Bitcoin Confidential was first announced more than half a year ago as a SmartCash “sister” coin. It became increasingly clear that the goals of mass adoption and confidential were becoming. In light of this, it was decided to develop a separate cryptocurrency that would perform privacy functions.
If you want to use fast and convenient cryptocurrency for payments that interact with local currencies and regulators, privacy would often need to be removed, making the entire privacy implementation useless. Unfortunately, mass adoption and privacy are often not compatible things. But SmartCash has privacy as a goal! So it was removed from SmartCash and added into a new coin, so they could pursue each goal independently and benefit from mutual innovations, without the risk of overregulation damaging either goal.
However, privacy is important and lately the ability to successfully implement it on a coin has become more possible. Many early coins had struggled with implementing it properly. This is where a new, interesting private coin comes into the story. And its name is Bitcoin Confidential.
Most likely, you have heard about many privacy coins – like Monero or ZCash. Privacy coins have always attract the attention of both investors and people who just want to use cryptocurrency. There are many valid reasons why people do not disclose information about their addresses, transfer amounts, balances, or transaction history.
Privacy is the right of every person. But unfortunately, not all privacy coins are implemented as it should be to fulfill their promise to protect it. That is why the idea of a new coin was developed, which would ensure confidentiality from the genesis block.
Bitcoin Confidential will use the Proof of Stake (POS) consensus algorithm, unlike most privacy coins, which use Proof of Work (POW) from mining. Also, the coin will use the technology of Ring Confidential Signatures and enforce privacy from the genesis block. This means that the coin will be completely fungible. All coins will be equal to any other coins in the network.
The idea of ring signatures is to provide an ongoing process of hiding any visible connection between the sender and the recipient of any transaction. All transactions in the network will go through this process, starting with the genesis block. Also, in the new coin the transaction amounts will be hidden with RingCT technology required. In addition, the technology provides an additional level of stealth for addresses.
I would also like to emphasize that one of the features of the new coin is the use of the latest Bitcoin code for maximum compatibility and the possibility of adding new functions. This helps with increased rate of adoption by 3rd parties and other platforms.
What we have?
Thus, soon we will see released a very interesting coin, one which will definitely take its place among those with a privacy focus and feature set. How this unfolds will be interesting. It has a unique value: it will be the first private coin with all the following important features: PoS algorithm, without a trusted setup and with RingCT enforced from the genesis block.
In addition, one of the advantages of Bitcoin Confidential I see is a strong and proven team from SmartCash. So there is no doubt that the project will continue to develop and will open up new ways for use.
The only way to get this new coin early is to be a SmartCash holder on your own wallet (not an exchange or TipBot) and participate in a snapshot that will take place on December 15th. Actually, this is the first tweet in a long time, from which we learned that the project was not standing still and is almost ready to launch:
In general, I look forward to the moment when I can send the first transaction! It will be an interesting experience, and I expect it to be much easier than other coins. I am sure that this coin has very long plans for the future! Probably, it will be able to replace many of the current privacy coins. However, we will see in time what happens, but I think the road ahead is positive!