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Threshold Signature Explained— Bringing Exciting Applications with TSS

Threshold Signature Explained— Bringing Exciting Applications with TSS
— A deep dive into threshold signature without mathematics by ARPA’s cryptographer Dr. Alex Su

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Threshold signature is a distributed multi-party signature protocol that includes distributed key generation, signature, and verification algorithms.
In recent years, with the rapid development of blockchain technology, signature algorithms have gained widespread attention in both academic research and real-world applications. Its properties like security, practicability, scalability, and decentralization of signature are pored through.
Due to the fact that blockchain and signature are closely connected, the development of signature algorithms and the introduction of new signature paradigms will directly affect the characteristics and efficiency of blockchain networks.
In addition, institutional and personal account key management requirements stimulated by distributed ledgers have also spawned many wallet applications, and this change has also affected traditional enterprises. No matter in the blockchain or traditional financial institutions, the threshold signature scheme can bring security and privacy improvement in various scenarios. As an emerging technology, threshold signatures are still under academic research and discussions, among which there are unverified security risks and practical problems.
This article will start from the technical rationale and discuss about cryptography and blockchain. Then we will compare multi-party computation and threshold signature before discussing the pros and cons of different paradigms of signature. In the end, there will be a list of use cases of threshold signature. So that, the reader may quickly learn about the threshold signature.
I. Cryptography in Daily Life
Before introducing threshold signatures, let’s get a general understanding of cryptography. How does cryptography protect digital information? How to create an identity in the digital world? At the very beginning, people want secure storage and transmission. After one creates a key, he can use symmetric encryption to store secrets. If two people have the same key, they can achieve secure transmission between them. Like, the king encrypts a command and the general decrypts it with the corresponding key.
But when two people do not have a safe channel to use, how can they create a shared key? So, the key exchange protocol came into being. Analogously, if the king issues an order to all the people in the digital world, how can everyone proves that the sentence originated from the king? As such, the digital signature protocol was invented. Both protocols are based on public key cryptography, or asymmetric cryptographic algorithms.


“Tiger Rune” is a troop deployment tool used by ancient emperor’s, made of bronze or gold tokens in the shape of a tiger, split in half, half of which is given to the general and the other half is saved by the emperor. Only when two tiger amulets are combined and used at the same time, will the amulet holder get the right to dispatch troops.
Symmetric and asymmetric encryption constitute the main components of modern cryptography. They both have three fixed parts: key generation, encryption, and decryption. Here, we focus on digital signature protocols. The key generation process generates a pair of associated keys: the public key and the private key. The public key is open to everyone, and the private key represents the identity and is only revealed to the owner. Whoever owns the private key has the identity represented by the key. The encryption algorithm, or signature algorithm, takes the private key as input and generate a signature on a piece of information. The decryption algorithm, or signature verification algorithm, uses public keys to verify the validity of the signature and the correctness of the information.
II. Signature in the Blockchain
Looking back on blockchain, it uses consensus algorithm to construct distributed books, and signature provides identity information for blockchain. All the transaction information on the blockchain is identified by the signature of the transaction initiator. The blockchain can verify the signature according to specific rules to check the transaction validity, all thanks to the immutability and verifiability of the signature.
For cryptography, the blockchain is more than using signature protocol, or that the consensus algorithm based on Proof-of-Work uses a hash function. Blockchain builds an infrastructure layer of consensus and transaction through. On top of that, the novel cryptographic protocols such as secure multi-party computation, zero-knowledge proof, homomorphic encryption thrives. For example, secure multi-party computation, which is naturally adapted to distributed networks, can build secure data transfer and machine learning platforms on the blockchain. The special nature of zero-knowledge proof provides feasibility for verifiable anonymous transactions. The combination of these cutting-edge cryptographic protocols and blockchain technology will drive the development of the digital world in the next decade, leading to secure data sharing, privacy protection, or more applications now unimaginable.
III. Secure Multi-party Computation and Threshold Signature
After introducing how digital signature protocol affects our lives, and how to help the blockchain build identities and record transactions, we will mention secure multi-party computation (MPC), from where we can see how threshold signatures achieve decentralization. For more about MPC, please refer to our previous posts which detailed the technical background and application scenarios.
MPC, by definition, is a secure computation that several participants jointly execute. Security here means that, in one computation, all participants provide their own private input, and can obtain results from the calculation. It is not possible to get any private information entered by other parties. In 1982, when Prof. Yao proposed the concept of MPC, he gave an example called the “Millionaires Problem” — two millionaires who want to know who is richer than the other without telling the true amount of assets. Specifically, the secure multiparty computation would care about the following properties:
  • Privacy: Any participant cannot obtain any private input of other participants, except for information that can be inferred from the computation results.
  • Correctness and verifiability: The computation should ensure correct execution, and the legitimacy and correctness of this process should be verifiable by participants or third parties.
  • Fairness or robustness: All parties involved in the calculation, if not agreed in advance, should be able to obtain the computation results at the same time or cannot obtain the results.
Supposing we use secure multi-party computation to make a digital signature in a general sense, we will proceed as follows:
  • Key generation phase: all future participants will be involved together to do two things: 1) each involved party generates a secret private key; 2) The public key is calculated according to the sequence of private keys.
  • Signature phase: Participants joining in a certain signature use their own private keys as private inputs, and the information to be signed as a public input to perform a joint signature operation to obtain a signature. In this process, the privacy of secure multi-party computing ensures the security of private keys. The correctness and robustness guarantee the unforgeability of the signature and everyone can all get signatures.
  • Verification phase: Use the public key corresponding to the transaction to verify the signature as traditional algorithm. There is no “secret input” during the verification, this means that the verification can be performed without multi-party computation, which will become an advantage of multi-party computation type distributed signature.
The signature protocol constructed on the idea of ​​secure multiparty computing is the threshold signature. It should be noted that we have omitted some details, because secure multiparty computing is actually a collective name for a type of cryptographic protocol. For different security assumptions and threshold settings, there are different construction methods. Therefore, the threshold signatures of different settings will also have distinctive properties, this article will not explain each setting, but the comparative result with other signature schemes will be introduced in the next section.
IV. Single Signature, Multi-Signature and Threshold Signature
Besides the threshold signature, what other methods can we choose?
Bitcoin at the beginning, uses single signature which allocates each account with one private key. The message signed by this key is considered legitimate. Later, in order to avoid single point of failure, or introduce account management by multiple people, Bitcoin provides a multi-signature function. Multi-signature can be simply understood as each account owner signs successively and post all signatures to the chain. Then signatures are verified in order on the chain. When certain conditions are met, the transaction is legitimate. This method achieves a multiple private keys control purpose.
So, what’s the difference between multi-signature and threshold signature?
Several constraints of multi-signature are:
  1. The access structure is not flexible. If an account’s access structure is given, that is, which private keys can complete a legal signature, this structure cannot be adjusted at a later stage. For example, a participant withdraws, or a new involved party needs to change the access structure. If you must change, you need to complete the initial setup process again, which will change the public key and account address as well.
  2. Less efficiency. The first is that the verification on chain consumes power of all nodes, and therefore requires a processing fee. The verification of multiple signatures is equivalent to multiple single signatures. The second is performance. The verification obviously takes more time.
  3. Requirements of smart contract support and algorithm adaptation that varies from chain to chain. Because multi-sig is not naturally supported. Due to the possible vulnerabilities in smart contracts, this support is considered risky.
  4. No anonymity, this is not able to be trivially called disadvantage or advantage, because anonymity is required for specific conditions. Anonymity here means that multi-signature directly exposes all participating signers of the transaction.
Correspondingly, the threshold signature has the following features:
  1. The access structure is flexible. Through an additional multi-party computation, the existing private key sequence can be expanded to assign private keys to new participants. This process will not expose the old and newly generated private key, nor will it change the public key and account address.
  2. It provides more efficiency. For the chain, the signature generated by the threshold signature is not different from a single signature, which means the following improvements : a) The verification is the same as the single signature, and needs no additional fee; b ) the information of the signer is invisible, because for other nodes, the information is decrypted with the same public key; c) No smart contract on chain is needed to provide additional support.
In addition to the above discussion, there is a distributed signature scheme supported by Shamir secret sharing. Secret sharing algorithm has a long history which is used to slice information storage and perform error correction information. From the underlying algorithm of secure computation to the error correction of the disc. This technology has always played an important role, but the main problem is that when used in a signature protocol, Shamir secret sharing needs to recover the master private key.
As for multiple signatures or threshold signature, the master private key has never been reconstructed, even if it is in memory or cache. this short-term reconstruction is not tolerable for vital accounts.
V. Limitations
Just like other secure multi-party computation protocols, the introduction of other participants makes security model different with traditional point-to-point encrypted transmission. The problem of conspiracy and malicious participants were not taken into account in algorithms before. The behavior of physical entities cannot be restricted, and perpetrators are introduced into participating groups.
Therefore, multi-party cryptographic protocols cannot obtain the security strength as before. Effort is needed to develop threshold signature applications, integrate existing infrastructure, and test the true strength of threshold signature scheme.
VI. Scenarios
1. Key Management
The use of threshold signature in key management system can achieve a more flexible administration, such as ARPA’s enterprise key management API. One can use the access structure to design authorization pattern for users with different priorities. In addition, for the entry of new entities, the threshold signature can quickly refresh the key. This operation can also be performed periodically to level up the difficulty of hacking multiple private keys at the same time. Finally, for the verifier, the threshold signature is not different from the traditional signature, so it is compatible with old equipments and reduces the update cost. ARPA enterprise key management modules already support Elliptic Curve Digital Signature Scheme secp256k1 and ed25519 parameters. In the future, it will be compatible with more parameters.

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2. Crypto Wallet
Wallets based on threshold signature are more secure because the private key doesn’t need to be rebuilt. Also, without all signatures posted publicly, anonymity can be achieved. Compared to the multi-signature, threshold signature needs less transaction fees. Similar to key management applications, the administration of digital asset accounts can also be more flexible. Furthermore, threshold signature wallet can support various blockchains that do not natively support multi-signature, which reduces the risk of smart contracts bugs.

Conclusion

This article describes why people need the threshold signature, and what inspiring properties it may bring. One can see that threshold signature has higher security, more flexible control, more efficient verification process. In fact, different signature technologies have different application scenarios, such as aggregate signatures not mentioned in the article, and BLS-based multi-signature. At the same time, readers are also welcomed to read more about secure multi-party computation. Secure computation is the holy grail of cryptographic protocols. It can accomplish much more than the application of threshold signatures. In the near future, secure computation will solve more specific application questions in the digital world.

About Author

Dr. Alex Su works for ARPA as the cryptography researcher. He got his Bachelor’s degree in Electronic Engineering and Ph.D. in Cryptography from Tsinghua University. Dr. Su’s research interests include multi-party computation and post-quantum cryptography implementation and acceleration.

About ARPA

ARPA is committed to providing secure data transfer solutions based on cryptographic operations for businesses and individuals.
The ARPA secure multi-party computing network can be used as a protocol layer to implement privacy computing capabilities for public chains, and it enables developers to build efficient, secure, and data-protected business applications on private smart contracts. Enterprise and personal data can, therefore, be analyzed securely on the ARPA computing network without fear of exposing the data to any third party.
ARPA’s multi-party computing technology supports secure data markets, precision marketing, credit score calculations, and even the safe realization of personal data.
ARPA’s core team is international, with PhDs in cryptography from Tsinghua University, experienced systems engineers from Google, Uber, Amazon, Huawei and Mitsubishi, blockchain experts from the University of Tokyo, AIG, and the World Bank. We also have hired data scientists from CircleUp, as well as financial and data professionals from Fosun and Fidelity Investments.
For more information about ARPA, or to join our team, please contact us at [email protected].
Learn about ARPA’s recent official news:
Telegram (English): https://t.me/arpa_community
Telegram (Việt Nam): https://t.me/ARPAVietnam
Telegram (Russian): https://t.me/arpa_community_ru
Telegram (Indonesian): https://t.me/Arpa_Indonesia
Telegram (Thai): https://t.me/Arpa_Thai
Telegram (Philippines):https://t.me/ARPA_Philippines
Telegram (Turkish): https://t.me/Arpa_Turkey
Korean Chats: https://open.kakao.com/o/giExbhmb (Kakao) & https://t.me/arpakoreanofficial (Telegram, new)
Medium: https://medium.com/@arpa
Twitter: u/arpaofficial
Reddit: https://www.reddit.com/arpachain/
Facebook: https://www.facebook.com/ARPA-317434982266680/54
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Electricity : Fan Theory

