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shielded coinbase and tweaks

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Duke Leto 4 years ago
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  1. BIN
      itm-zchain.pdf
  2. BIN
      sietch.pdf
  3. 25
      sietch.tex

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itm-zchain.pdf

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sietch.pdf

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sietch.tex

@ -1089,32 +1089,35 @@ have the same properties.
This section considers various new technologies coming down the pipeline and how they interact with existing
and new metadata analysis techniques.
\nsubsection{Shielded Coinbase}
\nsubsection{Shielded Coinbase ZIP-213}
Shielded coinbase seems interesting but leaks a grave amount of metadata tied to the zaddress of the miner, which
Shielded coinbase is interesting but leaks a grave amount of metadata tied to the zaddress of the miner, which
can feed into this analysis. We recommend Pirate, Arrow and other coins implementing enforced \zaddr usage
avoid implementing the new \cite{ZIP-213} "Shielded Coinbase". The Hush community does not agree the the final conclusion
of ZIP-213 that it is ok to make the miner \zaddr output public and that only users concerned with "post-quantum"
privacy need to worry about metadata leakage. It gives no recourse to these users, and so in that sense Sietch
can be seen an a valid defense against quantum computers. Further research is required to see what kind of
speed up quantum computers can have on graph theory algorithms that make up the bulk of an \ITM.
speed up quantum computers can have on graph theory algorithms that make up the bulk of an attack.
Shielded Coinbase will drastiscally reduce privacy of \zaddr miners, because they will re-use the same \zaddr
for every block and it leaks the \zaddr being mined to. The "normal" behavior of mining to a taddr first then
sending to a \zaddr isolates metadata leakage to the taddr. The \zaddr of a miner is never disclosed publicly.
ZIP-213 says miners should make a new address for every block but that simply will not happen because it's optional
and also makes wallet.dat files very large, slower, more annoying to backup, and various other reasons. All privacy
and also makes wallet.dat files very large, slower, more annoying to backup, and most importantly, the downtime
it would take to stop zcashd and restart with a new zaddr directly translates into lost money for a miner. All privacy
coin research points to the fact that most users only do what is mandatory, they do not go out of there way to do
extra work to get privacy.
extra work to get privacy. Miners are no exception.
By using Timing and Value Analysis with Shielded Coinbase, an analyst can get a much better estimate on the minimum
value a \zaddr likely has and how much funds pass thru it per time interval, as well as txid's to correlate to the
\zaddr. These can all be used as inputs to the ITM Attack, as well.
\zaddr. These can all be used as inputs to the ITM Attack, as well. Additionally, \zaddr miners open themselves up
to dust attacks because their \zaddr is publicly known on the public blockchain, forever.
ZIP-213 is a fascinating academic exercise which could be implemented with better privacy properties but less auditability,
i.e. knowing exactly how much new funds are being mined in each block. Taking into account the ITM Attack in particular
and Metaverse Metadata attacks in general, ZIP-213 will not increase the privacy of a blockchain but potentially decrease
it by infecting the shielded pool with too much metadata leakage.
and Metaverse Metadata attacks in general, ZIP-213 will not increase the privacy of a blockchain but decrease
it by infecting the shielded pool with too much metadata leakage. For these many reasons, Hush and Komodo world are ignoring
ZIP-213, and indeed, ignoring the entire Heartwood Network Upgrade, as it has no privacy features.
In summary, Shielded Coinbase was implemented by Electric Coin Company with little practical regard to increasing privacy on their
blockchain, though it is an interesting technical peice of work. Since increased \zaddr usage does not translate into more profits,
@ -1128,8 +1131,8 @@ involved in pushing the bleeding edge of privacy tech forward.
\nsection{Acknowledgements}
This is an independently funded work of research with no 3rd party
funding sources. No funding from Electric Coin Company nor Zcash Foundation was received.
This is an independently funded work of research with no third party
funding sources. No funding from Electric Coin Company, Zcash Foundation or any other for-profit or non-profit entity was received.
\nsection{References}
@ -1141,7 +1144,7 @@ funding sources. No funding from Electric Coin Company nor Zcash Foundation was
\endgroup
\begin{center}
\textbf{Speak And Transact Freely}
\textbf{Speak And Transact Freely - myhush.org}
\end{center}
\end{document}

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