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Offline vindyne8

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For full technical description, read the white paper: https://byteball.org/Byteball.pdf

Exchanges: https://cryptox.pl and trading bot (see the link at https://byteball.org)
Auctions: #auctionroom channel on our slack http://slack.byteball.org
Explorer: https://explorer.byteball.org

Download the wallet:



iOS   Android   Mac   Windows   Linux
or build from source at github


Desktop wallets can be full nodes (will take a while syncing with the network after the first start) or light nodes.  Mobile wallets are always light clients.

If you want to experience the wallet without paying a penny, visit https://byteball.org/testnet.html to install testnet wallet and click the link to receive free bytes to play with.  The link will open your wallet:


The design

There are no blocks in Byteball, and no block size issue.  Instead, every new transaction references one or more earlier ones (parents) by including and signing their hashes.  The links among transactions form a DAG (directed acyclic graph):



By including its parents, each new transaction also indirectly includes and confirms all parents of the parents, parents of the parents of the parents, and so on.  As more transactions are added after your transaction, the number of confirmations you receive grows like snowball, thatís why the name Byteball (our snowflakes are bytes of data).

Consensus

There is no PoW, no PoS, and no mining.  Instead, we have the DAG, which already establishes partial order between transactions, plus we add the main chain within the DAG:



The main chain (MC) allows to define total order between transactions: the transaction which gets included (directly or indirectly) earlier on the MC, is deemed earlier in the total order.  When there is a double-spend, the version of the transaction that comes earlier in the total order is deemed valid, all others are deemed void.

The main chain is defined deterministically based on the positions of transactions in the graph.  Refer to the white paper for details, but as a general rule, the MC gravitates towards transactions authored by well known users, which we call witnesses.  The list of witnesses is defined by users themselves as they include the list in every transaction they post.  The MC then follows the path within the DAG such that:
1. the witness lists of the neighboring transactions on the chain are either identical or differ by only one mutation,
2. the chain goes through the most number of witness-authored transactions, compared with alternative chains.

The above is very brief and sketchy description with many important details omitted, refer to the white paper for a full technical story.

Fees and intrinsic value

The fees paid for storing oneís transactions (or any other data) in the Byteball database are equal to the size of the data being stored.  If the size of your transaction data is 500 bytes, you pay exactly 500 bytes (the native currency of Byteball) in fees.  This means there is intrinsic value in bytes: it is the utility of permanently storing that size of data in a decentralized immutable database.  For data that represents financial transactions, the value is social rather than personal, because you absolutely need to store the full coin history in order to be able to prove the value and authenticity of the coin to each subsequent owner.

The fees are collected partially by those who are first to reference your transaction as parent and partially by witnesses.  The former incentivizes referencing the most recent transactions as parents, which results in the DAG growing in one direction only, like the trunk of a tree, and being as narrow as network latency permits.  If new transactions are rare enough, such that all nodes have enough time to sync before a new transaction appears, the DAG will look almost like a chain, with only occasional forks and quick merges.

Money supply

The total number of bytes is 1015, all bytes will be issued in the genesis transaction. Since the fees paid are returned into the circulation, the money supply will remain the same.

Deterministic finality

In Byteball, there is a protocol rule that a transaction must include the previous transaction (if any) sent from the same address, i.e. there must be partial order between subsequent transactions from the same address.  Breaking this rule is considered equivalent to double-spending, therefore at least one of such unordered transactions will become void.  If we assume that most witnesses follow this rule (thatís what they are elected for), they have to reference only sufficiently recent transactions as parents and canít inherit from old enough parents.  Therefore, they can no longer influence the MC (which is attracted to witnesses) in the old enough part of the DAG, and that part of the MC becomes stable, hence the total order relative to this MC also becomes stable.  See the white paper for discussion of exact criteria of reaching stability, here it is important that the criteria are deterministic, and once a transaction appears on the stable part of the MC, it is final, and, unlike all other cryptocurrencies, no re-orgs are possible. 

This is extremely important for applications in financial industry and for wider adoption in general, as most people are used to expect certainty in matters of money and property ownership, and the concept of probabilistic finality is a difficult sell.

Assets and on-chain exchange

Bytes is the native currency of Byteball.  Users can issue any other tokens (assets), e.g. to represent debt.  The debt can be expressed e.g. in fiat currencies or in natural units (barrels, ounces, kWh, etc).  The issuers of the debt can reveal their real-world identities and/or be voluntarily attested (i.e. their real-word identities be verified by a well known third party such as CA).  This enables the use of the existing legal system to secure against fraud.

The issued assets can be used as means of payment, along with bytes.  Assets can be exchanged against bytes and other assets by both parties signing a single unit that executes both legs of the exchange, thus the two transactions either happen simultaneously or don't happen at all.  This kind of signing is called multilateral signing.  No centralized exchange is needed, hence no trust is necessary and no exchange fees (apart from the usual fees for the size of the data).

Private untraceable payments

Assets can be either public or private.  All transactions in public assets are visible to everyone on the public decentralized database, just like Bitcoin.  Bytes is a predefined public asset.

Payments in private assets are not published to the public database.  Instead, only the hash of the transaction is stored to the database, while the plaintext of the transaction is sent directly from the payer to the payee.  To protect against double-spends, a spend proof is also published to the Byteball database.  The spend proof is constructed as a hash of the output being spent, so that if the same output is spent twice, the spend proofs will be necessarily the same.