First off I'll start off by saying I truly believe this show to be a case of "the plot doesn't matter", it serves rather, as an engine that fuels exploration into bigger picture stuff -- commentary on capitalism, a mirror to examine our own emotion as shown through character's reactions to events. So if I'm way off base here it doesn't matter and if i'm spot on it doesn't matter.
Nonetheless, I'm going to attempt and present what may serve as a means of "understanding" the why of the season finale.
The cosmic error we were informed of this season, twins, is also seen in computers, these technically are called soft errors, but they are sometimes caused by cosmic rays. Essentially, cosmic rays have a statistically significant chance to change a piece of data stored in memory. This change in data has the power to change the way a system runs if not checked and corrected but does not imply it has affected it or will whether or not it is caught or if that data can not be recovered.
Twins present a "cosmic error" because where one sperm enters, two babies leave. The race condition of millions of sperm trying to fertilize an egg is solved by simply allowing only one sperm to do so (most of the time, maybe it happens, idk). But that doesn't stop a random split from happening that can potentially put the mom's life at greater risk of failing to give birth by doubling the load.
Concurrency in computer programming is where two processes are able to run simultaneously. A race condition is made when those two processes enter a critical part of their execution at the same time, that is to say try to access the same piece of data from memory at the same time. Put simply, if you and friend each opened a cupboard, checked how many apples were stored, add a number of apples, each exclusively, and mark down how many should now be in the cupboard you both should know how many are in the cupboard right? Nope. If there's one in the cupboard and you add two, you've marked down that there are 3 apples in the cupboard. However, your friend has decided to put one and did it before you put yours back. Now you and your friend both don't know how many apples are in the cupboard, as he thinks there are two when both of you are wrong -- there's four. So the next time you both go back to check your data is completely unreliable and subsequent calculations will compound how incorrect you are. Even if you both end up with the correct number at the end, it's a fluke and more still missing the error. This only makes sense if you take a literal blind approach in which is you only can see what was stored once when opening it and cannot double check what was written down, you have to trust what was stored after opening as it should match what's written down. The answer in programming can't always be store it twice in memory (here memory means random access, not disk stored).
One way of solving this is through the implementation of mutual exclusion, also called a mutex. The simplest example of a mutex, both actually and in our example is putting a lock on the cupboard with a single key you must use to unlock when checking, lock while adding apples, and then give up so your friend might access the cupboard. This ensures that you both have the right data each time you check. I'm skipping over some stuff because the piece that's important is that only one can be inside at any given time.
Semaphores are another way of achieving this, but instead of using a key a system of counting is put into place. this is done by knowing how many of a given resource are available at any given time and recording it. Currency, often believed to be rooted in a gold standard, uses this system to account for inflation or whatever. Funny enough bitcoin actually IS founded on a gold standard. One that so far can not be manipulated. Alchemy presents a logical problem for this, since gold cannot be created through chemistry and thus there is a finite amount of it. Same way there is a finite amount of bitcoin that will ever enter circulation.
Today, gold is still thought of as valuable. It's brought up early on in the series by Dud that the more gold that exists the less special it is, and thus would lose its value. One of the most historically valuable properties of gold is its malleability, and prettyness which allowed for more ornate objects of beauty to be crafted without the need for advanced smelting and casting. Today that is of much less concern.
Silver, on the other hand, in today's modern age, has the advantage of being the most electrically conductive metal we know about. Second comes copper and in third is gold. Guess which one we use most often in circuitry and in wiring buildings. Conductivity is literally based on the Silver standard.
While in many ways Dud may be seen as inferior to Liz, intelligence wise, money wise -- double down on a bad interest loan by paying it off with a worse interest loan vs. paying it off slowly and painfully, etc. He is often seen to be coming out ahead in terms of sheer happiness and fortitude where Liz cannot. If one sperm in a race produced two non identical babies, neither inherently came in first from the get go. As I said above, neither metal, gold or silver, wins in terms of actual utility in the conductivity battle. However, Dud enters the lodge first, and gets struck by lightning.
Given the information we are given in the first season we are not made privy to a lot of things that become important. Primarily, that the scrolls might be the solution to cracking bitcoin and thus disrupting its backed worth based on the gold standard. So, here, the "cosmic error" of twins and the challenge it presents in this concurrent system is brought into the main stage. Liz and Dud are both on a quest but neither really knows what or why. Both survive extreme conditions they are put in both voluntarily and involuntarily respectively.
This all changes when Liz enters the Lodge. Up until this point Liz has not entered the lodge out of her own "choice", free will arguments here be damned. She doesn't go in because she doesn't care. It takes Dud not answering her texts for her to enter and when she does so the Lodge corrects for it.
If detected, a soft error may be totally recovered from, but if the system has crashed, the computer needs to be "rebooted" before any data correction can occur. If they were both in the Lodge at the same time due to a cosmic error which, in terms of my example above, changes the number of apples in the cupboard while it's locked or changes the total number of apples available. If they weren't physically in the Lodge at the same time holds no bearing, it's that they were a part of the lodge. As long as Liz is accessing the Lodge Dud cannot. While humans allegedly built the Lodge, it is impossibly complex to the point where it has literal doors it can throw you backwards out of, possibly as a way of rebirth and possibly as a way of creating a "plant". Liz just as easily could have not been kept on her feet had her friends not been there the same way Duds was from his near death experiences, however they were there.
For a door that opens out, and that no one knows how to access, it sure as shit is not protected from the obvious safety-precaution; securing it from being opened from the outside. Maybe it has been attempted but it just always fell down. But when the light next to the door is being repaired for safety reasons it's not like anyone says hey if we don't know where this door leads and idk, maybe we have some voluntarily blind girl living and running around fixing her seizure problems like, let's maybe just take care of fix this other hazard.
Brute force is used to open doors all over the place in the show, even as far as being used as a "lockpick" (axe), but is never used to unlock THAT door, at least successfully or on screen. Maybe it can't be bruteforced the same way brute force can't be used to cheat bitcoin (it can't, at least today). Quantum computing poses a very real threat to this, and actually every "lock" we think is secure. Like, won't get into it too much and it's not this simple but imagine just asking the computer what your neighbors wifi password is and it just gives you the answer without having to try an approaching infinite number of possible solutions. A very real threat to bitcoin and as a matter of fact all modern encryption, however to scare you less if we're smart enough to pull it off we're at least smart enough to solve the problem before we get there (i've been assured by our friends at google that their contingency plans can't fail, they also told me the titanic never sank)

This at least approaches an explanation to the apparent deus ex machina that is Dud's death. The Lodge is not a joke, and has real control of things. While running it exposes powerful implications into the lives of its members and those around them. I think it's clear here that the duty of the knights of the lodge, to protect it, has greater meaning than we know.

To this same affect, we see another parallel for modern networked computing to work reliably -- redundancy. One man cannot keep the Lodge alive himself, nor can dwindling numbers of protectors. So make more of them, and why not spread them out so if an entire area is affected by say 10 hurricanes at once, it doesn't take down the whole lodge and working knowledge of things. Redundancy in computing means basically the same thing, keep servers in more than one place and have the data they serve backed up and available in more than one place. This also mitigates the probability of data loss, though not entirely. As the lodge in London had no idea the scrolls were removed and the xeroxes made may have gone the way of Orbis, and potentially only one copy of until they were recovered in Mexico.

So far, my only intention has been to make parallels that may have not been made so excuse me while I hurl myself over the side of the boat and bring this to my conclusion on what to make of all this. Skip ahead 2 paragraphs to ignore it.
Simulation Theory. As the always headstrong u/L_Marvin_Metz says so poignantly says "the earth is hollow". While, maybe meant to be taken at face value, it probably isn't. But figuratively speaking, definitely. So many of life's pursuits are hollow and we often see characters in the show being punished for these impure pursuits. What else could allow for impossible tunnels, resurrection, portals and magic? A lot of things but nonetheless, Simulation theory would also give a lot for credence to all the talk about "getting out", a reason why Liz and Dud can't be in the Lodge at the same time beyond some deus ex machina. Liz needs a reason to figure out the system and for her it's finding her brother. Whether or not she can (probably can't, if he is rebooted/born again why would that be up to us). Or that's what I'm going to postulate for season 3.
Either way the scrolls are there because of reasons no one intended, and all that talk about destiny and painting the future but not getting to actually make it up begin to make sense. The lodge will fulfill its purpose because it already has. The absurdity of simulation theory requires the possibility of multiple layers of simulation, as above and so too is below, also begins to make sense in this context. This could literally go anywhere so I'm gonna stop at this point. Dud is dead, for now in a sense. However, that's if him crashing out of that door covered in dirt wasn't just him falling out in the same sequence we observer it.
There may have been for a way less complex reason than I am making - that being actor availability and the inability to pay the highly in-demand Wyatt Russell both for opportunity cost on a show with a future unknown and for his actual need to have a minimum price that the show may not be able to pay.
However limited his role is has yet to be seen, and hopefully for the sake of everything will be seen next year, but we saw him get an emmy nomination in the finale -- at least I truly believe that (specifically when he denied the knighthood). But it could be from any episode this season probably. If he takes home the gold who knows what that extra prestige will do to any budgetary restraints on AMC's wallet in the future. Clearly he likes being in this show, so I see know reason why he wouldn't return as a lead if i'm at all correct about any of this.
Point of this being that we have no idea if any of this is intentional, if it was written in due to the unknown future of the show even after being renewed last year, always the plan, or not even touching on the plan. That's why deus ex machina can be both brilliant and convenient (Adaptation). If you execute it well, we, as an audience, can't say for certain how it entered the arena. I mean, specifically as a season finale. Plenty of other examples of it in the show, obviously. almost like it's part of a greater theme?
submitted by solarus to Lodge49 [link] [comments]

Information and FAQ

Welcome to the official IOTA subreddit.
If you are new you can find lots of information here, in the sidebar and please use the search button to see if your questions have been asked before. Please focus discussion on IOTA technology, ecosystem announcements, project development, apps, etc. Please direct help questions to /IOTASupport, and price discussions and market talk to /IOTAmarkets.
Before getting started it is recommended to read the IOTA_Whitepaper.pdf. I also suggest watching these videos first to gain a better understanding.
IOTA BREAKDOWN: The Tangle Vs. Blockchain Explained
IOTA tutorial 1: What is IOTA and some terminology explained

Information

Firstly, what is IOTA?

IOTA is an open-source distributed ledger protocol launched in 2015 that goes 'beyond blockchain' through its core invention of the blockless ‘Tangle’. The IOTA Tangle is a quantum-resistant Directed Acyclic Graph (DAG), whose digital currency 'iota' has a fixed money supply with zero inflationary cost.
IOTA uniquely offers zero-fee transactions & no fixed limit on how many transactions can be confirmed per second. Scaling limitations have been removed, since throughput grows in conjunction with activity; the more activity, the more transactions can be processed & the faster the network. Further, unlike blockchain architecture, IOTA has no separation between users and validators (miners / stakers); rather, validation is an intrinsic property of using the ledger, thus avoiding centralization.
IOTA is focused on being useful for the emerging machine-to-machine (m2m) economy of the Internet-of-Things (IoT), data integrity, micro-/nano- payments, and other applications where a scalable decentralized system is warranted.
More information can be found here.

Seeds

A seed is a unique identifier that can be described as a combined username and password that grants you access to your IOTA.
Your seed is used to generate the addresses and private keys you will use to store and send IOTA, so this should be kept private and not shared with anyone. If anyone obtains your seed, they can generate the private keys associated with your addresses and access your IOTA.

Non reusable addresses

Contrary to traditional blockchain based systems such as Bitcoin, where your wallet addresses can be reused, IOTA's addresses should only be used once (for outgoing transfers). That means there is no limit to the number of transactions an address can receive, but as soon as you've used funds from that address to make a transaction, this address should not be used anymore.
Why?
When an address is used to make an outgoing transaction, a random 50% of the private key of that particular address is revealed in the transaction signature, which effectively reduces the security of the key. A typical IOTA private key of 81-trits has 2781 possible combinations ( 8.7 x 10115 ) but after a single use, this number drops to around 2754 ( 2 x 1077 ), which coincidentally is close to the number of combinations of a 256-bit Bitcoin private key. Hence, after a single use an IOTA private key has about the same level of security as that of Bitcoin and is basically impractical to brute-force using modern technology. However, after a second use, another random 50% of the private key is revealed and the number of combinations that an attacker has to guess decreases very sharply to approximately 1.554 (~3 billion) which makes brute-forcing trivial even with an average computer.
Note: your seed is never revealed at at time; only private keys specific to each address.
The current light wallet prevents address reuse automatically for you by doing 2 things:
  1. Whenever you make an outgoing transaction from an address that does not consume its entire balance (e.g. address holds 10 Mi but you send only 5 Mi), the wallet automatically creates a new address and sends the change (5 Mi) to the new address.
  2. The wallet prevents you from performing a second outgoing transaction using the same address (it will display a “Private key reuse detected!” error).
This piggy bank diagram can help visualize non reusable addresses. imgur link
[Insert new Safe analogy].

Address Index

When a new address is generated it is calculated from the combination of a seed + Address Index, where the Address Index can be any positive Integer (including "0"). The wallet usually starts from Address Index 0, but it will skip any Address Index where it sees that the corresponding address has already been attached to the tangle.

Private Keys

Private keys are derived from a seeds key index. From that private key you then generate an address. The key index starting at 0, can be incremented to get a new private key, and thus address.
It is important to keep in mind that all security-sensitive functions are implemented client side. What this means is that you can generate private keys and addresses securely in the browser, or on an offline computer. All libraries provide this functionality.
IOTA uses winternitz one-time signatures, as such you should ensure that you know which private key (and which address) has already been used in order to not reuse it. Subsequently reusing private keys can lead to the loss of funds (an attacker is able to forge the signature after continuous reuse).
Exchanges are advised to store seeds, not private keys.

FAQ

Buying IOTA

How do I to buy IOTA?

Currently not all exchanges support IOTA and those that do may not support the option to buy with fiat currencies.
Visit this website for a Guide: How to buy IOTA
or Click Here for a detailed guide made by 450LbsGorilla

Cheapest way to buy IOTA?

