Official GeltCoin Whitepaper 1.0
“La red es robusta en su simplicidad no estructurada.”
― Satoshi Nakamoto, MANIFIESTO BITCOIN
Introduction:
Since its inception in 2009, Bitcoin, and the concept of blockchain, have addressed inherent flaws in Internet transactions. However, the rapid adoption of Bitcoin has led to scalability issues and increased transactional waiting periods. GeltCoin is designed to build upon Nakamoto’s vision of a decentralized electronic payment system while providing tailored transactional applications and enhanced user obfuscation. GeltCoin builds upon the principles of decentralization and privacy inherited from Litecoin. With a vision to empower users and prioritize privacy, GeltCoin aims to evolve into a feature-rich cryptocurrency that addresses the limitations of existing digital payment systems.
1.0 Overview:
GeltCoin embraces a decentralized structure, similar to Bitcoin, without central control or point of failure. Its mission is to strengthen user privacy through inherent privacy implementations while offering a decentralized electronic payment system based on cryptographic proof instead of third-party trust. GeltCoin, a new cryptocurrency based on the original Litecoin version, is dedicated to continuous development and innovation. While some of the features mentioned in these sections are not yet developed, we present an updated development plan with a clear intention to incorporate these features into the GeltCoin ecosystem, with a clear projection to adopt and deliver on these milestones, based on the agreed consensus in our community.
1.1 Multi-Algo PoW: GeltCoin will explore the implementation of a multi-algorithm proof-of-work (PoW) consensus mechanism. This approach ensures fair mining opportunities for different types of mining devices, promoting inclusivity and decentralization. By supporting multiple hash functions, such as Scrypt, X17, Lyra2rev2, myr-groestl, and blake2s, GeltCoin will establish a diverse and secure mining ecosystem.
1.2 Tailored Transactional Applications: GeltCoin is committed to developing tailored transactional applications that prioritize user privacy and obfuscation. Our research and development efforts will focus on incorporating technologies such as TOR and other privacy-enhancing protocols to provide users with enhanced control over their transactional privacy.
1.3 Simple Transactions: GeltCoin will invest in optimizing transactional processes to simplify user experience while ensuring privacy. By refining the wallet interface and introducing user-friendly features, GeltCoin aims to make everyday transactions seamless and private.
1.4 Stealth Transactions: GeltCoin intends to develop and integrate dual-key stealth addresses into its blockchain, enhancing recipient obfuscation and transaction privacy. Through careful design and implementation, GeltCoin will establish secure and privacy-centric stealth transactions within its ecosystem.
1.5 Anon Transactions: GeltCoin will invest in research and development to incorporate RingCT (Ring Signatures and confidential transactions) technology, enabling anonymous transactions on the network. Ring Signatures will obscure the true sender’s output, while confidential transactions will hide the transaction amounts. Combined with the privacy-enhancing features of TOR, GeltCoin will offer users the ability to conduct transactions with the utmost privacy and security.
2.3 Electrum: GeltCoin aims to integrate the Electrum wallet, known for its speed, simplicity, and low resource usage. By leveraging Electrum’s secure remote servers, users will be able to recover their wallets using a secret seed phrase. Additionally, GeltCoin will explore native TOR and I2P support within the Electrum wallet, providing users with enhanced anonymity and privacy during transactions.
2.4 TOR Android: GeltCoin will develop a TOR-enabled mobile wallet, designed to bring IP obfuscation services to personal mobile devices. By default, the wallet will not connect to or broadcast user information over Clearnet, ensuring no unintentional leakage of user data. All transactions will be completed over TOR via Simple Payment Verification (SPV), allowing for nearly instant payment confirmations while maintaining user privacy. The wallet will also incorporate standard security features, such as a 4-digit pin code and biometric locking options.
3.0 Encrypted Messaging: GeltCoin intends to implement an encrypted messaging system within its ecosystem. Utilizing state-of-the-art encryption technology, the messaging system will ensure private and secure communications between users. Messages will be encrypted using the AES-256-CBC algorithm and distributed among nodes to prevent inference by potential assailants using traffic analysis techniques. The system will employ elliptic curve digital signatures to verify message origins and maintain message integrity.
4.0 Dual-Key Stealth Addressing: GeltCoin recognizes the importance of privacy in transactions and plans to incorporate dual-key stealth addressing into its ecosystem. This feature will allow for the generation of one-time destination addresses on behalf of recipients, providing additional obfuscation and protection. The protocol will use cryptographic techniques such as Elliptic Curve Diffie-Hellman (ECDH) key exchange to establish shared secrets between sender and recipient. By implementing dual-key stealth addressing, GeltCoin will enhance privacy and prevent the linking of transactions to specific addresses.
5.0 Atomic Swaps: GeltCoin aims to enable atomic swaps, also known as atomic cross-chain trading, which facilitate peer-to-peer, on-chain interoperability between GeltCoin and other cryptocurrencies without relying on trusted third parties. By leveraging Check Lock Time Verify (CLTV) or Hash Time-Locked Contracts (HTLC), users will be able to securely and trustlessly exchange different cryptocurrencies. Atomic swaps eliminate the need for centralized intermediaries, offering a decentralized and efficient trading mechanism.
