US Government Maintains a Fork of Bitcoin

Crypto News | Latest News
 

For starters, SHA-256 and most other hashing algorithms using in cryptocurrencies have been reviewed and tested by the Institute in the past. Independent cryptographers are frequently consulted by government agencies and scientists.

The NSA and NIST occasionally conduct competitions for the development of new cryptographic software. The most recent winner was an algorithm called Keccak, but it is now most often referred to as SHA-3. The majority of hash functions that are submitted to these competitions see use, often wide use, regardless if they win or not.

While the world’s most famous cryptographers work in the private sector, it is fair to say that NSA and other government agencies provide decent career opportunities for up-and-coming cryptographers.

FREE CRYPTO COIN JUNKY HANDBOOK - 147 page guide covering Crypto Fundamentals, Beginners/Advanced Crypto Trading Strategies, Crypto Mining Techniques, ICO Investment strategies, and so much more.

CRYPTO TRADING STRATEGY GUIDES - Whether You're Day Trading, Swing Trading, Or Just Investing...Our Extensive Guides Will Get You To Where You Want To Be.

NIST Publishes Paper Suggesting Managed Blockchain with Transparency

Peter Mell of NIST wrote a paper in recent times entitled “Managed  Blockchain Based Cryptocurrencies with Consensus  Enforced Rules and Transparency.” The gist of the paper is that there is a happy medium between public, wild blockchains like Bitcoin, which follow the laws of consensus and little else, and managed blockchains which give their permissioned owners an untrustworthy amount of paper.

We demonstrate how to implement our approach through modest modifcations to the implicit Bitcoin specifcation, however, our approach can be applied to most any blockchain based cryptocurrency using a variety of consensus methods.

The implications are obvious: the blockchain could potentially be used by the government to issue its own cryptocurrency. A strictly public mining network and blockchain would obviously fail the means test for the government, for multiple reasons including the potential of a 51% attack launched by an unfriendly government. According to the paper, the features which make the Bitcoin protocol attractive to the government are its transparency and, of course, the inability to lose funds on it.

 

“We provide a novel cryptocurrency architecture which is a hybrid approach where a managed cryptocurrency is maintained through distributed open consensus-based methods. Key to this architecture is the idea of a genesis transaction upon which all other transactions are based and which enables the establishment of a hierarchy of accounts with differing roles It is these roles that enabled us to introduce features from fiat currencies into a cryptocurrency: law enforcement, central banking, and account management,”

an excerpt from the paper explains.

“Another novel feature is that the architecture allows the cryptocurrency policy to be maintained dynamically by the currency administrator, but certain policy settings can be made permanent in order to facilitate confidence in the stability of the system. This is especially important for the relationship between the currency administrator and an independent community of miners,” it added.

Democracy is meant to be transparent, and government agencies are supposed to be accountable to the people who elect and pay for them. Current technologies in place don’t always provide for this and there are plenty of opportunities for fraud, waste, and abuse in the government sector.

THE COMPLETE IDIOTS GUIDE TO MARGIN TRADING ON BITMEX - Beginner Strategies for Generating Consistent Profits with Margin Trading on Bitmex

TOP 3 BITCOIN CASINO & SPORTSBETTING SITES OF 2018 - Looking to Have a Little Fun with Your Crypto? Check Out the Latest & Most Innovative Crypto Gaming & Sportsbetting Sites on the Web

The NIST version of the Bitcoin system makes only minor changes to the structure of a Bitcoin transaction in order to allow for the introduction of administrator policies. “Roles” are introduced into Bitcoin transactions, enabling changes to be made in the protocol as a whole. The paper explains that they are using the existing design which enables the spending of coins to additionally “spend roles.” Without getting too technical, it enables the manager of the blockchain to have a great degree of control over the entire pool of money in the system.

The  vin[] field operates  similarly as before. In  Bitcoin, a vin[] field specifies a set of coins from a particular transaction already posted on the blockchain.[…] However,  the vin[] field can also be used to bring roles into a transaction to authorize activities that require roles (which is most any activity in our architecture, depending upon the  specific policy enacted). Functionally, it is like we are ‘spending’ a role to use it to authorize some action given the usual use of a vin[] field (but roles can be ‘spent’  an infinite number of times and are not transferred like coin). A vin[] field can  specify a former transaction where an account was given a role.

Importantly, the design mentions an “independent community of miners.” Several aspects of the idea would require rigorous testing before ever seeing any real-world use – one example that comes to mind is the US Treasury’s blacklist and range of countries US Government and most US citizens cannot do business with. These people would have to be banished from both mining and the possession or use of “USCoin” in order for such a project to be in compliance with US laws.

NIST Tests Ideas on Own Bitcoin Fork

In addition to this paper, NIST has quietly maintained a fork of the Bitcoin software which attempts to integrate the ideas presented in the paper. Presumably the software has only been run in government labs, but it could inadvertently provide a boost to countries like Sweden which are actively working toward developing their own nationalized cryptocurrencies.

The prospects of a government-backed cryptocurrency in the US are likely years away, but certainly folks within the system have floated the idea multiple times. Government use of blockchain is on the rise, and the arc of history likely points toward cryptocurrencies being at the heart of all financial systems, but only time will tell what shape they will actually take.

