Incognito - Reading Assignment

Privacy Coins - Ultimate Course
#41
  1. How does “shielding” work on Incognito?
    Both shielding and unshielding processes are carried out via a decentralized group of trustless custodians . Once shielded, transactions are confidential and untraceable. To provide privacy , we employed the linkable ring signature scheme , homomorphic commitment scheme , and zero-knowledge range proofs
  2. What privacy technology does Incognito use for shielded transactions?
    To provide privacy , we employed the linkable ring signature scheme , homomorphic commitment scheme , and zero-knowledge range proofs
  3. If Alice shields BTC with Incognito, who is the ‘receiver’ of her Bitcoin transaction?
    The recipient is a decralized group of trusless custodians
  4. Suppose Alice shields BTC, sends it to Bob on Incognito, and then Bob un-shields the same amount. How do we find Bob’s anonymity set? (How many people he could have received BTC from?)
    The anonymity set is equal to the amount of all other transaction that were done for that type of coin for the same size.
#42

  1. How does “shielding” work on Incognito?
    Through Incognito, a public coin can be shielded to obtain its privacy coin counterpart of the same value.
    The shielding mechanism operates via a general bridge design that connects Incognito to any number of cryptonetworks, allowing for secure bi-directional transfers of cryptocurrencies whenever privacy is needed.

  2. What privacy technology does Incognito use for shielded transactions?
    linkable ring signature scheme , homomorphic commitment scheme , and zero-knowledge range proofs .

  3. If Alice shields BTC with Incognito, who is the ‘receiver’ of her Bitcoin transaction?
    a decentralized group of trustless custodians

  4. Suppose Alice shields BTC, sends it to Bob on Incognito, and then Bob un-shields the same amount. How do we find Bob’s anonymity set? (How many people he could have received BTC from?)
    it is equal to the amount of the other transactions that are bitcoin and the same size

#43
  1. How does “shielding” work on Incognito?
  • Shielding is the process of turning cryptocurrencies on other cryptonetworks (or “public coins”) into privacy coins on Incognito.
  1. What privacy technology does Incognito use for shielded transactions?
  • Once shielded, transactions are confidential and untraceable. To provide privacy, we employed the linkable ring signature scheme, homomorphic commitment scheme, and zero-knowledge range proofs.
  1. If Alice shields BTC with Incognito, who is the ‘receiver’ of her Bitcoin transaction?
  • A decentralized group of trustless custodians.
  1. Suppose Alice shields BTC, sends it to Bob on Incognito, and then Bob un-shields the same amount. How do we find Bob’s anonymity set? (How many people he could have received BTC from?)
  • Its anonymity set is equal to the number of all the shielding transactions which were performed for the same amount of that same coin.
#44
  1. Rather than creating a ‘privacy coin’ the Incognito team devised a scheme where you can use your favourite crypto currency privately. You start with your crypto coin, make it private and send it, then the reciever can unshield it. This breaks the link between sender and reciever rendering the transaction private and untraceable.
  2. The privacy technology used by Incognitor for shielded transactions are: linkable ring signature scheme, homomorphic commitment scheme, and zero-knowledge range proofs.
  3. If Alice shields BTC with Incognito the receiver of her transaction is the group of decentralized trustless custodians.
  4. Bob’s anyonymity set is the set of all transaction of BTC of the same amount.
#45

1: Incognito shielding works via a decentralized group of trustless custodians that use linkable ring signature schemes, homomorphic commitment schemes and zero knowledge range proofs.
2: Incognito uses a privacy technologies called linkable ring signatures, commitment schemes and range proofs.
3:The receiver of Alices Bitcoin transaction is the decentralized group of the trustless custodians acting as a kind of transaction broker.
4:Bobs anonymity set is the amount of shielded transactions performed for the same amount and coin sent before Bob unshielded it.

#46

How does “shielding” work on Incognito?

The coin in question ex: BTC is exchanged for a 1:1 coin that would be a pBTC that can be used across different networks, (though it seems like your bringing BTC into the Eth ecosystem) and use it however you would any other coin.

What privacy technology does Incognito use for shielded transactions?

To provide privacy , we employed the linkable ring signature scheme , homomorphic commitment scheme , and zero-knowledge range proofs .

If Alice shields BTC with Incognito, who is the ‘receiver’ of her Bitcoin transaction?

A trustless custodian would be the receiver of her BTC.

Suppose Alice shields BTC, sends it to Bob on Incognito, and then Bob un-shields the same amount. How do we find Bob’s anonymity set? (How many people he could have received BTC from?)

