What is Graftroot?

Introduction

One of the proposals for improvements that are most expected in Bitcoin is Graftroot. It seeks to implement better support for smart contracts on Bitcoin, in addition to other improvements in the cryptography of this cryptomon currency like Ethereum Code. In fact, it is, together with Taproot, one of the improvements aimed at improving the privacy of the world’s first crypto currency.

With Graftroot, the combination of cryptographic technologies is sought. This with the aim of giving greater privacy to the transactions that are executed on the Bitcoin network. By combining Taproot, Schnorr and MAST signatures, the aim is to create complex multi-signature transactions that look like a normal transaction. This brings greater privacy to the transactions. The aim is to make it more difficult for blockchain analysis companies to analyse the incoming and outgoing flows of the cryptosystems involved in the transactions.

What is Graftroot?

Graftroot is a recent technology that seeks to improve the privacy features of smart contracts on Bitcoin blockchain. It was proposed by Greg Maxwell, one of Bitcoin’s main contributors, with the idea of improving some aspects that are not covered by Taproot technology. The latter had also been proposed by Maxwell himself. The aim is to give greater privacy to the intelligent contracts that are made on the Bitcoin network.

With Graftroot, participants in a smart contract can combine their public keys in the execution of the contract. In this way, a single threshold key can be generated. This key can be accessed with a threshold signature, just like Taproot.

The difference is that in Graftroot threshold signatures are created for each alternative condition in the intelligent contract. Whereas with Taproot the signature is made on the complete set of conditions. This feature of Taproot has the disadvantage of generating a lot of data, which represents a disadvantage for the privacy of the contract within the blockchain. With Graftroot we want to solve this aspect, and make an intelligent contract look like a standard transaction for those who want to make chain analysis within the blockchain.

To quote Maxwell’s own words about Graftroot:

“With Graftroot, participants establish a threshold key, optionally with a Taproot alternative, just as they do with Taproot. At any time, they can delegate their ability to sign to a substitute script (and only the script) with their Taproot key and share that delegation with whomever they choose. Later, when the time comes to spend the currency if the signatories are not available and the script must be used, the redeeming party must do whatever is necessary to satisfy the script (for example, provide its own signature and a time lock, or whatever). and submit that information along with the signatory’s signature to the script.”

Graftroot’s objective

As already mentioned, Graftroot’s objective is to make intelligent contracts to be confused with normal transactions within the blockchain, thus making it more difficult to analyse the blockchain for signs of intelligent contracts, thus providing greater privacy to the negotiations carried out through intelligent contracts on the Bitcoin network.

How does Graftroot work?

The operation of Graftroot can be explained through an example:

Let’s suppose that a smart contract is established between two people, Maria and Carlos, so that they can spend the contract funds together.

  • It can be established, as an alternative condition in the contract, that Maria will be able to spend after a certain time, for example one week.
  • Alternatively, it is also stated that Carlos may spend funds if he provides a secret number.
  • Maria and Carlos then create and sign these alternative conditions.
  • Maria keeps her threshold signature with which she will be able to spend after the stipulated period, one week.
  • And Carlos, in turn, keeps his threshold signature with which he can spend if he provides his secret number.

When the contract is settled, two situations may arise, namely: the cooperative closure, where both participants sign the transactions, thus generating a threshold signature. Or the non-cooperative closure, when for any reason either party is not present. In this case, if Carlos is present, he can reveal the alternative condition stipulated in the contract and his threshold signature to prove the authenticity of the expenditure. Therefore, for consensus, this will look like all parties to the contract agreed to the transaction.

In the event that only Maria is found, she can proceed in a similar manner, exposing the alternative condition agreed in the contract and providing her threshold key to make the expenditure.

With Graftroot it is then guaranteed that the execution of any of the cases, is done with the generation of few data by means of the application of Schnorr signatures, abstract syntax trees known as MAST and Taproot’s own benefits. All this combination of technologies will make the transaction look like a normal transaction in the blockchain, even in the cases where alternative conditions were executed, that is, in the cases where some of the signatures were missing.

