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rippledigital

BitMint: Non-Speculative Digital Currency (The Future of Money)

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Not new(s), but still a brilliant yet simple idea, IMO, that I just wanted to reshare and see if anyone knows of any progress on, or implementations of, the BitMint concept. Essentially it's a "digital claim check" on dollars (or any cash/asset). But the money can be tethered or "fused with" contracts inside the actual units, unlike say bitcoins that only represent generic accounting units. So you can do some very clever, game-changing things with these conditions attached, e.g. loyalty schemes, time-sensitive money, fraud tracking, disaster recovery money (@Haydentiff) , etc.

Or in Gideon's words, "No one can sever the connection between the money and its disposition." Check it out:

 

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He doesn't mention how this 'claim check' is secured. 

Sounds like the equivalent of emailing your private key.

What's to keep Alice from redeeming the claim check before Bob?

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Using something called InterMint. I'm trying to get hold of the specifics and white paper for that part, but here's the BitMint main whitepaper:

https://eprint.iacr.org/2014/244.pdf

Quote

Our proposed solution to the bitcoin faults is the InterMint -- a network of cascading digital mints. The InterMint will evolve into a super - stable global currency, while respecting national fiat currencies, empowering the community of traders, and exploiting the unique benefits of digital currency: prospectively alleviating fraud, reducing waste, minimizing abuse; taking full advantage, and a t the same time leveraging the global village into durable prosperity -- that's the plan.

[...]

The diversification of the bitcoin concept into a multitude of distinct algorithms, each compliant with the abstract solution, is a considerable remedy to the risk of compromising the single algorithm on which the original (2008) bitcoin relies. bitcoin.BitMint is based on the notion of a managing mint that builds a bitcoin trading environment under its rules and responsibility. It solves the inherent bitcoin problem of the rigidity of the majority - a rigidity that prevents any executive minority from taking timely steps to safeguard the trading dynamics from eventual spiraling collapse. The mint is also the address for complaints, conflict resolution, and any challenges for wrong doing. On the other hand the concept of the InterMint based on an ever growing interconnecting mints, presents the trading public with a broad spectrum and choice for mints to trust. Eventually well managed, fair, supportive mints will become more popular -- not be decree, not by no choice -- but by public demand.

Essentially the money itself can be tethered to a mint, an ID, or a sequence, or even a contract, be time-bound, etc.

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On 20/12/2016 at 3:59 PM, xebit said:

Sounds like the equivalent of emailing your private key.

What's to keep Alice from redeeming the claim check before Bob?

Thus far I've got this:

Quote

BitMint is a non-speculative centralized digital money anchored on an underlying commodity (e.g. US$, Gold), built on the premise that neither of the erosive ciphers that underlie Bitcoin and its imitators is sufficiently robust to support a prevailing universal digital form of money. BitMint, therefore, is not based on ECC, RSA, or any other "private key"-"public key" combination (all of them are proven breakable (*)), but rather on the enduring principle of equivocation.

Much like the Vernam cipher, invented in 1917, which is withstanding all its cracking effort, so it is for BitMint -- rendering BitMint into the obvious choice for the universal digital money in the 21st century.

(*) BitMint is making use of asymmetric ciphers, but is not basing the currency on them.

 

 

Edited by rippledigital

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5 hours ago, rippledigital said:

Bitmint is built on the premise that neither of the erosive ciphers that underlie Bitcoin and its imitators is sufficiently robust to support a prevailing universal digital form of money. BitMint, therefore, is not based on ECC, RSA, or any other "private key"-"public key" combination (all of them are proven breakable (*)), but rather on the enduring principle of equivocation.

lol. "erosive ciphers" & "all public key encryption is proven breakable"?

The best is: "Bitmint is based on the enduring principle of equivocation".

The guy is nuts.

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4 hours ago, xebit said:

lol. "erosive ciphers" & "all public key encryption is proven breakable"?

The best is: "Bitmint is based on the enduring principle of equivocation".

The guy is nuts.

Can you explain?

EDIT: I mean, no offence, but from what I can tell the guy teaches cryptography at major universities and has been working in high-level security positions (govt and private) for much of his life, so, I'd assumed he knew what he was talking about! But because I don't have a technical background, I'm VERY SLOWLY wading through it all, and so an elaboration – rather than just "he's nuts" – would really help me out!  :)

Edited by rippledigital

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hmm it has to do with "decoy solutions". 