You can track the current cheapest way to buy IOTA at IOTA Prices.
It tells you where & how to get the most IOTA for your money right now. There's an overview of the exchanges available to you and a buying guide to help you along.
IOTAPrices.com monitors all major fiat exchanges for their BTC & ETH rates and combines them with current IOTA rates from IOTA exchanges for easy comparison. Rates are taken directly from each exchange's official websocket. For fiat exchanges or exchanges that don't offer websockets, rates are refreshed every 60 seconds.

What is MIOTA?

MIOTA is a unit of IOTA, 1 Mega IOTA or 1 Mi. It is equivalent to 1,000,000 IOTA and is the unit which is currently exchanged.
We can use the metric prefixes when describing IOTA e.g 2,500,000,000 i is equivalent to 2.5 Gi.
Note: some exchanges will display IOTA when they mean MIOTA.

Can I mine IOTA?

No you can not mine IOTA, all the supply of IOTA exist now and no more can be made.
If you want to send IOTA, your 'fee' is you have to verify 2 other transactions, thereby acting like a minenode.

Storing IOTA

Where should I store IOTA?

It is not recommended to store large amounts of IOTA on the exchange as you will not have access to the private keys of the addresses generated.

Wallets

GUI Desktop (Full Node + Light Node)
Version = 2.5.6
Download: GUI v2.5.6
Guide: Download/Login Guide
Nodes: Status
Headless IRI (Full Node)
Version = 1.4.1.4
Download: Mainnet v1.4.1.4
Guide:
Find Neighbours: /nodesharing
UCL Desktop/Android/iOS (Light Node)
Version = Private Alpha Testing
Website: iota-ucl (Medium)
Android (Light Node)
Version = Beta
Download: Google Play
iOS (Light Node)
Version = Beta Testing
Website: https://iota.tools/wallet
Paper Wallet
Version = v1.3.6
Repo: GitHub
Seed Vault
Version = v1.0.2
Repo: GitHub7

What is a seed?

A seed is a unique identifier that can be described as a combined username and password that grants you access to your wallet.
Your seed is used to generate the addresses linked to your account and so this should be kept private and not shared with anyone. If anyone obtains your seed, they can login and access your IOTA.

How do I generate a seed?

You must generate a random 81 character seed using only A-Z and the number 9.
It is recommended to use offline methods to generate a seed, and not recommended to use any non community verified techniques. To generate a seed you could:

On a Linux Terminal

use the following command:
 cat /dev/urandom |tr -dc A-Z9|head -c${1:-81} 

On a Mac Terminal

use the following command:
 cat /dev/urandom |LC_ALL=C tr -dc 'A-Z9' | fold -w 81 | head -n 1 

With KeePass on PC

A helpful guide for generating a secure seed on KeePass can be found here.

With a dice

Dice roll template

Is my seed secure?

  1. All seeds should be 81 characters in random order composed of A-Z and 9.
  2. Do not give your seed to anyone, and don’t keep it saved in a plain text document.
  3. Don’t input your seed into any websites that you don’t trust.
Is Someone Going To Guess My IOTA Seed?
What are the odds of someone guessing your seed?
  • IOTA seed = 81 characters long, and you can use A-Z, 9
  • Giving 2781 = 8.7x10115 possible combinations for IOTA seeds
  • Now let's say you have a "super computer" letting you generate and read every address associated with 1 trillion different seeds per second.
  • 8.7x10115 seeds / 1x1012 generated per second = 8.7x10103 seconds = 2.8x1096 years to process all IOTA seeds.

Why does balance appear to be 0 after a snapshot?

When a snapshot happens, all transactions are being deleted from the Tangle, leaving only the record of how many IOTA are owned by each address. However, the next time the wallet scans the Tangle to look for used addresses, the transactions will be gone because of the snapshot and the wallet will not know anymore that an address belongs to it. This is the reason for the need to regenerate addresses, so that the wallet can check the balance of each address. The more transactions were made before a snapshot, the further away the balance moves from address index 0 and the more addresses have to be (re-) generated after the snapshot.

What happens if you reuse an address?

It is important to understand that only outgoing transactions reveal the private key and incoming transactions do not. If you somehow manage to receive iotas using an address after having used it previously to send iotas—let's say your friend sends iotas to an old address of yours—these iotas may be at risk.
Recall that after a single use an iota address still has the equivalent of 256-bit security (like Bitcoin) so technically, the iotas will still be safe if you do not try to send them out. However, you would want to move these iotas out eventually and the moment you try to send them out, your private key will be revealed a second time and it now becomes feasible for an attacker to brute-force the private key. If someone is monitoring your address and spots a second use, they can easily crack the key and then use it to make a second transaction that will compete with yours. It then becomes a race to see whose transaction gets confirmed first.
Note: The current wallet prevents you from reusing an address to make a second transaction so any iotas you receive with a 'used' address will be stuck. This is a feature of wallet and has nothing to do with the fundamental workings of IOTA.

Sending IOTA

What does attach to the tangle mean?

The process of making an transaction can be divided into two main steps:
  1. The local signing of a transaction, for which your seed is required.
  2. Taking the prepared transaction data, choosing two transactions from the tangle and doing the POW. This step is also called “attaching”.
The following analogy makes it easier to understand:
Step one is like writing a letter. You take a piece of paper, write some information on it, sign it at the bottom with your signature to authenticate that it was indeed you who wrote it, put it in an envelope and then write the recipient's address on it.
Step two: In order to attach our “letter” (transaction), we go to the tangle, pick randomly two of the newest “letters” and tie a connection between our “letter” and each of the “letters” we choose to reference.
The “Attach address” function in the wallet is actually doing nothing else than making an 0 value transaction to the address that is being attached.

Why is my transaction pending?

IOTA's current Tangle implementation (IOTA is in constant development, so this may change in the future) has a confirmation rate that is ~66% at first attempt.
So, if a transaction does not confirm within 1 hour, it is necessary to "reattach" (also known as "replay") the transaction one time. Doing so one time increases probability of confirmation from ~66% to ~89%.
Repeating the process a second time increases the probability from ~89% to ~99.9%.

How do I reattach a transaction.

Reattaching a transaction is different depending on where you send your transaction from. To reattach using the GUI Desktop wallet follow these steps:
  1. Click 'History'.
  2. Click 'Show Bundle' on the 'pending' transaction.
  3. Click 'Reattach'.
  4. Click 'Rebroadcast'. (optional, usually not required)
  5. Wait 1 Hour.
  6. If still 'pending', repeat steps 1-5 once more.

Does the private key get revealed each time you reattach a transaction?

When you use the reattach function in the desktop wallet, a new transaction will be created but it will have the same signature as the original transaction and hence, your private key will not revealed a second time.

What happens to pending transactions after a snapshot?

IOTA Network and Nodes

What incentives are there for running a full node?

IOTA is made for m2m economy, once wide spread adoption by businesses and the IOT, there will be a lot of investment by these businesses to support the IOTA network. In the meantime if you would like to help the network and speed up p2p transactions at your own cost, you can support the IOTA network by setting up a Full Node.
Running a full node also means you don't have to trust a 3rd party light node provider. By running a full node you get to take advantage of new features that might not be installed on 3rd party nodes.

How to set up a full node?

To set up a full node you will need to follow these steps:
  1. Download the full node software: either GUI, or headless CLI for lower system requirements and better performance.
  2. Get a static IP for your node.
  3. Join the network by adding 7-9 neighbours.
  4. Keep your full node up and running as much as possible.
A detailed user guide on how to set up a VTS IOTA Full Node from scratch can be found here.

How do I get a static IP?

To learn how to setup a hostname (~static IP) so you can use the newest IOTA versions that have no automated peer discovery please follow this guide.

How do I find a neighbour?

Are you a single IOTA full node looking for a partner? You can look for partners in these place:

Resources

You can find a wiki I have been making here.
More to come...
If you have any contributions or spot a mistake or clarification, please PM me or leave a comment.
submitted by Boltzmanns_Constant to Iota [link] [comments]

What Is Quantum Supremacy, and Why Is It Such a Computing Milestone?

Google researchers claim to have achieved a major milestone in computer science known as “quantum supremacy.”
Google scientists explain their breakthrough in a research paper, a copy of which was obtained by Fortune, that was briefly posted to a NASA website earlier this week before subsequently being taken down.
NASA has been working with Google on one aspect of their quantum computing research. News of the paper’s existence was first reported by _The Financial Times_on Friday.
Google has declined to comment on the report. If the technology company has indeed achieved the milestone, it is a significant step towards the day when quantum computers, which use the powerful properties of quantum physics to perform their calculations, will be able to solve a vast array complex problems that lie beyond the abilities of today’s most advanced supercomputers.
Among the most anticipated uses of quantum computers is the ability to create new chemicals, like catalysts for producing nitrogen-based fertilizers or for use in cells in higher-powered batteries. Quantum computing could also be used to crack most commonly used forms of digital encryption. It may one day also be used to streamline logistics and delivery operations, as well as speeding up machine learning applications.
But “quantum supremacy” does not mean quantum computers have yet arrived in the sense that they will soon replace the conventional computers that power our lives.

What is quantum supremacy?

Quantum supremacy means only that researchers have been able to use a quantum computer to perform a single calculation that no conventional computer, even the biggest supercomputer, can perform in a reasonable amount of time.
In the case of Google, this calculation involved checking whether the output of an algorithm for generating random numbers was truly random.
The researchers were able to use a quantum computer to perform this complex mathematical calculation in three minutes and 20 seconds, according to the paper. They say it would have taken Summit 3—an IBM-built machine that is the world’s most powerful commercially-available conventional computer—about 10,000 years to perform the same task.

How do quantum computers work?

Quantum computers work by harnessing the properties of quantum mechanics. Classical computers process information in a binary format, called bits, which can represent either a 0 or 1. Quantum computers, in contrast, use logical units called quantum bits, or qubits for short, that can be put into a quantum state where they can simultaneously represent both 0 and 1.
What’s more, while the bits in a classical computer all operate independently from one another, in a quantum computer, the status of one qubit effects the status of all the other qubits in the system, so they can all work together to achieve a solution.
These two properties are what give quantum computers so much more potential power than conventional computers.
But while a conventional computer outputs the same answer to a problem every time you run a calculation, the outputs of a quantum computer are probabilistic. That means it does not always produce the same answer. So to use a quantum computer, you have to run a calculation through the system thousands or even millions of times, and the array of outputs converge around the answer that is most likely to be correct.
In the case of Google’s research, the company used a new quantum processor, which it named Sycamore, that has 54 qubits (although one did not function properly, the researchers said, so only 53 were actually used in the experiment) which sampled the random number generating circuit it was testing some 1 million times.

What’s so special about Sycamore?

Sycamore is not the world’s largest quantum processor. Google itself had produced a 72 qubit system last year. And Rigetti, a California startup working on quantum computers, has said it plans to have a 128 qubit system ready soon. But Google’s researchers said they made major advances in how long its qubits can remain in a quantum state and how each qubit interacts with the other qubits next to it.
That’s important because when qubits fall out of a quantum state, they introduce errors into the calculations the quantum computer is performing. Those errors then have to be corrected by using additional qubits. These error rates are the reason that your laptop can beat today’s quantum computers in getting a correct answer to most mathematical problems.

Does quantum supremacy make quantum computers better than conventional computers?

No. Google’s achievement only means its quantum computer could outperform a classical supercomputer on this one complex calculation.
The Google researchers say in their paper that their quantum computer may also have uses in optimization problems, machine learning as well as materials science and chemistry.
But it is unclear how much of an advantage or increase in speed Google’s new quantum computing hardware, which it used to achieve quantum supremacy, will have in these other applications.
And Google’s machine is not yet powerful enough to tackle other difficult mathematical problems, such as breaking current encryption systems, a task which involves factoring very large prime numbers, according to the research paper.
For many business applications, in fact, today’s quantum computers are no match for the power and accuracy of today’s conventional laptops.

Could hackers armed with quantum computers steal my bitcoin?

For the moment, the public-private key encryption techniques on which bitcoin and other cryptocurrencies are based cannot be broken by a quantum computer. But Google’s researchers, in their paper, predict that quantum computing power will continue to advance at a “double exponential rate,” so those bitcoins may not be safe for all that much longer.
The fear of quantum computers being capable of breaking most common encryption techniques has lead the U.S. National Security Agency to call for the adoption of new techniques that use different kinds of math that are not susceptible to attack from a quantum computer. Although the U.S. has not yet settled on which class of new algorithms should be used, a number of startups are currently helping financial firms and governments prepare their systems to use such “post-quantum” encryption methods.

When can I have a quantum computer on my desk?

Not any time soon.
While almost any material that can be put into a quantum state can be used to form a qubit, the most advanced quantum systems today tend to use tiny bits of superconducting materials, often bonded together using fairly exotic materials. The qubits in Google’s Sycamore processor used aluminum loops bonded with indium, an element that is about as rare as silver.
To put those materials into a quantum state, and to safeguard the qubits from interference from outside energy sources, the quantum processors have to be carefully suspended in large dilution freezers at temperatures colder than those found in deep space.
Ultimately, the companies racing to commercialize quantum computers— which besides Google and Rigetti, include IBM, Microsoft, Intel, D-Wave and a host of others—plan to offer customers the ability to run calculations on a quantum computer through the cloud. So it’s more likely that one will never grace your desk, at all.

