Blockstream Reveals MuSig2; An Easy & Privacy-Focused 2-Round Schnorr Multisignature Scheme

As the Bitcoin Taproot upgrade approaches, a multi-signature solution is in development by Blockstream engineers, according to a medium blog post on Nov 4. Two engineers, Tim Ruffing and Jonas Nick said that they have already published a blueprint for MuSig2, an advanced version of the MuSig multi-signature scheme built to facilitate collective ownership of some Bitcoin and the creation of a single authorization signature.

Notably, Blockstream had debuted MuSig1 back in 2018 but is now seeking to solve communication shortcomings in the MuSig scheme’s initial version. MuSig1 brought in a privacy aspect that previously did not exist in the CHECKMULTISIG code; this version also reduced the transaction fees. However, this particular version had implemented multiple backs and forth signing process; something that Musig2 is designed to solve.

MuSig2 Non-Interactivity Signature

As highlighted, this MuSig scheme version introduces a less interactive signing process; to be precise, only two communication rounds are required. The initiative, which is currently undergoing a peer review, is set for presentation at the Real World Crypto Conference scheduled for next year. Per the blog, MuSig2 leverages a non-interactive signing approach to enhance the utility in MuSig1. It reads,

“As the name suggests, MuSig2 is intended to be the successor of MuSig1.

It offers the same functionality and security as MuSig1 but makes it possible to eliminate almost all interaction between signers.”

Basically, MuSig2 combines the best of MuSig1 and CHECKMULTISIG functionalities to provide an ecosystem with both privacy and efficient communication. With the Taproot integration around the corner, Blockstream is set to update the Schnorr signature code library by replacing MuSig1 with MuSig2. The blog also hinted that they might test MuSig2 on Taproot code earlier, in preparation for deployment on the Bitcoin Mainnet.

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Author: Edwin Munyui

Blockstream CEO Labels Ethereum, Cardano, Ripple, & Stellar As A Ponzi Scam Like Bitconnect

Adam Back, Blockstream CEO and well-known computer scientist in the crypto community, went on a rant on Twitter dissing several high profile blockchains, including the second-largest crypto project, Ethereum. He compared these blockchains to “Ponzi schemes.” Back wrote on Twitter:

“Bitconnect, Charles Ponzi, Ethereum, Onecoin, Cardano, Ripple, Bernie Madoff, stellar, Dan Larmer. All looking very similar grade to me.”

As a Bitcoin maximalist and developer, Back was critical of some of the top altcoins, Ethereum being top of the list. According to him, the exploits of Ripple, Ethereum, Cardano, and Dan Larimer’s founded EOS, are all similar to the two most known financial conmen, Charles Ponzi (who originated Ponzi schemes) and Bernie Madoff, the billionaire Ponzi market maker.

Moreover, the list also includes two of the biggest crypto-based scams in Bitconnect and Onecoin, the latter costing investors close to $4 billion in funds invested.

Explaining his choice of projects in the tweet, Adam claims the four projects mentioned do not follow his belief in “hard money, meritocracy, and ethics.” He further explains:

“I think there are unicorn dreamers who got trapped in magical thinking with themselves as a self-regarded tech genius and central bank policymaker. Reality is they are misallocating capital, scam 2.0, idiocracy.”

On Ethereum, he explains: “70% of pre-mine and ethics are incompatible. Eth continually over-markets undelivered or junk tech.”

Also Read: Blockstream CEO Adam Back: Now-Defunct Theranos Was Similar To Ethereum

Bitcoin Maximalist or Wrong Take?

Back’s comments, however, have not been taken lightly by the named parties and the community at large. Some resorted to terming Back a BTC maximalist as one of the starting developers on Bitcoin.

Dan Larimer, the founder of EOS, replied harshly stating:

“My respect for you has disappeared if you are willing to paint me and others with the same brush. I thought you were more reasonable, civilized, and intelligent.”

Ethereum Founder, Vitalik Buterin, hit back at Adam’s comments claiming “the tides of history will not be favorable to maximalists.” He tweeted,

IOHK Founder and Cardano founder, Charles Hoskinson dismissed Back’s comments as “sad and pathetic.”

A Decentralized Field… Different Opinions

As far as decentralization goes, there will always be different opinions on subjects and projects. The rising tide of Ethereum and DeFi space, in general, could be encroaching in BTC’s territory hence the pushback by BTC maximalists.

In this case, Adam’s comments may hold up in the future, but the blockchains keep growing and developing (some faster than BTC). One thing it shows is every belief wins in a decentralized community. Changpeng Zhao “CZ,” CEO of Binance had good fun in the back, and forth it seems:

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Author: Lujan Odera

Blockstream Partners With Crypto Garage on SettleNet, A Bitcoin OTC Trading Network In Japan

  • Canadian based Bitcoin development firm, Blockstream, partners with Digital Garage, a Tokyo based internet group, and Tokyo Tanshi, financial services company.
  • Launches a Bitcoin OTC Desk called SETTLENET, a Liquid Network-based non-custodial financial transaction platform in Japan.