Iíve already described this design at https://bitcointalk.org/index.php?topic=1574508.0, see more details in the white paper.

Regulated assets

Regulated institutions can issue assets that are compatible with KYC/AML requirements. Every transfer of such asset is to be cosigned by the issuer, and if there is anything that contradicts the regulations, the issuer won't cosign.

This way, banks can issue fiat-pegged assets and stay fully compliant.  They can open demand deposit accounts and track them on Byteball as assets.  These assets are easily exchangeable against bytes and other assets (with bankís approval).

Other features

- Spending conditions (AKA smart contracts) in an easy to understand declarative language https://bitcointalk.org/index.php?topic=1617816.0
- Multisig: a special case of spending conditions
- On-chain oracles can post data (such as timestamps, exchange rates, weather, various events) directly to the database, then that data can be referenced from spending conditions
- Private end-to-end encrypted messaging: used to convey private payment data, communicate in multisig scenarios, and chat with a merchantís bot.

Initial distribution

There will be no ICO, no crowdsale.  I believe the success of a currency depends on the number of people who own it, in fact Peter Rís research suggests that historical marketcap of Bitcoin follows Metcalfe's law: https://bitcointalk.org/index.php?topic=572106.0, i.e. it is proportional to the square of the number of active users.  Thatís why I want Byteball to be in the hands of as many people as possible:


98% of all bytes and blackbytes (the private untraceable currency) will be distributed among bitcoin holders who link their bitcoin and byteball addresses before any of the distribution rounds.  No investment required, you keep your bitcoins, plus receive the bytes and blackbytes.  See below how to receive the coins.
1% I reserve for myself


Current status

The network was launched on December 25, 2016, and 10% of bytes and blackbytes distributed to those who linked their Bitcoin and Byteball addresses.  The total balance linked was over 70,000 BTC.  In the second round, we distributed another 1.76%, over 120,000 BTC was linked.

Participation in Byteball distribution

If you missed the 1st and 2nd rounds of distribution, you can still participate in the further rounds.  If you already participated or bought bytes on an exchange, you can multiply your holdings. 

The snapshots for the 3rd round will be taken on the Full Moon of March, on March 12 at 14:54 UTC.  In this round, you receive:
- 62.5 MB for every 1 BTC of proven balance
- 0.1 new bytes for every 1 byte you own at the moment of the snapshot

You also receive blackbytes:
- 62.5 * 2.1111 * 106 blackbytes for every 1 BTC of proven balance
- 0.21111 new blackbytes for every 1 byte you hold on the linked address at the moment of the snapshot
(total money supply of blackbytes is 2.1111 times more than that of bytes)

To participate, link your Byteball and Bitcoin addresses before the 3rd round:

1.  Download and install the wallet by following the above links.

2.  Visit https://byteball.org and click the link to chat with the Transition Bot.  The link will open the new wallet and start a chat.  Follow the instructions of the Transition Bot to prove your Bitcoin balance.

You have two options to prove your Bitcoin balance:
a.  By making a micropayment.  The bot will see your address the payment came from, will know that it is your address, and will instruct you to move your Bitcoins to this address.  By making several micropayments, you can link several Bitcoin addresses to the same Byteball address.
b.  By signing a message (if your Bitcoin wallet supports this function).  You tell the bot your Bitcoin address and sign your Byteball address with the Bitcoin address.  After you prove one address (a typical Bitcoin wallet has dozens of them), you can either move all your coins to this single proven address or prove all other addresses in the same way -- by signing a message. 

If you try to link the same Bitcoin address to multiple Byteball addresses, both links are ignored.  If you did this by mistake, link another Bitcoin address.

If you prove by micropayment, remember to check that the Bitcoin address that the bot received the micropayment from, is indeed your address.  An attacker might see your payment on the blockchain and repeat the same micropayment from his address trying to trick you to move your funds to him.

3.  If you make any Bitcoin payment, your coins will most likely be moved to a new change address.  Chat with the bot again, see the balance on your linked address(es) and move the coins back to the linked address(es) if necessary.

The linking phase will end on March 12 at 14:54 UTC, after which we'll do the distribution in proportion to BTC and bytes balances on this date.

In the 3rd round, we'll distribute as much as is linked and calculated by the above rules, the exact % is not known in advance. 

The 4th and subsequent rounds (yet to be announced) will follow similar rules, but the relative weight of bytes vs. BTC (i.e. which amount of bytes gives the same share in the new distribution as 1 BTC) in the 4th and further rounds will change and will gradually increase to 1 BTC=62.5 MB.  It will be selected to maximize the value of bytes and keep the speed of distribution in sync with the growth of user base and the actual use of the network.  The ratio 62.5 MB per 1 BTC is chosen so that the total money supply of bytes (1015) and the total number of BTC in circulation (16,000,000) are equivalent.

We'll have as many rounds as is necessary until all bytes are distributed, most likely a new round every full moon.

My 1% doesn't participate in the 2nd and further rounds.

Earlier adopters have the opportunity to participate in greater number of distribution rounds and receive new bytes in each round by using the same BTC balance and bytes received in the previous rounds.  You are effectively multiplying your stake in each additional round you take part in.

Track the progress of linking at http://transition.byteball.org.

