In a recent tweet, Daniel Larimer, CTO of Block.one, the company behind the development of EOSio and the EOS blockchain, shared his idea about an alternative system to increase scalability and make transactions private.
Checkout my latest blog post talking about the potential of creating infinitely scalable and completely private digital cash and the open source release of a proof of concept implementation. It can be leveraged by #EOS, #BTC, and just about any chain. https://t.co/Q9RiPIAi6F
— Daniel Larimer (@bytemaster7) January 7, 2021
In the post, Larimer begins by addressing a problem inherent in any blockchain-related technology, namely scalability, which is that parameter that allows for more transactions to be processed per second.
Larimer examines bitcoin and the possibility of dividing it into many satoshis, something that only in theory is feasible but that the fees make impossible. If in fact, we wanted to move satoshi units between one address and another, we would spend more in fees, rendering it effectively indivisible into satoshis.
Larimer’s idea for greater scalability
And so here’s Larimer’s solution: transfer ownership of the private key by passing the entire amount contained in it without paying a fee in the process. For example, if we were to transfer 2 thousand satoshis to a person we could give him the private key of the address.
To do this, Larimer hypothesizes using a hardware system that allows for a separate environment that is inaccessible from the outside. This environment could only be used by a specific user.
Take for example the password protection system that uses Apple’s system found on its devices. This is a secure environment that only the user could access via passwords and/or biometric solutions.
In the case of blockchain, the process would involve inserting the private key into this secure environment, encrypting it, and sending it to the sender.
Then, through third-party applications, it would be verified that the private key has been deleted by the sender and only the recipient is in possession of it.
Obviously, Larimer considers that this system is not perfect and that with advanced tools it would be possible to extract such a private key, but we are always talking about extreme cases and they do not represent the normality of users. So, at the macro level, whoever sends and receives the private key would have no idea and no way to recover it.
Mojey already exists
Surely it could be an interesting idea if it wasn’t that a similar solution already exists and it’s called Mojey (open code and available to all). It is a system that uses the transfer of tokens via Bluetooth and via messages, and in addition, does not require an internet connection. Among other things, it exploits the system developed by Apple with the Whitebox crypto.
It is however noted that using Mojey one loses the ability to make a backup of the private key and then in the unfortunate event that the system does not work, then there would be no way to recover the crypto inside.
However, the advantage of this system is that it eliminates the cost of transactions since it is on par with a message or file sent virtually instantaneously and without limits.
Finally, we know that Larimer himself is working on something like this and is very excited to reveal it.
Block.one is in fact working on an “offchain” system for the transfer of the private key to which an “onchain” address containing one or more tokens is attached.
Knowing that Block.one has invested in a company that operates with Bitcoin mining and that Block.one itself owns hundreds of thousands of BTC, most likely these onchain addresses will contain BTC.