Anonymity and real name have their uses

This article is to answer the questions of group members. Group members believe that anonymity protects privacy, but real names do not protect privacy. This view has a significant influence and is a misunderstanding. Let’s see what Eric Hughes, the originator of this issue, and the great practitioner Satoshi Nakamoto think. The view comes from my series of articles, “5 Satoshi Nakamoto is a cypherpunk” of “Invete out Satoshi Nakamoto to welcome the new world” (chainless.hk).

Anonymous transactions are necessary to protect privacy

Eric Hughes, one of the founders of the cypherpunk community, in his March 9, 1993, A Cypherpunk’s Manifesto (8), has a very different view of “privacy” and “secrecy .” A clear distinction is made between privacy and secrecy. “Privacy is not secrecy. A private matter is something one doesn’t want the whole world to know, but a secret matter is something one doesn’t want anybody to know. Privacy is the power to selectively reveal oneself to the world.” In other words, privacy is a right to choose.

Eric elaborates on the scenario of electronic shopping transactions. He notes, “When my identity is revealed by the underlying mechanism of the transaction, I have no privacy. I cannot here selectively reveal myself; I must always reveal myself.”

“Therefore, privacy in an open society requires anonymous transaction systems. Until now, cash has been the primary such system. An anonymous transaction system is not a secret transaction system. An anonymous system empowers individuals to reveal their identity when desired and only when desired; this is the essence of privacy.”

This sentence is significant. The privacy design of the chainless system is hierarchical. Cryptocurrency is only anonymous, and there is no better way.

In his Bitcoin white paper, Satoshi Nakamoto explicitly mentions privacy. The content is not long, but as a separate chapter, it shows its importance. The excerpts are as follows:

“The traditional banking model achieves a level of privacy by limiting access to information to the parties involved and the trusted third party. The necessity to announce all transactions publicly precludes this method, but privacy can still be maintained by breaking the flow of information in another place: by keeping public keys anonymous. The public can see that someone is sending an amount to someone else, but without information linking the transaction to anyone. This is similar to the level of information released by stock exchanges, where the time and size of individual trades, the “tape,” is made public, but without telling who the parties were.”

“As an additional firewall, a new key pair should be used for each transaction to keep them from being linked to a common owner. Some linking is still unavoidable with multi-input transactions, which necessarily reveal that their inputs were owned by the same owner. The risk is that if the owner of a key is revealed, linking could reveal other transactions that belonged to the same owner.”

Satoshi Nakamoto does not deny real-name privacy protection

Satoshi Nakamoto does not deny real-name privacy protection but believes that: When all transaction information must be disclosed, traditional privacy protection methods will not work. That is, the current methods of banks cannot be used when the ledger is disclosed.

Satoshi Nakamoto also said: “The traditional banking model will achieve a certain degree of privacy by restricting access to the information of related parties and trusted third parties.” This sentence discusses two points: first, we can query our Bank’s personal information without letting third parties view it; second, you must trust the Bank.

The third point is that Satoshi Nakamoto did not say that the Bank must check your personal information thoroughly before he trusts the Bank. For real-name systems, trust is two-way. For anonymous systems, trust is one-way. Users still have to trust the system, and the system does not need to trust the customer.

Anonymity corresponds to public ledgers

The name of the first version of Satoshi Nakamoto’s white paper is “Peer-to-Peer System without Trusting Third Parties.” The defect here is not rigorous enough, so it was modified to a “Peer-to-Peer Cash System.” We do not need to trust the transfer intermediary. However, we must still trust the programmers and the bookkeepers who succeed in the computing power competition. Ordinary people cannot find out who owns the address in the ledger. For the professional level of the FBI, the Bitcoin ledger is transparent. The transfer of Bitcoin addresses can be checked today. The reason why the FBI cannot find it is that it cannot enforce the law globally.

We still need trust in the end. Should we trust a bunch of unknown kids or the Bank? Of course, trust the Bank. It is also why the chainless system does not require everyone to KYC at the beginning: because the project has no credit. When it is listed on the exchange, the price rises, and the currency is valuable, the KYC resistance will be small. Trust needs to be accumulated, especially for an automatic platform.

Bitcoin is a very simple, balanced ledger. Credit is generated in the form of a public ledger. In order not to expose privacy, anonymity is required.Traders should use a new key pair for each transaction to prevent someone from finding the common owner of these transactions.It is a joke, a joke that violates privacy. Obviously, modifying it to an account mode under the blockchain structure is a joke made by not understanding finance.

We need a new ledger form

How does a bank transfer money? We can only know the amount of money and the transfer object, but we cannot know how much money is in the person’s account. The Bank’s privacy protection is correct. However, the Bank’s ledger is not public because it uses our money to make a profit.

There are N ways to implement centralized ledgers to protect personal privacy by publicizing the ledger. Chainless adopts the form of transparent centralized general ledger index. Our ledger has a unique ID, but three account names are designed: email, mobile phone, and account ID. When you transfer money, you will not expose your account ID by email or mobile phone number.

Outsiders can view all IDs and understand whether the chainless ledger is balanced or tampered with without exposing personal information. Once there is a natural person and real name, a DID can be generated based on this account ID as a universal identifier.

The new ledger requires a new profit model

Banks have a transfer fee cap, and transaction fees alone cannot support large institutions. Ethereum charges according to the proportion of securities, and its operating expenses are extremely low, making a profit easy. The transparency of the new ledger and smart contracts can reduce operating costs. Still, they cannot generate the profits of current banks. If you want to support yourself with transaction fees, the platform must be large enough; that is, the transaction volume must be large enough, but this is far from enough. Another way is to use the Internet’s thinking, focus on traffic, and find new business growth points. Fortunately, we found it.

Every Internet track has a boss who dominates the country. Why doesn’t the banking industry have one?  This is the opportunity.

The new ledger form is Web3. It must be based on real names rather than anonymity to defeat banks. Interested readers can go to the website chainless.hk to read the chainless white paper. The project has passed the seed round and is now in the angel round stage. The number of registered users has exceeded 200,000. The most distinctive one is the Clchat community software, which will also be a means of profit in the future.

PS:

The Clchat software we are developing is a Web3 structure and does not store private chat data. The download speed is still slow, and the ease of use cannot be compared with WeChat. The product starts with the private domain. The private domain function is not yet complete, and it is still far from the goal of creating a community product suitable for cryptocurrency. The product has been launched and welcomes testing.

Download and installation guide:

1. Android users:

Please copy this link https://download.clchat.top/CLChat/CLChat_2.8.0.apk and open it in the browser to download and install.

2. Apple users:

  • Download and install the TF (TestFlight) app from the AppStore;
  • If you have already installed the TF app, you can directly visit https://testflight.apple.com/join/vrebG3i1 and download and install it.
  • If you have set up automatic updates for TF, you can automatically update it by starting CLChat.
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