Why am I building the Bitcoin HD-BIP32 Business Wallet

April 22, 2014 Posted by gato

Everything I do is because, I believe in challenging the status quo with a safe, secure wallet any business can use to have total control and accountability of it’s Bitcoins…!

BIP32 Wallet generator – Video - http://youtu.be/gw3ZVNpB1b8

I think that if a business wants total control of it’s Bitcoins and wallets it must have the best tools and standards to be secure and provide accountability off all the Bitcoins in every sub-wallet in the 67walletExample01organization.

The way I do this is, I will challenge the status quo by -

designing a logical business Bitcoin wallet that help accounting know were all the Bitcoins are.

Simple to use

& user friendly

With a flexible sub-wallet structure our BIP32 wallets system can be designed to your exact specifications from 5 sub-wallet to 10,000 sub-wallets. Cold Storage sub-wallet, Receive coin ONLY sub-wallets and even create sub-wallets at a lower sub-wallet level. Making sure your master-wallet is always secure and having total control of every sub-wallet and 100% accountability.

From the front end giving you total security and backups of the master-wallet to the ability to recreate ALL your sub-wallet from 1 master backup and re-scanning to get all your Bitcoin you own back. No other Bitcoin wallet can give you that assurance from 1 master-wallet. The BIP32 Bitcoin standard also assure you compatibility any future Bitcoin design changes for the most secure wallet structure and compatible Bitcoin wallet for any business in the world..

With our custom backend we can deliver reporting capabilities of all your Bitocins wallets needs in your infrastructure. The beauty is the MASTER-WALLET owns all the the coins in the sub-wallets below it.

You have total control of all Bitcoins in any sub-wallet in your organization. With full auditing with a pubilc-Key assures 100% safety the auditors cannot spend your coins only look at the transactions.

With back-end access to all transactions of all your sub-wallets. Your accounting will be simplified with LIVE reports of all your Bitcoins in every sub-wallet with monthly, quarterly or yearly reporting. This makes it a great tools for all regulatory reporting needs with many digital-currencies in your company.

If you believe in having total control of your companies Bitcoins and all the transactions of every single sub-wallets giving you the best accountability and security in the Bitcoin standards then stay tuned for the next big change in the Bitcoin BIP32 wallet revolution.

Our BIP32 business wallet will make your Bitcoin and transactions accounting easy and your accounting department will love it’s easy tools to give them total access and reporting.

HD – Master Bank-Wallets -Hierarchical Deterministic Wallets

April 1, 2014 Posted by gato

We are NOT A BANK – We are a Wallet Service You will NEVER LOSE a Bitcoin with our Wallet Service. WHY? Our HD Master Bank-wallet can be backed up to Paper or a USB drive, this way you can have your own Master backup that can recreate all your sub-wallets and their payments and transactions from your central Bitcoin-network Blockchain. Your Paper or Hardware Wallet BACKUP is safe at home in the safe or deposit box at the bank. With our Master Bank-Wallet system YOUR BITCOIN CAN NEVER BE STOLEN!!! – Your Wallet is ALWAY SAFE

“Bitcoin – the most open and transparent financial instrument the world has ever seen”

So why pay for an Online Wallet service like our http://BitcoinWalletNetwork.com Master Bank-Wallet -if You have a backup of your wallet at home or stored in a safety deposit box?

Our TEST Mobile Application

Our TEST Mobile Application

Our Master Bank-Wallet have sub-wallets tied to the master-wallet. So now you can have one Sub-wallet for your cell phone, – one Sub-wallet for your iPad, and one for your workstation. Since BTC transactions are easy and free from your Master Bank-wallet you can send the Bitcoins that your going to spend to your cell Phone or iPad Sub-wallets so if you lose your Cell phone you only lose a few Bitcoins and not your life savings of Bitcoins, safe in the Master Bank-Wallet. This is the advantage of having one of our Master Bank-Wallet for all your Bitcoin Wallet needs. You can also departmentalize our Master Bitcoin Bank-Wallet to your business. You have your master-wallet then sub-wallets for the brick and mortar storefront, another sub-wallet for your website and one for your Office supply purchase. These Sub-wallets are very important for business that need managers to mange sub-wallets. These sub-walet Managers can now only see their own Sub-wallet transactions and audits trails but he/she can create sub-sub-Wallets for different departments and sub-groups or teams without ever using your [private] key passphrase.  The complex audit trails that you can get from our Master Bank-wallets and sub-wallets and sub-sub-wallets will help your business use Bitcoin wallets more effective. You can control the legal and accounting aspects of your Bitcoin Audits from one of our Master Bank-Wallet. So now your at the office and want to transfer 5 Bitcoins to your phone for a purchase at Lunchtime. But your Master Bank-Wallet is at home how do I transfer the money without going back home. SIMPLE Your copy of your Master Bank-Wallet is stored with us (we never have your (Bitcoins) Money or passphrase) then just enter your passphrase and transfer your money from the master wallet to the sub-wallet of your phone and your done,  then log out of our service . With our service your all your backups Master Bank-Wallet will sync up when connected to the Bitcoin network. All your Wallets and sub-wallets will sync up to reflect each Bitcoin in every wallet and sub-wallet. YOUR BITCOIN CAN NEVER BE STOLEN!!! We use Client side Javascript so when we generate your Wallets -YOUR computer generates the hash for the Bitcoin Wallet address and the secret passphrase. You then can PRINT your HD Bank-Wallet out and save it or save it to a thumb drive. They can steal your wallet form our server, but without the secret [private] passphrase for that Master Bank-Wallet they can never touch a penny of your BTC-Bitcoin. When you make a transaction you enter your secret passphrase is NEVER ON our SERVER only in memory at the time you use it then it’s flushed out. You are in control as long as you have the secret [private] passphrase .

