Jimmy Nguyen: The Bitcoin world needs more positivity

Jimmy Nguyen: The Bitcoin world needs more positivity

CoinGeek.com’s Becky Liggero sat down with Jimmy Nguyen, CEO of the nChain Group, for an interesting discussion about collaboration and positivity, and how these factors will ignite the growth of Bitcoin Cash.

Since it split from the legacy Bitcoin (BTC) chain more than half a year ago, things don’t appear to be slowing down for Bitcoin Cash. And the cryptocurrency, which is considered the true Bitcoin as intended by the Satoshi Nakamoto white paper, can thank various groups for its growth.

One of the organizations working tirelessly to spur and ignite the growth of Bitcoin Cash is blockchain technology research and development firm nChain Group. CEO Jimmy Nguyen tells us in an interview that nChain currently has four business units: the first is nChain Limited, which focuses on blockchain research and development; there’s also the IP, holding and commercialization company called nChain Holdings; followed by an investment vehicle, called the nChain Reaction; finally, there’s nCrypt, formerly known as nTrust, which is the consumer-facing business of the group operating a Bitcoin wallet and exchange.

“Our business is set up with a very simple mission, which is we are designed to use our resources and our technology and our research to help enable the growth of Bitcoin Cash in particular, because we believe that it is the true Bitcoin,” Nguyen said.

In his role as the chief executive, Nguyen has already mapped out what he needs to do for nChain’s next chapter, which boils down to three things—take concrete actions, forge stronger relationships, and more importantly, foster positivity.

“There’s been a bit of negativity, which is an understatement, in Bitcoin for a number of years. I’m a person who always thinks on the bright side. I carry with me every day a positive attitude and I want to help inspire the people around me,” Nguyen said. “I believe the Bitcoin world needs more positivity, and I hope that our business can help provide that.”

Nguyen, who joined nChain after a 21-year career as an intellectual property and digital technology lawyer, isn’t just talk. In the past few months, the group has been partnering with organizations, groups and companies in the Bitcoin BCH ecosystem. These include collaborations with Bitcoin Unlimited as well as supporting and funding the Gigablock Testnet Initiative, all in the name of big blocks.

“We like big blocks at nChain, and we cannot lie,” Nguyen said. “Those are the various steps we’re doing to support what’s needed first: building the infrastructure and the backbone of a larger scaled network. Getting it to the average person on the street on a broader basis will come after that.”

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.
Dr. Craig Wright: We're bringing Bitcoin BCH back to fungible cash

Dr. Craig Wright: We’re bringing Bitcoin BCH back to fungible cash

The next upgrades in the pipeline for Bitcoin Cash (BCH) will finally pave the way for people to start treating the cryptocurrency as what it is supposed to be—cash. And a fungible one at that.

That’s the declaration made by Dr. Craig Wright, chief scientist at blockchain research and development firm nChain Group, during a recent talk as part of the “We are Fascinating Project” series in London.

“We’re collaborating with a lot of groups at the moment. We’ve just announced the Electrum Cash project which is going to sort of increase private transactions fungibility and much more within Bitcoin (BCH), so what that will actually allow is people to start treating it as cash,” Wright said. “We’re going to make it back to fungible cash.”

Currently, Bitcoin Cash development groups like Bitcoin ABC are gearing up for a series of protocol upgrades happening every six months starting May 2018, which will see the developers re-enabling a whole host of opcodes in the scripting language, among other things. Restoring the opcodes is important for the network because they will enable Bitcoin Cash to become more than just a currency.

“We’re going to re-enable all those things people used to get excited about Bitcoin for: tokenization, the ability to make either divisible or non-divisible shares at your choice, bonds, futures, derivatives, things that actually make smart contracts that tied to [investment] vehicles, things that allow you to trade over time,” Wright said.

Essentially, the opcodes will allow Bitcoin Cash to have more complicated functionality so that it can also power smart contracts along with other functionalities that will drive up the cryptocurrency’s usage.

“We’re going to re-enable a whole lot of opcodes. We’ve got people in my team at the moment working on that. They’ve already started uploading on Github and other such things,” the nChain chief scientist said.

Not the be-all and end-all of Bitcoin Cash

nChain may be at the forefront of the push for a Bitcoin Cash world, but CEO Jimmy Nguyen is quick to point out that the group is all about collaborating with groups, people, and companies around the world to ensure that their goal of making a Bitcoin Cash-enabled global ecosystem will be a success.

In fact, nChain has already formed partnerships with several organizations and invested in ventures offering products and applications that made Bitcoin Cash more usable, easily as electronic cash on a global basis. The group’s first two investments, made via its investment arm nChain Reaction, were social network Yours.org and South African wallet provider Centbee.

“We at nChain group do not intend, have no desire to be the be all and end all of Bitcoin Cash,” Nguyen said.”We recognize that for it to be successful, we’ll take the collaboration and efforts of groups, companies, people all around the world. And what we’re doing is using our resources and innovation to try and spur and help other people to create and develop the things that’ll be necessary. We’ll be creating some of the things ourselves but our mission really is to enable a spark that goes on across the world so that there’s a thriving community of groups that are contributing to Bitcoin Cash’s success.”