Features

One of the most outstanding features of Graftroot is the possibility of incorporating into the intelligent contract several alternative conditions agreed by the participants of the contract at the time of its creation. In a 3 of 3 intelligent contract case, that is, there are 3 participants and the signature of all three is required to execute the contract, it does not involve much trouble to handle as a normal transaction. If 2 participants out of 3 sign, it can be conveniently processed through Taproot, but when 1 out of 3 participants already sign, more data is generated for the purposes of consensus, and this undermines the privacy of the contract, since it can be located more easily than a normal transaction within the blockchain.

Another quite interesting feature of Graftroot is that not all the alternative conditions need to be signed beforehand, they can be added after the creation of the contract, with the generation of their respective threshold signatures.

On the other hand, Graftroot supports the ability to delegate your keys to a script to sign through it in case of any eventuality. For example in the intelligent contract to cover contingencies in a will. A person can set alternative conditions that delegate their keys to a script that their children, for example, can use to sign at the time of the person’s death. This feature is known as a substitute script.

Implications of improvement

One of the implications of this improvement is to update the network to support these features. In the Bitcoin environment, there are many expectations about this upgrade that involves a smooth bifurcation to allow these features to be supported by the Bitcoin network.

The privacy and security of the execution of intelligent contracts is another of the most important implications within this set of proposed improvements for the Bitcoin network.

Pros and cons

Like everything else in the world of cryptography, there are pros and cons. Graftroot does not escape from it. Here are some of them:

Pros

  • Graftroot can facilitate even the most complex intelligent contract, and no one would notice.
  • Participants can even add more conditions after the initial contract is executed. 
  • It provides greater privacy in smart contracts with several alternative terms.
  • Graftroot’s efficiency is superior to Taproot’s in smart contracts with many alternative terms.
  • The alternative terms each have their own threshold signature.
  • It gives participants the possibility to delegate their keys to other people to sign in case one or more participants of the contract are absent.

Contras

  • On the one hand, it is interactive. The parties involved must communicate about the signing of the alternative scripts before they can spend the funds in the way they have agreed. 
  • Another drawback is that if a participant loses their threshold signature for the alternative script, they lose their backup with it. 

Conclusions

Bitcoin enthusiasts are looking forward to implementing this series of improvements to the Bitcoin network. It represents a very promising upgrade for the Bitcoin ecosystem. Bitcoin’s remarkable entry into the P2P decentralized crypto-currency market has opened the door to a whole world of possibilities in digital finance.

Now, with this series of technological improvements, Bitcoin seeks to remain at the forefront, offering features to all people worldwide so that they can make the most of their potential in an environment of privacy and security that is typical of the cryptographic ecosystem.

We will be waiting for new advances linked to the implementation of Graftroot in the creation of intelligent contracts in the Bitcoin network, as well as innovative projects derived from the implementation of this technology in the cryptographic space.

Analyst behauptet, dass Bitcoin auf dem Weg ist, bis Mai 2022 30.000 $ zu erreichen

Laut dem unabhängigen Finanzberater Alan Masters gibt es mehr Gründe, Bitcoin zu halten, als es für kurzfristige Gewinne zu verkaufen.

Der Analyst erklärte, dass das Flaggschiff der Krypto-Währung bis Mai 2022 30.000 US-Dollar erreichen könnte, wobei er einen anekdotischen technischen Indikator anführte, um seine äußerst optimistische Prognose zu untermauern. Der so genannte Momentum-Oszillator, der als Relative-Stärke-Indikator (RSI) bezeichnet wird, misst die Geschwindigkeit und Veränderung von Preisbewegungen.
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Ein RSI-Wert über 70 macht einen Vermögenswert überkauft. Umgekehrt ist ein Wert unter 30 überverkauft. Bitcoin ist in letzter Zeit zum ersten Mal seit Dezember 2017 auf wöchentlicher Basis in den “überkauften” Bereich eingestiegen und hat den Wert 80 überschritten. Herr Masters wertete die Aufwärtsbewegung als Zeichen eines weiteren zinsbullischen Momentums.

“Als Bitcoin zum ersten Mal diesen Höchststand beim wöchentlichen RSI erreichte, stieg der RSI über 550 Tage lang kontinuierlich an”, erklärte er. “Wenn wir jetzt, im November 2020, eine ähnliche Aktion starten, werden wir sehen, dass die Preise bis 2022 im Mai mit höheren Hochs und höheren Tiefs weiter steigen werden”.

Bitcoin wöchentlicher RSI-Aufbau.