How you can help

- play with the wallets, install them on multiple devices, pair them for multisig.  If you find bugs, report them.
- run a relay on your cloud server to help the network. The relay doesnít hold any private keys, so you donít have to worry too much about security.  Get relay source code from https://github.com/byteball/byteball-relay
- run a hub to better decentralize the delivery of private payments (the hub also includes a relay).  Again, the security doesnít matter much as all messages are end-to-end encrypted.  Hub address can be changed by users in their wallet settings.  Get hub source code from https://github.com/byteball/byteball-hub
- fix bugs, contribute improvements in our github repositories https://github.com/byteball.  In particular, we need faster syncing and faster UI.  Before now, I prioritized simplicity of algorithms over performance, now we need speed too.  A 10x improvement should come easy enough, the next 10x will be probably harder.  Discuss any major changes before actually implementing them.
- develop new tools/apps that you think will be useful for Byteball users
- spread the word about Byteball and remember that its value is proportional to the square of the number of active users


Translations: Chinese, French, German, Hindi, Indonesian, Italian, Japanese, Korean, Portuguese, Russian, Spanish, Turkish.

Twitter: https://twitter.com/ByteballOrg
Slack: http://slack.byteball.org
Telegram: https://telegram.me/byteball
QQ: 326176030
WeChat: Byteball 中国 https://twitter.com/ByteballOrg/status/830071965188812800

-----------------------------

One last thing.  The remaining 1% will be given away to the first 100m users who install Byteball wallet, 100 Kbytes to each user.  This will start 6 months from now or later, after we get ready for that scale.
« Last Edit: February 15, 2017, 10:06:48 PM by vindyne8 »



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Offline vindyne8

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Re: BYTEBALL: New consensus algorithm + private untraceable payments
« Reply #1 on: November 17, 2016, 02:16:32 AM »
Quoted below is from the dev of Byteball:

Quote
Finally, you can experience the pre-distribution linking of Byteball and Bitcoin addresses.

We are launching a new testnet, and you'll be able to get a portion of its distribution in proportion to your balance in Bitcoin testnet.

0.  Get your Bitcoin testnet wallet ready and funded.

1.  Download and install the wallet for the new Byteball testnet: https://github.com/byteball/byteball/releases
You will have two Byteball wallets - one for the old testnet that you already have, the other for the upcoming new testnet.

2.  Visit https://byteball.org and click the link to chat with the Transition Bot.  The link will open the new wallet and start a chat.  Follow the instructions of the Transition Bot to prove your Bitcoin balance.


You have two options to prove your Bitcoin balance:
a.  By making a micropayment.  The bot will see your address the payment came from, will know that it is your address, and will instruct you to move your Bitcoins to this address.  By making several micropayments, you can link several Bitcoin addresses to the same Byteball address.
b.  By signing a message (if your Bitcoin wallet supports this function).  You tell the bot your Bitcoin address and sign your Byteball address with the Bitcoin address.  After you prove one address (a typical Bitcoin wallet has dozens of them), you can either move all your coins to this single proven address or prove all other addresses in the same way -- by signing a message.

If you try to link the same Bitcoin address to multiple Byteball addresses, only the last linking counts.

If you prove by micropayment, remember to check that the Bitcoin address that the bot received the micropayment from, is indeed your address.  An attacker might see your payment on the blockchain and repeat the same micropayment from his address trying to trick you to move your funds to him.

3.  After linking, there is no use of the new wallet before the distribution, just keep it installed (backup if necessary).  It will receive the bytes on the distribution day.  If you make any Bitcoin payment, your coins will most likely be moved to a new change address.  Chat with the bot again, see the balance on your linked address(es) and move the coins back to the linked address(es) if necessary.

The linking phase will end in late November, after which we'll do the distribution for the new testnet.  Those who linked their Byteball and Bitcoin addresses will receive new test bytes in proportion to their Bitcoin testnet balances on the distribution day.

If all goes well, we'll do exactly same linking, but with real Bitcoin addresses, from early December to December 25 before the upcoming livenet launch and distribution.
« Last Edit: November 17, 2016, 02:18:09 AM by vindyne8 »

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Offline vindyne8

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Re: BYTEBALL: New consensus algorithm + private untraceable payments
« Reply #2 on: November 25, 2016, 12:29:52 AM »
A few Q & A from the past week:





Join #Byteball on slack to keep up on current events!

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Re: BYTEBALL: New consensus algorithm + private untraceable payments
« Reply #3 on: December 02, 2016, 09:23:37 PM »
Byteball version 0.7.0t released: huge performance improvements and new testnet.
Get it here: https://github.com/byteball/byteball/releases

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Re: BYTEBALL: New consensus algorithm + private untraceable payments
« Reply #4 on: December 07, 2016, 04:29:11 AM »
From the Byteball dev:

Starting now, you can link your Byteball and Bitcoin addresses for the upcoming distribution.

1. Download and install the wallet for Byteball live network:
Desktop: https://github.com/byteball/byteball/releases
Android: https://play.google.com/store/apps/details?id=org.byteball.wallet
* You will have two Byteball wallets - one for the testnet that you already have, the other for the upcoming live network.

2. Visit https://byteball.org and click the link to chat with the Transition Bot.  The link will open the new wallet and start a chat. Follow the instructions of the Transition Bot to prove your Bitcoin balance.