Abstract

btc-wallet-HDW_02

This document describes BIP 32- hierarchical determinstic wallets (or “HD Wallets”): wallets which can be shared partially or entirely with different systems, each with or without the ability to spend coins. From a cold storage Bitcoin Wallet to a full fledge Master Bitcoin Wallets for your organization. How to integrate this new currency into your merchant or business world Bitcoin Master Bank-Wallets

The specification is intended to set a standard for deterministic wallets that can be interchanged between different clients. Although the wallets described here have many features, not all are required by supporting clients. The specification consists of two parts. In a first part, a system for deriving a tree of keypairs from a single seed is presented. The second part demonstrates how to build a wallet structure on top of such a tree.

Motivation

The Bitcoin reference client uses randomly generated keys. In order to avoid the necessity for a backup after every transaction, (by default) 100 keys are cached in a pool of reserve keys. Still, these wallets are not intended to be shared and used on several systems simultaneously. They support hiding their private keys by using the wallet encrypt feature and not sharing the password, but such “neutered” wallets lose the power to generate public keys as well. Deterministic wallets do not require such frequent backups, and elliptic curve mathematics permit schemes where one can calculate the public keys without revealing the private keys. This permits for example a webshop business to let its webserver generate fresh addresses (public key hashes) for each order or for each customer, without giving the webserver access to the corresponding private keys (which are required for spending the received funds). However, deterministic wallets typically consist of a single “chain” of keypairs. The fact that there is only one chain means that sharing a wallet happens on an all-or-nothing basis. However, in some cases one only wants some (public) keys to be shared and recoverable. In the example of a webshop, the webserver does not need access to all public keys of the merchant’s wallet; only to those addresses which are used to receive customer’s payments, and not for example the change addresses that are generated when the merchant spends money. Hierarchical deterministic wallets allow such selective sharing by supporting multiple keypair chains, derived from a single root.

Specification: Wallet structure

The previous sections specified key trees and their nodes. The next step is imposing a wallet structure on this tree. The layout defined in this section is a default only, though clients are encouraged to mimick it for compatibility, even if not all features are supported. An HDW is organized as several ‘accounts’. Accounts are numbered, the default account (“”) being number 0. Clients are not required to support more than one account – if not, they only use the default account. Each account is composed of two keypair chains: an internal and an external one. The external keychain is used to generate new public addresses, while the internal keychain is used for all other operations (change addresses, generation addresses, …, anything that doesn’t need to be communicated). Clients that do not support separate keychains for these should use the external one for everything.

* m/i′/0/k corresponds to the k'th keypair of the external chain of account number i of the HDW derived from master m.
* m/i′/1/k corresponds to the k'th keypair of the internal chain of account number i of the HDW derived from master m.

Use cases

Full wallet sharing: m

In cases where two systems need to access a single shared wallet, and both need to be able to perform spendings, one needs to share the master private extended key. Nodes can keep a pool of N look-ahead keys cached for external chains, to watch for incoming payments. The look-ahead for internal chains can be very small, as no gaps are to be expected here. An extra look-ahead could be active for the first unused account’s chains – triggering the creation of a new account when used. Note that the name of the account will still need to be entered manually and cannot be synchronized via the block chain.

Audits: M

In case an auditor needs full access to the list of incoming and outgoing payments, one can share the master public extended key. This will allow the auditor to see all transactions from and to the wallet, in all accounts, but not a single secret key.

Per-office balances: m/i′

When a business has several independent offices, they can all use wallets derived from a single master. This will allow the headquarters to maintain a super-wallet that sees all incoming and outgoing transactions of all offices, and even permit moving money between the offices.

Recurrent business-to-business transactions: M/i′/0

In case two business partners often transfer money, one can use the extended public key for the external chain of a specific account (M/i′/0) as a sort of “super address”, allowing frequent transactions that cannot (easily) be associated, but without needing to request a new address for each payment. Such a mechanism could also be used by mining pool operators as variable payout address.

Unsecure money receiver: M/i′/0

When an unsecure webserver is used to run an e-commerce site, it needs to know public addresses that be used to receive payments. The webserver only needs to know the public extended key of the external chain of a single account. This means someone illegally obtaining access to the webserver can at most see all incoming payments, but will not (trivially) be able to distinguish outgoing transactions, nor see payments received by other webservers if there are several ones.

Compatibility

To comply with this standard, a client must at least be able to import an extended public or private key, to give access to its direct descendants as wallet keys. The wallet structure (master/account/chain/subchain) presented in the second part of the specification is advisory only, but is suggested as a minimal structure for easy compatibility – even when no separate accounts or distinction between internal and external chains is made. However, implementations may deviate from it for specific needs; more complex applications may call for a more complex tree structure.

Security

In addition to the expectations from the EC public-key cryptography itself:

  • Given a public key K, an attacker cannot find the corresponding private key more efficiently than by solving the EC discrete logarithm problem (assumed to require 2128group operations).

the intended security properties of this standard are:

  • Given a child extended private key (ki,ci) and the integer i, an attacker cannot find the parent private key kpar more efficiently than a 2256 brute force of HMAC-SHA512.
  • Given any number (2 <= N <= 232-1) of (index, extended private key) tuples (ij,(pj,cj)), with distinct ij‘s, determining whether they are derived from a common parent extended private key (i.e., whether there exists a (ppar,cpar) such that for each j in [0..N-1] CKD((ppar,cpar),ij)=(pj,cj)), cannot be done more efficiently than a 2256 brute force of HMAC-SHA512.