According to a launch release by Blockstream, the three companies (Crypto Garage) working on SETTLENET aim to improve efficiency and increase financial transaction speeds across the internet. The project will be built within the regulatory sandbox set up by Japan’s lawmakers.

This opens up global customers to several crypto-focused businesses, including over-the-counter (OTC) desks, exchanges, asset managers, and other financial institutional players. The settlement platform will support trading

“between Liquid Bitcoin (L-BTC) and Crypto Garage’s newly-launched JPY token, SETTLENET JPY (JPYS).”

A Minimum Risk Using Atomic Swaps

The transactions will run on Liquid Network, a layer two Bitcoin solution, which provides a fast solution to settling payments than the Bitcoin network. According to the post, SETTLENET will also introduce atomic swaps (transactions across two blockchains) in a bid to minimize the overall risk of trades made on OTC desks. It reads:

“[Atomic Swaps] allows businesses on the platform to execute their transactions more efficiently with less paperwork, while also expanding the number of counterparties available for them to work with.”

The service will be available globally, solving the challenges of delays and high costs by employing the fiat-backed JPYS tokens. Once the transaction is completed on the off-chain channel, instead of receiving the amount in fiat currency, the platform settles in JYPS tokens into a Liquid wallet.

Tether and Stablecoins to be Added

The statement further promises the addition of more settlement tokens in the future, including stablecoins such as Tether’s USDT and Liquid’s L-CAD, backed by the Canadian dollar.

The addition of more currencies may give Liquid an edge over the Lighting Network; also, a BTC layer two solutions as LN faces attacks. Blockstream recently extended its watchtowers to Lightning’s network, but questions remain on whether they’ll be enough to prevent further attacks.

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Author: Lujan Odera

Blockstream CEO: Bitcoin Dominance Will See 90% Again, Altcoins Were Temporary Feature

Adam Black, the CEO of Blockstream, has recently affirmed that Bitcoin dominance is set to rever to around 90%, which would mark the end of the altcoins’ supremacy era. According to him, the historical heights will be achieved once more at the expense of the altcoins.

He affirmed this during a recent debate with Dovey Wan, the co-founder of Primitive Fund. Initially, Wan asked about how Bitcoin was quickly decoupling from altcoins and rising in price alone. Adam Black answered that this was a “reversion to mean” and that the process would continue. At the moment, the dominance of BTC is around 70%, but he believes it will grow.

Last year, Bitcoin had less than 40% of the whole market cap, but the situation is changing quickly. Black affirmed that the whole reversion of the trend will last for around two years and a half and that the dominance will be huge when the process stops. Before 2015, BTC dominated 90% of the market and he believes that this will happen again.

This obviously gives some power to the narrative that Bitcoin is here to take the place of the altcoins completely. Vocal critics of altcoins have been very prominent lately by affirming that they are mostly doomed, with maybe only a handful of them surviving the future.

The Bitcoin maximalist Max Keiser, for instance, affirmed that the altcoins will never recover from their losses and that Bitcoin will continue to be the king in an even more undisputed fashion now. Is he right? Hard to say, but the trend if clear, Bitcoin is growing and the altcoin market is struggling to follow.

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Author: Osahon Okodugha

Blockstream’s Samsom Mow: Bitcoin May Be Bad For Payments, But Lightning Network Can Fix It

Samson Mow, the CSO of Blockstream, has recently affirmed that the Lightning Network solves one of the major problems of the Bitcoin network on a recent interview.

According to him, the whole idea behind BTC is not really to be a currency to be used in everyday activities. The way he sees BTC, it is all about a great way to store value digitally. It is, therefore, a medium for the transfer of wealth, not really a currency. He believes that affirming this has made several people dislike him and affirm that he hates Bitcoin, but that’s far from the truth.

His view is only that BTC was created for that purpose, not to be money. Fortunately, he affirmed, the Lightning Network was created in order to give BTC a shot at becoming the kind of currency that can be used any day.

The LN is pretty fast and the fees are very low. It was created exactly with these payments in mind. One the network reaches mainstream adoption, it can change Bitcoin. No longer people would need to wait hours before transactions are complete.

He also affirmed that something that was interesting about Bitcoin was that the token had some kind of “virgin birth”. Unlike the altcoins that came later and copied its concepts, it was really decentralized and unable to be controlled by a single group. All the times that people tried, hard forks happened.

In related news, Mow has recently affirmed that Facebook’s Libra would be screwed if people decided to make the right choice and use BTC instead.

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Author: Bitcoin Exchange Guide News Team