More must-read stories from Fortune:

—The cheapest mobile plans for your iPhone 11—The second episode of the Bill Gates Netflix documentary is the one to watch
‘Security’ cameras are dry powder for hackers. Here’s why
—You can now pay cash when shopping on Amazon. Here’s how
‘Call of Duty: Mobile’ launching Oct. 1__Catch up withData Sheet, Fortune’s daily digest on the business of tech.
* More Details Here
submitted by acerod1 to Business_Analyst [link] [comments]

I'm writing a series about blockchain tech and possible future security risks. This is the third part of the series introducing Quantum resistant blockchains.

Part 1 and part 2 will give you usefull basic blockchain knowledge that is not explained in this part.
Part 1 here
Part 2 here
Quantum resistant blockchains explained.
- How would quantum computers pose a threat to blockchain?
- Expectations in the field of quantum computer development.
- Quantum resistant blockchains
- Why is it easier to change cryptography for centralized systems such as banks and websites than for blockchain?
- Conclusion
The fact that whatever is registered on a blockchain can’t be tampered with is one of the great reasons for the success of blockchain. Looking ahead, awareness is growing in the blockchain ecosystem that quantum computers might cause the need for some changes in the cryptography that is used by blockchains to prevent hackers from forging transactions.
How would quantum computers pose a threat to blockchain?
First, let’s get a misconception out of the way. When talking about the risk quantum computers could pose for blockchain, some people think about the risk of quantum computers out-hashing classical computers. This, however, is not expected to pose a real threat when the time comes.
This paper explains why: https://arxiv.org/pdf/1710.10377.pdf "In this section, we investigate the advantage a quantum computer would have in performing the hashcash PoW used by Bitcoin. Our findings can be summarized as follows: Using Grover search, a quantum computer can perform the hashcash PoW by performing quadratically fewer hashes than is needed by a classical computer. However, the extreme speed of current specialized ASIC hardware for performing the hashcash PoW, coupled with much slower projected gate speeds for current quantum architectures, essentially negates this quadratic speedup, at the current difficulty level, giving quantum computers no advantage. Future improvements to quantum technology allowing gate speeds up to 100GHz could allow quantum computers to solve the PoW about 100 times faster than current technology.
However, such a development is unlikely in the next decade, at which point classical hardware may be much faster, and quantum technology might be so widespread that no single quantum enabled agent could dominate the PoW problem."
The real point of vulnerability is this: attacks on signatures wherein the private key is derived from the public key. That means that if someone has your public key, they can also calculate your private key, which is unthinkable using even today’s most powerful classical computers. So in the days of quantum computers, the public-private keypair will be the weak link. Quantum computers have the potential to perform specific kinds of calculations significantly faster than any normal computer. Besides that, quantum computers can run algorithms that take fewer steps to get to an outcome, taking advantage of quantum phenomena like quantum entanglement and quantum superposition. So quantum computers can run these certain algorithms that could be used to make calculations that can crack cryptography used today. https://en.wikipedia.org/wiki/Elliptic-curve_cryptography#Quantum_computing_attacks and https://eprint.iacr.org/2017/598.pdf
Most blockchains use Elliptic Curve Digital Signature Algorithm (ECDSA) cryptography. Using a quantum computer, Shor's algorithm can be used to break ECDSA. (See for reference: https://arxiv.org/abs/quant-ph/0301141 and pdf: https://arxiv.org/pdf/quant-ph/0301141.pdf ) Meaning: they can derive the private key from the public key. So if they got your public key (and a quantum computer), then they got your private key and they can create a transaction and empty your wallet.
RSA has the same vulnerability while RSA will need a stronger quantum computer to be broken than ECDSA.
At this point in time, it is already possible to run Shor’s algorithm on a quantum computer. However, the amount of qubits available right now makes its application limited. But it has been proven to work, we have exited the era of pure theory and entered the era of practical applications:
So far Shor's algorithm has the most potential, but new algorithms might appear which are more efficient. Algorithms are another area of development that makes progress and pushes quantum computer progress forward. A new algorithm called Variational Quantum Factoring is being developed and it looks quite promising. " The advantage of this new approach is that it is much less sensitive to error, does not require massive error correction, and consumes far fewer resources than would be needed with Shor’s algorithm. As such, it may be more amenable for use with the current NISQ (Noisy Intermediate Scale Quantum) computers that will be available in the near and medium term." https://quantumcomputingreport.com/news/zapata-develops-potential-alternative-to-shors-factoring-algorithm-for-nisq-quantum-computers/
It is however still in development, and only works for 18 binary bits at the time of this writing, but it shows new developments that could mean that, rather than a speedup in quantum computing development posing the most imminent threat to RSA and ECDSA, a speedup in the mathematical developments could be even more consequential. More info on VQF here: https://arxiv.org/abs/1808.08927
It all comes down to this: when your public key is visible, which is always necessary to make transactions, you are at some point in the future vulnerable for quantum attacks. (This also goes for BTC, which uses the hash of the public key as an address, but more on that in the following articles.) If you would have keypairs based on post quantum cryptography, you would not have to worry about that since in that case not even a quantum computer could derive your private key from your public key.
The conclusion is that future blockchains should be quantum resistant, using post-quantum cryptography. It’s very important to realize that post quantum cryptography is not just adding some extra characters to standard signature schemes. It’s the mathematical concept that makes it quantum resistant. to become quantm resistant, the algorithm needs to be changed. “The problem with currently popular algorithms is that their security relies on one of three hard mathematical problems: the integer factorization problem, the discrete logarithm problem or the elliptic-curve discrete logarithm problem. All of these problems can be easily solved on a sufficiently powerful quantum computer running Shor's algorithm. Even though current, publicly known, experimental quantum computers lack processing power to break any real cryptographic algorithm, many cryptographers are designing new algorithms to prepare for a time when quantum computing becomes a threat.” https://en.wikipedia.org/wiki/Post-quantum_cryptography
Expectations in the field of quantum computer development.
To give you an idea what the expectations of quantum computer development are in the field (Take note of the fact that the type and error rate of the qubits is not specified in the article. It is not said these will be enough to break ECDSA or RSA, neither is it said these will not be enough. What these articles do show, is that a huge speed up in development is expected.):
When will ECDSA be at risk? Estimates are only estimates, there are several to be found so it's hard to really tell.
The National Academy of Sciences (NAS) has made a very thourough report on the development of quantum computing. The report came out in the end of 2018. They brought together a group of scientists of over 70 people from different interconnecting fields in quantum computing who, as a group, have come up with a close to 200 pages report on the development, funding, implications and upcoming challenges for quantum computing development. But, even though this report is one of the most thourough up to date, it doesn't make an estimate on when the risk for ECDSA or RSA would occur. They acknowledge this is quite impossible due to the fact there are a lot of unknowns and due to the fact that they have to base any findings only on publicly available information, obviously excluding any non available advancements from commercial companies and national efforts. So if this group of specialized scientists can’t make an estimate, who can make that assessment? Is there any credible source to make an accurate prediction?
The conclusion at this point of time can only be that we do not know the answer to the big question "when".
Now if we don't have an answer to the question "when", then why act? The answer is simple. If we’re talking about security, most take certainty over uncertainty. To answer the question when the threat materializes, we need to guess. Whether you guess soon, or you guess not for the next three decades, both are guesses. Going for certain means you'd have to plan for the worst, hope for the best. No matter how sceptical you are, having some sort of a plan ready is a responsible thing to do. Obviously not if you're just running a blog about knitting. But for systems that carry a lot of important, private and valuable information, planning starts today. The NAS describes it quite well. What they lack in guessing, they make up in advice. They have a very clear advice:
"Even if a quantum computer that can decrypt current cryptographic ciphers is more than a decade off, the hazard of such a machine is high enough—and the time frame for transitioning to a new security protocol is sufficiently long and uncertain—that prioritization of the development, standardization, and deployment of post-quantum cryptography is critical for minimizing the chance of a potential security and privacy disaster."
Another organization that looks ahead is the National Security Agency (NSA) They have made a threat assessment in 2015. In August 2015, NSA announced that it is planning to transition "in the not too distant future" (statement of 2015) to a new cipher suite that is resistant to quantum attacks. "Unfortunately, the growth of elliptic curve use has bumped up against the fact of continued progress in the research on quantum computing, necessitating a re-evaluation of our cryptographic strategy." NSA advised: "For those partners and vendors that have not yet made the transition to Suite B algorithms, we recommend not making a significant expenditure to do so at this point but instead to prepare for the upcoming quantum resistant algorithm transition.” https://en.wikipedia.org/wiki/NSA_Suite_B_Cryptography#cite_note-nsa-suite-b-1
What these organizations both advice is to start taking action. They don't say "implement this type of quantum resistant cryptography now". They don't say when at all. As said before, the "when" question is one that is a hard one to specify. It depends on the system you have, the value of the data, the consequences of postponing a security upgrade. Like I said before: you just run a blog, or a bank or a cryptocurrency? It's an individual risk assesment that's different for every organization and system. Assesments do need to be made now though. What time frame should organisationds think about when changing cryptography? How long would it take to go from the current level of security to fully quantum resistant security? What changes does it require to handle bigger signatures and is it possible to use certain types of cryptography that require to keep state? Do your users need to act, or can al work be done behind the user interface? These are important questions that one should start asking. I will elaborate on these challenges in the next articles.
Besides the unsnswered question on "when", the question on what type of quantum resistant cryptography to use is unanswered too. This also depends on the type of system you use. The NSA and NAS both point to NIST as the authority on developments and standardization of quantum resistant cryptography. NIST is running a competition right now that should end up in one or more standards for quantum resistant cryptography. The NIST competition handles criteria that should filter out a type of quantum resistant cryptography that is feasable for a wide range of systems. This takes time though. There are some new algorithms submitted and assessing the new and the more well known ones must be done thouroughly. They intend to wrap things up around 2022 - 2024. From a blockchain perspective it is important to notice that a specific type of quantum resistant cryptography is excluded from the NIST competition: Stateful Hash-Based Signatures. (LMS and XMSS) This is not because these are no good. In fact they are excelent and XMSS is accepted to be provable quantum resistant. It's due to the fact that implementations will need to be able to securely deal with the requirement to keep state. And this is not a given for most systems.
At this moment NIST intends to approve both LMS and XMSS for a specific group of applications that can deal with the statefull properties. The only loose end at this point is an advice for which applications LMS and XMSS will be adviced and for what applications it is discouraged. These questions will be answered in the beginning of april this year: https://csrc.nist.gov/news/2019/stateful-hbs-request-for-public-comments This means that quite likely LMS and XMSS will be the first type of standardized quantum resistant cryptography ever. To give a small hint: keeping state, is pretty much a naturally added property of blockchain.
Quantum resistant blockchains
“Quantum resistant” is only used to describe networks and cryptography that are secure against any attack by a quantum computer of any size in the sense that there is no algorithm known that makes it possible for a quantum computer to break the applied cryptography and thus that system.
Also, to determine if a project is fully quantum resistant, you would need to take in account not only how a separate element that is implemented in that blockchain is quantum resistant, but also the way it is implemented. As with any type of security check, there should be no backdoors, in which case your blockchain would be just a cardboard box with bulletproof glass windows. Sounds obvious, but since this is kind of new territory, there are still some misconceptions. What is considered safe now, might not be safe in the age of quantum computers. I will address some of these in the following chapters, but first I will elaborate a bit about the special vulnerability of blockchain compared to centralized systems.
Why is it easier to change cryptography for centralized systems such as banks and websites than for blockchain?
Developers of a centralized system can decide from one day to the other that they make changes and update the system without the need for consensus from the nodes. They are in charge, and they can dictate the future of the system. But a decentralized blockchain will need to reach consensus amongst the nodes to update. Meaning that the majority of the nodes will need to upgrade and thus force the blockchain to only have the new signatures to be valid. We can’t have the old signature scheme to be valid besides the new quantum resistant signature scheme. Because that would mean that the blockchain would still allow the use of vulnerable, old public- and private keys and thus the old vulnerable signatures for transactions. So at least the majority of the nodes need to upgrade to make sure that blocks which are constructed using the old rules and thus the old vulnerable signature scheme, are rejected by the network. This will eventually result in a fully upgraded network which only accepts the new post quantum signature scheme in transactions. So, consensus is needed. The most well-known example of how that can be a slow process is Bitcoin’s need to scale. Even though everybody agrees on the need for a certain result, reaching consensus amongst the community on how to get to that result is a slow and political process. Going quantum resistant will be no different, and since it will cause lesser performance due to bigger signatures and it will need hardware upgrades quite likely it will be postponed rather than be done fast and smooth due to lack of consensus. And because there are several quantum resistant signature schemes to choose from, agreement an automatic given. The discussion will be which one to use, and how and when to implement it. The need for consensus is exclusively a problem decentralized systems like blockchain will face.
Another issue for decentralized systems that change their signature scheme, is that users of decentralized blockchains will have to manually transfe migrate their coins/ tokens to a quantum safe address and that way decouple their old private key and activate a new quantum resistant private key that is part of an upgraded quantum resistant network. Users of centralized networks, on the other hand, do not need to do much, since it would be taken care of by their centralized managed system. As you know, for example, if you forget your password of your online bank account, or some website, they can always send you a link, or secret question, or in the worst case they can send you mail by post to your house address and you would be back in business. With the decentralized systems, there is no centralized entity who has your data. It is you who has this data, and only you. So in the centralized system there is a central entity who has access to all the data including all the private accessing data, and therefore this entity can pull all the strings. It can all be done behind your user interface, and you probably wouldn’t notice a thing.
And a third issue will be the lost addresses. Since no one but you has access to your funds, your funds will become inaccessible once you lose your private key. From that point, an address is lost, and the funds on that address can never be moved. So after an upgrade, those funds will never be moved to a quantum resistant address, and thus will always be vulnerable to a quantum hack.
To summarize: banks and websites are centralized systems, they will face challenges, but decentralized systems like blockchain will face some extra challenges that won't apply for centralized systems.
All issues specific for blockchain and not for banks or websites or any other centralized system.
Conclusion
Bitcoin and all currently running traditional cryptocurrencies are not excluded from this problem. In fact, it will be central to ensuring their continued existence over the coming decades. All cryptocurrencies will need to change their signature schemes in the future. When is the big guess here. I want to leave that for another discussion. There are enough certain specifics we can discuss right now on the subject of quantum resistant blockchains and the challenges that existing blockchains will face when they need to transfer. This won’t be an easy transfer. There are some huge challenges to overcome and this will not be done overnight. I will get to this in the next few articles.
Part 1, what makes blockchain reliable?
Part 2, The two most important mathematical concepts in blockchain.
Part 4A, The advantages of quantum resistance from genesis block, A
Part 4B, The advantages of quantum resistance from genesis block, B
Part 5, Why BTC will be vulnerable sooner than expected.
submitted by QRCollector to CryptoTechnology [link] [comments]