Note however that the following properties does not exist:

  • Given a parent extended public key (Kpar,cpar) and a child public key (Ki), it is hard to find i.
  • Given a parent extended public key (Kpar,cpar) and a child private key (ki) using public derivation, it is hard to find kpar.

Private and public keys must be kept safe as usual. Leaking a private key means access to coins – leaking a public key can mean loss of privacy. Somewhat more care must be taken regarding extended keys, as these correspond to an entire (sub)tree of keys. One weakness that may not be immediately obvious, is that knowledge of the extended public key + a private key descending from it is equivalent to knowing the extended private key (i.e., every private and public key) in case public derivation is used. This means that extended public keys must be treated more carefully than regular public keys. This is the reason why accounts at the first level of the default wallet layout use private derivation, so a leak of account-specific (or below) private key never risks compromising the master.

A Bitcoin Wallet that CANNOT be LOST or STOLEN

April 1, 2014 Posted by gatomalo

gATO rEAd - In the last 2-3 weeks a Chinese Bitcoin Bank is robbed of  4.1 million, earlier another Bitcoin Bank in Australia got robbed 1.3 million and the stories go on and on. So how can you protect your Bitcoin wallet so nobody can steal it or your Bitcoins? Oh did I mention the robberies may be insider robbing the accounts of all their BTC. Why because they use the old Bitcoin wallet.

The new Bitcoin HD wallets are called BIP 0032 Hierarchical Deterministic Wallet these wallets will prevent these types of robberies if used the right way. The BIP- Bitcoin Improvement  proposal are how new Bitcoin features are added to the Bitcoin code. https://en.bitcoin.it/wiki/BIP – staying with these standards will make it compatible with other BIP 32 hd wallets client.bitcoin-gollum

With these newer wallets, if you do it right, nobody can steal your Bitcoin currency. The Seed and the keychain has private key-phrase and public key-phrase to do different thing in the wallet. Make a copy of all your wallet credential. Print It! Stored the credentials in a thumb drive! Put the paper or/and thumb drive in a safe or better yet put it in a bank safety deposit box. Now your wallet can be stolen or destroyed, it doesn’t matter the criminals cannot get to your Bitcoins without the private key-phrase.

With the secret seed private key-pair you can recreate all your wallets, sub-wallets, transactions and your currency from the central Bitcoin p2p network blockchain ledger. You can create sub-wallets that other people can use to do everything except make a transaction. You can allow office to office Bitcoin wallets to exchange transactions or not. With the Master Bank-Wallet you have total control.

The Blockchain is the public ledger were all Bitcoin transactions are stored forever and it’s all public anyone can get access to this information.  The new BIP 32 specification consists of two parts. In a first part, a system for deriving a tree of key-pairs from a single seed is presented. The second part demonstrates how to build a wallet structure on top of such a tree. This will prevent the robberies of the Bitcoin wallets.

We are starting our own Bitcoin Wallet Service http://bitcoinwalletnetwork.com/blog/  to prevent this kind of robberies of Bitcoins. We will go live in June 2014 but you can use the basic FREE Bitcoin HD Wallet Generator you can create a Cold Storage Paper Wallets and Bulk wallets, we are also adding a few other wallet functions. Our Online HD Master Wallets will start in Jan-2014. Come on over and give it a shot if you want.

We will only use the HD wallets add a few things here and there and called it the Master Bitcoin Bank-wallet. With our wallet service you will have a paper or hardware backup with all your Bitcoin wallet credential, this means you can walk away and use any other HD 32 wallet. We are not a bank and never have access to your Bitcoins. When you create a wallet with our service we use client side javascript so only your browser has the information, not the server.

btc-wallet-HDW_02

Fig 1 – HD Master Bitcoin Wallet

 

The Bitcoin standard BIP 32 describes these new - hierarchical deterministic wallets (or “HD Wallets”):  which can be shared partially or entirely with different people or department, each with or without the ability to spend coins. From a cold storage Bitcoin Wallet to a full fledge Master Bitcoin Wallets for your organization. You can also departmentalize our Master Bitcoin Bank-Wallet into your business. The specification is intended to set a standard for deterministic wallets that are flexible and that can be interchanged between different clients. Our New Master Bank-Wallets can also be used with Bitcoin, Namecoin, Litecoin, Devcoin and PPCoin.

As Figure 1 shows you have a main wallet tree from this you can spawn sub wallets and even sub-sub wallets but everything is tied to the master wallet, the tree trunk roots and that is tied to the Bitcoin blockchain ledger were everything is recorded.

Wallet Use cases

wallet sharing: 

With HD Master Bank-wallets you can share it with anyone or any device – cell phone, iPad or PC workstation wallets or  family and business units that can have full control authorized only from the master wallet. Using Sub and sub-sub-wallets will give you more privacy from the IP aspect to the Audit trails of your transactions. Audit trails from sub wallets need not see other wallets or master wallet transactions trail,s giving you more audit trail control of all your wallets.

Audits: 

In case an auditor needs full access to the list of incoming and outgoing payments, one can share the master public extended key [read access onlycannot create a transactions]. This will allow the auditor to see all transactions from and to the wallet, in all accounts, but not a single secret key to keep your currency safe.

Per-office balances: 

When a business has several independent offices, they can all use wallets derived from a single master wallet. This will allow the headquarters to maintain a super-wallet that sees all incoming and outgoing transactions of all offices, and even permit moving money between the offices.

Recurrent business-to-business transactions:  Bitcoin Supply Chain Wallets

In case two business partners often transfer money, one can use the extended public key for the external chain of a specific account as a sort of “super address”, allowing frequent transactions that cannot (easily) be associated, but without needing to request a new address for each payment. Such a mechanism could also be used by mining pool operators as variable payout address.