Bob’s anonymity set is based on how many people have used the service/protocol and how many people have had that same denomination sent to them.

#47
  1. How does “shielding” work on Incognito? Through Incognito, a public coin can be shielded to obtain it’s privacy coin counterpart, ie. pBTC has the same value as BTC and can be traded for BTC and vice versa.
  2. What privacy technology does Incognito use for shielded transactions? Incognito acts a general bridge of interoperability between it and a number of other coins such as BTC, ETH, and USDT and really any cryptocurrency, allowing for secure, bi-directional transfers whenever privacy is needed.
  3. If Alice shields BTC with Incognito, who is the ‘receiver’ of her Bitcoin transaction? A public network selected by a smart bond contract.
  4. Suppose Alice shields BTC, sends it to Bob on Incognito, and then Bob un-shields the same amount. How do we find Bob’s anonymity set? (How many people he could have received BTC from?) The anonymity set is equal to all the shielded tx’s on the network. “ Once shielded, privacy coins tx’s are confidential and untraceable.”
#48
  1. Shielding is the process of turning cryptocurrencies on other cryptonetworks into privacy coins on Incognito.
  2. Linkable ring signature scheme , homomorphic commitment scheme and zero-knowledge range proofs.
  3. A decentralized group of trustless custodians
  4. It is equal to the number of all shielding transactions of the same denomination of the same coin.
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#49

1 Via a decentralized group of trustless custodians. Once shielded, transactions are confidential and untraceable. To provide privacy, they employ the linkable ring signature scheme, homomorphic commitment scheme and zero-knowledge range proofs.

2 The linkable ring signature scheme, homomorphic commitment scheme, and zero-knowledge range proofs.

3 a decentralised group of trustless custodians

4 Its anonymity set is equal to the number of all the shielding transactions which were performed for the same amount of that same coin.

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#50

How does “shielding” work on Incognito?
Both shielding and unshielding processes are carried out via a decentralized group of trustless custodians

What privacy technology does Incognito use for shielded transactions?
The linkable ring signature scheme, homomorphic commitment scheme, and zero-knowledge range proofs

If Alice shields BTC with Incognito, who is the ‘receiver’ of her Bitcoin transaction?
A decentralized group of trustless custodians

Suppose Alice shields BTC, sends it to Bob on Incognito, and then Bob un-shields the same amount. How do we find Bob’s anonymity set? (How many people he could have received BTC from?)
It is the numbr of the persons that transferred the same amount of the same coin

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#51
  1. How does “shielding” work on Incognito? Incognito as a privacy hub. It is interoperable with other cryptonetworks via shielding and unshielding processes , which allow cryptocurrencies like BTC and ETH to go incognito and back.
    First, we proposed a solution to shield any cryptocurrency such as BTC, ETH, and USDT. In effect, any cryptocurrency can now be a privacy coin. Both shielding and unshielding processes are carried out via a decentralized group of trustless custodians . Once shielded, transactions are confidential and untraceable. To provide privacy , we employed the linkable ring signature scheme, homomorphic commitment scheme, and zero-knowledge range proofs.
  2. What privacy technology does Incognito use for shielded transactions? A solution to scale out a privacy-focused cryptonetwork by implementing sharding on privacy transactions and a new consensus based on proof-of-stake, pBFT, and BLS. Transaction throughput scales out linearly with the number of shards.
  3. If Alice shields BTC with Incognito, who is the ‘receiver’ of her Bitcoin transaction? A decentralized group of trustless custodians .
  4. Suppose Alice shields BTC, sends it to Bob on Incognito, and then Bob un-shields the same amount. How do we find Bob’s anonymity set? (How many people he could have received BTC from?) Incognito mode still hides the amount and would not be able to find anonymity set.
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#52

The anonymity set is the number of denominations of the same coin :slight_smile:

