Bitcoin Privacy via Coinjoin | Tether Fractional Reserve | Lightning IoT



what's up everyone been with the BTC sessions here and this is your daily session partl that bitcoin before we jump into the news just a couple quick things number one do check out my website BTC sessions dossier this is where you can reach out to me directly and book your own BTC session we can chat Bitcoin wallets proper security whatever you like all you need to do is scroll down to the bottom and there's a contact form for you there secondly big shout out to the sponsors of the show ledin done IO this is where you can use your Bitcoin as collateral for a Canadian dollar or in select international markets US dollar loan so really simply you just go to the website they've got a slider where you can check out how much Bitcoin is required for a particular dollar amount takes about two minutes to fill out the application and if you're approved then your bank account is usually funded within 24 hours now this is a good option for some people perhaps you want to get your hands on dollars but you would not like to sell your Bitcoin to do so this could be something to look at for you and right now they do have a deal on where if you apply for a loan and you're successful if you use the link that I provided below they'll credit your account with an additional $50 worth of bitcoins so check that out that helps out the show if you do without further ado let's dive into the news now this is something I've been interested in for some time now and I've been kind of experimenting and learning as much as I can but mixed cryptocurrency transactions are up 300% as crypto users pursue anonymity now there is something called coin join for Bitcoin and this is essentially when you're you group your own transaction with a bunch of other transactions from other people and let's say I wanted to spend point one Bitcoin and I wanted to send it somewhere well what you can do is you can mix all of these transactions for the same amount and because of the same amount it doesn't matter where it goes whether it goes to your recipient or to your own wallet or to somebody else's wallet as long as you get the point 1 and so essentially it mixes the inputs and outputs so that it's more or less very very difficult to figure out who sent what where so a lot of this is thanks to easier execution of this for regular users and wallets like wasabi wallet which I've been playing around with they have coin join where you can essentially just kind of anonymize your coins so really cool I recommend checking them out and also samurai wallet which is a mobile wallet is working on adding in something called what is it called actually whirlpool that's what it's called so whirlpool same kind of idea where in mixing together a bunch of different sources of coins every transaction can look like or actually be a coin joint which just affords you a lot of anonymity and breaks those linkages between yourself and the coins you are holding so definitely worth checking out both of these wallets I've been using samurai on mobile for quite some time I've been using wasabi on my desktop for a while now too I like both projects and look forward to seeing them grow but overall yeah cryptocurrency transactions coin joint transactions are up quite a bit now they're still sitting at only 4% of all Bitcoin payments but that's quite a bit when you consider how many people are using just wallets like coin base or which isn't really a wallet it's actually a custodial service but you know the blockchain dot info or or you know a variety of other basic wallets that don't have this built in by default the fact that 4 percent of all Bitcoin payments are already coin join is is pretty incredible it's it's nice to see it leaning that way because I do believe that people deserve financial privacy and the thing with Bitcoin is because it's an open ledger once you make that link an individual and their coins then you are now capable of tracing around that money and seeing what addresses it goes to and that can be very not only D anonymizing but a lot of personal data can be leaked that way so it's good to see solutions being brought forward for mainstream users now is this super super user friendly yet well no because you have to have a kind of an in-depth knowledge of how Bitcoin transactions work in the backend in the first place but I'm confident that over time these tools will continue to get better and be easier for regular users to just use and not have to understand what's going on anyways I will move on from there no I was talking about tether the other day and BitFenix and how there was a potential 850 million dollar cover up and and potential loan or something that was going on and how the Attorney General in New York was investigating and trying to out them well it has come out in documents released by the tether lawyer that tether currently is only backed 74% so 74% of all tethers issued have an actual dollar behind them but the rest is is I guess an asset which would just be alone to BitFenix so for those of you unfamiliar BitFenix is an online exchange tether is a coin that is supposed to or originally was supposed to be backed one to one by the US dollar so if somebody puts one dollar in to tether then there is a single tether created and when they redeem that dollar that tether is destroyed supposedly well what ended up happening here is dead Phoenix they had some money tied up in a bank banking solution specifically for crypto exchanges to the tune of 850 million dollars and those funds were quarantined and cordoned off and protected and they don't have a median access to them well what do they do in order to kind of keep the exchange running and not feel that pinch well since the same CEO runs tether and BitFenix tether gave a loan to BitFenix to the tune of not quite sure here we'll just say hundreds of millions of dollars so quite a bit I'm pretty sure it was around the range of around 600 million but I have heard 700 million batted around as well anyways it was a lot of money so that has contributed to the fact that tether is no longer backed one-to-one now also I talked about this a while back that tether mysteriously changed their terms of service a little while ago I it seems to be in connection with this but it used to be every tether is back one-to-one with US dollars well now the terms of service reads something along the lines of every tether is backed one-to-one via US dollars or equivalent assets so it could be anything and in this case it looks like it was the loan to BitFenix so when a company or a bank gives out a loan they consider that an asset it is money that is owed to them and they consider it as as there something that they owe or something that they own because somebody is in obligated to pay them back well the problem with this is and I see a few but one of the problems here is this loan wouldn't have been a big deal as a count from a company standpoint assuming that BitFenix continue to operate in profit which it is quite a profitable company the problem is as soon