Unsecure money receiver: 

When an unsecured web-server is used to run an e-commerce site, it needs to know public addresses that are used to receive payments. The web-server only needs to know the public extended key of the external chain of a single account. This means someone illegally obtaining access to the web-server can at most see all incoming payments, but will not (trivially) be able to distinguish outgoing transactions, nor see payments received by other webservers if there are several ones.

This is why with our BitcoinWalletNetwork we plan to use Tor behind the scene to mask some of these transactions and our public side and our pay wallets are different so none of this information will leak out. Yes Bitcoin came with a port 9050 hookup to the Tor network. This way you can send some of your transactions thru Tor and every time it will use a different Exit-relay node IP address. By mixing these up it will make it harder to find your Master Bank-Wallet with normal IP traffic analysis and server logs. Tor is another game changer when you add the Bitcoin infrastructure to it that can add a lot more IP address to my wallet address. Like I said before it’s all about the Wallet the Bitcoin just rides the p2p wallet network. The new HD wallets will give the user a safer way to not get their money stolen.  This new digital currency is not the first or the last, I plan to support Bitcoin, Namcoin, Litecoin, DevCoin and PPCoin – this is just the beginning…  gAtO oUt

Warning: Please be careful with your money. Bitcoin is just like CASH, when you make a cash transaction once the cash leaves your hands and the other party get’s it. There is no going back unless you trust them. Research all your Bitcoin transactions. Be careful with whom you do business. When sending money to an exchange or seller that you trust. ONCE AGAIN DO YOUR RESEARCH !!! Because Bitcoin services are not highly regulated a service can continue operating even when it is widely believed that it is insecure or dishonest. Exchanging or storing significant amounts of funds with third-parties is not recommended. 

 

 

 

Looking for VC for Bitcoin Wallet Service

April 1, 2014 Posted by gatomalo

Bitcoin Wallet Service is Born - Looking for VC for Bitcoin Wallet Service

gAtO working - to create a new Bitcoin Wallet service – Bitcoin  - LiteCoin – Dogecoin – check it out it’s working – http://BitcoinWaletNetwork.com – if you click on the Wallet you can use this service to create HD wallets -Single Wallet – Paper Cold Storage Wallet – Bulk Wallet – Brain Wallet – Vanity Wallet-  and get Wallet details -

This is only the beginning – We will have a BIP32 web wallets with all kind of cool features like -Master-Bitcoin Bank-Wallet and sub-wallets for business and merchants – Internal coin mixing (Coin laundry) service within your Master and sub-wallets and making it harder to track your Bitcoin Wallet transactions. Using the Tor network to give false IP addresses diverts Bitcoin investigators from backtracking your wallets with the blockchain. We will also provide TRAINING and hold the users hand to make the most out of your Bitcoin Business Wallet needs. We have many new features coming too. We are just getting started so we need help. wallet-605_02

3 Types of Wallet Services

  • 1 Free Wallet – Personal – Self Service – no support
  • 2 Silver Wallet – Personal -support
    • Wallet
    • Bitcoin Portal
    • Bitcoin Training
  • 3 Gold Wallet -Personal – Merchant – Financial – support
    • Protected Master Bank-Wallet
    • Custom Business Wallets
    • Wallet
    • Bitcoin Portal
    • Bitcoin Personal – Merchant – Financial Training

Personal – Merchant – Financial Wallet Services -a wallet service NOT a BANK-

Bitcoin HD Brain Wallet Service- Personal Master Bitcoin Wallet

We add BIP38 to our BIP32 wallets to give you the best security provided by the Bitcoin cryptography. The BIP38 is a password that is added to the PrivateKey when it need to approve a transaction, the BIP38 encoded into the PrivateKey enforces that only the password holder of the PrivateKey can spend coins. If we use this Password strategy on all spendable  sub-wallets then we can host your wallet online and we will never be able to have access to your coins we just host the wallets.

Built on the Master Bitcoin Bank-Wallet strategy. You keep your Master -Bank wallet safe(protected) then you create a sub wallet for your Cell Phone, iPad devices but they are all tied in together. Your Master Bank wallet can move BTC into any of your sub-wallets at any time it controls everything. So if your Cell Phone is lost or your Pad device is stolen well they only got a small sub-wallet.

btc-wallet-HDW_02Business Master Wallet

For accounting this can be used very well in a Bitcoin Business – Master Bank-Wallet create Sub-wallets for – Marketing, Sales, HR so you can delegate to the other sub-wallets holders. For Audits they only see their transactions NOT the all the sub- of the Master-wallet.

So if anyone is interested in Joining me with this venture contact me - gAtO oUt

Bitcoin 2-of-2 Escrow Transaction Example

December 24, 2013 Posted by gatomalo

A Holiday Tale of Olde

Jesus wants to pay Paul 50tnbtc but prevent him from cheating him.

First each party creates a new address, and then shares them. Then uses the

resulting addresses to make a [1]p2sh address (begins with ’3′ for bitcoin,

’2′ for testnet) that requires both parties to sign to release the funds:

 

Happy Holidays

gAtO sAy’S – Happy Holidays

[1]p2sh=Payment to Share

 

This is called a distributed redemption (where no party has all the required keys

requires bitcoin 0.7 or later) – We are currently on 0.8 version 12-24-2013

Instead the parties could do a 2-of-3 which would allow a mediator to

settle a dispute, that works exactly the same but instead of (2)two public keys

(3)three would be provided.