You have two options to prove your Bitcoin balance:
a. By making a micropayment. The bot will see your address the payment came from, will know that it is your address, and will instruct you to move your Bitcoins to this address. By making several micropayments, you can link several Bitcoin addresses to the same Byteball address.
b. By signing a message (if your Bitcoin wallet supports this function). You tell the bot your Bitcoin address and sign your Byteball address with the Bitcoin address. After you prove one address (a typical Bitcoin wallet has dozens of them), you can either move all your coins to this single proven address or prove all other addresses in the same way -- by signing a message.

If you try to link the same Bitcoin address to multiple Byteball addresses, only the last linking counts.  This rule might be adjusted if we see attempts to link exchange-owned addresses.

If you prove by micropayment, remember to check that the Bitcoin address that the bot received the micropayment from, is indeed your address. An attacker might see your payment on the blockchain and repeat the same micropayment from his address trying to trick you to move your funds to him.

3. After linking, there is no use of the new wallet before the distribution, just keep it installed (backup if necessary).  It will receive the bytes on the distribution day.  If you make any Bitcoin payment, your coins will most likely be moved to a new change address.  Chat with the bot again, see the balance on your linked address(es) and move the coins back to the linked address(es) if necessary.

The linking phase will end on December 24 at 23:59:59 UTC, after which we'll do the distribution in proportion to Bitcoin balances in the first block timestamped after December 25 00:00:00 UTC (Christmas block).  I'll announce the exact block number several hours after this block is mined (the waiting time is to exclude the slightest chance of reorg). The bytes and blackbytes will be sent out in the afternoon of December 25.

During this distribution we'll distribute 10% of the total supply of bytes and blackbytes. The remaining 88% will be distributed during subsequent distribution rounds, exact dates to be announced later. The planned distribution percentages (subject to change):

2nd round: 20%
3rd round: 30%
4th round: 38%


The rounds will be spaced 1 to 2 months.

In each subsequent distribution round, we'll take a new snapshot. The distribution rules in the 2nd and further rounds will be slightly different from the 1st. You'll show both your BTC balances (as in the 1st round) and your balance in bytes (which you received in earlier rounds or bought from other users). You have a sort of basket that consists of a mixture of BTC and bytes. To determine the weight of the basket, every 62.5 MB are counted as 1 BTC. For example, if you have 125 MB and 3 BTC, the weight is 2+3=5 BTC. The distribution of new bytes in the 2nd and subsequent phases will be proportional to the weight of your basket.

My 1% doesn't participate in the 2nd and further rounds.

The ratio 62.5 MB per 1 BTC is chosen so that the total money supply of bytes (1015) and the total number of BTC in circulation (16,000,000) are equivalent.

Earlier adopters have the opportunity to participate in greater number of distribution rounds and receive new bytes in each round by using the same BTC balance and bytes received in previous rounds. You are effectively doubling your stake in each additional round you take part in.

Please retweet https://twitter.com/ByteballOrg/status/806290785486467073

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Re: BYTEBALL: New consensus algorithm + private untraceable payments
« Reply #5 on: December 11, 2016, 07:25:04 PM »
Some distributions stats: http://transition.byteball.org/

Quote
Total balance linked: 11046.67590134 BTC

Current transition rate: 0.11046676 BTC/gigabyte

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Re: BYTEBALL: New consensus algorithm + private untraceable payments
« Reply #6 on: January 02, 2017, 08:09:23 PM »
OP has been updated. Round 2 distribution coming in Feb, stay tuned!

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Re: BYTEBALL: New consensus algorithm + private untraceable payments
« Reply #7 on: January 10, 2017, 01:31:26 AM »
Some more  Q & A from the main post on BCT forums here: https://bitcointalk.org/index.php?topic=1608859.0
Q = question from a poster.
A = answer from dev - tonych

Quote
Q: Does Byteball have this same problem with extended public keys and private keys? Is it safe to reveal your extended public key provided you don't reveal any of your private keys?
A: We use BIP44 for HD wallets, and it is the same as in Bitcoin, and the same safety measures apply.

Quote
Q: I wondered about this too :) To make a private transaction you need to first pair your device with your counterparty. Doesn't it reveal your ip?
A: The IP is visible to the hub only, not to the counterparty.

Quote
Q: Is the witness list included in transaction and cannot be tampered with?
A: Everything in the transaction, including witness list, is hashed and signed, hence cannot be tampered with.

Quote
Q: Hmm this is interesting. But what about the parents? If the invalid tx gets some parents for the 1st time, he is suppose to get some fees. Will he actually gets it? If so then I can devise an attack by creating massive invalid double spending tx and the only purpose is to grab all the fees related to first time parents.
A: Recipients of fees are selected among valid transactions only.

Quote
Q: That is quite an observation, if that is the case then what is stopping users attacking the network with double spend inputs that have been edited for the same time input, wouldn't both then be accepted at the same time since the timestamps are identical so it wouldn't know which one comes first.
A: There are no timestamps in Byteball protocol.  AFAIK it is the only cryptocurrency that doesn't use clock time at all.  Ordering of transactions is based on Main Chain within the DAG.