Der Bitcoin RSI für einen wöchentlichen Zeitrahmen lag zum Zeitpunkt der Veröffentlichung bei ’81’.
Bitcoin-Nachfrage

Herr Masters lieh sich Hinweise aus den makroökonomischen Fundamentaldaten, um sein Bitcoin-Bullenziel von 30.000 $ zu rechtfertigen. Der Analyst erinnerte zunächst an den vorherigen Preis-RSI-Aufwärtstrend, da er “eine enorme Menge an Hype, viele FOMO [Angst, etwas zu verpassen] und Einzelhandelskäufer hatte, die durch die Lasten hereinspringen”.

“Aber dies ist nicht die Situation, die wir heutzutage erleben”, fügte er hinzu.

Bitcoin erholte sich um mehr als 250 Prozent von seinem Mitte März verzeichneten Tiefststand von unter 4.000 Dollar, wobei die Aufwärtsdynamik durch Inflationsbefürchtungen bei Anlegern und Händlern gleichermaßen angeführt wurde. Die globalen Zentralbanken führten nahezu Nullzinssätze ein und verpflichteten sich gleichzeitig zu einer quantitativen Lockerung, um die durch die COVID-19-Pandemie verursachte wirtschaftliche Verlangsamung zu umgehen.

Der US-Dollar-Index erreichte im März 2020 seinen Höchststand, korrigiert sich seither aber immer weiter nach unten.

Die expansive Politik ließ die Renditen von Staatsanleihen sinken. In der Zwischenzeit verursachten sie auch einen Rückgang des US-Dollars und veranlassten die Anleger, sich anderswo nach Möglichkeiten umzusehen. Bitcoin profitierte davon. Viele Händler sind sich einig, dass es weiterhin Kapital anziehen würde, solange die Zentralbanken Geld drucken.

“Große Institutionen oder große Regierungen wie die USA kaufen Bitcoin möglicherweise per Schiffsladung”, sagte Herr Masters. “Wenn dies geschieht, gibt es überhaupt keinen Grund für einen Verkauf, denn wenn sie langfristig kaufen, wissen sie, dass etwas Massives vor sich geht”.

Warum 30.000 Dollar?

Das Kursziel von 30.000 $ für Bitcoin kam als Teil eines Fibonacci-Rückzugsdiagramms.

Langfristige Preisziele von Bitcoin, wie von Alan Masters vorgestellt.

Herr Masters stellte sich die Krypto-Währung in einem unerbittlichen Aufwärtstrend vor, der von langfristig bullishen Fundamentaldaten unterstützt würde. Er erklärte, dass die BTC/USD im nächsten Jahr wahrscheinlich ihr bisheriges Rekordhoch von 20.000 USD erreichen werde.

“Bitcoin könnte im Moment auf [magere] Preise blicken, und wir könnten in den kommenden Jahren 30.000, 50.000, 80.000 oder mehr $ sehen. Aber eines wissen wir mit Sicherheit, Bitcoin geht immer 10x höher als das, was die meisten Leute für möglich halten”, fügte er hinzu.

Largest bank in Belarus introduces cryptocurrencies

Another big bank is entering the crypto market.

Belarusbank, the largest financial institution in Belarus, wants to introduce cryptocurrencies

According to a report by the Belarusian news agency Prime Press on November 12, Belarusbank wants to enable its customers to buy cryptocurrencies using a Visa card in the future. As part of the offer, cryptocurrencies can be purchased in exchange for national currencies such as the US dollar, the euro and the Belarusian ruble.

The bank’s management states that the adoption of Bitcon Rush is part of the financial institution’s digitization program that started a few years ago.

The new service will be available to both Belarusian and Russian citizens.

Other countries are to follow at a later date, and the number of available crypto currencies is to be expanded

As stated in the media report, the new service is the result of cooperation between Belarusbank and the Belarusian payment service provider Whitebird. Even before the most recent collaboration, the two companies had already worked on a joint crypto project in 2018.

Belarusbank is one of the first banks in Belarus to show great interest in the crypto market. In 2019, she disclosed that she was planning her own crypto exchange.

The enthusiasm for cryptocurrencies in Belarus is due to crypto-conducive legislation. As previously reported , President Alexander Lukashenko had legalized digital currencies in late 2017.

