June 5, 2018 12:00 am

SundayInterview. Cryptocurrency accessible for all

„At Dash, we have always been focused on making cryptocurrencies accessible to everyone, no matter their technical background. The Evolution platform will help make that happen” – claim Ryan Taylor, CEO, and Robert Wiecko, COO and Head of Project Management at Dash Core Group, in Bithub.pl’s #SundayInterview.

One of the attractors of cryptocurrencies is the alleged anonymity of transactions they’re used for. But this feature is illusory in many cases. Could you explain how so?

The underlying technology behind cryptocurrencies is blockchain, which is the communication protocol between cryptocurrency and counterparties. The open, decentralized ledgers are made to secure transactions in a verifiable and permanent way. Although specific names are not available, the public ledgers create and show records each time money is sent or received, allowing transactions to have „public witnesses.” The integrity of communication is extremely reliable, as the shared database is encrypted, protecting it from tampering, revision, or deletion.

With this, however, one of the attractors of cryptocurrencies is the alleged anonymity of transactions. Transactions are recorded and made public, but they are only linked with an electronic address that cannot be traced. However, contrary to popular belief, Bitcoin and many other types of digital currencies are not anonymous. Bitcoin is pseudonymous. Each identity is tied to a public key, which consists of a long string of numbers that act as a Bitcoin address.

Since blockchain is open-source, there is an incredible amount of data to analyze. It consists of detailed information, including values, time, recipient, sender, and context of each transaction. Because of the data’s accessibility, analysis techniques can be used over a long period of time to uncover the identity of the individual linked to the Bitcoin address.

In Satoshi’s original whitepaper, he recommended Bitcoin users use a new address for new transactions to avoid transactions being linked to users. However, because of multi-input transactions, this cannot guarantee full anonymity.

Unlike Bitcoin and other cryptocurrencies, Dash consists of a two-tier network. One tier is controlled by miners and the second tier consists of several masternodes that perform different types of functions, including InstantSend, PrivateSend, and governance functions. Instead of using a single tier for transaction confirmation, the Dash network uses both – miners and masternodes. The InstantSend functionality allows for users to transfer payments at a much faster speed. The masternodes are also very effective in preventing Sybil attacks. Dash’s privacy system has proved its effectiveness, however, less than 1 percent of users use that functionality.

What kind of work is Dash doing in Venezuela?

Known as the payments digital currency, Dash has focused much of its attention and resources in Venezuela to integrate Dash as a viable and reliable payment option. Venezuela has been suffering from hyperinflation these last few years, and people cannot rely on the national currency. With the collapse in oil prices and nearly two decades of social policies, there has been an incredible recession with one of the world’s largest inflation rates. Because of the high inflation, a majority of Venezuelans are unbanked, underbanked, or simply do not want to use the traditional banking system.

Since the inflation has been alarmingly high, many Venezuelans ……. https://bithub.pl/wiadomosci/blockchain/sundayinterview-cryptocurrency-accessible-for-all/

Author: Przemysław Ćwik
Original link: https://bithub.pl/wiadomosci/blockchain/sundayinterview-cryptocurrency-accessible-for-all/

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