Quote
Q: Also, another issue, Ive sewn transactions posted by my wallet containing a witness list, I assume this witness list will evwntually wnd uo in a witness list unit and be untamperable, but is it possible to make a modifyed wallet to send a witness list which is 12witnessws of my own choosing, my witnesses would see the transactio n right, modify the witness list to be 11 real ones plus my own and tske the transaction fee. The other witnesses wouldnt know anything, id just take all/many fees.
A: Witness list unit is a reference to another unit that already lists your witnesses explicitly.  It is just another way to say who your witnesses are when the same witness list is reused.  It saves space, costs only the size of the unit hash (44 bytes) instead of 12 witness addresses (12 * 32 = 384 bytes).

Quote
Q: Here is a question about the second distribution phase: what if I change my Byteball address? Do I lose my 0.1 new byte per 1 byte received in the first round?
A: If you didn't remove your wallet, you still have the old BB address (but your receiving BB address constantly changes, same as in Bitcoin wallets).  If you have a new wallet, you'll have to link again.  I'll announce all the details when we start the linking phase for the 2nd round.

Quote
Q: Let's assume for the sake of argument that 16*106 bitcoins are linked for the second round, so this means that 1015 bytes should be distributed which wouldn't be possible, or am I missing something? Thx.
A: In this unlikely case, we'll distribute the remaining 88% proportionally.

Quote
Q: If the majority of coins remains at your disposal for so long time, how do you think it will affect the adoption by exchanges or other businesses? You may be the most honest person in the world, and will keep all your promises (and I personally believe you will), but how you can prove that to others, so they believe you will not just dump your undistributed coins?
A: Having to keep so many undistributed coins doesn't make me feel comfortable either.  I have to find a balance between distributing fast and distributing wide, which takes more time to allow more people to pull in.  I might move the undistributed funds to a multisig address, I would expect my cosigners to:
- have a long term interest in the success of Byteball at best, or be neutral at least
- be non-anonymous
- have a good reputation in the crypto community
- be trusted not to collude with me or with each other

Quote
Q: No, there no applications on main net yet. There are few example bots on test net. I hope, some applications on main net are coming soon. Tonych is not very active on this thread since after  distribution, I guess he is cocking something to surprise us.
A: Demos of some applications are running on testnet https://byteball.org/testnet.html (need to install a separate wallet), all source code is in our github repos.  Still more to come.

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Re: BYTEBALL: New consensus algorithm + private untraceable payments
« Reply #8 on: January 17, 2017, 12:12:34 AM »
From original post by dev tonych here: https://bitcointalk.org/index.php?topic=1608859.msg17474758#msg17474758


Two news for today.

TOR support

Now all server based Byteball nodes can connect through TOR.  TOR support in GUI wallets will be added in one of the future releases.  TOR is supported in:

- merchant https://github.com/byteball/byteball-merchant
- headless wallet https://github.com/byteball/headless-byteball

Since Byteball merchants operate in chat interface (unlike web sites), they already don't have to accept incoming connections, therefore don't have to have a publicly known IP address, and TOR support means that they also can hide their IP addresses when making outgoing connections.  This allows them to be completely hidden.  At the same time, customers don't have to use TOR to chat with the merchant bot.

Being able to completely hide one's IP address is even more important for server based wallets that may store large amounts of funds online and be a lucrative target for attackers.  With the IP address hidden, the attackers simply do not know what server to attack, or it is much harder to learn.  So, for headless wallets, TOR allows to achieve better security, not just anonymity.  This is used in the new product which is the subject of our second news today.

Exchange bot that allows to exchange BTC to Bytes and vice versa

The exchange is as easy to use as ShapeShift.  No registration required.  To buy Bytes, you start the chat, send Bitcoins, and a few minutes later you receive the Bytes.  Same for selling Bytes.  You can also create a pending order and hope to get a better deal.



The bot is running on testnet now, see the link at https://byteball.org/testnet.html (you'll need a separate wallet for testnet).

The exchange is trustful, it holds customers' funds, even if it is for a short time.  To minimize risks, the exchange runs through TOR, which makes its IP address unknown to the attackers.  Since it operates in chat and doesn't have to accept incoming connections, you can run the exchange bot even in your bedroom, with the added advantage of being behind NAT.

As another measure to minimize its liabilities and the associated risks, the exchange bot discourages pending orders that are too far from the market price by allowing withdrawals only in the opposite currency and by allowing to modify the order's price only when it accelerates its execution.

Full source code and install instructions are at https://github.com/byteball/btc-exchange.

Please test the exchange on testnet by clicking its link at https://byteball.org/testnet.html, any feedback is appreciated.

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Re: BYTEBALL: New consensus algorithm + private untraceable payments
« Reply #9 on: January 22, 2017, 09:19:11 PM »
Some more Q & A from the main post on BCT forums here: https://bitcointalk.org/index.php?topic=1608859.0
Q = question from a poster.
A = answer from dev - tonych

Quote
Q: Wonderful news, does the trading bot works for blackbytes too? I am interested in trading some blackbytes for white bytes...
A: It works for bytes only.
We'll have a bytes-to-blackbytes P2P exchange on the network.

Quote
Q: Ok, thanks. But I meant the transactions made by others (not from/to my wallet) Smiley
Is there any way to see the timestamps on them?

A: There are no timestamps in Byteball protocol, they are just not needed.  That's why there are no reliable timestamps. The ones you see in History tab are the times and dates when your wallet first learnt about the transaction (or, if you are on light wallet, when the light vendor first learnt about the tx).