 

Each Party will use a copy of their PublicKey to sign the transaction.

ugh

ugh

 

Example:

On Jesus Machine:

[testnet01@Jesus ~]$ -bitcoind getnewaddress

1mpzXCDpitVhGe1WofQXjzC1zgxGA5GCfgD

 

We can use the Validateaddress command to get the pubkey for any Bitcoin address,

which is what we need to create the p2sh address.

 

 

 

 

 

They each have their Public keys to the addresses they are using:

@Jesus- 0343947d178f20b8267488e488442650c27e1e9956c824077f646d6ce13a285d84

@Paul-  Bitcoin address - 1mpzXCDpitVhGe1WofQXjzC1zgxGA5GCfgD

PublicKey – 0287f9169e265380a87cfd717ec543683f572db8b5a6d06231ff59c43429063ae4

 

On Jesus Machine:

[testnet01@@Jesus ~]$ -bitcoind validateaddress 1mpzXCDpitVhGe1WofQXjzC1zgxGA5GCfgD

{

“isvalid” : true,

“address” : “1mpzXCDpitVhGe1WofQXjzC1zgxGA5GCfgD“,

“ismine” : true,

“isscript” : false,

“pubkey” :

0287f9169e265380a87cfd717ec543683f572db8b5a6d06231ff59c43429063ae4“,

“iscompressed” : true,

“account” : “”

}

[testnet01@@Jesus ~]$ -bitcoind addmultisigaddress 2 ‘[“0287f9169e265380a87cfd717ec543683f572db8b5a6d06231ff59c43429063ae4“,”0343947d178f20b8267488e488442650c27e1e9956c824077f646d6ce13a285d84″]’

2MxKEf2su6FGAUfCEAHreGFQvEYrfYNHvL7

 

On Paul Machine:

[testnet01@Paul ~]$ -bitcoind getnewaddress

mirQLRn6ciqa3WwJSSe7RSJNVfAE9zLkS5

[testnet01@Paul ~]$ -bitcoind validateaddress mirQLRn6ciqa3WwJSSe7RSJNVfAE9zLkS5

{

“isvalid” : true,

“address” : “mirQLRn6ciqa3WwJSSe7RSJNVfAE9zLkS5″,

“ismine” : true,

“isscript” : false,

“pubkey” :

“0343947d178f20b8267488e488442650c27e1e9956c824077f646d6ce13a285d84″,

“iscompressed” : true,

“account” : “”

}

[testnet01@Paul ~]$ -bitcoind addmultisigaddress 2 ‘[“0287f9169e265380a87cfd717ec543683f572db8b5a6d06231ff59c43429063ae4“,”0343947d178f20b8267488e488442650c27e1e9956c824077f646d6ce13a285d84″]’

2MxKEf2su6FGAUfCEAHreGFQvEYrfYNHvL7

 

 

 

——————Now Jesus pays the p2sh address.——————————

On Jesus Machine:

[testnet01@Jesus ~]$ -bitcoind sendtoaddress 2MxKEf2su6FGAUfCEAHreGFQvEYrfYNHvL7 50.0

7649b33b6d80f7b5c866fbdb413419e04223974b0a5d6a3ca54944f30474d2bf

 

On Paul Machine:

Paul can see the p2sh paying transaction:

[testnet01@Paul ~]$ -bitcoind getrawtransaction 7649b33b6d80f7b5c866fbdb413419e04223974b0a5d6a3ca54944f30474d2bf 1

{

“hex” : “01000000013c0c37049cefb7d0754c716c1227e221f1b5cc9fdf7fc8e6aadd5ce6465fad32000000004a493046022100b41330548f320fcc282d72462656f80c0da64beb352f7fbbdf55d651674b5846022100cbef624c80302900e6c0e9b4bbb024cd072e54d7535c8a79a3ce9b36c304d7cc01ffffffff0100f2052a0100000017a914379ad9b7ba73bdc1e29e286e014d4e2e1f6884e38700000000″,

“txid” : “7649b33b6d80f7b5c866fbdb413419e04223974b0a5d6a3ca54944f30474d2bf”,

“version” : 1,

“locktime” : 0,

“vin” : [

{

"txid" : "32ad5f46e65cddaae6c87fdf9fccb5f121e227126c714c75d0b7ef9c04370c3c",

"vout" : 0,

"scriptSig" : {

"asm" : "3046022100b41330548f320fcc282d72462656f80c0da64beb352f7fbbdf55d651674b5846022100cbef624c80302900e6c0e9b4bbb024cd072e54d7535c8a79a3ce9b36c304d7cc01",

"hex" : "493046022100b41330548f320fcc282d72462656f80c0da64beb352f7fbbdf55d651674b5846022100cbef624c80302900e6c0e9b4bbb024cd072e54d7535c8a79a3ce9b36c304d7cc01"

},

"sequence" : 4294967295

}

],

“vout” : [

{

“value” : 50.00000000,

“n” : 0,

“scriptPubKey” : {

“asm” : “OP_HASH160 379ad9b7ba73bdc1e29e286e014d4e2e1f6884e3 OP_EQUAL”,

“hex” : “a914379ad9b7ba73bdc1e29e286e014d4e2e1f6884e387″,

“reqSigs” : 1,

“type” : “scripthash”,

“addresses” : [

"2MxKEf2su6FGAUfCEAHreGFQvEYrfYNHvL7"

]

}

}

]

}

 

Normally @Paul wait until the payment into the escrow has several confirmations, then he’d release the goods.

Now we assume the deal is complete to everyone’s satisfaction and Paul wants to take the coins out of escrow:

He drafts a transaction paying the escrow entirely into some regular address of his.

(We reuse the earlier one, but thats not required… the escrow could pay anywhere, even

another escrow).