Quote

"Plaintext is mixed with AI-generated dis-information which binds the cryptanalyst to an irreducible set of mutually exclusive plausible plaintext candidates."

Equivoe-T: Transposition Equivocation Cryptography
https://eprint.iacr.org/2015/510.pdf

I don't claim to understand this, but if someone comes up with three solutions or decryptions of the message that works in the war general situation, but in this situation, can't they just try all three solutions?

 

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On 20/12/2016 at 3:59 PM, xebit said:

What's to keep Alice from redeeming the claim check before Bob?

More update on this via email from Gideon:

Quote

BitMint validation has two levels: the 'operational level', and the 'bank level'. The mint is the ultimate redeemer of bitmints. And any trader, may choose to validate incoming money with the mint, to be sure. However, BitMint establishes a fast operational level validation that is based on two principles: (i) dynamic clusters, (ii) reputation.

Clusters: taking advantage of the reality that a trading network forms clusters of frequently trading peers. Trade within such clusters is governed by a delegated sub-mint, which algorithmically has enough info to validate a digital coin, but not enough info to redeem it itself within its super-cluster.

Reputation: bona fide trading of peers gradually builds reputation to them, which they cryptographically display to their payee. A cheater will lose the reputation which takes considerable time to build up. A simple insurance protocol takes care of the few expected cheats.

 

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On 12/23/2016 at 0:45 PM, rippledigital said:

Can you explain?

 

 

One-time pad (Vernam cipher) has a property called "perfect secrecy". The ciphertext (encrypted message) gives you absolutely no information about plaintext (unencrypted message). The given ciphertext could be generated from any possible plaintext with the same probability.

Other cryptosystems don't have this property.

But this Vernam cipher is just for encryption. You need public key cryptography for generating and verifying digital signatures.

 

 

Edited by T8493

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3 hours ago, T8493 said:

 

One-time pad (Vernam cipher) has a property called "perfect secrecy". The ciphertext (encrypted message) gives you absolutely no information about plaintext (unencrypted message). The given ciphertext could be generated from any possible plaintext with the same probability.

Other cryptosystems don't have this property.

But this Vernam cipher is just for encryption. You need public key cryptography for generating and verifying digital signatures.

Thanks @T8493.

What do you make of this (most curious part to me, highlighted):

Quote

BitMint is a non-speculative centralized digital money anchored on an underlying commodity (e.g. US$, Gold), built on the premise that neither of the erosive ciphers that underlie Bitcoin and its imitators is sufficiently robust to support a prevailing universal digital form of money. BitMint, therefore, is not based on ECC, RSA, or any other "private key"-"public key" combination (all of them are proven breakable (*)), but rather on the enduring principle of equivocation.

Much like the Vernam cipher, invented in 1917, which is withstanding all its cracking effort, so it is for BitMint -- rendering BitMint into the obvious choice for the universal digital money in the 21st century.

(*) BitMint is making use of asymmetric ciphers, but is not basing the currency on them.

(**) For further reference please check the analysis of digital money given by Helmut Scherzer in Chip-to-Cloud.

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On 23/12/2016 at 5:58 PM, xebit said:

Equivoe-T: Transposition Equivocation Cryptography
https://eprint.iacr.org/2015/510.pdf

I don't claim to understand this

Me either. Tried for the third time tonight (with coffee) – really struggling. I just don't think I have the math ability.

*Cries*

Edited by rippledigital

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20 hours ago, rippledigital said:

I'm still trying to understand what he is saying, and how it will pan out. Not a techie, but still trying to understand the commercial or general use case as he is suggesting. Need to watch this video again and again.

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Here is a quick response (a longer later, after I meet my project deadline). The inconvenient truth of modern cryptography is that all those complexity building ciphers are only effective against dumber adversaries, or to be exact, against an adversary who is limited by the mathematical insight of the cipher designer. As Snowden testified, the NSA, and all other big crypto shops launch a  vigorous "math attack" on them. The alternative to mathematical-intractability is to use large secret quantities of randomness, which have a guaranteed measure of security that endures. And that is what we in BitMint base our digital money on.  For asymmetric crypto, this will apply a bit later when quantum key distribution comes forth. here is a soft discussion, and here is a white paper. 

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