Bitcoin Cash may be right

Firstly, I strongly suspect Bitcoin is not valuable as a settlement system. Why would it be meaningfully more valuable than any private blockchain some banks have already created for this purpose? Or just a simple, shared, managed database?
From a purely technical standpoint, it's not even that cool anymore. If I want to speculate purely on cool tech, IOTA is a way more interesting candidate to me.
As for scalability....
Generally speaking, linear scalability is bad in software. Bitcoin, the software, scales linearly. This is because its algorithmic solution to the question of "were these funds spent already?" is to make everyone aware of every transaction that has ever existed.
Great software scalability is exponential and often only requires a device to perform log2(n) calculations to answer some relevant question (where n represents the size of the data set). In other words, as the data gets larger, the software becomes faster.
It's not easy to imagine a set of rules for structuring public transaction data so that you only need to touch some logarithm of the total in existence to verify the absence of double spend and also be confident of its integrity.
Moore's law is inherently exponential though, and essentially states the computational power will double around every two years because the transistors become ever smaller and more densely packed.
This is great, because it's been relatively accurate for more than 40 years now and implies that computers going forward should be able to handle ever more huge amounts of computation.
By my understanding, the crux was that it had been assumed moore's law would not continue much longer due to the effects of quantum tunneling. And it was basically thought that when transistor gates become small enough, electrons flowing through them will behave in a bizarre, and unexplainable* way where they will tend to phase through their surrounding structure--a phenomenon well studied in quantum physics. And the size of the gate in which this happens may be a property of the material used (it happens at 5 nanometers if made of silicon).
However, often times a big mistake a person makes is just being too sure of something. And it seems particularly ironic to me that people would be sure that moose's law is ending based on this, because quantum physics is famous for its "uncertainty" principle.
As of last year, we have 1 nanometer transistors made of carbon fiber nanotubes: http://newscenter.lbl.gov/2016/10/06/smallest-transistor-1-nm-gate/
And today it may be expensive to make them, but that's how all technology starts. If anything, mining may incentivize bringing down the costs of manufacturing and using carbon fiber nanotutbes.
And that would be great, because carbon fiber nanotubes seem like they could be really important for other things, too, such as for energy storage (helps with global warming among many other things), energy efficient water filtration (will improve and even save the lives of many people around the world, reduce disease and epidemics, free up medical resources, etc.), air filtration, fibers and fabrics, field emissions, biomedical uses, etc. https://www.cheaptubes.com/carbon-nanotubes-applications/
When I first used a computer, it had dial up internet and was incredibly slow. Today I have 1gbit/s internet at my house, and it's the normal service. Thanks to improvements and reduced costs of space flight and satellites, soon we can expect high speed internet worldwide: http://www.businessinsider.com/spacex-internet-satellite-constellation-2016-11
So, overall, scaling up the block size doesn't sound crazy to me.
I don't think centralization is any less an issue with small blocks. If most people can't afford the fees to use it, they have to use centralized systems anyway. It's like the banking system 2.0.
Yet... when asked about scalability, many Core-supporting software engineers will tell you something like "it doesn't scale. that's just computer science." Well, sure, but doesn't computation scale? So if there's at least some opportunity to scale in that direction, why deliberately choose the approach that has no opportunity to scale? There's an opportunity cost to this, and it seems high.
As for the lightning network, since i see it brought up a lot, I don't know the system myself, but even some of the core supporters I know say they aren't fans of it. They sort'of just accept that bitcoin doesn't scale and that's ok. Others think an alt coin will solve the problem and take over eventually. It seems like someone has already put a lot of thought into why LN is not a good solution (have not read): https://medium.com/@jonaldfyookball/mathematical-proof-that-the-lightning-network-cannot-be-a-decentralized-bitcoin-scaling-solution-1b8147650800 - I will say that LN sounds like a really complicated system to me, which usually isn't a sign of good software. Not to mention it seems like it's been teased forever now and we still don't have it as far as I know.
What am I missing?
P.S. I'm not picking teams here. I'm not a big or small blocker. If I had to pick teams, I'd probably pick IOTA and some alt coins at this point.
TLDR: Bitcoin Cash may scale well enough (and is perhaps a better solution than Core proposes based on technical merits alone)
submitted by somebody3830 to btc [link] [comments]

Information and FAQ

Hi, for everyone looking for help and support for IOTA you have come to the right place. Please read this information, the FAQ and the side bar before asking for help.

Information

IOTA

IOTA is an open-source distributed ledger protocol launched in 2015 that goes 'beyond blockchain' through its core invention of the blockless ‘Tangle’. The IOTA Tangle is a quantum-resistant Directed Acyclic Graph (DAG), whose digital currency 'iota' has a fixed money supply with zero inflationary cost.
IOTA uniquely offers zero-fee transactions & no fixed limit on how many transactions can be confirmed per second. Scaling limitations have been removed, since throughput grows in conjunction with activity; the more activity, the more transactions can be processed & the faster the network. Further, unlike blockchain architecture, IOTA has no separation between users and validators (miners / stakers); rather, validation is an intrinsic property of using the ledger, thus avoiding centralization.
IOTA is focused on being useful for the emerging machine-to-machine (m2m) economy of the Internet-of-Things (IoT), data integrity, micro-/nano- payments, and other applications where a scalable decentralized system is warranted.
More information can be found here.

Non reusable addresses

Contrary to traditional blockchain based systems such as Bitcoin, where your wallet addresses can be reused, IOTA's addresses should only be used once (for outgoing transfers). That means there is no limit to the number of transactions an address can receive, but as soon as you've used funds from that address to make a transaction, this address should not be used anymore.
The reason for this is, by making an outgoing transaction a part of the private key of that specific address is revealed, and it opens the possibility that someone may brute force the full private key to gain access to all funds on that address. The more outgoing transactions you make from the same address, the easier it will be to brute force the private key.
It should be noted that having access to the private key of an address will not reveal your seed or the private key of the other addresses within your seed / "account".
This piggy bank diagram can help visualize non reusable addresses. imgur link

Address Index

When a new address is generated it is calculated from the combination of a seed + Address Index, where the Address Index can be any positive Integer (including "0"). The wallet usually starts from Address Index 0, but it will skip any Address Index where it sees that the corresponding address has already been attached to the tangle.

Private Keys

Private keys are derived from a seeds key index. From that private key you then generate an address. The key index starting at 0, can be incremented to get a new private key, and thus address.
It is important to keep in mind that all security-sensitive functions are implemented client side. What this means is that you can generate private keys and addresses securely in the browser, or on an offline computer. All libraries provide this functionality.
IOTA uses winternitz one-time signatures, as such you should ensure that you know which private key (and which address) has already been used in order to not reuse it. Subsequently reusing private keys can lead to the loss of funds (an attacker is able to forge the signature after continuous reuse).
Exchanges are advised to store seeds, not private keys.

Double spending

Sending a transaction will move your entire balance to a completely new address, if you have more than one pending transaction only one can eventually be confirmed and the resulting balance is sent to your next wallet address. This means that the other pending transactions are now sent from an address that has a balance of 0 IOTA, and thus none of these pending transactions can ever be confirmed.

Transaction Process

As previously mentioned, in IOTA there are no miners. As such the process of making a transaction is different from any Blockchain out there today. The process in IOTA looks as follows:
  • Signing: You sign the transaction inputs with your private keys. This can be done offline.
  • Tip Selection: MCMC is used to randomly select two tips, which will be referenced by your transaction (branchTransaction and trunkTransaction)
  • Proof of Work: In order to have your transaction accepted by the network, you need to do some Proof of Work - similar to Hashcash, not Bitcoin (spam and sybil-resistance). This usually takes a few minutes on a modern pc.
After this is completed, the trunkTransaction, branchTransaction and nonce of the transaction object should be updated. This means that you can broadcast the transaction to the network now and wait for it to be approved by someone else.

FAQ

How do I to buy IOTA?

Currently not all exchanges support IOTA and those that do may not support the option to buy with fiat currencies.
One way to buy IOTA is to buy with bitcoin (BTC) or Ether (ETH), first you will need to deposit BTC/ETH onto an exchange wallet and you can the exchange them for IOTA.
You can buy BTC or ETH through coinbase. And exchange those for IOTA on Binance or Bitfinex (other exchanges do exist, some linked in the side bar).
A detailed guide to buying can be found here.

What is MIOTA?

MIOTA is a unit of IOTA, 1 Mega IOTA or 1 Mi. It is equivalent to 1,000,000 IOTA and is the unit which is currently exchanged.
We can use the metric prefixes when describing IOTA e.g 2,500,000,000 i is equivalent to 2.5 Gi.
Note: some exchanges will display IOTA when they mean MIOTA.

Can I mine IOTA?

No you can not mine IOTA, all the supply of IOTA exist now and no more can be made.
If you want to send IOTA, your 'fee' is you have to verify 2 other transactions, thereby acting like a minenode.

Where should I store IOTA?

It is not recommended to store large amounts of IOTA on the exchange as you will not have access to the private keys of the addresses generated.
However many people have faced problems with the current GUI Wallet and therefore group consensus at the moment is to store your IOTA on the exchange, until the release of the UCL Wallet, or the Paper Wallet.

What is the GUI wallet?

What is the UCL Wallet?

What is a seed?

A seed is a unique identifier that can be described as a combined username and password that grants you access to your wallet.
Your seed is used to generate the addresses linked to your account and so this should be kept private and not shared with anyone. If anyone obtains your seed, they can login and access your IOTA.

How do I generate a seed?

You must generate a random 81 character seed using only A-Z and the number 9.
It is recommended to use offline methods to generate a seed, and not recommended to use any non community verified techniques. To generate a seed you could:

On a Linux Terminal use the following command:

 cat /dev/urandom |tr -dc A-Z9|head -c${1:-81} 

On a Mac Terminal use the following command:

 cat /dev/urandom |LC_ALL=C tr -dc 'A-Z9' | fold -w 81 | head -n 1 

With KeePass on PC

A helpful guide for generating a secure seed on KeePass can be found here.

With a dice

Dice roll template

Is my seed secure?

  1. All seeds should be 81 characters in random order composed of A-Z and 9.
  2. Do not give your seed to anyone, and don’t keep it saved in a plain text document.
  3. Don’t input your seed into any websites that you don’t trust.
Is this safe? Can’t anyone guess my seed?
What are the odds of someone guessing your seed?
  • IOTA seed = 81 characters long, and you can use A-Z, 9
  • Giving 2781 = 8.7x10115 possible combinations for IOTA seeds
  • Now let's say you have a "super computer" letting you generate and read every address associated with 1 trillion different seeds per second.
  • 8.7x10115 seeds / 1x1012 generated per second = 8.7x10103 seconds = 2.8x1096 years to process all IOTA seeds.

Why does balance appear to be 0 after a snapshot?

When a snapshot happens, all transactions are being deleted from the Tangle, leaving only the record of how many IOTA are owned by each address. However, the next time the wallet scans the Tangle to look for used addresses, the transactions will be gone because of the snapshot and the wallet will not know anymore that an address belongs to it. This is the reason for the need to regenerate addresses, so that the wallet can check the balance of each address. The more transactions were made before a snapshot, the further away the balance moves from address index 0 and the more addresses have to be (re-) generated after the snapshot.

Why is my transaction pending?

IOTA's current Tangle implementation (IOTA is in constant development, so this may change in the future) has a confirmation rate that is ~66% at first attempt.
So, if a transaction does not confirm within 1 hour, it is necessary to "reattach" (also known as "replay") the transaction one time. Doing so one time increases probability of confirmation from ~66% to ~89%.
Repeating the process a second time increases the probability from ~89% to ~99.9%.

