has skyrocketed to the No. 5 spot on the market cap rankings with a total value of $11 billion.

Institutional Demand

Earlier this week, McAfee heralded the arrival of institutional money to the cryptocurrency market, arguing that it will spark the next leg of the rally.

“Institutional investors are preparing to enter the cryptocurrency market with a vengeance” he tweeted Monday. “They are generally long term investors and will be pumping billions into the market. Expect the top ten coins to go through the roof fairly quickly. The bulk of alt coins will soon follow.”

Digital currency exchange Coinbase has expressed the same opinion and has launched a suite of products to ease institutional money’s transition to crypto.

Crypto analyst Tom Lee has also appealed to institutional demand to justify his bullish outlook on bitcoin in the face of multiple declines. In a recent interview with CNBC, Lee said institutional interest in crypto has only just begun and that demand will continue to grow once regulatory uncertainties are ironed out.

Lee maintains a price target of $25,000 for bitcoin.

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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4.5 stars on average, based on 415 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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