5.1 How do Hash Time-Locked Contracts work? The best way to describe this is the following example: Marvin wants to pay Swen for ‘X’ via HTLC. Marvin sets up a specific hash which represents the amount of money that will be paid and an allotted time window in which Swen will be able to receive his funds. In order for Swen to receive the payment, he will have to create cryptographic proof of payment within the pre-defined time limit. If Swen meets the deadline and procures the necessary proof required to release the funds, Swen is paid. However, if Swen fails to meet the deadline, the money is returned to Marvin. GeltCoin intends to have plans to implement Hash Time-Locked Contracts (HTLCs) to enhance transaction security and enable efficient payments.
5.2 What are the benefits of HTLCs?
HTLCs eliminate the need for third-party involvement when implementing a contract between two parties, which in turn eliminates the need for third-party trust.
Since these contracts are time-sensitive, it prevents the person making the payment from having to wait indefinitely to find out whether or not their payment goes through. It also prevents money from being wasted since funds are returned if cryptographic acknowledgment is not obtained.
Because cryptographic proof of payment is required, the recipient automatically helps validate the payment on the blockchain.
HTLCs, being based on hashes, are easily added to blockchains.
Each party is protected from counterparty risk due to the structure of these contracts. The parties involved in sending and receiving payments do not have to trust each other or even know each other to ensure that the contract will be executed correctly.
5.3 What are the benefits of Atomic Swaps? The primary benefit for users is the ability to exchange/trade cryptocurrencies between involved parties in a trustless manner without depending on a third party or an escrow service, thereby reducing default risk to zero. Additionally, Atomic Swaps make the entire cryptocurrency ecosystem currency agnostic, effectively simplifying the process of switching between different cryptocurrencies depending on their use case. For instance, if you wanted to switch from Digibyte (DGB) to GeltCoin (TYC) (or vice versa) to utilize the available features on our network (or another cryptocurrency’s network), the process would be instant and painless.
5.4 What are the limitations of on-chain Atomic Swaps? With every implementation, there are certain limitations that come into play. For Atomic Swaps, those limitations are as follows:
Both currencies being exchanged must have the same hash algorithm.
Both currencies should support HTLC.
Individuals need a certain level of programming capability to be able to use Atomic Swaps.
Cross-chain Atomic Swaps are not possible for fiat currencies.
Furthermore, this implementation not only allows for cross-chain transactions but also paves the way for future implementations such as the Lightning Network, which GeltCoin aims to explore for further scalability and efficiency.
5.5 What is the Lightning Network? The Lightning Network can be briefly described as:
A network of user-generated channels that send payments back and forth.
Secured by Smart Contract functionality.
Privatized in a trustless fashion (trustless means you don’t need to trust or even know your counterparty). Geltcoin intends to implement Lightning Network (LN) onto the GeltCoin Blockchain.
Conclusion:
GeltCoin aims to advance the concepts introduced by Bitcoin, incorporating tailored transactional applications and enhanced user obfuscation. By leveraging the TOR and I2P networks, GeltCoin ensures privacy and security in transactions, empowering users with control over their personal information. Through a decentralized structure and diverse mining ecosystem, GeltCoin paves the way for a more inclusive and privacy-focused digital economy.
Geltcoin, is a peer-to-peer cryptocurrency, represents a dynamic evolution from the Bitcoin protocol, we prioritize the security of transactions through advanced cryptographic techniques, building on the proven security measures inspired by Litecoin.
Developed as an alternative or ‘altcoin,’ Geltcoin offers investors a diverse digital currency portfolio.
The coin implements a memory-intensive Scrypt proof-of-work mining algorithm, allowing broader participation by consumer-grade hardware, such as GPUs.
The average transaction confirmation time is approximately 2.5 minutes, a notable improvement over Bitcoin.
Embracing the philosophy of decentralized currency, Geltcoin is scheduled to cap at 84 million currency units, aligning with its commitment to a controlled and sustainable supply. Geltcoin’s utilization of the Scrypt hashing algorithm, inspired by Litecoin, ensures resistance against ASIC miners, promoting a fair and accessible mining environment.
While Geltcoin follows in the footsteps of Litecoin, it continues to innovate, adapting to the evolving landscape of digital currencies.
Founded on principles similar to Litecoin, Geltcoin differentiates itself with unique features tailored to enhance the digital currency experience.
We have meticulously tested our legacy and future version releases of the coin, which we can employ through collaborative community consensus to drive the technological advancements, such as integrating in the lightning network, and preferred utiliy use for wider scrypt coin advancements.
Geltcoin plans to implement Extension Block (MWEB) protocol, designed to elevate transaction privacy and obscure traceability within the distributed ledger. The MWEB upgrade is a strategic move to introduce fungibility and enhance privacy across the Geltcoin network, aligning with the evolving landscape of cryptocurrency technologies.
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