Watch Dr. Craig Wright and Jimmy Nguyen talk about “A Bitcoin Cash World” here:

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true  Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.
Japan’s SBI Crypto mines first Bitcoin Cash block

Japan’s SBI Crypto mines first Bitcoin Cash block

After announcing in late 2017 that it will create a division dedicated to financing and supporting cryptocurrency research and development in a strategic partnership with nChain, SBI Crypto, SBI Group’s division focused on the emerging technology, has mined its first Bitcoin Cash block. The mined block was processed with Bitcoin.com’s mining pool at block height 516918.

SBI Group (Strategic Business Innovator Group) is one of the major players in the financial services sector in Japan. Yoshitaka Kitao, representative director, president & CEO of SBI Holdings, Inc. previously said: “The vision of the original Bitcoin white paper written by Satoshi Nakamoto calls for a peer-to-peer electronic cash system. That is a powerful vision, and SBI Group will devote resources to enable a future world where Bitcoin Cash is used globally for daily payments.”

SBI Crypto was established on August 2017 to anticipate and prepare for Bitcoin Cash mining overseas. SBI Crypto operates under SBI BITS Co., Ltd., a financial technology provider which in turn is a subsidiary of SBI Holdings, Inc. nChain Global and SBI Group’s combined expertise in the financial and technological sector emerges in support of the growing Bitcoin Cash community, growing and linking its ecosystem through on-chain scaling, enabling faster-than-lightning transactions with low fees over reliable confirmation times.

SBI Group’s cryptocurrency ecosystem is currently undergoing development and will feature an exchange platform, hedge fund management, financing and mining, a rating and information service for ICOs and other platforms, payments and remittance services to and from Japan, as well as a derivatives market spread in its portfolio.

The historic milestone arrives in relation to SBI Group’s recent launch of a $450 million AI and blockchain venture capital fund. With established organizations such as SBI Group and nChain working alongside independent developers and community volunteers, the Bitcoin Cash ecosystem is experiencing a major upheaval in terms of utility and adoption, empowering, connecting, and enabling more people worldwide.

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true  Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.
South African media puts the spotlight on wallet provider Centbee

South African media puts the spotlight on wallet provider Centbee

Centbee, a Bitcoin wallet provider that aims to make global payments straightforward and easy, is making its name known in South Africa, with a little help from local media outlets.

Recently, CGTN Africa’s Global Business featured how Centbee is helping South African expats send money to their family back home. According to host Angelo Coppola, remittances are a huge contributor to the GDP of many African countries—and the Centbee wallet could be a neat solution.

The South Africa-based company is founded by co-CEOs Lorien Gamaroff, an expert in blockchain technologies and cryptocurrencies, and Angus Brown, who has 20 years of experience in payments and banking. Together, the two are building not just a wallet, but an entire ecosystem that uses Bitcoin Cash.

“Customer remittances are very high, especially within Africa, people have to pay very high customs, very inconvenient, very difficult for them to move money conveniently, so this really does offer a much simpler, quicker and more trustworthy solution for them,” Gamaroff told the English-language news outlet.

With its promise of delivering a game-changing ecosystem replacement, Centbee has attracted high-profile investors from the blockchain field. Blockchain research and development firm nChain Group has already taken an equity stake in the South African company through its investment entity nChain Reaction Ltd. Jimmy Nguyen, CEO of the nChain Group, described Centbee as “one of the most user-friendly Bitcoin wallets and merchant payment solutions” that “smartly embraces Bitcoin Cash.”

Testing the wallet, including moving Bitcoin Cash across borders, has been underway for several months now. The Centbee founder said they’ve already started talking with retailers, and are eyeing technical integration as their next step.

“This year is about actually taking pilots live, planning out with customers, like, what customers don’t like, learn from that and then grow,” Brown said. “It’s still early days, there’s still a lot to learn. We have to learn a lot, the regulators do learn a lot, we still got to work with the customers. But we’re comfortable that we’ve understood the risks and we’ve understood how to make a really good business product that works for customers, that is still regulatory compliant and is doing the right thing for people.”

The technology can be quite daunting, but interest levels are high continentally, so creating a potential market for Centbee has essentially been taken care of, according to the company executives.

“Africa and South Africa specifically has been shown to be very interested if you just look at Google trends, you know South Africa is consistently in the top five countries that are very interested in cryptocurrencies so I think what we have is a very welcoming market,” Gamaroff said.

“I think a lot of people don’t know what Bitcoin is, and because if you don’t know about something is, or if you’re scared of it, you know, what should you do, so we’re also in the business of educating people, educating merchants, educating the regulators, the payment system operators, everybody how this can actually work,” Brown said.

Watch the video here.

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true  Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.
Centbee to deliver a game changing eco-system replacement

Centbee to deliver a game changing eco-system replacement

Centbee to deliver a game changing eco-system replacement

You may have read some press releases concerning nChain Group taking equity stake in Centbee, a Bitcoin wallet provider that aims to make global payments straight forward and easy.

Centbee, headed by co-CEOs Lorien Gamaroff and Angus Brown, come with a wealth of experience from within the financial sector itself, covering online banking development, merchant systems, retail banking, and extensive work with regulators, and much of which has been done in the digital space. All things that are abundantly important in taking Bitcoin Cash to the next level.