[testnet01@Paul ~]$ -bitcoind createrawtransaction ‘[{"txid":"7649b33b6d80f7b5c866fbdb413419e04223974b0a5d6a3ca54944f30474d2bf","vout":0}]‘ ‘{“mirQLRn6ciqa3WwJSSe7RSJNVfAE9zLkS5″:50}’

0100000001bfd27404f34449a53c6a5d0a4b972342e0193441dbfb66c8b5f7806d3bb349760000000000ffffffff0100f2052a010000001976a914249604bc668da89a7d2d494b89fba47f529c52f788ac00000000

 

He signs it, but it’s not complete yet… it still needs @Jesus‘s signature.

[testnet01@Paul ~]$ -bitcoind signrawtransaction 0100000001bfd27404f34449a53c6a5d0a4b972342e0193441dbfb66c8b5f7806d3bb349760000000000ffffffff0100f2052a010000001976a914249604bc668da89a7d2d494b89fba47f529c52f788ac00000000

{

“hex” : “0100000001bfd27404f34449a53c6a5d0a4b972342e0193441dbfb66c8b5f7806d3bb3497600000000920048304502210084470f4972aab95892e6871168fa0d8456a7e4f55cfc8786a5ffef289d9d312602206d048d4fa39fd987235ad025c0e2d30ff4d6e7ab60ed5fb899952a3ef888cbf4014752210287f9169e265380a87cfd717ec543683f572db8b5a6d06231ff59c43429063ae4210343947d178f20b8267488e488442650c27e1e9956c824077f646d6ce13a285d8452aeffffffff0100f2052a010000001976a914249604bc668da89a7d2d494b89fba47f529c52f788ac00000000″,

“complete” : false

}

 

@Jesus is happy, so he signs:

[testnet01@Jesus ~]$ -bitcoind signrawtransaction 0100000001bfd27404f34449a53c6a5d0a4b972342e0193441dbfb66c8b5f7806d3bb3497600000000920048304502210084470f4972aab95892e6871168fa0d8456a7e4f55cfc8786a5ffef289d9d312602206d048d4fa39fd987235ad025c0e2d30ff4d6e7ab60ed5fb899952a3ef888cbf4014752210287f9169e265380a87cfd717ec543683f572db8b5a6d06231ff59c43429063ae4210343947d178f20b8267488e488442650c27e1e9956c824077f646d6ce13a285d8452aeffffffff0100f2052a010000001976a914249604bc668da89a7d2d494b89fba47f529c52f788ac00000000

{

“hex” : “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″,

“complete” : true

}

 

Then either of them announce the transaction to the network:

[testnet01@Jesus ~]$ -bitcoind sendrawtransaction 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

35cdf0594ef0890703a8ede92f6fc80272d0b0b73d19d2a9af80dd17c11e188c

 

And @Paul now sees his unencumbered funds: GEt’s his MONEY !!!

[testnet01@Paul ~]$ -bitcoind listtransactions “” 1

[

{

"account" : "",

"address" : "mirQLRn6ciqa3WwJSSe7RSJNVfAE9zLkS5",

"category" : "receive",

"amount" : 50.00000000,

"confirmations" : 0,

"txid" : "35cdf0594ef0890703a8ede92f6fc80272d0b0b73d19d2a9af80dd17c11e188c",

"time" : 1344968358

}

]

 

People’s Bank, ministries and commissions release Bitcoin risk prevention notice

December 6, 2013 Posted by gatomalo

People’s Bank and other five ministries and commissions release the bitcoin risk prevention notice

December 05, 2013Source: Central Bank website

In order to protect public interests in property, protect currency legal tender status, preventing money laundering risks, maintain financial stability, people’s Bank of China, the Ministry of industry and information technology and the banking Regulatory Commission, China Securities Regulatory Commission, China insurance regulatory Commission recently jointly issued the rules of the Ministry of industry and information technology, the China Banking Regulatory Commission, China Securities Regulatory Commission, the China insurance regulatory Commission on preventing risks bitcoin notice (silver-haired (2013), hereinafter “the notice”).

The circular clarified the nature of the coins, don’t think coins was issued by monetary authorities, does not have a law against mandatory currency properties, such as, are not really money. From the perspective of nature, bitcoin is a specific virtual goods, does not have the cash equivalent legal status cannot and should not be used as currency in circulation. However, bitcoin transactions as a sale of goods on the Internet, at your own risk, subject to ordinary people have the freedom to participate in.

Notification under requires, at this stage, the financial institutions and paid institutions shall not to bit coin for products or service pricing, shall not sale or as central opponents sale bit coin, shall not bearing insurance and bit coin related of insurance business or will bit coin into insurance responsibility range, shall not directly or indirect for customer provides other and bit coin related of service, including: for customer provides bit coin registration, and trading, and liquidation, and settlement, service; accept bit coin or to bit coin as paid settlement tool; carried out bit coin and RMB And foreign currency exchange services coins stored, managed, and mortgage business; issued coins-related financial products, coins as investment trusts, mutual funds and other investment targets, and so on.

Stipulated in the notification, as coins of the bitcoin main trading platform website should be in accordance with the People’s Republic of China Telecom Regulation and the provisions of the Internet information services management, French telecommunications Administration Department for record. At the same time, coins with higher risk and the risk of being used by criminals for money-laundering, related to the notice requirements in accordance with the People’s Republic of China anti-money laundering Act requires to effectively fulfill customer identification, suspicious transactions reports and other statutory obligations against money-laundering, effective prevention of money laundering risks associated with coins.

