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 Some of these hard forks include SegWit2X (presently rescinded), bitcoin gold (BTG), bitcoin cash (BCH), and many more.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

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.

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?

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?

You must be logged in to post a comment Login

Leave a Reply

Bitcoin

Bitcoin Price Remains Motionless as Bulls, Bears Lack Confidence

Published

on

Bitcoin’s trading range continued to narrow on Tuesday, reflecting a lack of committal from the bulls and bears following the weekend pump-and-dump.

Lack of Direction

The bitcoin price fluctuated within a $60 range on Tuesday, according to data provider CoinMarketCap. At the time of writing, BTC/USD was averaging $3,588.94, where it was virtually unchanged compared to Monday. On individual exchanges, bitcoin fluctuated between $3,563 (HitBTC) and $3,627 (Bitfinex).

Trading volumes in the last 24 hours exceeded $5.1 billion, with derivatives platform BitMEX processing nearly 16% of the transactions. Bitcoin trading activity has witnessed a considerable uptick in South Korea, with BTC/KRW transactions climbing.

At current values, bitcoin has a total market capitalization of $62.8 billion, accounting for 52.5% of the entire crypto universe. The total cryptocurrency market was last valued at $119.7 billion.

Bitcoin experienced large fluctuations over the weekend, rising 4% on Saturday and falling nearly 3% on Sunday. Altcoins and tokens followed closely in its footsteps, a trend that has intensified during the bear market.

Longest Bear Market in History Looms

In less than one month, bitcoin will enter its longest bear market in history. As of Tuesday, the crypto bear market has lasted a whopping 396 days. The longest bear trend ever observed was in 2014-15, when it stretched on for 420 consecutive days.

Longest Bear Market in Crypto History?

The bitcoin price bottomed near $3,100 in December before staging a large rally into the new year. After climbing more than 30% from last month’s low, price action has been largely confined to the $3,500-$3,700 range.

Bitcoin’s posturing in the latter stages of the bear market underlies a significant lack of confidence among traders. This technical tug-of-war has made it difficult to gauge the future trajectory of bitcoin and, by extension, the broader cryptocurrency market. The fundamental issue for many traders is determining whether bitcoin has reached a definitive bottom or whether prices will come barrelling down again. A longer historical track record makes technical analysis more trustworthy than in the past, but in the case of bitcoin, uncertainty around regulation and mainstream adoption make purely technical indicators insufficient in analyzing the market.

To that end, markets are setting their sights on the February deadline for the VanEck SolidX Bitcoin Trust, a highly-touted bitcoin ETF that could hasten crypto adoption among retail investors. Cryptocurrency advocate and CBNC contributor Brian Kelly believes there is virtually no chance that the SEC approves the ETF in question. In his view, a bitcoin ETF is at least a year away. This view is fairly consistent across the board, though many in the financial community believe a bitcoin ETF is only a question of when and not if.

More on the crypto ETF debate: Crypto Markets Get a Boost Heading Into the Weekend as Debate Over Bitcoin ETF Intensifies.

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.

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.
0 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 5 (0 votes, average: 0.00 out of 5)
You need to be a registered member to rate this.
Loading...

4.7 stars on average, based on 743 rated postsSam Bourgi is Chief Editor to Hacked.com, where he leads content development for one of the world's foremost cryptocurrency resources. Over the past eight years Sam has authored more than 10,000 articles and over 40 whitepapers in the fields of labor market economics, emerging technologies, cryptocurrency and traditional finance. Sam's work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Contact: sam@hacked.com Twitter: @hsbourgi




Feedback or Requests?

Continue Reading

Analysis

Crypto Update: Coins Settle Down After Weekend Pump & Dump

Published

on

While crypto bulls had something to cheer about early on during the weekend following a rally attempt in the majors, the move once again failed to improve the technical setup in the segment, and the top coins quickly gave back their gains. Now, most of the coins are trading near the bottom of their short-term ranges and technicals continue to point to the continuation of the bear market.

Correlations are still very high, there is no sign of a developing bullish leadership, and with none of the key coins showing bullish momentum, bulls are facing strong headwinds. While trading volumes and volatility remain relatively low thanks to the range-trading environment a move below primary support could trigger larger moves in the majors soon.

The negative long-term trends are still in no danger, and although there is still a slight chance of a failed break-down pattern to develop in the market, odds favor a bearish short-term outcome as well. With that in mind, traders and investors still shouldn’t enter positions here, with our trend model being on sell signals on both time-frames in the case of the majority of the coins.

BTC/USD, 4-Hour Chart Analysis

Although Bitcoin is still relatively stable compared to its most important peers, it gave back all of its weekend gains and fell back below the key $3600 support/resistance level yesterday. Now, BTC is threatening with a break-down below the prior sing low, and given the recent weakness, our trned model is now on a short-term sell signal.

While bulls could still be saved by a move above $3850, the failed rally attempts warn of selling pressure, and a bearish continuation is more likely here. Further strong resistance is ahead between $4000 and $4050, with support zones still found near $3250 and $3000, and traders should still not enter positions.

ETH/USD, 4-Hour Chart Analysis

Ethereum shoed relative weakness during the rally attempt this weekend, and it is now very close to a break below the key swing low, which would likely lead to a move towards the key support zone between $95 and $100. The coin remains on sell single son both time-frames, and with a test of the bear market low near the $80 price level seems likely in the coming weeks.