What hasn’t been reported in any extensive detail so far is just what the fruition of the Centbee and nChain deal is going to be.

In my discussion with Mr Brown, I specifically asked questions concerning the functional outcomes of this project. We know nChain’s investment is a large undisclosed sum. There’s more to this than just a wallet. I went digging.

Astonishingly, I’ve found the very work Centbee are doing, is precisely what the Bitcoin (BCH) eco-system needs – and desperately.

When Dr Craig Wright tweeted “Expect some BIG things this January with BCH. The crypto world is about to change and grow up.” He was onto something… because he had seen what Centbee had been working on.

Mr Brown says his time in banking has been building digital offerings and digital banks. “Centbee is the next generation of where banking is going to be. A lot of we do replaces what banks do, but with next generation models. I have good insight of how [banks] do it all. And I understand merchants, point of sale systems… we implemented all this for Mercantile. We know what banks do and don’t do.”

Brown was actually the Chief Information Officer over at Mercantile bank. His knowledge on the subject comes from profound experience. He states “I have a good relationship with the regulator… I know how the reserve bank works, I know the payment industry really well… it’s given us really good context to build Centbee.”

So how do you get banks, and regulators involved? Sure enough one of the most challenging things concerning Bitcoin has been getting trust from the institutional banking sector. “Regulators get scared of Bitcoin, and it’s because of the risk that they see… we know how to help the regulator get over the risk, we’ve been working on addressing those very things they are concerned with.”

It dawned on me that what Centbee are building – is far beyond being just a wallet. In fact, it is an entire eco-system being built using Bitcoin Cash, from the top down.

“The wallet is the easy part, most of that’s already done and we’ve been working on the user interface now trying to make it ‘slick’” said Brown. Lorien Gamaroff who leads much of the coding specialties has also done a lot of work from a user interface and experience point of view. Brown says of Lorien that “he has design flair… he even once worked at an ad agency as a director… He has a good sense of user interface… I’ve also built 6 digital banks, I understand what to do and what not to do”. Certainly however, one of the most frustrating things about Bitcoin is that it can be difficult to get money into it – with all the commotion of verifications, exchanges and the like… but Brown says “We are going to change all that and make that really easy…”

In South Africa, one interesting piece of technology that is used is called “Authenticated Mobile Transaction” or AMT. It is a standard payment method there that Brown says they can leverage to allow customers to enter debit number and do authenticated debit that is non-disputable. Using authenticated debit card transactions takes the risk away from the business. “Debit cards are popular in South Africa, so that’s the first step” he said.

So, what makes this wallet so special and so easy to use? “Contact integration is the killer use case”. Centbee have devised a method where it is super easy to send anyone an amount of money. They don’t even have to have the app installed, and in fact, they don’t even need a Bitcoin wallet at all. The app cleverly notifies a user and advises them to get the wallet to claim their money if they have any sent to them. This is a sorely needed function for wallets, and Centbee addresses this.

Brown kept going back to “WhatsApp”. The idea is that Centbee should have its ease of use, modelled after something like WhatsApp. “Sending money should be as easy as sending a message on WhatsApp” he said.

The other interesting area that Centbee are looking at concerns sending every day money. That sounds glaringly obvious, and Brown even laughed when he said it, but allow us to elaborate. Right now, there is a legitimate inaccessibility to send money across the country, or to neighbouring countries. The existing methods are either far too expensive, or just unreliable. Centbee tackles this problem by enabling citizens to be able to send a sum of money instantly, that is, fiat to fiat.

Picture that, a solution that makes money transfer so easy, that you don’t even know that you’re using Bitcoin Cash. Brown explains that Bitcoin Cash in this case works as the medium of transfer. Ofcourse that’s not the way it’s going to remain, as adoption grows, more and more people may choose to receive BCH instead of fiat.

Usability is key with all of this. Accessibility has been thought through to the n’th degree that even grandma can use it. Brown said “this is a real important human problem to be solved, especially here in South Africa, where there is a real need”.

But Centbee’s clever approach is multi-faceted, as Brown explains: “Next we want to allow people to buy Bitcoin from merchants. And we can do this using Gift cards that you see in malls, so we can have Centbee cards that can be purchased with cash.”

“Merchants are actually the key to this… When we were talking to the guys at nChain, we said that you have to have consumers, and we have got some great ideas.”

At this point I ventured into confidential territory and I wasn’t preview to too much further than this. But Brown did highlight an interesting strategy their business is taking to embark on this mission. “rather than approaching every merchant one by one, we are doing it by going straight to the ‘integrators’” – that is to get them to onboard BCH integration at the top level and have it filter down. “I can’t disclose too much, its strategic” said Brown.

There was a lot to this conversation, but I’ve touched on many points that I think are pivotal. This is one giant project that addresses a plethora of weaknesses within the current framework for working with Bitcoin (BCH). If they can pull this off – and I totally believe they are going to, then this will be a catalyst in the mission to revolutionise Bitcoin Cash and really thrust it into the mainstream.