To avoid due to bit coin, virtual merchandise take “virtual currency” of name excessive hype, damage public interests and Yuan of statutory currency status, notification under requires financial institutions, and paid institutions in daily in the should correctly using currency concept, focused on strengthened on social public currency knowledge of education, will correctly awareness currency, and correctly regarded virtual merchandise and virtual currency, and rational investment, and reasonable control investment risk, and maintenance itself property security, concept into financial knowledge universal activities of content, Public establish a correct conception of currency and investment ideas.

In future, the people’s Bank would be based on their responsibilities and continue to pay close attention to trends and risks associated with bitcoin. (End text)

Annex:

Rules of the Ministry of industry and information technology, the China Banking Regulatory Commission

China Securities Regulatory Commission, the China insurance regulatory Commission

Against the risk of the bitcoin notifications

Recently, a calculated by specific computer programs called “coins” (Bitcoin) has aroused widespread concern in the international arena, some domestic institutions and individuals the opportunity to hype coins and coins-related products. In order to protect public interests in property, guarantees the legal tender status of the Yuan, anti-money-laundering risks and maintain financial stability, under the People’s Republic of China people’s Bank of China law, the People’s Republic of China anti-money-laundering Act, the People’s Republic of China commercial bank law, the People’s Republic of China Telecom regulations and other relevant laws and regulations, the relevant notice is as follows:

A correct understanding of the bitcoin properties

Bitcoin has not focused publishers, limited total anonymity, without geographical restrictions, and four main features. Though the coins were known as “money”, but because it is not issued by the Monetary Authority, does not have laws such as compensation and mandatory currency properties, is not a real currency. From the perspective of nature, coins ought to be a certain type of virtual goods, does not have the cash equivalent legal status cannot and should not be used as currency in circulation.

Second, financial institutions and payment institutions shall not conduct the bitcoin-related business

At this stage, the financial institutions and paid institutions shall not to bit coin for products or service pricing, shall not sale or as central opponents sale bit coin, shall not bearing insurance and bit coin related of insurance business or will bit coin into insurance responsibility range, shall not directly or indirect for customer provides other and bit coin related of service, including: for customer provides bit coin registration, and trading, and liquidation, and settlement, service; accept bit coin or to bit coin as paid settlement tool; carried out bit coin and Yuan and the foreign currency of Exchange service ; Coins stored, managed, and mortgage business; issued coins-related financial products, coins as investment trusts, mutual funds and other investment targets, and so on.

Third, strengthen the management of bitcoins website

According to the People’s Republic of China Telecom Regulation and of the Internet information services management, bitcoin provided registration, transaction services, such as Internet sites should be in Telecom Administration Department for record.

Telecommunications regulators views identified and punished according to the relevant management departments, in accordance with the law coins Internet station to be closed down.

IV risk of preventing possible money-laundering of the bitcoin

PBC branches should pay close attention to coins and other similar anonymity, transborder flow of convenience features such as virtual goods movements and posture, look carefully into the money laundering risks and to develop targeted preventive measures. Branches should be registered in the jurisdiction established by law and to provide coins, trading and other services providers included in the anti-money laundering supervision, urged its strengthening anti-money-laundering surveillance.

Offer coins registration, transaction services such as Internet stations should meet their anti-money laundering obligations, to identify the user, requires users to register with real names, registration name, identity card number and other information. Provide coins in the financial institutions, payment and registration transactions such as Internet point found associated with coins and other virtual goods transactions, shall immediately report to the China anti-money laundering monitoring and Analysis Center, together with the rules of the anti-money laundering investigation activities; found using coins for fraud, gambling and criminal activities such as money-laundering trail, should be reported to the public security organs in a timely manner.

Five monetary knowledge, strengthening public education and investment risk

Departments and financial institutions, payment institutions should use monetary concepts in their daily work, focuses on strengthening the education of public monetary knowledge, will correctly understand the currency, virtual goods and virtual currency in perspective, rational, reasonable control on investment, such as investment risks, protect their property perspective into the content of financial literacy activities, guiding public establish a correct conception of currency and investment ideas.

Notification can be made under the various financial regulatory bodies develop the implementation details.

People’s Bank of China head office in Shanghai, branch, Department of business management, capital (capital) City Centre branch will forward this notification to local financial institutions and businesses in the area. This notice found during implementation of new situations and new problems, please do not hesitate to report to the people’s Bank of China.

Tor Wacky Times and the NSA

October 11, 2013 Posted by gatomalo

gAtO rEaD – that Tor (The Deep Dark Web) is now all messed up by the NSA, FBI and LEO so all you bad guys using the Tor network better watch out, or should they???fed_links_01

Aug 5 the FBI snakes in Freedom Hosting and put a number of websites out of business in the Dark Web. They let the flames go out that they caught a bunch of Pedophile sites with that bust, but it does not seem so.

The Attack on the Dark Net Took Down a Lot More Than Child Porn - http://gawker.com/the-attack-on-the-dark-net-took-down-a-lot-more-than-ch-1081274609 – gAtO contribute to this article–

fed_usCitizenship_01Aug 19 – Millions of Tor Clients start to go up in numbers. What’s this all about, we get a bunch of Tor clients just hanging around doing nothing in Tor. Some say it’s a Bot-net or something like that. Then it growns 4, 5  million Tor users and the last week or so it starts to go down again. So what is all this about all these Tor Clients and the Tor- Botnet?fed_rent_a_hacker01

Oct 3– Silk Road get’s taken down, Oh the FBI had a copy of the Silk Road servers back in June just before the AUG 5 take down of FH by the FBI. So the Feds had Silk Road all this time and this is all they can do, can’t even get a few Bitcoin wallets- what a cluster fˆ%k—//fed_cc-paypal_01

Now you got NSA saying that Tor is cracked and the bad guys cannot use it. They claim that they can hack Tor anytime and anywhere with documents that a summer student left on how to hack the Tor network back in 2006. By the Way – most of these hacks do not work in Tor, maybe on a regular network but not on the Tor network.fed_hit_man_01

So now gAtO goes in search of Tor sites and a lot of sites went down by hook or crook —BUT someone has started to replace these Tor Hidden Websites in the Tor Network – But something is FuNnY – all these sites us the same web templates -

So now you can take a walk down memory lane and see all the older Tor-Websites have gone away and new ones have magicly re-appear.

fed_apple4bitcoin_01Now if this was the only place were this has happens OK sure, but at other Tor- Wiki Tor Link sites you will see the same thing – Commercial sites are all FuNnY and all the non-commercial Tor-websites are Tango Down.