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#53
  1. How does “shielding” work on Incognito?
  • User makes a request to Bond smart contract (shield this amount of this currency).
  • The Bond SC chooses Trustless custodians for this operation and provides their deposit addresses.
  • Once the deposit is confirmed on the public blockchain, the user initiates a shielding transaction along with proof of deposit.
  • When that proof is verified, the same amount of privacy coins is minted and can be moved across the Incognito network.
  1. What privacy technology does Incognito use for shielded transactions?
  • Ring signatures;
  • Shielded addresses;
  • Confidential transactions.
  1. If Alice shields BTC with Incognito, who is the ‘receiver’ of her Bitcoin transaction?
  • A Trustless custodian.
  • It is trustless in a sense that anyone can become a TC by making a bond with the Bond smart contract. This contract is like an escrow for Alice’s BTC and makes sure she gets an equal number of pBTC. I don’t understand, though, how exactly a contract operating on Ethereum can escrow coins on Bitcoin.
  • The custodians earn fees of 0.01% from shielding and unshielding, as well as mine PRV in the process.
  1. Suppose Alice shields BTC, sends it to Bob on Incognito, and then Bob un-shields the same amount. How do we find Bob’s anonymity set? (How many people he could have received BTC from?)
  • In that case, it is much like BitLaundry, but with minimum delay - the confirmation.
    Bob’s anonimity set = all receivers of the same amount in blocks from i + 6 to i + R, where:
    i - block where Alice shielded her BTC;
    R - maximum number of blocks that Bob could have waited until he unshielded;
    6 - considering that the custodian waited 6 blocks to confirm Alice’s deposit.
  • As the pBTC that Bob receives is a currency on its own, Bob can stake or exchange it and never take out BTC.
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#54

Incognito is actually a sidechain on its own that connects to other blockchains. Escrow basically locks the coins in its wallet and unlocks it when the user withdraws. :slight_smile:

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#55

  1. Shielding and unshielding processes are carried out via a decentralized group of trustless custodians. Once shielded, transactions are confidential and untraceable. To provide privacy ,they employed linkable ring signature scheme ,homomorphic commitment scheme , and zero-knowledge range proofs.

  2. As mentioned in my earlier reply, it uses linkable ring signature scheme ,homomorphic commitment scheme , and zero-knowledge range proofs. They also implemented sharding on privacy transactions and a new consensus based on proof of stake, pBFT and BLS.

  3. A group of Trustless Custodians

  4. The anonymity set is equal to the number of all the shielded transactions which were performed for the same amount of that same coin.

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#56

Enter Incognito! What a novel idea. So many projects, so many coins… Here is a beautifully constructed hybrid that mixes the beauty of many protocols and many technologies and merges them into one functional “Coin Swap” marketplace.
The idea is that you have some digital asset that you want to obscure for some reason. maybe you want to spend it, maybe you want to invest it, maybe you want to Hodl it, but you don’t want anyone to know of it… Enter Incognito. The concept involves the end user “swapping” his actual coins into privacy versions of the same coin by way of a decentralized group of custodians (who have skin in the game via staking). Once the coin is shielded into the 'P" version of the coin, its history has been erased. The only proof of the coins existence is embedded into a ZKRP commitment, bound by linked signature rings that were created when your new privacy version of the coin was created. The trustless custodians use a combination of proof of stake to keep them honest and consensus of “sharding” which streamlines the validation process to the minimum. The receiver of your original coins in the shielding process is the decentralized custodian, and the Anonymity set is defined as the total possible number of senders that Bob might have interacted with, which at its base level could be construed as 1… the decentralized custodian. here is where it gets tricky though. That custodian is actually a decentralized liquidity pool which accepts liquidity in the form of many different digital assets. The protocol allows for atomic swaps as well, meaning that users can p2p swap one currency for another in a decentralized manner utilizing price oracles in real time. Indeed, the anonymity set becomes quite complex, as incognito does not post amounts. Therefore anyone with any supported asset who might (or might not) have utilized Incognito belongs to the anonymity set, eg, potentially all owners of any cryptocurrency

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#57

Congratulations on getting through the course :raised_hands: your answers were great and very detailed. I learned something from them :smiley: See you (not) in Incognito! :wink:

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#58

I dig it! The course was solid. I’m building the framework for a valuable reputation and the academy is great

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#59
  • Shielding on Incognito is a process that allows to take cryptos and make them private through a decentralized group of trustless custodians which employ a number of techniques (linkable ring signatures, commitment schemes and zk-range proofs) to allow untraceability and confidentiality.
  • As mentioned above, it uses linkable ring signatures, commitment schemes and zk-range proofs, which are all privacy-oriented technologies.
  • A decentralized group of trustless custodians.
  • Its anonymity set is equal to the number of all the shielding transactions which were perfomed for the same amount of that same coin.
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#60
  1. It is interoperable with other cryptonetworks via shielding and unshielding processes , which allow cryptocurrencies like BTC and ETH to go incognito and back.
  2. linkable ring signature scheme , homomorphic commitment scheme , and zero-knowledge range proofs
    3.A decentralized group of trustless custodians.
    4.So its anonymity set is equal to the number of all the shielding transactions which were perfomed for the same amount of that same coin
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