Quote
Q: Imagine that I have poisoned the network and 90% of the nodes (not physical machines, just IPs) are controlled by me. What stops me from scamming a merchant in such way:

1. Issue a payment to the merchant and a payment to myself with "no partial order between them"
2. Make the others to prioritize the payment to myself (the branch with the payment to merchants will be extend too and this is the only transactions the merchant will see)
3. Get the purchased item delivered
4. Stop the attack, my payment is already considered as a part of the main chain, let the merchant to see that his payment is not.

A: If the user waits that the transaction is final, he cannot be defrauded.
In your example, you isolate the merchant from the real network and feed him with a fake branch.  The merchant will accept your units and add them to his version of the DAG, but since there are no witness-authored units on your branch, it will not move the stability point forward and your double-spent payment will stay unconfirmed for as long as your attack continues.  Number of nodes is totally irrelevant, it is the presence of witnesses what makes a branch real.

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Q: Currently, that page is frozen with the balances and linked addresses used for the first round, so for now it is not getting updated. I think it might be the time to unfreeze it and/or maybe keep that state in a separate page: transition.byteball.org/firstround.html for instance, and update the main page with the current links.
A: Thanks for the suggestion, now the transition page updates again, and the balances used in the 1st round are moved to transition.byteball.org/firstround.html.

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Q: This is what I actually supposed. Thanks for confirming that, tonich!
But don't you think such timestamps could be useful for some of the applications of Byteball? I understand they are not needed by protocol, but it could be useful to add them as an comment or "additional info", so it could be easier to trace transactions or analyze the chain. Simple example - I was trying to see when an amount was transferred to some address (some minutes ago or few days ago), and I found no way of using that! This is great for making things more obscure, but I suppose that is not something we want to achieve with Byteball...?

A: Applications are supposed to use timestamps posted by oracles they trust.  There is already one timestamping oracle, its address is I2ADHGP4HL6J37NQAD73J7E5SKFIXJOT and this is one of its recent timestamps https://explorer.byteball.org/#vcwDbSwjOH4h0wdW5M51N92+ivdm8zgBArrdeSHDz5k=.  A similar timestamping oracle on testnet is already referenced from smart contracts of our trustless exchange.

However, choosing which timestamping oracle to trust is entirely up the application, there is no single "official" timestamp.  The best we could do to address the issue you describe above, is showing when a transaction was received by the explorer node.  It's only that - when the tx was received.  If we restart the explorer from scratch, all past transactions will be received within 1-2 hours after it is restarted and these timestamps won't be very useful.

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Q: Right, but how is reputation and marketing in the real world determined algorithmically? If it's just number of votes, couldn't large ICO holders easily make the most txs and thus vote themselves as most reputable, especially when the coin is relatively small like now?
A: This is where the system is anchored to the real world.  If someone feels that witness X should be replaced with witness Y for whatever reason, he can start a campaign and try to convince others to do the replacement (in the current version of the wallet, this can be done only manually in wallet settings).  While some people have already switched to the new witness list and some are still on the old one, all users are able to add their transactions to the DAG because a difference of 1 witness is allowed.  After the change has diffused throughout the network, a new change can be campaigned for and realized.

Obviously, no "votes" from anonymous users can be relied upon in a system with no barriers to entry.  ICO holders don't get any more power automatically just from holding larger bags.

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Q: Can you explain more technically how the change of witness is diffused througout the network?
A: This part is the least technical, just more users accept the new witness list.
Q: Which votes count, anybody making transactions? 1 vote per transaction?
A: As I said, there are no votes.
Q: Btw, does the amount of witnesses, 12, impose limits on transactions/second in any way, or latency for finality?
A: Yes it does.  If we had 1 witness (which would be roughly equivalent to checkpointing that is used in some cryptocurrencies), transactions would confirm faster.  If more than 12, then slower.  See the chapter about finality in the whitepaper, we reach finality when we see the majority of witnesses on certain positions on the DAG.

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Q: Good job. Is there a market for blackbyte / byte or blackbyte / BTC? If not, can users create any two pairs they want, or you have to create them?
A: Only bytes vs BTC so far.
We'll have trustless P2P exchange for trading bytes vs blackbytes.

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Q: ... All the above sounds simple. It's this bit that's causing me a little confusion.


For the bytes you hold on mid-February (to be announced) you receive 0.1 new byte for each 1 byte of your balance, even if your bytes are not on linked Byteball addresses.

You also receive 0.21111 blackbytes for each 1 byte of your balance on the linked Byteball address, which currently is:
YYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYY  0 GB.

Move your bytes to the linked address in order to maximize the amount of blackbytes you receive.

I signed a message and successfully linked my BTC address to my byteball address.
I have a load of bytes and dark bytes sitting in that wallet also.
Now, why is it telling me I have to move my bytes to YYYYYYYYYYYYYYYYYYYYYYYYYY  ?

Do I need to move resend my own bytes to myself at this YYYYYYYYYYYYYYYYYYYYYYYY  address?

Many thanks in advance.

A: Yes, you need to move bytes to yourself, to your linked address.
To distribute blackbytes, it's not enough to know your BB address, we also need to know your device address in order to send the private payloads.  Since we know this only for your linked BB address (but not for all your other BB addresses), you have to move bytes to the linked address.