Interestingly, this is the first time I have come across a major Bitcoin related project that is spearheaded by tremendous institutional knowledge and prowess. The team at Centbee understand the entire business model from customer to merchant and to bank. Most crypto related projects are generally controlled by developers who have very little to no understanding and exposure to the established institutions. If you want Bitcoin in the mainstream, you need two thing… first its ease of use, and second it is integration into existing systems and processes in the most efficient way possible. Centbee are doing just that. And for once, it’s not the tail wagging the dog. When you let developers dictate the functions of a system, then you end up the way ‘Bitcoin Core’ did in 2017, where Bitcoin actually lost merchant count for the first time in its history.

Eli Afram
@justicemate

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true  Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.

Centbee, South Africa-based Bitcoin wallet and merchant payment ecosystem, attracts funding from nChain

JOHANNESBURG, SOUTH AFRICA Jan. 29, 2018  —   nChain Group, the leading blockchain research and development firm, has taken an equity stake in Centbee, a Bitcoin wallet provider that makes it easy for a global consumers to acquire, hold and spend Bitcoin with retailers and other merchants.  The funding deal was made through the nChain Group’s investment entity, nChain Reaction Ltd.

Based in South Africa, Centbee was founded by co-CEOs, Lorien Gamaroff and Angus Brown. Gamaroff is a leading expert in blockchain technologies and cryptocurrencies. He has consulted and advised regulators and corporates internationally and is highly regarded globally as an educator and presenter. Brown has 20 years’ experience in payments and banking including the role of CEO of eBucks, a world first bank-backed digital currency created in 2000.

“Centbee will be rolling out mechanisms for merchants to accept Bitcoin Cash payments more cheaply and securely than current bank payment systems without exposure to price volatility,” says Brown. “In addition, we will help consumers move money simply and cheaply across borders to support family and friends. We have been working closely with regulators in South Africa and other jurisdictions to educate and inform and to address any regulatory risk.”

Gamaroff explains that, “In addition to providing financial investment, nChain’s research, intellectual property and deep technology expertise will enable Centbee to become a functional and secure wallet provider which will open up Bitcoin Cash merchant payments to a global market.”

nChain Group CEO Jimmy Nguyen remarks: “Centbee has one of the most user-friendly Bitcoin wallets and merchant payment solutions we have seen.  It smartly embraces Bitcoin Cash because its bigger blocks, low fees and fast transaction network represent the true vision of Bitcoin.  We look forward to supporting Centbee as it sparks greater merchant and consumer adoption of Bitcoin Cash in sub-Saharan Africa and beyond.”

nChain Reaction financially backs products and applications that make Bitcoin Cash more globally useable as peer-to-peer electronic cash.  The Centbee deal represents nChain Reaction’s second Bitcoin Cash-enabling investment within the past month.  As announced in mid-January 2018, nChain Reaction previously participated in a USD $1.5 million Series A funding round for Yours.org, the Bitcoin Cash-based social network.

The Centbee Wallet becomes available in the Apple and Google Play stores in 2018.

CONTACT:

For media enquiries directed to Centbee, please email [email protected] or call +27 83 445 1897.

Website:  centbee.com

Twitter:  @CentbeeWallet

For media enquiries directed to nChain, please email [email protected]

or contact Infinite Global at:

Matthew Gilleard (Infinite Global, EMEA)
+44 (0)207 269 1430

Jamie Diaferia (Infinite Global, US/ASIA)
+1.212.838.0220

Website:  nChain.com
Twitter:  @nChainGlobal

ABOUT NCHAIN GROUP: The nChain Group is the global leader in research and development of blockchain technologies.  Its mission is to enable massive growth and worldwide adoption of the Bitcoin network – focusing on Bitcoin Cash as the true Bitcoin.  The nChain Group includes four business units:  1) nChain Limited – a blockchain research and development business in London, United Kingdom; 2) nChain Holdings Limited – a intellectual property holding and commercialization company; 3) nChain Reaction – an investment entity which supports other Bitcoin and blockchain emerging companies; and 4) nCrypt – a Bitcoin wallet and exchange in Canada.  (nCrypt is currently known as nTrust, but will be re-branding in early 2018 to reflect its move to focus on Bitcoin).

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true  Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.
Crypto regulation is coming and it’s OK

Crypto regulation is coming and it’s OK, says nChain CEO

Traditional banking has its days numbered given the steady growth of Bitcoin, whose underlying technology promises to cut out the middleman—along with their outrageous fees—and help secure transactions using a distributed ledger system, resulting in decentralized transactions with relatively low fees.

The lack of central exchange is putting many governments in a bind, resulting in regulations that seek to stifle the growth of the cryptocurrency sector. Regulations, however, are not all bad, said Jimmy Nguyen.

During the recently held Blockchain& Bitcoin Conference Philippines, the CEO of blockchain research and development outfit nChain Group discussed how the eCommerce sector will change with the advent of cryptocurrency, specifically Bitcoin Cash (BCH), which is considered the true remaining Bitcoin as intended by the original Satoshi Nakamoto white paper.

And one of the five keys needed to achieve a Bitcoin commerce (bCommerce) world is “sensible regulation,” according to Nguyen.