CNBC startet Schilling Bitcoin, und Händler werden ängstlich

Brian Kellys kürzlicher Auftritt auf CNBC lief nicht gut innerhalb der Krypto-Gemeinde, die den Geschäftskanal weiterhin als konträren Indikator wahrnimmt
CNBC startet Schilling Bitcoin, und Händler werden ängstlich
Titelbild über stock.adobe.com

Großanleger und Gelddrucken
CNBC als konträrer Indikator
Bitcoin erhielt am 13. November etwas mehr Mainstream-Exposure, als BKCM-CEO Brian Kelly die jüngste Sternfahrt der Krypto-Währung in der CNBC-Sendung “Fast Money” kommentierte.

Kelly sieht weiterhin die institutionelle Übernahme und die Knappheit von Bitcoin als die Hauptfaktoren hinter dem wiederbelebten Boom.

Namhafte Investoren und Gelddruckerei
Wie U.Today berichtete, verließ Hedgefonds-Legende Stanley Druckenmiller Anfang dieser Woche die Kryptogeld-Gemeinschaft in Ehrfurcht, indem er enthüllte, dass er nun Bitcoin besitzt. Außerdem hält er Bitcoin für eine bessere Wette als Gold.

Auf die Frage von Melissa Lee von CNBC nach den prominenten Befürwortungen von Leuten wie Druckenmiller und seinem Milliardärskollegen Paul Tudor Jones bemerkte Kelly, dass es professionelle Investoren zuversichtlicher mache, sich an Bitcoin Circuit zu versuchen:

“Sicherlich, wenn hochkarätige Investoren herauskommen und sagen, dass sie es besitzen, nimmt es einen großen Teil des Karriere-Risikos von Anlegern, professionellen Anlegern, die es in ihr Portfolio aufnehmen wollen, weg.

In der Frage der CBDCs ist Kelly überzeugt, dass sie es den Zentralbanken noch leichter machen werden, mehr Geld zu “drucken” und damit für das digitale Gold zu plädieren.

Verwandte Links

  • Rekord bei Bitcoin und Ethereum Notch Weekly Closes
  • CNBC als konträrer Indikator
  • Zu Beginn des heutigen Tages stieg Bitcoin auf ein weiteres 2020-Hoch von 16.494 $ auf der Bitstamp, bevor es einige seiner jüngsten Gewinne wieder einbüßte.
  • Die Krypto-Währung hat am 12. November ihren 13. höchsten Tagesschluss aller Zeiten erreicht.

Nach dem Erscheinen von Kelly begannen viele Händler jedoch über Gewinnmitnahmen zu scherzen, da “Schnelles Geld” weithin als konträrer Indikator für Bitcoin angesehen wird.

Im August 2018 veröffentlichte der umstrittene Händler Jacob Canfield ein Chart, das die umgekehrte Korrelation zwischen den Tweets von CNBC und den zukünftigen Schritten von Bitcoin aufzeigte, aber er wurde beschuldigt, sich die Daten herauszupicken.

The 51% Attack, the Clásico of Cryptos – The “Anonymous Bitcoin” GRIN goes to pot

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Worst nightmare for a blockchain – Although a 51% attack is unlikely on the Bitcoin network, they are unfortunately still common on smaller cryptosystems. The latest victim is GRIN, the “Anonymous Bitcoin”.
The GRIN attack at a glance

On Sunday, November 8, at first light, the 2Miners mining pool notified its customers that a 51% attack was underway on the GRIN network.

Shortly afterwards, the official GRIN website posted the following warning message:

“IMPORTANT: The GRIN network hash rate has increased dramatically in a short period of time. In particular, this coincides with the doubling of the NiceHash rate during this period, with more than 50% of the network hashrate currently outside of the known pools. Given these circumstances, it makes sense to wait for additional transaction confirmations before finalizing payments. »

In fact, an unknown pool suddenly began to mine GRIN. Unfortunately for the network, it armed itself with a colossal amount of hash power that allowed it to capture 58.1% of Grin’s hash power, making it the largest pool in the network.

Distribution of Grin’s chopping power by pool

The attacker’s intentions are unknown at the moment. Nevertheless, a reorganization was detected on a mined block on November 7, although no information regarding any double spending has been reported as yet.

The attack still appears to be ongoing at the time of writing.