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Q: Price is exploding. Lisk please dump now, I want to buy more but cheaper! Max be our friend :-)
A: I'm in contact with Lisk and ICONOMI and they are not going to sell any time soon.

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Offline vindyne8

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Re: BYTEBALL: New consensus algorithm + private untraceable payments
« Reply #10 on: January 28, 2017, 01:36:16 AM »
From the original post by Byteball dev tonych here: https://bitcointalk.org/index.php?topic=1608859.msg17566450#msg17566450


We'll have our 2nd distribution round under the Full Moon, on 11th of February at 0:33 UTC.
We will probably follow the Full Moon calendar for future rounds too.

Bitcoin snapshot will be taken in the first block after the date.
Snapshot of Byteball database will be taken on exactly this date and will include only final transactions.

The transition bot is already working (find the link at https://byteball.org), chat with it to link your Bitcoin address and check the currently linked addresses and their balances.  If you participated in the 1st round, your linked addresses stay the same, you don't need to link again.

The distribution rules:

BTC to bytes: 1 BTC of proven balance gives you 62.5 MB (0.0625 GB)
BTC to blackbytes: 1 BTC of proven balance gives you 2.1111 * 62.5 million blackbytes (money supply of blackbytes is 2.1111 times more than that of bytes)
Bytes to bytes: 1 byte on any Byteball address gives you 0.1 new bytes
Bytes to blackbytes: 1 byte on linked Byteball address gives you 0.21111 blackbytes

If you already hold bytes, please move them to one of the linked BB addresses (chat with the bot to learn what your linked addresses are) before the distribution date to receive your share of blackbytes.  This is a technicall necessity that follows from how blackbytes work: we need to send the private payloads to your device and we know only the device address of the linked BB address, not of any other BB address.  If you don't care about blackbbytes for some reason, you don't need to do anything.  If you didn't touch your bytes after the 1st round (i.e. didn't send or receive a single transaction), you also don't need to do anything since all your bytes are still on the linked address.

Blackbytes that remain undistributed because some people didn't move their bytes to the linked address, will be transferred to a development fund which will be used to pay for future promotion and development.

In this round and at the current market prices, bytes give you a much larger share in the distribution than Bitcoins.  For example, holding 1 GB gives you the same as holding 1.6 BTC:
1 GB -> 0.1 GB
1.6 BTC -> 1.6 * 0.0625 = 0.1 GB
This is one of the nice things about being an early adopter.

Chat with the bot to check the current status or link new Bitcoin addresses and don't forget to move your Bitcoins and Bytes to the linked addresses before the February Full Moon.

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Re: BYTEBALL: New consensus algorithm + private untraceable payments
« Reply #11 on: February 04, 2017, 08:50:39 PM »
Some more Q & A from the main post on BCT forums here: https://bitcointalk.org/index.php?topic=1608859.0
Q = question from a poster.
A = answer from dev - tonych


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Q: How will this change going forward regarding the witnesses?  I mean in the selecting of the 12, how long do you plan to carry the whole network?

So if I understand correctly the witnesses are the ones who receive the payload commissions for each transaction. 
Where can we find the info on how much commission are being generated for each transaction?

What about the headers commissions where can we find this for each transaction?


A: You can see all fees in the explorer https://explorer.byteball.org


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A: To secure against loss of the wallet, I recommend that you use multisig.  For example, 1-of-2 multisig with one wallet on the phone, the other on a desktop computer.  This way, the private assets will be automatically copied to the two devices.

Q: Interesting, will it work if one of the devices is offline?

A: Yes.


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Q:Uncaught Error: More than one instance of bitcore-lib found. Please make sure to require bitcore-lib and check that submodules do not also include their own bitcore-lib dependency.

Secp256k1 bindings are not compiled. Pure JS implementation will be used.


A: Please make sure that the program is started from "C:\Program Files", not "c:\Program Files" (with capital C).  If it is not, edit the paths on the start icon.  There is one oddity in how node.js works on Windows.


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Q: Was there a peer review of "private untraceable payments"* claim?

---
* - taken from the title

A: I proposed similar idea in bitcoin-dev mailing list and it was discussed there.  One of the responses is from Peter Todd https://lists.linuxfoundation.org/pipermail/bitcoin-dev/2016-August/012956.html, see others too.

Also there was a technical discussion at https://bitcointalk.org/index.php?topic=1574508 and https://bitcointalk.org/index.php?topic=1298588.0


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Q: I am really interested in seeing some Byteball smart contracts in action. Specifically I would like to know if it is possible to implement a Double Deposit Escrow contract using Blackbytes?
A: Smart contracts are already in action on the trustless exchange on testnet https://byteball.org/testnet.html.

It is possible to implement a better contract than Double Deposit Escrow, see the fedex example above.


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Q: With Bitcoin and most altcoin wallets you can send a transaction before they are fully synced provided the wallet shows it contains your coins. Is byteball the same?
A: Yes, you can (if the outputs you are going to spend are already in your copy of the DAG).