Aside from operating their own blockchain, governments could simply issue tokens on existing blockchains which follow the rules they decide to put in place. The options are myriad, but one thing is for sure: traditional, fiat-backed currencies are inferior to transparent and modernized digital currencies and will eventually have to be updated.

Leave a Comment

Latest Crypto News

Coinbase CTO: Crypto is Entering the Tech Mainstream

Balaji Srinivasan, a prominent venture capital investor and the chief technical officer at Coinbase, said that crypto is entering the tech mainstream. “Sundar Pichai & Sergey Brin’s sons are both mining crypto; Facebook is doing blockchain; Square

Using Crypto to Take out a Real Mortgage on Virtual Land

Using Crypto to Take out a Real Mortgage on Virtual Land

It’s not Thursday, but this story sure feels like a throwback to headlines from last year’s cryptocurrency mania: crypto enthusiasts have begun using their tokens to take out real mortgages on virtual land. Decentraland &

Bitcoin Futures Volatility Hit Record Low in October

Bitcoin has been unusually stable in recent weeks, and the decrease in volatility has now reached historic levels in the futures markets. Bitcoin Volatility Hits Record Level in Futures Markets That’s according to Kevin Davitt,

IBM Files Patent for Blockchain-Based AR Helper System

IBM has filed a patent for a blockchain-based system which will prevent players of augmented reality games entering physical spaces that are undesirable. They cite as examples “high-risk locations, culturally sensitive locations, locations marked by property owners.”

bat-token-coinbase

Breaking: Coinbase Pro Lists Ethereum Token BAT

Coinbase has just announced that trading of the Basic Attention Token is soon to be enabled on the Coinbase Pro platform, and deposits of the token are now being accepted.  Trading in the token — which runs on Ethereum

morgan-stanley-bitcoin-futures

Morgan Stanley: Bitcoin is a New Institutional Investment Class

There is a rapidly growing interest in bitcoin and other cryptocurrencies among institutional investors while there seems to be lethargy in the number of retail buyers operating within the space. As such, bitcoin and altcoins now constitute a new

Ron Paul Says Crypto Could Prevent Recession

Ron Paul Says Crypto Could Prevent Recession

Retired US Congressman Ron Paul, a one-time bitcoin skeptic, called for a tax exemption on all cryptocurrencies, saying the move could prevent an economic recession. Ron Paul, the father of current United States Senator Rand Paul,

Tether Found a New Bank, and it Might be in the Bahamas

Tether Opens $1.8 Billion Bank Account in the Bahamas

Tether Limited, the issuer of controversial USD-pegged cryptocurrency stablecoin tether (USDT), has confirmed that it has established a banking relationship with a small financial institution based out of the Bahamas. The cryptocurrency firm, notorious for its opaque operations,

Sign Up Below!
Airdroppin the Latest Crypto News, Trading Strategies, Tools, & Reviews



1
Bitcoin
Bitcoin
$5,584.36
-1.14%
3
Ethereum
Ethereum
$180.15
0.98%
2
XRP
XRP
$0.4671
3.47%
4
Bitcoin Cash
Bitcoin Cash
$415.17
-3.74%
7
Litecoin
Litecoin
$43.949
2.56%
9
Cardano
Cardano
$0.063292
0.47%
5
Stellar
Stellar
$0.2329
3.29%
15
NEO
NEO
$12.859
-3.09%
6
EOS
EOS
$4.635
1.67%
12
IOTA
IOTA
$0.4200
-0.71%

Crypto Guides & Tutorials

 Crypto Reviews

Subscribe to Our Social Media Daily Crypto Memes
Follow, Like, and Share Our Memes With The World


Pin It on Pinterest

Plus Free Crypto Trading Guides, Tutorials, Latest Crypto News,
and Altcoin Reviews. (Coming Soon: Pro Trading Signals)
SIGNUP FOR YOUR FREE
CRYPTO COIN JUNKY
HANDBOOK
DOWNLOAD NOW
We hate spam as much as you do. Unsubscribe anytime.
Plus Free Crypto Trading Guides, Tutorials,
Latest Crypto News, and Altcoin Reviews
(Coming Soon: Pro Trading Signals)
DOWNLOAD NOW
We hate spam as much as you do. Unsubscribe anytime.
SIGNUP FOR YOUR FREE
CRYPTO COIN JUNKY
HANDBOOK
Plus Free Crypto Trading Guides, Tutorials, Latest Crypto News,
and Altcoin Reviews. (Coming Soon: Pro Trading Signals)
SIGNUP FOR YOUR FREE
CRYPTO COIN JUNKY
HANDBOOK
DOWNLOAD NOW
We hate spam as much as you do. Unsubscribe anytime.
Plus Free Crypto Trading Guides, Tutorials,
Latest Crypto News, and Altcoin Reviews
(Coming Soon: Pro Trading Signals)
DOWNLOAD NOW
We hate spam as much as you do. Unsubscribe anytime.
SIGNUP FOR YOUR FREE
CRYPTO COIN JUNKY
HANDBOOK