What does attach to the tangle mean?

The process of making an transaction can be divided into two main steps:
  1. The local signing of a transaction, for which your seed is required.
  2. Taking the prepared transaction data, choosing two transactions from the tangle and doing the POW. This step is also called “attaching”.
The following analogy makes it easier to understand:
Step one is like writing a letter. You take a piece of paper, write some information on it, sign it at the bottom with your signature to authenticate that it was indeed you who wrote it, put it in an envelope and then write the recipient's address on it.
Step two: In order to attach our “letter” (transaction), we go to the tangle, pick randomly two of the newest “letters” and tie a connection between our “letter” and each of the “letters” we choose to reference.
The “Attach address” function in the wallet is actually doing nothing else than making an 0 value transaction to the address that is being attached.

How do I reattach a transaction.

Reattaching a transaction is different depending on where you send your transaction from. To reattach using the GUI Desktop wallet follow these steps:
  1. Click 'History'.
  2. Click 'Show Bundle' on the 'pending' transaction.
  3. Click 'Reattach'.
  4. Click 'Rebroadcast'. (optional, usually not required)
  5. Wait 1 Hour.
  6. If still 'pending', repeat steps 1-5 once more.

What happens to pending transactions after a snapshot?

How do I recover from a long term pending transaction?

How can I support IOTA?

You can support the IOTA network by setting up a Full Node, this will help secure the network by validating transactions broadcast by other nodes.
Running a full node also means you don't have to trust a 3rd party in showing you the correct balance and transaction history of your wallet.
By running a full node you get to take advantage of new features that might not be installed on 3rd party nodes.

How to set up a full node?

To set up a full node you will need to follow these steps:
  1. Download the full node software: either GUI, or headless CLI for lower system requirements and better performance.
  2. Get a static IP for your node.
  3. Join the network by adding 7-9 neighbours.
  4. Keep your full node up and running as much as possible.
A detailed user guide on how to set up a VTS IOTA Full Node from scratch can be found here.

How do I get a static IP?

To learn how to setup a hostname (~static IP) so you can use the newest IOTA versions that have no automated peer discovery please follow this guide.

How do I find a neighbour?

Are you a single IOTA full node looking for a partner? You can look for partners in these place:

Extras

Transaction Example:

Multiple Address in 1 Wallet Explained:

submitted by Boltzmanns_Constant to IOTASupport [link] [comments]

Tonal Quantum Network - new decentralized own platform for instant information transfer which include

https://preview.redd.it/slwpinqoh9v01.png?width=565&format=png&auto=webp&s=45aa5b105b827e2eb1d02ed0f4e243f454abe42b
Visit our WEBSITE
The Tonal Quantum Network platform (TOQ) – seeks to become world single currency for instant information transfer. The stable and predicted cryptocurrency with quarterly increase in obligations. An opportunity to carry out safe transactions with use of popular cryptocurrency, such as: Bitcoin, Ethereum, Ripple, Monero, ZEC and other cryptocurrency.
The initial purpose of Tonal Quantum – instant payment of mobile network operator through a uniform purse from any point of the world with the minimum commission and also a conclusion and exchange of cryptocurrency without intermediaries and an additional fee.
Main goal of Tonal Quantum – creation of the decentralized own platform for instant information transfer which include:
  1. Confirmation of identity and value (without intermediaries).
  2. Crediting
  3. Sponsorship and investments
  4. Insurance of value and risk management
  5. Accounting of value
We will sort in more detail
1.Confirmation of identity and value. Now we rely on large intermediaries to establish the confidential relations and to confirm identity of other party in financial transaction. These intermediaries act as arbitrators in access to basic financial services, such as bank accounts and loans. Tonal Quantum Network will lower and will even eliminate need for trust for certain transactions. Our service will also allow participants to support confirmed, full-function and cryptographic the protected electronic profiles and to establish the confidential relations, when necessary.
2.Crediting. From a mortgage to short-term bills of Tonal Quantum Network will simplify issuance of credits: the credit cards, mortgage loans, corporate, municipal and state bonds, securities provided with assets. Now crediting has generated a number of additional branches for check of solvency, maintaining credit history, purpose of credit ratings. For individuals the credit history, for the organizations – credit rating, from "an investment class" to "garbage" is the most important here. In Tonal Quantum Network any will be able to release, exchange and settle traditional debt obligations directly, thereby reducing expenses and risk, and increasing the speed and transparency. Consumers will be able to obtain loans directly the same consumers. It is especially important for users not covered bank service and for businessmen worldwide.
3.Sponsorship and investments. Investment into an asset, the company or the new enterprise gives to the person the chance to receive on it profitability in the form of increase in cost of the capital, dividends, percent, a rent and their various combinations. The branch creates the markets, bringing together investors with businessmen and owners of the companies at all stages of development. Attraction of financial resources usually demands intermediaries: for example, investment banks, venture investors, lawyers. Tonal Quantum Network automates their many functions, will make possible use of new models for direct peer-to-peer financing and also will make record of dividends and payment of coupons more effective, transparent and reliable.
4.Insurance of value and risk management. Risk management and its special case, insurance, is intended for protection of individuals and the companies against unforeseen losses or accident. In a broader sense risk management in the financial markets has generated assemblies of derivatives, difficult structured financial products and other financial instruments for hedging against unpredictable or uncontrollable events. By the last calculations, the par value of all large publicly available derivative securities is 600 trillion dollars. Tonal Quantum Network will support the decentralized insurance models that does use of derivative securities for risk management by much more transparent. The system of reputation based on the social and economic capital of the person, his actions and other reputation parameters will allow insurers to understand much more clearly actuarial risk and to make decisions is more informed.
5.Accounting of values. Accounting is a measurement, processing and transfer of financial information on participants of economic processes. This multi-billion branch is controlled by four giants of audit: Deloitte Touche Tohmatsu, PricewaterhouseCoopers, Ernst & Young and KPMG. Traditional practicians of accounting won't cope with the speed and complexity of modern finance. New methods, the applying distributed register Tonal Quantum Network, will make audit and financial statements transparent, and will allow conducting them in real time. Also Tonal Quantum Network considerably will expand a possibility of regulators and other interested persons to keep track of financial activity in corporation.
The new platform allows uniting in real time digital data practically on everything on light. "The register of all" is necessary. Business, trade and economy need digital notation.
How does it concern personally you? We are convinced that the truth is capable to release us and that the distributed trust will exert considerable impact on the person in all spheres of life. Perhaps, you the responsible consumer who wants to learn from where actually meat for his beefsteak has arrived. The immigrant to who has bothered to overpay for money transfers to family on the far homeland. The humanitarian worker who needs to define owners of land possession to restore the houses destroyed by an earthquake. The citizen who wants that activity of politicians became transparent and accountable. To have an opportunity to unmistakably identify the identity of other person to translate and exchange money without confirmation of the third party, for example bank which also demands some percent from the transaction. Thanks to our Tonal Quantum Network through the smart contract the businessman will be able to automate many aspects of activity of the company: purchases, compensation, percent on the credit, financial audit in real time.
«PEER-TO-PEER» or "without intermediaries"
Now there are many huge companies which help to connect the consumer with the supplier. But change of the centralized company the distributed P2P Tonal Quantum application (Peer-to-Peer Tonal Quantum) will come.
For example:
When the tenant looks for the room, the software of P2P Tonal Quantum looks through contents of our blockchain network, finds all offers and shows to the user what corresponds to the set filter. As the network writes down information on transaction in blockchain, the positive review of the user strengthens reputation both the tenant and the lessor and identifies their personality – but now without intermediary.
For the first time in the history of the party will be able, without knowing each other and without trusting each other, to conclude bargains and to run business. Confirmation of the personality and establishment of trust have stopped being the right and the privilege of the financial intermediary. Moreover, in the context of financial services the protocol of trust will gain new value. Tonal Quantum Network will be able to establish the confidential relations when they are necessary, having confirmed identity and solvency of each party by means of history of transactions (in blockchain), values of reputation (on the basis of the aggregated responses) and other socioeconomic indicators.
Our system at the moment works at Blockchain Ethereum, and will pass to the new Blockchain platform soon – Tonal Quantum Network with use of Quantum and computing technologies. On him the Tonal Quantum Network will also be built. Work with quantum – logical elements which are at the same time in superposition of states "0" and "1" is the cornerstone of quantum calculators. At measurement of qubit there is a destruction of superposition and with some probability one of these two states drops out. Operations over qubits change probability of loss of this or that value. In usual computer tasks (for example, additions of numbers), the quantum system won't be able to bypass classical, but the situation changes when in a task search of a huge number of options and optimization of multicomponent system is required. Specialized tests of the calculator, according to the company, have shown his superiority over classical processors by 1000 – 10 000 times. In the world there are no universal quantum computers capable to cope with any tasks yet, however there are worked methods and the principles of calculations and already now will allow our Tonal Quantum Network to solve super difficult tasks. Our investors are interested in our project and at present negotiations with the company on gaining access to Quantum and computing technologies for support of our Tonal Quantum Network are conducted. Classical schemes of blockchain are used generally only for cryptocurrency, and our Tonal Quantum Network will be applied to drawing up smart contracts, storage of information on intellectual property rights and other data. A task of quantum network Tonal Quantum Network to secure classical schemes against unauthorized signing up in network. Besides, in the new concept there is no classical paradigm of Blockchain that any participant of network can form blocks. Instead generation of blocks will happen is decentralized. Our system is capable to support functioning even if a third of knots will "unfair" behave.
The TOQ cryptocurrency will be written on a new algorithm, for our platform. The main power will be allocated for support of Tonal Quantum Network, and other power will use the PoS mode (Proof-of-stake) for this TOQ cryptocurrency.
Power Quantum Netowrk
https://preview.redd.it/odsr7fwbi9v01.png?width=600&format=png&auto=webp&s=2869a60aa3faa6c1cbbd91634f3d9fcde4a9e7c5
65% of capacity allocated to support Blockchain network
20% capacities for support of transactions in network
15% capacities for production of cryptocurrency of network to users
Advantages our system
  1. All network Tonal Quantum will be decentralized, and all operations will be supported by Tonal Quantum Network that gives advantages to users to pay the minimum transaction commission.
  2. This commission will go for ensuring maintenance and development of the platform.
  3. Transactions will take place for only a few seconds.
  4. The system will also work in two modes: PoS (Proof-of-Stake) and PoW (Proof-of-Work).
  5. For miners of PoW the separate pool which will reward miners without the commission of a pool will be started.
  6. For holders of coins of PoS all coins got by system will be automatically charged to users (holders of coins). Charge will be calculated based on the ratio of 40000:1.
All coins got in the PoS mode will be distributed equally, depending on quantity of the coins which are stored in the user's purse.
From these transfers you at any time can pay the bill of mobile network operator or exchange them for any other cryptocurrency without the commission.
After start of the Tonal Quantum Network blockchain-platform anyone will be able to participate in a procedure of migration of a token from the Ethereum platform, on the Tonal Quantum Network blockchain-platform at a course 1 to 1 at which the holder of TOQ will have all stated additional opportunities.
Also the Tonal Quantum Network Cryptocurrency exchange where there will be auction not only to TOQ coin, but also to tokens, created on the Tonal Quantum Network platform will be started.
https://preview.redd.it/1xzzf032k9v01.png?width=528&format=png&auto=webp&s=63a0c36653749bd7a386999749ae4d9b5f5e26c7
Service offers instant exchange at this rate of cryptocurrency and without the commission to make exchange for a coin of TOQ or for other cryptocurrency and to make payment.
Our service on a straight line contacts bank and sends money to the mobile operator with converting in different currencies (USD, EURO, RUR).
The operator in turn sends transaction to the user and deducts 2% of amount of transfer in our bank and these bonuses will be included in money transfers.
The initial Tonal Quantum Network platform will allow users to make online translations, payments for the mobile operator and trade in cryptocurrency through our service. Payment will happen both to a token (TOQ), and to any other token, also service gives an opportunity to users instantly to exchange any cryptocurrency for TOQ without the commission.
Likely many faced a problem of exchange of cryptocurrency. It is a lot of companies and various services (websites) give this opportunity and respectively take the decent commission for these manipulations.
We, offer you a conclusion of cryptocurrency through our uniform service which will work for a straight line with bank.
We seek to simplify daily actions and to reduce losses which meet in our life absolutely everywhere.
We won't entice investors beautiful pictures and advertising.
Those purposes which we have told you above and those financial means which we could spend for advertising, Are important for us will go specifically for creation of the Tonal Quantum Network platform.
We undertake to submit the report on each our done work to our investors!
Symbol of crypto currency TOQ
Soft Cap $4 500 000
Hard Cap $25 000 000
We accept payment ETH
Distribution of Tokens April 2018
Emission TOQ 300 000 000 generation in
Smart Contract 700 000 000 TOQ Total Quantity
Number of tokens TOQ 1 000 000 000 TOQ
The development team 8 % (80 000 000 TOQ)
Available to distribution 92 % (920 000 000 TOQ)
submitted by TonaQuantumNetwork to u/TonaQuantumNetwork [link] [comments]

FAQ about Bitcoin(3)