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Q: Byteball uses witnesses. There are 2 ways to choose the witnesses:

1. They are picked by every user for himself
2. They are elected via global voting

If it's #1 then it becomes possible that some users are almost isolated from each other because they have only few common witnesses. #2 leads to a more serious problem which arises if a user is faced with more than 2 options (just google why it's a serious problem, there should be many links with mathematical proofs on impossibility of coming to a satisfying consensus). The problem of picking an option has already striked twice in the cryptoindustry. First it was Ripple/Stellar consensus flaw drama when Stellar admitted to have a flawed consensus while Ripple decided to make appearance they were fine (heh, they had enough money not to care about community opinion). The second time which I remember it was Factom drama, now I can't find the links, but in few words: they "sold" a flawed voting mechanism which was unfixable because they allowed more than 2 options.

So my concern is that cryptocoin developers don't take voting seriosly. I noticed this several years ago in Bitshares. Back then I was thinking that voting is easy, only after working with two professors (on two separate tasks) who were specializing in voting I got that it's all actually not that simple...


A: Voting is not easy indeed, and there is no voting in Byteball consensus.  Instead, there is a requirement that witness lists of neighboring (and not just neighboring - see the white paper for details) units on the DAG are compatible.  Compatible means that they differ by no more than one mutation.  This is similar to biology where the genes of a parent and child are very similar but not the same, and the genes of any member of the same species are also similar but not identical.


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Q: @tonych, do you support the claim of SatoNatomato the Expert: "Id say the blackbytes + Tor support makes Byteball more secure and anonymous than even Monero or Zcash." ?

A: I think the privacy features of all 3 coins are more or less the same for most practical purposes.   What differs, and what matters most for regular users, is usability.


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Q: I think only 20% max of premine can be held by the dev to get listed.

Tonych may be able to make them one of the multisig holders that control the rest ..so they perhaps would list it then.

This needs to be done then.  Bigger exchanges likely have similar requirements.  If byteball is just listed on one small, obscure exchange for another year or however long it takes to distribute the rest potential growth will really be obstructed.

Tonych any plans to address this limitation?


A: So far, no exchange has told me that they have any issues with the undistributed coins.


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Q: why does the OS X app try to connect to google?

plus.google.com TCP-Port 443 (https)


A: What makes you think so?
There are no references to any sites (except the default hub) in the source code.


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Q: Will there be a way to backup private assets via a seed in the future?

I love paper wallets and it's a shame I can't make one for Blackbytes!


A: Impossible by design.  Too much information to fit on piece of paper.


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Q: Sent my transaction from my bitgo wallet and received this message from Transaction bot

I received 0.0015 BTC from 3QcomrVZo8T7XARRVYziJg3B8BqkzcZs2D but this transaction looks like it was sent from an exchange, which is not allowed. Please send BTC only from a wallet that you own private keys for. If you think it was a mistake, please contact [email protected]

why do they think its an exchange?


A: I already replied you by email:

See here https://blockchain.info/address/3QcomrVZo8T7XARRVYziJg3B8BqkzcZs2D, there are too many outputs thatís why we detect it as an exchange (transactions sent from regular wallet usually have 2 outputs).  Please use a wallet where you control the private keys.


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Q: How much data are we talking about?

If you can store the right amount of data on a blockchain/DAG, you can store an encrypted backup there. Then, all you'd need would be
a) the passphrase/seed to decrypt the data
b) some means to find the relevant data on the blockchain/DAG.

You wouldn't need a dedicated function for it, you could do it on your own. You could store it on some other blockchain as well, if you'd want to.

Obviously, you'd have to pay for the transaction when storing data, so this would probably be only suitable for long term holding.


A: It's megabytes, and you'll have to re-encrypt and store the data again every time it changes.
I'm afraid it would be too expensive to store your personal data in Byteball.  Byteball was designed to store data of social value: data that matters for all members of the ecosystem who transfer money-like assets to each other and need the database to track their origins and verify their validity.  When you are not using these features and only using plain storage, you are overpaying.

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Offline vindyne8

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Less than 1 day  left before the 2nd round of Byteball distribution. Link your $BTC address HERE before Feb 11 at 0:33 UTC to participate while there's still time left!

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Offline vindyne8

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CLICK HERE FOR DETAILS

Byteball Second Distribution Round Scheduled for Feb. 11 at 0:33 UTC
Just 2 hours left to link up! Don't miss out! Time is running out!




CLICK HERE FOR DETAILS

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Re: BYTEBALL: Totally new consensus algorithm + private untraceable payments
« Reply #14 on: February 15, 2017, 10:07:12 PM »
Round two distribution stats from the Byteball dev, tonych in original post here: https://bitcointalk.org/index.php?topic=1608859.msg17820043#msg17820043

Quote
The second round is now complete, bytes and blackbytes distributed.

Here are the exact numbers:

17,610.194028342 GB distributed (1.76% of total supply, +17.6% to the previous available supply).
New available supply: 117,610.194028342 GB.

86,658.346197160 GB were on linked addresses at snapshot time and eligible for receiving blackbytes.
37,176.880613233 new GBB (gigablackbytes) in circulation, out of which:
34,360.309831321 GBB distributed,
2,816.570781912 GBB go into the development fund.

Thank you everyone who participated, special thanks to those who supported our new community members and made their experience as smooth as possible, thank you the Transition Bot.

The next round is scheduled for the full moon of March (12 March 14:54 UTC), the conditions are exactly the same as in the 2nd round.

Meanwhile, we continue developing the Byteball ecosystem to bring the power of crypto to regular users.

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