Strong resistance is ahead just above the current price level and near $130, with further zones at $145, $160, and near $180 while a weak short-term support is found near $112, and the coin’s weakness is a negative sign for the whole segment.

Altcoins Still Weak Despite Rally Attempt

STR/USD, 4-Hour Chart Analysis

While none of the major altcoins broke the key short-term support levels, the overall picture remains bearish and we haven’t seen signs of resilience that would indicate a short-term bottom and the resumption of the counter-trend move.

Stellar, which has been among the bearish leaders towards the end of 2018, is once again showing relative weakness while following the trends in the broader market, should the coin violate the $0.10 level, a quick to new bear market lows would be likely, with the $0.09 level being the only lone of defense for bulls.

XRP/USDT, 4-Hour Chart Analysis

Ripple still seems very fragile from a technical standpoint, and a move below $0.30 looks inevitable in the coming weeks, with a likely test of the bear market low near $0.28. The $32 support/resistance level remains in focus, but given the weak rally attempts and the bearish long-term setup, we don’t expect the coin to get back to the $0.3550 level in the coming period.

Our trend model is still on sell signals on both time-frames, with further strong support found near the $0.26 level, with resistance ahead near $0.3750, and in the key long-term zone between $0.42 and $0.46.

LTC/USD, 4-Hour Chart Analysis

Litecoin is back near the key $30-$30.50 support zone after the volatile weekend, and it also looks ready to dip below that zone, even as the short-term trading range is still intact. The steep long-term downtrend is intact despite the recent counter-trend move, and traders and investors shouldn’t enter positions here, with the short-term setup also being bearish. Strong resistance is ahead near $34.50, $38, and $44 with further support found near $26 and $23.

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.
2 votes, average: 5.00 out of 52 votes, average: 5.00 out of 52 votes, average: 5.00 out of 52 votes, average: 5.00 out of 52 votes, average: 5.00 out of 5 (2 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 445 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

Bitcoin

Bitcoin Turns Defensive Following Sunday Slide; Binance Euro Platform Sees “Huge” Demand Amid Brexit

Published

on

Bitcoin traded within a narrow range on Monday, after a sharp and sudden reversal during the previous session dragged prices back toward $3,500. The largest digital currency by market capitalization faces renewed headwinds in the wake of yet another failed attempt to break through the $3,700-$3,800 range.

BTC/USD Update

The bitcoin price slipped 0.4% on Monday to $3,581.16, according to aggregate data provided by CoinMarketCap. Bitcoin fell 4% on Sunday in the span of an hour, where it briefly pierced below $3,550. During the previous session, BTC had gained 2.5% as part of a broad market rally that included altcoins and tokens.

The following chart highlights bitcoin’s present value via Bitstamp. Weak momentum via the MACD can be clearly observed.

A sustained drop below $3,550 would spell trouble for bitcoin, as it would mean the loss of a long-term vital support. This would likely lead to an imminent drop to the $3,400 region and, possibly, a re-test of the December low near $3,100. Another possible scenario is a bounce off $3,400, which would keep prices very much rangebound.

Trading in BTC has picked up sharply since the beginning of the year, with daily volumes climbing above $5 billion. Over the last 24 hours, more than $5 billion worth of BTC traded hands on virtual currency exchanges. BitMEX continues to be the largest by overall volume, though its share has declined after it announced the closure of U.S.-based accounts.

Bitcoin’s Price Recovery Stalls as BitMEX Shuts Down U.S. Accounts.

Bitcoin’s market cap is currently valued at $62.6 billion, which represents 52.4% of the overall crypto universe. Its share has steadily increased during the bear market as interest in altcoins and tokens continued to diminish.

Europe and the Future of Crypto

Cryptocurrency exchange Binance has shined the spotlight on the European region after the company announced it would expand its fiat-to-crypto offerings to the region. The leading exchange will service the region through the Island of Jersey, a self-governing entity of the United Kingdom. The Binance Jersey platform will allow traders to buy bitcoin, Ethereum and other cryptocurrencies through traditional fiat channels like the euro and British pound.

Binance CEO Changpeng Zhao, also known as CZ, said the new exchange is “overwhelmed with registrations.” As Forbes recently noted, the strong demand for crypto trading comes at a time of heightened uncertainty regarding Brexit. That uncertainty has not only roiled traditional financial markets, it has cast a dark shadow over London’s role as a traditional banking hub.

Although bitcoin and Brexit aren’t directly linked, cryptocurrency regulation in Europe is likely to crystalize this year. It remains to be seen whether this will serve as an added draw for investors to diversify into digital assets as a store of value should Brexit implode.

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.

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.
0 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 5 (0 votes, average: 0.00 out of 5)
You need to be a registered member to rate this.
Loading...

4.7 stars on average, based on 743 rated postsSam Bourgi is Chief Editor to Hacked.com, where he leads content development for one of the world's foremost cryptocurrency resources. Over the past eight years Sam has authored more than 10,000 articles and over 40 whitepapers in the fields of labor market economics, emerging technologies, cryptocurrency and traditional finance. Sam's work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Contact: sam@hacked.com Twitter: @hsbourgi




Feedback or Requests?

Continue Reading

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