Transactions FMZ
Why do I have to wait for confirmation?
Receiving notification of a payment is almost instant with Bitcoin. However, there is a delay before the network begins to confirm your transaction by including it in a block. A confirmation means that there is a consensus on the network that the bitcoins you received haven't been sent to anyone else and are considered your property. Once your transaction has been included in one block, it will continue to be buried under every block after it, which will exponentially consolidate this consensus and decrease the risk of a reversed transaction. Each confirmation takes between a few seconds and 90 minutes, with 10 minutes being the average. If the transaction pays too low a fee or is otherwise atypical, getting the first confirmation can take much longer. Every user is free to determine at what point they consider a transaction sufficiently confirmed, but 6 confirmations is often considered to be as safe as waiting 6 months on a credit card transaction.
How much will the transaction fee be?
Transactions can be processed without fees, but trying to send free transactions can require waiting days or weeks. Although fees may increase over time, normal fees currently only cost a tiny amount. By default, all Bitcoin wallets listed on http://Bitcoin.org add what they think is an appropriate fee to your transactions; most of those wallets will also give you chance to review the fee before sending the transaction.
Transaction fees are used as a protection against users sending transactions to overload the network and as a way to pay miners for their work helping to secure the network. The precise manner in which fees work is still being developed and will change over time. Because the fee is not related to the amount of bitcoins being sent, it may seem extremely low or unfairly high. Instead, the fee is relative to the number of bytes in the transaction, so using multisig or spending multiple previously-received amounts may cost more than simpler transactions. If your activity follows the pattern of conventional transactions, you won't have to pay unusually high fees.
What if I receive a bitcoin when my computer is powered off?
This works fine. The bitcoins will appear next time you start your wallet application. Bitcoins are not actually received by the software on your computer, they are appended to a public ledger that is shared between all the devices on the network. If you are sent bitcoins when your wallet client program is not running and you later launch it, it will download blocks and catch up with any transactions it did not already know about, and the bitcoins will eventually appear as if they were just received in real time. Your wallet is only needed when you wish to spend bitcoins.
What does "synchronizing" mean and why does it take so long?
Long synchronization time is only required with full node clients like Bitcoin Core. Technically speaking, synchronizing is the process of downloading and verifying all previous Bitcoin transactions on the network. For some Bitcoin clients to calculate the spendable balance of your Bitcoin wallet and make new transactions, it needs to be aware of all previous transactions. This step can be resource intensive and requires sufficient bandwidth and storage to accommodate the full size of the block chain. For Bitcoin to remain secure, enough people should keep using full node clients because they perform the task of validating and relaying transactions.
Mining FMZ
What is Bitcoin mining?
Mining is the process of spending computing power to process transactions, secure the network, and keep everyone in the system synchronized together. It can be perceived like the Bitcoin data center except that it has been designed to be fully decentralized with miners operating in all countries and no individual having control over the network. This process is referred to as "mining" as an analogy to gold mining because it is also a temporary mechanism used to issue new bitcoins. Unlike gold mining, however, Bitcoin mining provides a reward in exchange for useful services required to operate a secure payment network. Mining will still be required after the last bitcoin is issued.
How does Bitcoin mining work?
Anybody can become a Bitcoin miner by running software with specialized hardware. Mining software listens for transactions broadcast through the peer-to-peer network and performs appropriate tasks to process and confirm these transactions. Bitcoin miners perform this work because they can earn transaction fees paid by users for faster transaction processing, and newly created bitcoins issued into existence according to a fixed formula.
For new transactions to be confirmed, they need to be included in a block along with a mathematical proof of work. Such proofs are very hard to generate because there is no way to create them other than by trying billions of calculations per second. This requires miners to perform these calculations before their blocks are accepted by the network and before they are rewarded. As more people start to mine, the difficulty of finding valid blocks is automatically increased by the network to ensure that the average time to find a block remains equal to 10 minutes. As a result, mining is a very competitive business where no individual miner can control what is included in the block chain.
The proof of work is also designed to depend on the previous block to force a chronological order in the block chain. This makes it exponentially difficult to reverse previous transactions because this requires the recalculation of the proofs of work of all the subsequent blocks. When two blocks are found at the same time, miners work on the first block they receive and switch to the longest chain of blocks as soon as the next block is found. This allows mining to secure and maintain a global consensus based on processing power.
Bitcoin miners are neither able to cheat by increasing their own reward nor process fraudulent transactions that could corrupt the Bitcoin network because all Bitcoin nodes would reject any block that contains invalid data as per the rules of the Bitcoin protocol. Consequently, the network remains secure even if not all Bitcoin miners can be trusted.
Isn't Bitcoin mining a waste of energy?
Spending energy to secure and operate a payment system is hardly a waste. Like any other payment service, the use of Bitcoin entails processing costs. Services necessary for the operation of currently widespread monetary systems, such as banks, credit cards, and armored vehicles, also use a lot of energy. Although unlike Bitcoin, their total energy consumption is not transparent and cannot be as easily measured.
Bitcoin mining has been designed to become more optimized over time with specialized hardware consuming less energy, and the operating costs of mining should continue to be proportional to demand. When Bitcoin mining becomes too competitive and less profitable, some miners choose to stop their activities. Furthermore, all energy expended mining is eventually transformed into heat, and the most profitable miners will be those who have put this heat to good use. An optimally efficient mining network is one that isn't actually consuming any extra energy. While this is an ideal, the economics of mining are such that miners individually strive toward it.
How does mining help secure Bitcoin? FMZ
Mining creates the equivalent of a competitive lottery that makes it very difficult for anyone to consecutively add new blocks of transactions into the block chain. This protects the neutrality of the network by preventing any individual from gaining the power to block certain transactions. This also prevents any individual from replacing parts of the block chain to roll back their own spends, which could be used to defraud other users. Mining makes it exponentially more difficult to reverse a past transaction by requiring the rewriting of all blocks following this transaction.
What do I need to start mining?
In the early days of Bitcoin, anyone could find a new block using their computer's CPU. As more and more people started mining, the difficulty of finding new blocks increased greatly to the point where the only cost-effective method of mining today is using specialized hardware. You can visit BitcoinMining.com for more information.
Security FMZ
Is Bitcoin secure?
The Bitcoin technology - the protocol and the cryptography - has a strong security track record, and the Bitcoin network is probably the biggest distributed computing project in the world. Bitcoin's most common vulnerability is in user error. Bitcoin wallet files that store the necessary private keys can be accidentally deleted, lost or stolen. This is pretty similar to physical cash stored in a digital form. Fortunately, users can employ sound security practices to protect their money or use service providers that offer good levels of security and insurance against theft or loss.
Hasn't Bitcoin been hacked in the past?
The rules of the protocol and the cryptography used for Bitcoin are still working years after its inception, which is a good indication that the concept is well designed. However, security flaws have been found and fixed over time in various software implementations. Like any other form of software, the security of Bitcoin software depends on the speed with which problems are found and fixed. The more such issues are discovered, the more Bitcoin is gaining maturity.
There are often misconceptions about thefts and security breaches that happened on diverse exchanges and businesses. Although these events are unfortunate, none of them involve Bitcoin itself being hacked, nor imply inherent flaws in Bitcoin; just like a bank robbery doesn't mean that the dollar is compromised. However, it is accurate to say that a complete set of good practices and intuitive security solutions is needed to give users better protection of their money, and to reduce the general risk of theft and loss. Over the course of the last few years, such security features have quickly developed, such as wallet encryption, offline wallets, hardware wallets, and multi-signature transactions.
Could users collude against Bitcoin? FMZ
It is not possible to change the Bitcoin protocol that easily. Any Bitcoin client that doesn't comply with the same rules cannot enforce their own rules on other users. As per the current specification, double spending is not possible on the same block chain, and neither is spending bitcoins without a valid signature. Therefore, it is not possible to generate uncontrolled amounts of bitcoins out of thin air, spend other users' funds, corrupt the network, or anything similar.
However, powerful miners could arbitrarily choose to block or reverse recent transactions. A majority of users can also put pressure for some changes to be adopted. Because Bitcoin only works correctly with a complete consensus between all users, changing the protocol can be very difficult and requires an overwhelming majority of users to adopt the changes in such a way that remaining users have nearly no choice but to follow. As a general rule, it is hard to imagine why any Bitcoin user would choose to adopt any change that could compromise their own money.
Is Bitcoin vulnerable to quantum computing?
Yes, most systems relying on cryptography in general are, including traditional banking systems. However, quantum computers don't yet exist and probably won't for a while. In the event that quantum computing could be an imminent threat to Bitcoin, the protocol could be upgraded to use post-quantum algorithms. Given the importance that this update would have, it can be safely expected that it would be highly reviewed by developers and adopted by all Bitcoin users.
FMZ
submitted by FmzQuant to u/FmzQuant [link] [comments]

FAQ about Bitcoin(3)

Transactions FMZ
Why do I have to wait for confirmation?
Receiving notification of a payment is almost instant with Bitcoin. However, there is a delay before the network begins to confirm your transaction by including it in a block. A confirmation means that there is a consensus on the network that the bitcoins you received haven't been sent to anyone else and are considered your property. Once your transaction has been included in one block, it will continue to be buried under every block after it, which will exponentially consolidate this consensus and decrease the risk of a reversed transaction. Each confirmation takes between a few seconds and 90 minutes, with 10 minutes being the average. If the transaction pays too low a fee or is otherwise atypical, getting the first confirmation can take much longer. Every user is free to determine at what point they consider a transaction sufficiently confirmed, but 6 confirmations is often considered to be as safe as waiting 6 months on a credit card transaction.
How much will the transaction fee be?
Transactions can be processed without fees, but trying to send free transactions can require waiting days or weeks. Although fees may increase over time, normal fees currently only cost a tiny amount. By default, all Bitcoin wallets listed on http://Bitcoin.org add what they think is an appropriate fee to your transactions; most of those wallets will also give you chance to review the fee before sending the transaction.
Transaction fees are used as a protection against users sending transactions to overload the network and as a way to pay miners for their work helping to secure the network. The precise manner in which fees work is still being developed and will change over time. Because the fee is not related to the amount of bitcoins being sent, it may seem extremely low or unfairly high. Instead, the fee is relative to the number of bytes in the transaction, so using multisig or spending multiple previously-received amounts may cost more than simpler transactions. If your activity follows the pattern of conventional transactions, you won't have to pay unusually high fees.
What if I receive a bitcoin when my computer is powered off?
This works fine. The bitcoins will appear next time you start your wallet application. Bitcoins are not actually received by the software on your computer, they are appended to a public ledger that is shared between all the devices on the network. If you are sent bitcoins when your wallet client program is not running and you later launch it, it will download blocks and catch up with any transactions it did not already know about, and the bitcoins will eventually appear as if they were just received in real time. Your wallet is only needed when you wish to spend bitcoins.
What does "synchronizing" mean and why does it take so long?
Long synchronization time is only required with full node clients like Bitcoin Core. Technically speaking, synchronizing is the process of downloading and verifying all previous Bitcoin transactions on the network. For some Bitcoin clients to calculate the spendable balance of your Bitcoin wallet and make new transactions, it needs to be aware of all previous transactions. This step can be resource intensive and requires sufficient bandwidth and storage to accommodate the full size of the block chain. For Bitcoin to remain secure, enough people should keep using full node clients because they perform the task of validating and relaying transactions.
Mining FMZ
What is Bitcoin mining?
Mining is the process of spending computing power to process transactions, secure the network, and keep everyone in the system synchronized together. It can be perceived like the Bitcoin data center except that it has been designed to be fully decentralized with miners operating in all countries and no individual having control over the network. This process is referred to as "mining" as an analogy to gold mining because it is also a temporary mechanism used to issue new bitcoins. Unlike gold mining, however, Bitcoin mining provides a reward in exchange for useful services required to operate a secure payment network. Mining will still be required after the last bitcoin is issued.
How does Bitcoin mining work?
Anybody can become a Bitcoin miner by running software with specialized hardware. Mining software listens for transactions broadcast through the peer-to-peer network and performs appropriate tasks to process and confirm these transactions. Bitcoin miners perform this work because they can earn transaction fees paid by users for faster transaction processing, and newly created bitcoins issued into existence according to a fixed formula.
For new transactions to be confirmed, they need to be included in a block along with a mathematical proof of work. Such proofs are very hard to generate because there is no way to create them other than by trying billions of calculations per second. This requires miners to perform these calculations before their blocks are accepted by the network and before they are rewarded. As more people start to mine, the difficulty of finding valid blocks is automatically increased by the network to ensure that the average time to find a block remains equal to 10 minutes. As a result, mining is a very competitive business where no individual miner can control what is included in the block chain.
The proof of work is also designed to depend on the previous block to force a chronological order in the block chain. This makes it exponentially difficult to reverse previous transactions because this requires the recalculation of the proofs of work of all the subsequent blocks. When two blocks are found at the same time, miners work on the first block they receive and switch to the longest chain of blocks as soon as the next block is found. This allows mining to secure and maintain a global consensus based on processing power.
Bitcoin miners are neither able to cheat by increasing their own reward nor process fraudulent transactions that could corrupt the Bitcoin network because all Bitcoin nodes would reject any block that contains invalid data as per the rules of the Bitcoin protocol. Consequently, the network remains secure even if not all Bitcoin miners can be trusted.
Isn't Bitcoin mining a waste of energy?
Spending energy to secure and operate a payment system is hardly a waste. Like any other payment service, the use of Bitcoin entails processing costs. Services necessary for the operation of currently widespread monetary systems, such as banks, credit cards, and armored vehicles, also use a lot of energy. Although unlike Bitcoin, their total energy consumption is not transparent and cannot be as easily measured.
Bitcoin mining has been designed to become more optimized over time with specialized hardware consuming less energy, and the operating costs of mining should continue to be proportional to demand. When Bitcoin mining becomes too competitive and less profitable, some miners choose to stop their activities. Furthermore, all energy expended mining is eventually transformed into heat, and the most profitable miners will be those who have put this heat to good use. An optimally efficient mining network is one that isn't actually consuming any extra energy. While this is an ideal, the economics of mining are such that miners individually strive toward it.
How does mining help secure Bitcoin? FMZ
Mining creates the equivalent of a competitive lottery that makes it very difficult for anyone to consecutively add new blocks of transactions into the block chain. This protects the neutrality of the network by preventing any individual from gaining the power to block certain transactions. This also prevents any individual from replacing parts of the block chain to roll back their own spends, which could be used to defraud other users. Mining makes it exponentially more difficult to reverse a past transaction by requiring the rewriting of all blocks following this transaction.
What do I need to start mining?
In the early days of Bitcoin, anyone could find a new block using their computer's CPU. As more and more people started mining, the difficulty of finding new blocks increased greatly to the point where the only cost-effective method of mining today is using specialized hardware. You can visit BitcoinMining.com for more information.
Security FMZ
Is Bitcoin secure?
The Bitcoin technology - the protocol and the cryptography - has a strong security track record, and the Bitcoin network is probably the biggest distributed computing project in the world. Bitcoin's most common vulnerability is in user error. Bitcoin wallet files that store the necessary private keys can be accidentally deleted, lost or stolen. This is pretty similar to physical cash stored in a digital form. Fortunately, users can employ sound security practices to protect their money or use service providers that offer good levels of security and insurance against theft or loss.
Hasn't Bitcoin been hacked in the past?
The rules of the protocol and the cryptography used for Bitcoin are still working years after its inception, which is a good indication that the concept is well designed. However, security flaws have been found and fixed over time in various software implementations. Like any other form of software, the security of Bitcoin software depends on the speed with which problems are found and fixed. The more such issues are discovered, the more Bitcoin is gaining maturity.
There are often misconceptions about thefts and security breaches that happened on diverse exchanges and businesses. Although these events are unfortunate, none of them involve Bitcoin itself being hacked, nor imply inherent flaws in Bitcoin; just like a bank robbery doesn't mean that the dollar is compromised. However, it is accurate to say that a complete set of good practices and intuitive security solutions is needed to give users better protection of their money, and to reduce the general risk of theft and loss. Over the course of the last few years, such security features have quickly developed, such as wallet encryption, offline wallets, hardware wallets, and multi-signature transactions.
Could users collude against Bitcoin? FMZ
It is not possible to change the Bitcoin protocol that easily. Any Bitcoin client that doesn't comply with the same rules cannot enforce their own rules on other users. As per the current specification, double spending is not possible on the same block chain, and neither is spending bitcoins without a valid signature. Therefore, it is not possible to generate uncontrolled amounts of bitcoins out of thin air, spend other users' funds, corrupt the network, or anything similar.
However, powerful miners could arbitrarily choose to block or reverse recent transactions. A majority of users can also put pressure for some changes to be adopted. Because Bitcoin only works correctly with a complete consensus between all users, changing the protocol can be very difficult and requires an overwhelming majority of users to adopt the changes in such a way that remaining users have nearly no choice but to follow. As a general rule, it is hard to imagine why any Bitcoin user would choose to adopt any change that could compromise their own money.
Is Bitcoin vulnerable to quantum computing?
Yes, most systems relying on cryptography in general are, including traditional banking systems. However, quantum computers don't yet exist and probably won't for a while. In the event that quantum computing could be an imminent threat to Bitcoin, the protocol could be upgraded to use post-quantum algorithms. Given the importance that this update would have, it can be safely expected that it would be highly reviewed by developers and adopted by all Bitcoin users.
FMZ
submitted by FmzQuant to u/FmzQuant [link] [comments]