as the Attorney General shown a light on this well you started to see mass withdrawals from BitFenix because people didn't trust the platform anymore and that could impact profitability which could impact the loan that is outstanding to tether which could impact the backing of tether 1 to 1 if they don't recoup that loan now do I think they're not going to recoup the loan probably not I'm sure the be able to figure it out but this just kind of shows if there's that malleability if there's that fluidity to oh we're back to one to one oh we're back to one to one kind of but in u.s. dollar equivalent loans and so it just leads to this slippery slope we're sure maybe it might work out this time where the loan works out fine they make a little bit of a profit back from it from the interest and everything is great but what happens when enough of those loans when you start to give out the backing and lend of the backing and enough of those loans default well then you get a coin that is not backed like right now if everybody wanted to redeem their tether well there's only enough to pay everybody 74 cents on the dollar or 74 percent of people would get their one to one and then everyone else would be out of luck so again when you look at the number seventy four percent you think oh wow twenty-six percent isn't there but when you look at the traditional banking system I mean there's nowhere close to seventy four percent in sitting in reserves when it comes to a bank way way less but I mean tether is not that old and already we're starting to see this and so I think when you get when you get into instances of what is supposed to be I mean cryptocurrency itself is supposed to be trustless the idea behind Bitcoin is you have the asset because you have the asset the asset itself is digital if you can confirm it on the blockchain then it's there but when you get into a situation where the digital asset isn't the asset itself but it's pegged to a real-world asset then you introduce counterparty risk you're trusting that entity that what they say is backing their token is actually there and right now at this point of time it is not there it is 74% there and 26% of it is a loan that may or may not be paid back so as we go down this row this is I think this will become commonplace in the in the future as these stable coins continue to proliferate more and more will of this will happen and I think if people don't push back well this will just be commonplace or just you know buy Bitcoin anyways let's move on now this is interesting Bitcoin startup unveils Thunderbird lightning code for Internet of Things device IO T devices so there's a Japanese startup called nayuta and they're releasing an in-progress lightning implementation with compelling new focus which is IOT Internet of Things so essentially what they're trying to do is is kind of integrate payments into smart devices now we've seen this done by other block chains other cryptocurrencies things like iota the problem with it is everybody's trying to create a brand new currency underlying this instead of trying to build on a sound money so sure you can get the same functionality out of out of something that is based on another cryptocurrency perhaps but do you get the security the hashing power behind it to not be compromised that's a big question mark so a lot of the narrative over the last number of years has been hey even if there are some great use cases or some interesting technology being built on other platforms eventually things will be built atop Bitcoin because bitcoin is the most secure network with the most power and is the soundest money out there and it has that first mover advantage and so I think this is kind of our hint of seeing some of that now I don't think that this will make everything else dead in the water right away but I do think that over time we will see more and more stuff pop up on top of Bitcoin now that we're getting those second layers that can be built to top it you know it's just a matter of time before stuff like this pops up more and more in increasing over time so now the name of this is actually called ptarmigan which is the Japanese word for Thunderbird which is playing on the fact that it's promising technology built on top of lightning so lightning thunder yeah get it yeah okay so just a quick quote here for from some of the co-founders here so the Lightning Network has the following promises process promising characteristics small transaction amounts are micro payments borderless and cross domain payments real-time payments large transactions per second potential especially the combination of a and B has the potential to create a whole new market because humans do not want to make payment actions many times it is required to link with other actions performed by many people or with some kind of autonomous actions furthermore IOT is one of the important lightning Network application areas but no one knows what the killer app is in such a situation an increasing number of developers and prototyping trials are very important so they do have a demo video here where essentially what they do is they make a – satoshi payment which is like fractions of a penny to create a transaction which triggers a row of lights to be turned on so the proof of concept here is that a tiny tiny amount can trigger real-world actions so you can see them there setting up the transaction here you can see – satoshis and once it gets set off that is some e-ink on the screen there and once it gets accepted then you can see it'll start blinking as soon as the transaction is successful there you go okay so it does the world need blinking lights for two Satoshi's not necessarily but again it's a proof-of-concept Ken tiny can tiny transactions trigger real-world transactions and real-world actions via the Bitcoin blockchain and the answer there is yes so what can be built with that that remains to be seen but interesting nonetheless I think it's cool to see stuff like that popping up so guys I'm gonna finish up there if you are new to the channel you can or even if you've been around for a while you can do a few things number one check out my website check out the sponsor LED and Daioh links for that down below smash that subscribe like and bail notification icon I'm always in the chat when this airs for the first time so be sure to make it out and hit up the chat next time around and if you really really liked what you saw you can drop me a Bitcoin tip via the Lightning Network and my tip and dot me page I'll have links for that down below as well and if you don't know how to do it I've got a tutorial here for you and just a little teaser before I go coming up I just got my new coin kite cold card wallet so very excited for that I've done interviews with Rodolfo Novak regarding this device before so I'm happy to finally get my hands on one and yeah you can expect a video for that maybe in the next week or so so I guess we'll see anyways thank you guys very much and I will see you tomorrow for your daily session you

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