“A lot of people in the crypto community are afraid of law and regulation. They think that the Bitcoin world shouldn’t be regulated,” the executive said. “The reality is you can’t regulate the network because it’s decentralized but all of the companies including people in this room who operate businesses interfacing with Bitcoin and real life consumers, I’m going to tell you, regulation is coming and it’s OK. You should be thankful for it, [as] it would normalize and support the industry.”

Sensible regulation

To be considered “sensible,” regulations must incorporate two things, Nguyen said.

First is that governments need to recognize cryptocurrencies as a legal form of payment and tender, which, in turn, will compel crypto companies to register and comply with know-your-customer (KYC) and anti-money laundering (AML) requirements. Such was the case in Japan, which is the first country to formally recognize virtual currencies like Bitcoin as legal tender.

“Why is that a win? It’s because it increases the trust of consumers as well as businesses in Bitcoin when the government says this is a legal form of payment and tender, and it also increases adoption by merchants. And we’re seeing that because just last year, Japan has seen a number of its major retailers start accepting Bitcoin in light of this,” Nguyen said.

The second component of a sensible regulation is a clear definition of what it does and does not cover.

An example of this is New York’s BitLicense, which was introduced in June 2015 shortly after the collapse of Japan-based Mt. Gox. The license defines virtual currency businesses based on their activities—storing, holding, maintaining custody of a virtual currency, and performing exchange services. But what about providers that supply technology in the backend to an exchange? Do they also need a license?

“There’s always grey areas when you’re regulating and writing laws and I think it would be helpful for governments who are actually creating these BitLicense or business licenses to start describing or publicly saying what they do not cover to eliminate grey areas,” Nguyen said.

Judicious regulations will give virtual currency providers room to act, and also pave the way for industry stakeholders to try educate regulators and legislators that there are other types of financial services out there that “could change how people, businesses, and money operate.”

“It’s an exciting world. It’s a world that really could change how people, businesses, and money operate. And in a way, even mothers and grandmothers—even my mother who’s now a grandmother—could hopefully be sending Bitcoin Cash through her mobile phone. I’ll have to help her, but one day, I want to be able to send it to someone in Vietnam or somewhere around the world. I think that’s a powerful and beautiful vision,” Nguyen said.

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true  Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.
nChain has released an “anti-Goxxing” mechanism

nChain has released an “anti-Goxxing” mechanism

nChain now has a plethora of inventions for scaling and securing blockchains.

While the whole blockchain and cryptocurrency word war has been raging all year-round, developers have been quietly working behind the scenes. nChain, which is a member of the Bitcoin Cash developer community, has broadened their artillery for mass scaling and securing the blockchain. In this article, we delve into their first two inventions: deterministic key generation and the secure split key technique. We will be looking into the rest of the tools in separate posts.

In their blog, nChain CEO Jimmy Nguyen says they may have the answer to gaining business and consumer confidence—which is one of the most crucial yet arduous preconditions for mass adoption. Researchers from nChain have devised mechanisms to help ensure the security of private keys and digital wallets as a whole, protecting users and businesses from being “Goxxed” again. And according to the post, the potential uses go far beyond financial applications.

“These techniques can be used to secure a digital wallet so that no Mt. Gox-type hack could ever succeed again.  But these inventions can do far more; they can secure any digital data, asset, communication or controlled resource, making their potential uses countless as our world and devices become increasingly digitized,” Nguyen wrote.

The new mechanism employs a combination of two techniques.

  1. Deterministic Key Generation technique

The first part to the mechanism employs a more complex “shuffling” of both the private and public keys of the users involved in a transaction, further jumbling up the keys to a point that is much farther beyond recognition. The full paper on this technique, titled “Determining a common secret for the secure exchange of information and hierarchical, deterministic cryptographic keys,” can be found here.

Under nChain’s deterministic key generation, the shuffling of the keys is more complex:

  • A pair of nodes on a network (e. parties), each of which has its own private key and public key, exchange their respective public keys while keeping their private keys secret.
  • They also exchange a message.
  • They then agree between them a deterministic key which is based on the message. The key is “deterministic” in that the same key will be produced upon multiple executions of the key generation algorithm.
  • Each node then determines:
    • an updated version of its own private key, based on its existing private key and the deterministic key, and
    • an updated version of the other node’s public key, based on the other node’s existing public key and the deterministic key.

This may be achieved by applying a neat mathematical process to the existing private key and the deterministic key.

  • Each pair of nodes then determines a common (e. shared) secret on the basis of its own updated private key and the other node’s updated public key. As the deterministic key is based on a shared message and is therefore common to both nodes, the same common secret can be determined by both nodes, but by means of a combination of different updated private and updated public keys. This common secret can then be used as the basis for secure communication between the nodes.

This can be illustrated as follows:

nChain has released an “anti-Goxxing” mechanism

This significantly distances the resulting final hashes from the original keys and shuffles them far beyond recognition and decryption. And in this technique there is no need for either party to store or broadcast the resulting “secret,” as both nodes arrive at the same secret from the original message. And there is far less risk associated with the original message being intercepted: “the message does not need to be stored with the same degree of security as the private keys, and in some cases may be publicly available,” Nguyen wrote.

The technique may be useful for several applications beyond finance—and even beyond blockchains as Nguyen notes, particularly in securely sending messages and storing records, as well as controlling IoT devices.

