CryptoNote Development status Active Written in,,, Website CryptoNote is an protocol that powers several decentralized privacy oriented. It aims to be an evolution of the ideas behind. [ ] The main difference between the two technologies is that Bitcoin (and most digital currencies) is less opaque than CryptoNote-based currencies due to the latter's being almost anonymous, contrary to non-Cryptonote blockchains. CryptoNote currencies use a distributed public ledger that records all balances and transactions of its in-built currency like Bitcoin. Unlike Bitcoin, CryptoNote's transactions cannot be followed through the blockchain in a way that reveals who sent or received coins. The approximate amount of a transaction can be known, but the origin, destination, or actual amount cannot be learned.

The only information available is that the actual amount was lower than the displayed amount. The only people with access to the whole set of data about a transaction are the sender or receiver of the transaction and the person who possesses one or both secret keys. Another significant difference is CryptoNote's -based algorithm. Bitcoin uses, which is a CPU-bound function. That means that participants (miners) are only limited by their calculation speeds, and it is relatively cheap to create an (ASIC) device, which will surpass an ordinary computer in hashes per unit of money. CryptoNote uses, which cannot be easily. CryptoNote codebase is not from Bitcoin's, so it also has other different inner algorithms, for things such as recalculating new difficulty level or new block size.

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Contents • • • • • • • • • • • • • • • • • • • • • Origins [ ] CryptoNote technology was first described in a whitepaper CryptoNote v 1.0. [ ] An updated version has been released under the name CryptoNote v 2.0 [ ] later.

The Bytecoin cryptocurrency was the first one where the underlying cryptographic protocol has been implemented. CryptoNote was at first developed in for faster launch, and then re-written in in 2013. [ ] CryptoNote is based on many early works and protocols and takes into consideration several issues raised formerly. Below is a list of the most important papers and events that influenced CryptoNote: • 1983 – described by; • 1997 – (an instance of a system) invented by; • 2001 –,, and Yael Tauman proposed ring signatures to the cryptographic community; • 2004 – Patrick P.

Tsang and Victor K. Proposed using the ring signature system for voting and electronic cash; • 2008 – Bitcoin whitepaper published by Satoshi Nakamoto; • 2011 – An Analysis of Anonymity in the Bitcoin System, Fergal Reid and Martin Harrigan; • 2012 – Destination Address Anonymity in Bitcoin (one-time addresses in CryptoNote).

Anonymous transactions and ring signatures [ ]. The changes in the results of blockchain analysis after implementing the ring signatures. Like Bitcoin, CryptoNote currencies use a consisting of numbers and letters that is derived from user's. Addresses serve as public of the users. However, unlike Bitcoin, CryptoNote transactions hide the connection between the sender's and the receiver's addresses. Sender privacy [ ] To prevent sender identification, CryptoNote groups the sender's public key with several other keys (more precisely, it groups the sender's output with several other's outputs), making it impossible to tell who actually sent the transaction. If are used, all possible senders referenced in the transaction are equiprobable and there is no way to determine the exact used while signing.

This approach does not require dedicated for mixing coins and does not need other users to actively participate in transaction generation (see ). It still assures the network that the original sender has the funds in his or her account to send the transaction like an ordinary signature scheme does.

Instead of proving in manner the fact 'I possess the private key which corresponds to this particular public key' the signer proves 'I possess at least one of the private keys which correspond to this set of public keys'. Receiver privacy [ ] On the receiver's end, the technology generates a new public key for each money transfer, even for the same sender and receiver. With sender's random data and receiver public address it is possible to create a pair of unique private and public keys via. Sender generates one-time for each transfer and only the receiver can recover the corresponding private key (to redeem the funds). No third party can determine if two different transactions were sent to the same recipient.

Double spending protection [ ] Anonymous transactions have a potential problem. Bitcoin and similar currencies use a public ledger to verify that each person sending funds actually has such funds in their account and have not sent it to another user previously.

Since CryptoNote currencies are anonymous, the network must confirm the validity of transactions in another way. CryptoNote solved this problem by using more sophisticated scheme instead of usual ring signature:. The algorithm originally proposed by Fujisaki and Suzuki in 2007 allows to trace the sender of two different messages if they contain the same tag and signed by the same private key. CryptoNote authors slightly simplified the scheme, replacing tag with key and discarding the traceability property.

They called their algorithm one-time ring signature, 'stressing the user’s capability to produce only one valid signature under his private key'. Two different signatures under the same key (a double spend attempt) can be easily linked together, and only one will be stored in the blockchain. The key idea is in using the image of the private key in signing/verification formulas. These are not actual images that would contribute greatly to blockchain bloat, but rather a number, which corresponds to each private key (deterministically derived from it by the cryptographic hash function). The key image cannot be used to derive the private key and public address, but since every key image spent is stored in the blockchain, the network will block any duplicates.

Likewise, any attempt to create a key image would not fit into the mathematical formula during a transaction verification and will be denied. The downside to this is that it would be impossible to identify anyone who attempts to perform a double spend with fraudulent intent or as a result of software or human error. The system, however, will block such attempts. Egalitarian proof of work [ ] The CryptoNote’s proof of work mechanism is actually a voting system where users vote for the right order of transactions, new features in the protocol and honest money supply distribution.

It is important that during the voting process every participant have equal voting rights. Most CryptoNote coins use the CryptoNight algorithm to run their blockchain and secure their networks, the only exception being Boolberry. CryptoNight is a proof-of-work algorithm that mixes (GPU) and (CPU) to create a system resistant to both (ASICs) and fast memory-on-chip devices. This is designed to create a more uniform distribution of coins through the currency's life. DigiByte DGB Money Mining. However, there are some questions about its susceptibility to botnets.

[ ] The algorithm includes: • construction; • -like 2 MB scratchpad with random look-ups (read-write); • 64-bit; • (AES) • Hash functions,,, Adaptive network limits [ ] There are no hard-coded constants in CryptoNote code. Each network limit such as maximum block size, or minimum fee amount is adjusted based on the historical data of the system.

Moreover, the difficulty and the maximum block size are automatically adjusted with each new block. Philosophy [ ] CryptoNote philosophy is built on privacy as a fundamental human right, and. According to the, the CryptoNight algorithm is intended to make the coin adhere to Satoshi Nakamoto's original vision of “one-CPU-one-vote” system. Thus the tremendous advantage GPUs have over CPUs in most cryptocurrencies is considerably decreased in CryptoNight. Whether if this is a good thing or not is debatable.

Current CryptoNote currencies [ ]. Main article: Bytecoin (BCN), not to be confused Bitcoin (BTC), was the first implementation of the CryptoNote protocol launched in July 2012.

Since launching, several improvements have been introduced including transactions and several security updates. In 2013, the original CryptoNote Java implementation was rewritten using. [ – ] The Bytecoin blockchain contains some extra information not directly related to money transfers: several blocks include of universities, educational facilities among other buildings. Blocks generated since August 11, 2012 contain quotes from, by and other authors. On March 31, 2015 Bytecoin developers announced their roadmap for several upcoming releases. The following improvements were mentioned among others:- • payment gateway capable of receiving and sending thousands transactions simultaneously • desktop GUI software (released few weeks later in April 2015 ) • several API layers for integration with other software • blockchain-based aliases system • blockchain-based assets • with embedded language Monero (XMR) [ ]. Bitcoin.it •.

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