InterValue: Analysis Of A New Anti-quantum Attack Cipher Algorithm

InterValue: Analysis Of A New Anti-quantum Attack Cipher Algorithm
https://preview.redd.it/pl9ytli1smd11.jpg?width=900&format=pjpg&auto=webp&s=afd90001218bb19c252f927ef2e292cb788c9a9d
InterValue aims to provide a global value Internet infrastructure. In response to deal with various problems that existing in the present blockchain infrastructure, InterValue optimizes the protocol and mechanism of blockchain technology at all levels, which can achieve the support agreement of value transmission network. At present, the InterValue 2.0 testnet has been released, we designed and implemented a new HashNet consensus mechanism. Transaction speed within one single shard exceeds 280,000 TPS and 4 million TPS for the whole network. Security (anti-quantum attack characteristics) is undoubtedly the highlight of InterValue under the goal of establishing a low-level infrastructure for the whole field of ecology.
What is the quantum attack?
Quantum computing is a new way of building computers—using the quantum properties of particles to perform operations on data, it is probably the same way as traditional computers. In some cases, the amount of algorithmic acceleration is unusual. It is this characteristics that makes some difficult problems that exist in the electronic computer environment become easy to calculate in the quantum computer. This superior computing power of quantum computers has influenced the security of existing public key cryptography which based on computational complexity. This is the quantum attack.
What does anti-quantum attack mean?
Algorithms have always been the underlying core of blockchain technology. Most of the current algorithms are unable to withstand quantum attacks. It means that all the information of the user will be exposed to the quantum computer. If you have an anti-quantum attack algorithm, it means that the personal information is safe, at least with current technology, it cannot be cracked. Anti-quantum attack algorithms mean security. The impact of quantum attacks on digital currencies is devastating. Quantum attacks directly disrupt existing information security systems. Quantum attacks will expose the assets in the digital industry, including the benefits of mining; the keys to your wallet will be cracked and the wallet will no longer be secure. Totally, the existing security system will be disintegrated. Therefore, it is imperative to develop anti-quantum attack algorithms in advance. It is a necessary technical means to firmly protect the privacy of users.
InterValue uses a new anti-quantum attack cryptographic algorithm at the anti-quantum attack level. By replacing the ECDSA signature algorithm with the NTRUsign signature algorithm that based on the integer lattice, and replacing the existing SHA series algorithm with the Keccak-512 hash algorithm, the speed, and threats of the rapid quantum computation decrease.
Adopt NTRUsign digital signature algorithm
Current ECDSA signature algorithm
The current blockchain mainly uses the ECDSA digital signature algorithm based on elliptic curve. The signature algorithm: First, the public-private key pair needs to be generated, the private key user keeps it, the public key can be distributed to other people; secondly, the private key pair can be used and a specific message is signed; finally, the party that owns the signature public key is able to verify the signature. ECDSA has the advantages of small system parameters, fast processing speed, small key size, strong anti-attack and low bandwidth requirements. However, the quantum computer can implement a very efficient SHOR attack algorithm by ECDSA signature algorithm, and the ECDSA signature algorithm cannot resist the quantum attack.
Adopt new NTRUsign-251 signature algorithm
At present, the public key cryptosystem against quantum SHOR algorithm attacks mainly includes public key cryptography that based on lattice theory, code-based public key system represented by McEliece public key cryptosystem and multivariate polynomial represented by MQ public key cryptography. The security of McEliece public key cryptosystem is based on the error correction code problem, which is strong in security but low in computational efficiency. The MQ public key cryptosystem, that is, the multivariate quadratic polynomial public key cryptosystem, based on the intractability of the multivariate quadratic polynomial equations on the finite field, has obvious disadvantages in terms of security. In contrast, the public key encryption system based on lattice theory is simple, fast, and takes up less storage space. InterValue uses the signature algorithm based on the lattice theory NTRUSign-251. The specific implementation process of the algorithm is as follows:
https://preview.redd.it/uzuqi589smd11.png?width=762&format=png&auto=webp&s=29670c99027fdcebadca64730ef2e3862f960192
It has been proved that the security of the NTRUSign-251 signature algorithm is ultimately equivalent to finding the shortest vector problem in a 502-dimensional integer lattice, but the SHOR attack algorithm for the shortest vector problem in the lattice is invalid, and there is no other fast solutions under the quantum computer. The best heuristic algorithm is also exponential, and the time complexity of attacking NTRUSign-251 signature algorithm is about 2168. Therefore, InterValue uses NTRUSign-251 algorithm that can resist SHOR algorithm attack under quantum computing.
Adopt Keccak512 hash algorithm
The common anti-quantum hash algorithm
The most effective attack methods for hash algorithm under quantum computer is GROVER algorithm, which can reduce the attack complexity of Hash algorithm from O (2^n) to O (2^n/2). Therefore, the current bit adopts the Hash algorithm PIREMD160 whose output length is only 160 bits, under this circumstance, quantum attacks algorithm used in the currency system is not safe. An effective way of resisting quantum attacks is to reduce the threat of the GROVER algorithm by increasing the output length of the Hash algorithm. It is generally believed that the Hash algorithm can effectively resist quantum attacks as long as the output length of the hash algorithm is not less than 256 bits. In addition to the threat of quantum attacks, a series of hash functions that are widely used in practice, such as MD4, MD5, SHA-1, and HAVAL, are attacked by traditional methods such as differential analysis, modulo difference, and message modification methods. Therefore, blockchains’ Hash algorithm also needs to consider the resistance of traditional attacks.
Winning the hash algorithm Keccak512
Early blockchain projects such as Bitcoin, Litecoin, and Ethereum used SHA series Hashing algorithms that exist design flaws (but not fatal). Recently, new blockchain projects have been adopted by the National Institute of Standards and Technology. The SHA-3 plan series algorithm is a new Hash algorithm.
InterValue adopts the SHA-3 plan's winning algorithm Keccak512, which contains many latest design concepts and ideas of hash function and cryptographic algorithm. It is simple in design, which is convenient for hardware implementation. The algorithm was submitted by Guido Bertoni, Joan Daemen, Michael Peters, and Giles Van Assche in October 2008. The Keccak512 algorithm uses a standard sponge structure that maps input bits of arbitrary length into fixed-length output bits. The speed is fast, with an average speed of 12.5 cycles per byte under the Intel Core 2 processor.
https://preview.redd.it/zwfzybeasmd11.jpg?width=724&format=pjpg&auto=webp&s=e0710e7fb1f80b7aa6517a296e2cadd6a51bd4c8
As shown in the figure, in the absorption phase of the sponge structure, each message packet is XORed with the r bits inside the state, and then encapsulated into 1600 bits of data together with the fixed c bits to perform the round function f processing, and then into the squeeze. In the extrusion phase, a hash of n-bit fixed output length can be generated by iterating 24 cycles. Each loop R has only the last step round constant, but the round constant is often ignored in collision attacks. The algorithm proved to have good differential properties, and until now third-party cryptanalysis did not show that Keccak512 has security weaknesses. The first type of original image attack complexity for the Keccak512 algorithm under quantum computer is 2^256, and the second type of original image attack complexity for the Keccak512 algorithm is 2^128, so InterValue combined with the Keccak512 algorithm can resist the GROVER algorithm attack under quantum computing.
Written in the end
Quantum computing has gone through 40 years from the theory to practice. From the emergence to the present, it has entered the stage of quantitative change to qualitative change in technology accumulation, business environment, and performance improvement. For the blockchain, the most deadly part is not investor's doubt, but the accelerated development of quantum computers. In the future, quantum computers are most likely to subvert the traditional technical route of classical computing and have a larger field of development. We are sympathetic to its destructive power to the existing blockchain, and we look forward to helping the entire blockchain industry to shape a new ecosystem. On the occasion of entering the new "quantum era, trusting society", the InterValue team believes that only by fully understanding the essence of quantum cryptography (quantum communication) and anti-quantum cryptography, can we calmly stand on a high level and arrange the outline.
submitted by intervalue to u/intervalue [link] [comments]

The Power of Compounding Interest - Crypto Auto Bot Investing in Bitcoin Inside a Bitcoin mine that earns $70K a day - YouTube Can the Google Quantum Computer Hack Bitcoin? Commutator Brackets of Operators  Lecture 14  Quantum Mechanics How calculate SCF, Band structure and Density of state ...

They are using quantum mechanics properties, as photon polarization or the electron spin quantum number while standard computers are storing and computing data through the binary system. In some cases, a quantum computer is able to compute much more quickly than a standard computer . In the fall of 2019, Google has claimed they proved to have the quantum supremacy by performing the specific task via a quantum computer. That task is a hard nut to crack for the usual computers ... Ripple CTO David Schwartz says quantum computing poses a severe menace to the way forward for cryptocurrency. On the Fashionable. Ripple Govt Says Quantum Computing Will Threaten Bitcoin, XRP and Crypto Markets – This is When - Banking. Banks ... A quantum computer would need to be able to break your key in the short time between when your transaction is first sent and when it gets into a block. It will likely be decades after a quantum computer first breaks a Bitcoin key before quantum computers become this fast. All of the commonly-used public-key algorithms are broken by QC. Bitcoin Is An Alternate Financial System In The Making Alternatively, Bitcoin has been operating exactly as designed and underwent “quantitative hardening” for the third time when its ...

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The Power of Compounding Interest - Crypto Auto Bot Investing in Bitcoin

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