Nguyen says that this technique has some issues, however, such as when one of the nodes involved in the transaction is unavailable. One other issue raised is when a service provider that holds a user’s private keys—such as an exchange, is hacked.

And that’s where the second part of the mechanism comes in.

  1. Secure Split Key technique

The hacking of exchanges is a common and severely costly occurrence in the cryptocurrency industry. Nguyen notes that due to this, “there is a need to store the private key in such a way that it cannot be obtained by an unauthorised party, but can also be reproduced when necessary.”

To secure digital wallets (or other sensitive data), nChain proposes a mechanism using “Shamir’s secret sharing scheme,” in which a key is divided into parts and distributed to different parties—and will not work unless combined. Obtaining one part will not work on its own, and will need a few other parts or even the entirety of the key.

This scheme is then combined with the deterministic key generation technique:

  • splitting a cryptographic key (or a mnemonic seed for a cryptographic key) into a plurality of shares such that it can be restored or regenerated from two or more of those shares. This could be performed using a known cryptographic algorithm called “Shamir’s secret sharing scheme” (4S), which involves splitting the key up into unique parts or shares which are then distributed to different parties.  The shares can be used to reconstruct the key when needed.  Each individual share is of no value or use on its own until it is combined with one or more other shares.  The number of shares required to reconstruct the key can vary according to the needs of the situation.  In some cases, all shares may be required, while in other cases only a sufficient number are required.
  • determining a common secret at two or more nodes on a network (e. parties), and then using the common secret to generate an encryption key which can be used to encrypt one or more of the shares, or a message relating to the share.
  • using the common secret to transmit at least one share of the key between the two or more nodes. These two steps can be performed using the foregoing technique and the Deterministic Key Generation invention described above. The transmission of shares between the parties must be performed in a secure manner because any unauthorised interception of multiple shares could enable the interceptor to reconstruct the key.

The keys are split and the entire private key may be destroyed as it is no longer needed in that form. Separate parties can keep parts of the key and reconstruct them only when needed. In this scenario, a hack like that of Mt Gox would not be feasible even if a hacker succeeds in infiltrating one of the parties involved in safekeeping the key—since that is only a fragment of the entire key needed to siphon funds out. A hack would require that the maligning entity obtain several or all parts of the key—from different sources that have yet to identify beforehand.

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.
Yours.org raises 1.5M USD in funding round led be Bitmain and nChain

Yours.org raises $1.5M in funding round led by Bitmain, nChain

Yours.org is novel idea focusing on getting everyday people paid for doing what they love on social media. That is, earning Bitcoin (BCH) for creating good content, finding good content, and commenting on good content.

Sure enough, the web application has already generated a frenzy of activity, particularly with the BCH community, where micropayments, are not only possible and feasible, but also encouraged.

Ryan X. Charles, CEO and Cofounder of yours.org has on numerous occasions expressed just how much BCH has enabled his business to flourish. Certainly, the site is well known among BCH enthusiasts, for this reason.

Mr Charles along with Dr Clemens Ley (who had discovered Bitcoin was indeed Turing complete), had founded the social media site in 2016 and are planning to hire a team of “the world’s best” with an emphasis on engineering and growth.

The duo now find themselves in excellent position with solid capital to take matters to the next level. Mr Charles was pleased to announce that Yours.org have just closed a funding round raising 1.5M dollars. An effort that was led by Bitmain and nChain, two of the most notable companies within the industry.

In an interview with CoinGeek, Mr Charles made mention that “the $1.5 M will be used for hiring and general product development. There are no “new” projects other than developing our own existing product and achieving massive growth. We believe we are very close to a high level of growth bringing BCH to a mainstream audience this year. We need to work with users and iterate the product as rapidly as possible to do that.”

We’ve already seen many quality submissions at Yours.org – The majority of which are crypto-related. Although other content is there as well… In talking to Mr Charles on future plans to branch out further into other topics and diversify, we asked how they plan to reach the mainstream.

“We are focusing on cryptocurrency first because it is the most natural first use-case for our platform. However, we intend to be fully mainstream this year. Cryptocurrency is a way to get core users who really care about the product in spite of usability problems at this time. They help us identify the most important problems to fix and features to add so that we can reach a mainstream audience. Throughout the year, we plan to get a broad array of content that has nothing to do with cryptocurrency” states Mr Charles.

“We believe the best way to reach a mainstream audience is to get people paid for their work, in Bitcoin Cash… the plan for this is predominantly hands-on whereby we work with our users in different categories to figure out their biggest issues and solve them one at a time. When we believe the product is ready, we can add an affiliate/referral system which will spark massive growth.”

Given the already thriving success of Yours.org, the funding round can only do a power of good for an already established application as this. Branching out to the mainstream (beyond crypto) is pivotal, Ryan & co believe they have the right roadmap, and soon the right “expanded” team to do just that.

For BCH supporters, the return on investment is two-fold. Not only does this help the eco-system and present an excellent use case for BCH, but it drives further adoption and visibility.