NiceHash: the attackers’ favorite tool

If you take a step back, this news is not extremely surprising. Indeed, the GRIN blockchain has a relatively limited chopping power. It costs only $76 per hour to rent the hash power needed to carry out an attack, as shown on the Crypto51 website, which references the 51% attack cost per blockchain.

In practice, attackers usually turn to NiceHash to conduct this type of attack. Indeed, NiceHash is a peer-to-peer hash power rental platform. It is extremely simple for an attacker to go there and rent the computing power needed for his attack.

Start on December 1st: Can the ETH 2.0 release push the Ethereum price towards the all-time high?

The Ethereum price ended its stagnation phase a few hours ago after the ETH2.0 start date, which had been eagerly awaited for many months, became known.

Before that, ETH’s price stagnated around $ 380, rising 10% immediately after traders got wind of the trend.

Ethereum 2.0 is intended to help solve the scalability problems that have plagued the network lately – and to help generate further benefits and promote acceptance among users and developers.

Traders clearly view this network upgrade as a bullish development

From a technical point of view, one benefit that ETH 2.0 offers to Ethereum’s pricing policy is the staking feature, which is expected to lock in a sizable portion of the token’s circulating supply, which will help keep it moving higher .

Looking at the deposit address of the contract, it appears that the Bitcoin Champion has already locked a value of nearly $ 2 million, which shows a serious demand for ETH 2.0 nodes.

Ethereum 2.0 deployer starts, pushes ETH over $ 400

At the time of writing, Ethereum is trading around 4 percent higher at a current price of $ 402, a notable increase from its recent lows of $ 380 set a few hours ago.

The break above the $ 400 mark is technically significant as it could spark a rally that will allow ETH to gain some ground over Bitcoin, which has left all altcoins far behind in recent weeks.

The impetus for this upswing came from the use of the ETH 2.0 deposit contract, which signals that the eagerly awaited network upgrade will start in the near future.

The introduction of the contract was announced in a blog post yesterday, minutes before the price hike, which has enabled it to retake the crucial $ 400 region.

ETH 2.0 is already seeing token inflows for staking

Staking is one of the hallmarks of the 2.0 upgrade, which allows investors to deposit at least 32 ETH into a validator and receive network rewards.

These rewards are expected to be around 6-20 percent per year – but they depend on how many validators are running and how heavily the Ethereum network is used.

A total of 4,837 ETH are currently staked and the number is growing steadily.

For the start of the 2.0 network, a total of 524,288 Ethereum must be staked, which corresponds to a total of 16,384 validators.

The countdown to the launch of the Beacon Chain is now on, and the price of Ethereum may begin to rise in anticipation of its final launch.

Cardano Goguen Mainnet in March 2021: Is the Ethereum attack coming?

Cardano Goguen comes in March 2021. At least that’s how it looks if the roadmap on Goguen published by the IOHK is adhered to. After the successful rollout of Shelley, many Cardano supporters see Goguen as the final step in starting the attack on Ethereum. In this article we take a quick look at the roadmap and what’s behind Goguen.

Cardano Goguen: attack on Ethereum?

A tweet from IOHK caused a lot of euphoria at the end of last week . The development team behind Crypto Genius published the dedicated roadmap for Cardano Goguen in this tweet.

The new age of smart contracts, because that’s what Goguen stands for, should finally come to Cardano. In this respect, the implementation will represent an important step for the use of Cardano as a network or blockchain.

As can be seen in the tweet and the Goguen roadmap , it will be possible to build native tokens and decentralized applications on Cardano.

Plutus: A New Smart Contract Language

While Ethereum developers are used to the Solidity programming language, Cardano will rely on its own smart contract language called Plutus.

It is said that the language gives developers a tool with which they can work directly on the ledger.

Plutus allows a “code base” to support both on- and off-chain components, which significantly improves coherence and usability compared to existing smart contract implementations.

This implementation is above all a strong contrast to the well-known Ethereum ERC-20 standard. Another highlight is the ability to speak smart contracts in several languages. So Plutus will not be the possibility, but one of many possibilities.

Let’s summarize that Cardano already wants to roll out the Goguen Mainnet in March 2021. This would mean another important milestone. Through Goguen, smart contracts can be used on the ledger. As a result, native tokens and decentralized applications are possible. The specially developed Smart Contract language Plutus is offered as the programming language.