Anonymity in the spotlight – Blockstream is a company specializing in the development of solutions for the Bitcoin network (BTC). This is notably at the origin of the Liquid network, which evolves in parallel with that of the king of cryptos. In addition, the company is developing solutions for the Lightning Network.

Minimint: anonymity on Bitcoin on Blockstream

On October 28, the company Blockstream To announcement a new partnership aimed at supporting the development of the project Minimint. This solution is presented as a anonymity solution for Bitcoin and in particular the Lightning Network. This is based on the concept federated currencies, also called “Chaumian banks”.

In addition to providing a community-driven custodial solution within the Bitcoin ecosystem, federated currencies automatically preserve the confidentiality of identities, wallet balances, and member transaction histories through the use of blind signatures. . “

Blockstream Announcement

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As we have just seen, Minimint is based on the concept of federated currency. In this environment, federations raise their funds for issue vouchers having a defined value. To do this, they are made up of users who have deposited their funds on a multi-signature contract, as explained in the technical description:

“A federation is an entity made up of independent members, who come together to create a multi-sig wallet, with the aim of becoming a blind and distributed custodian by acting as an electronic money. “

Blockstream Announcement

Subsequently, this federation is able to issue vouchers with a monetary value. These vouchers have the advantage of preserve anonymity of their holder, both in terms of their identity and the amounts involved.

Example of use

As an example is better than a long speech, let’s see together how Minimint can be used to preserve your privacy on Bitcoin.

Suppose that a federation has been created by various users. If Alice wants to send money to Bob anonymously, she can turn to the federation. Alice can then to file his money on the federation wallet. In exchange, this emits a Well which represents the amount deposited by Alice.

Minimint preserves privacy on Bitcoin (BTC)
Explanatory diagram of Alice’s repository – Source: Blockstream

Afterwards, Alice can decide to pass the property its good to Bob. At the same time, the voucher is sent to the federation in order to validate that Alice don’t try to spend 2 times funds. If the voucher is still valid, the federation isput a new voucher to Bob and destroys Alice’s.

If Bob wishes to recover the funds underlying this voucher, he can exchange it at the federation for the amount he represents.

Minimint preserves privacy on Bitcoin (BTC)
Explanatory diagram of Bob’s withdrawal – Source: Blockstream

Anonymity during all of these phases is preserved through the use of blind signatures (Where blind signatures).

In parallel with these developments, the price of Bitcoin has once again beaten an ATH. Indeed, the king of cryptocurrencies has passed the $ 65,000 mark.

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