Eli Afram
@justicemate

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true  Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.
CoinGeek.com funds Terab project with Lokad and nChain; enabling path to 1 terabyte blocks and 7 million transactions per second for Bitcoin Cash (BCH)

CoinGeek.com funds Terab project with Lokad and nChain; enabling path to 1 terabyte blocks and 7 million transactions per second for Bitcoin Cash (BCH)

CoinGeek.com announces funding of up to 3.6 million Euro to support Terab, an open source initiative that will solve a key technical issue to enable the Bitcoin Cash chain to massively scale to terabyte (1 million megabyte) size blocks and 7 million transactions per second. The Terab project will be managed by Lokad, the French quantitative supply chain technology provider, and will receive technical support from nChain, the blockchain research & development specialist.

One of the major criticisms of Segwit Bitcoin is the apparent inability to scale to the level of transactions that payment networks such as Visa and Mastercard can provide. For cryptocurrencies to be competitive in the global payments space, high volume transaction scaling is vital but, not, as many have suggested, impossible and Bitcoin Cash is now firmly on that road.

The legacy Segwit Bitcoin has shackled its own progress by refusing to allow the current block size cap (1MB) that only allows for 3-4 transactions per second to be lifted and thus has fated the coin to the dustbin of cryptocurrency history. But last October, the BCH community welcomed news that a 1 gigabyte (GB) block was successfully mined and propagated through the Gigablock Testnet Initiative, the collaboration between Bitcoin Unlimited and nChain.

Envisioning an even bigger future, Lokad founder, Joannes Vermorel has recently advocated that terabyte-size blocks are viable – but only on the BCH chain. A single terabyte block (added every 10 minutes) can contain about 4 billion Bitcoin transactions, and provide capacity of 7 million transactions per second. The scale of a network with 1 TB blocks would be immense, and enable BCH to power not just monetary transactions but machine-to-machine data transactions of many types.

With such a massively scaled BCH network, one technical issue that must be solved is how to optimize the unspent transaction output (UTXO) database maintained by nodes to prevent double-spending of Bitcoins. Assessing the correct amount of Bitcoins associated with each output is an essential step in the validation of a new block. With the transaction volume possible in 1TB blocks, the UTXO database would also grow immensely.

Lokad now has the funding for Terab, an open source initiative to develop solutions to optimize performance of the UTXO database and prepare for a future BCH network with 1 TB blocks. The Terab project’s goal is to deliver a standardized microservice API and high performance single node, multi-node and distributed software implementations that are progressively capable of supporting the throughput required for 1 GB and then 10 GB blocks. These will pave the way for similar implementations that can eventually support TB size blocks. Lokad will hire and manage a project team to develop the Terab software. The Terab software will be made available for usage under an open source license, but only for usage on the BCH chain.

Antiguan citizen and owner of CoinGeek.com, Calvin Ayre, has pledged up to 3.6 million Euro worth of funding to Lokad for the Terab project, in order to make massive BCH scalability a reality.

Coupled with CoinGeek’s financial investment, nChain will provide technical advice, support from its research and development team members, and relevant intellectual property licenses for use in the Terab project. nChain’s Chief Scientist Craig Wright will work closely with Lokad on this initiative.

Lokad CEO, Joannes Vermorel, commented: “To have this level of support means we can start building progressive scalability for BCH immediately which will be transformative for BCH as the only genuine peer-to-peer currency.”

nChain Group CEO, Jimmy Nguyen, added: “Terab is exactly the type of collaboration that nChain supports – projects that help fulfill the Satoshi Nakamoto white paper’s vision of a peer-to-peer electronic cash system. Bitcoin Cash best represents that vision, and we are pleased to partner with Lokad to solve a key technical need for a massively scaled BCH network. The Terab project also exemplifies how microservices architecture is needed for BCH applications to reach enterprise-level usage.”

CoinGeek.com owner, Calvin Ayre, continued: “The criticisms of cryptocurrencies are very useful as they help us see what hurdles we have to take down in order to achieve low-fee micro-transactions. They are a few more which we will be addressing in due course but rest assured we will prove that BCH is the one true chain.”
In addition to Terab, CoinGeek.com intends to support more initiatives that will enable global growth and adoption of Bitcoin Cash. If you are a developer or technology venture that needs funding to develop projects or applications for the Bitcoin Cash chain, send your pitch via http://coingeek.com/contact.

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true  Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.

Bitcoin comedy night Jan 24th 2018

Bitcoin is all over the news right now with some people violently against it and others seeing it as the future of money. Its value has soared in the wake of the maelstrom and the We Are Funny Project has challenged 8 comedians to come up with a brand new 5 minutes specifically about the burgeoning cryptocurrency.

Not only that, but also opening the night is Dominic Frisby, a stand-up comedian, actor and author of Bitcoin: The Future of Money. Dominic has appeared on BBC Radio 4, TV Channel Dave’s Money Pit and writes for The Guardian and Money Week.

Headlining the show will be Patrick Monahan: ‘Viciously funny and inventive.’ The Guardian.

The comedians showcasing brand new material specifically on Bitcoin are: Ed Pownall, George Lewis, Benedict Farse, Dana Michelle Alexander, Keith Platt (Professional Yorkshireman), Eshaan Akbar, Mo Omar & Kelly Convey.

Venue: Farrs, 17-19 Dalston Lane, London E8 3DF. 8pm.

The night is sponsored by nChain, the global leader in research and development of blockchain technologies, who’s CEO Jimmy Nguyen, will be MC for CoinGeek.com’s bComm Conference on May 18th 2018 in Hong Kong.

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.

SBI BITS and nChain announce strategic partnership to support cryptocurrency security and Bitcoin Cash

TOKYO, December 2017 — SBI BITS Co., Ltd., the financial technology provider company that is a wholly-owned subsidiary of SBI Holdings, Inc. (HQ: Tokyo, Japan; Representative Director, President & CEO: Yoshitaka Kitao) and nChain, the blockchain research and development pioneer (HQ: Antigua; nChain research business in London, UK; Chairman of the Board: Stefan Matthews) announce a strategic partnership to collaborate on cryptocurrency growth initiatives, focused especially on the Bitcoin Cash network.

For their first collaborative project, SBI BITS and nChain will work together to develop stronger cryptocurrency security solutions for institutions and customers, in particular, a next-generation advanced secure wallet system. nChain will contribute its intellectual property and research insight, and SBI BITS will use its strong development team and financial services expertise to create a next-generation security system for cryptocurrency.

Yoshitaka Kitao, Representative Director, President & CEO of SBI Holdings, remarked:

“SBI Group believes in the power of cryptocurrency to transform the world, and we are committed to build a leading cryptocurrency ecosystem. But for cryptocurrency to continue growing, institutional investors and individual customers need confidence in stronger security to protect their investment.  As part of its emerging cryptocurrency ecosystem, SBI Group is pleased to work with nChain to develop an enhanced security system which will benefit the entire industry.”

Stefan Matthews, Chairman of the Board of nChain Group, observes:

“Given the breadth of its financial services businesses and leading position in Japan, SBI Group is an exceptional partner for nChain.  We are confident that SBI BITS’ strong development team can help turn nChain’s intellectual property and proprietary research insight into the next generation of cryptocurrency security.  We are also impressed by SBI Group’s commitment to becoming a world-class leader in many facets of cryptocurrency, and using its leadership position to help drive the industry’s growth.”

This strategic partnership with nChain will help strengthen SBI Group’s recently-announced plans to build a new financial ecosystem based on cryptocurrency, to create synergies with SBI’s current financial ecosystem.  SBI Group’s new cryptocurrency ecosystem will consist of eight businesses that will operate exchange platforms; hedge fund management; financing; mining; ICO and exchange platform rating information services; a derivatives market; remittance services; and transaction/payments services.

For nChain, the collaboration enables the opportunity to bring key security innovations from its patent-pending intellectual property portfolio to life for SBI’s business ecosystem in Japan and worldwide.  SBI can also as a strong partner to offer nChain’s security solutions to the entire cryptocurrency industry.

In addition, SBI BITS and nChain intend to work together on other projects supporting the Bitcoin Cash network.   Both SBI Group and nChain Group share a commitment to massive on-chain scaling of the bitcoin network, in order to create a network that powers faster transactions with low fees, makes confirmation times reliable once again, and achieves enterprise-level capabilities.  They believe that the Bitcoin Cash chain reflects this vision better than the original bitcoin chain (because Bitcoin Cash has a larger initial default block size of 8MB, compared to the artificial 1MB block limit on the original bitcoin chain, and has plans to lift the block size even further with appropriate testing).  Although SBI Group’s new ecosystem will support various cryptocurrencies, it will allocate resources to supporting Bitcoin Cash.

Yoshitaka Kitao, Representative Director, President & CEO of SBI Holdings, adds:

“The vision of the original Bitcoin white paper written by Satoshi Nakamoto calls for a peer-to-peer electronic cash system.  That is a powerful vision, and SBI Group will devote resources to enable a future world where Bitcoin Cash is used globally for daily payments.”

Jimmy Nguyen, CEO of nChain Group, further comments:

“Bitcoin Cash is the true Bitcoin.  We are excited to work with SBI Group on efforts to support the growth of Bitcoin Cash into a global, fast and low-fee payment system.”

ABOUT SBI BITS:  

SBI BITS is a wholly-owned subsidiary of SBI Holdings, Inc. and is part of the cryptocurrency ecosystem of businesses at SBI Group. Formed by the vision of Yoshitaka Kitao, Representative Director, President & CEO, and founder of SBI Holdings, Inc., SBI BITS was established in July 2015 as the core of SBI Holding’s FinTech strategy. Since then, SBI BITS has gathered IT experts from all over the world.  It currently boast an international working environment of employees from over 40 countries. Top leaders, with more than 20 years of experience each in the FinTech industry, are spearheading the group. SBI BITS aims to spread the latest FinTech to the whole of Asia and the rest of the world, contribute to the advancement of cutting edge technology and bring new value to the financial industry.

ABOUT NCHAIN:

nChain is the global leader in research and development of blockchain technologies.  Its mission is to enable massive growth of the bitcoin network and dramatic increase in the value of bitcoin for everyone’s benefit. The nChain Group of companies has grown to a team of in excess of 60 world-class scientific research, engineering and other professionals primarily based in London, United Kingdom and Vancouver, Canada.

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true  Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.