So now Tor goes round and round but nobody knows what the heck is going on- In the Tor network – The Deep Dark Web run by Criminals or the FBI – you can answer these questions yourself by visiting the site –trust but Verify– ((not me))– gAtO oUt

fed_counterfiet_euro_50 fed_counterfiet_usd_01 fed_links_01 fed_mobile_steal_store_01 fed_uk_guns_01

 

 

 

 

 

 

 

 

 

 

 

 

SilkRoad Seized BitCoins Addresses are identified

October 5, 2013 Posted by gatomalo

Silkroad Seized Coins Addresses are identifiers which you use to send bitcoins to another person.

gAtO fOuNd – the Bitcoins Silk Road MASTER Wallet – number #####

Address 1F1tAaz5x1HUXrCNLbtMDqcw6o5GNn4xqX

bitcoin-gollum

Checkout the blockchain link - https://blockchain.info/address/1F1tAaz5x1HUXrCNLbtMDqcw6o5GNn4xqX

that were captured by the FBI – So WHY is it being trickle  down all over the world 25, 50, 100, 500 BTC at a time. Next check out –
Taint Analysis
 - Related Tags - Unspent Outputs  -

Taint Analysis:

https://blockchain.info/taint/1F1tAaz5x1HUXrCNLbtMDqcw6o5GNn4xqX

Taint Analysis 1F1tAaz5x1HUXrCNLbtMDqcw6o5GNn4xqX 
Taint is the % of funds received by an address that can be traced back to another address.

This pages shows the addresses which have sent bitcoins to 1F1tAaz5x1HUXrCNLbtMDqcw6o5GNn4xqX. The data can be used to evaluate the anonymity provided by a mixing service. For example Send Coins from Address A to a Mixing service then withdraw to address B. If you can find Address A on the taint list of Address B then the mixing service has not sufficiently severed the link between your addresses. The more “taint” the stronger the link that remains.

 Related Tags:

https://blockchain.info/related_tags?active=1F1tAaz5x1HUXrCNLbtMDqcw6o5GNn4xqX

Find Related Tags
This tool can help find known addresses which could be used to reveal the identity of a number of target addresses.

Target Addresses
1F1tAaz5x1HUXrCNLbtMDqcw6o5GNn4xqX,

 Unspent Outputs

https://blockchain.info/unspent?active=1F1tAaz5x1HUXrCNLbtMDqcw6o5GNn4xqX&format=html

This wallet contains a very large number of unspent outputs. Please consolidate some outputs

So the question becomes who is taking Bitcoins from Silk Road Master Bitcoin Wallet – click on the transaction  and find the geo-location of money going out of SR BTC wallet every 20 seconds at a time, 5, 10 little numbers of BTC add up when you spread them out -

Block Chain gives you all kinds of ways to look at all this Bitcoin Data from Silk Road – With every Address of the user wallets, and all kinds of transactions informations, gAtO can find some of these SR-vendors geo-location and so can LE…we can do all kind of things with this data — have fun-gAtO oUt

 

 

 

Silk Road down – Tor still OK

October 4, 2013 Posted by gatomalo

Silkroad Seized Coins Addresses are identifiers which you use to send bitcoins to another person.

https://blockchain.info/address/1F1tAaz5x1HUXrCNLbtMDqcw6o5GNn4xqX

I found what I was after – this is all the Bitcoin Wallet Address from Silk Road that the FBI has -

caveat – check your wallet number if it’s not listed then your wallet is still cool and the funds available  –MaYbE!!!

UPDATE: notice that SILK ROAD account is still paying out all this money to France, Germany all over the UE – 500 BTC – 100 -BTC at a time WoW – Someone is making off with all the money from the SR account-

Unspent Outputs 1F1tAaz5x1HUXrCNLbtMDqcw6o5GNn4xqX - https://blockchain.info/unspent?active=1F1tAaz5x1HUXrCNLbtMDqcw6o5GNn4xqX&format=html 

 gAtO sEe- the fact is that as always GREED is what got SilkRoad Tango Down. I been getting lot’s of slack about Tor and all that but sorry, it’s as safe as you make it. Tor gives you an edge and if you really need the privacy and do your research on Tor, you too can communicate anonymous FACT not fiction -// 

Now the Bitcoin aspect of this take down is what is really cool. This take down now makes BTC more legit since they can’t say yeah it all criminals using Bitcoins, na, na, na, – I saw the first few 1 million dollars BTC transaction the other day – but still “Bitcoin Buying and Selling is a pain the A$$” my new Bitcoin book coming out in a next months just in time for the holiday seasons - gAtO oUt

 

On 10/04/2013 02:21 AM, Roger Dingledine wrote:

 OK, I just read the Maryland complaint. It’s obvious what happened.

 An FBI undercover agent contacted him, wanting to sell large quantities

of cocaine. He found a buyer, and delegated the details to his employee.

Said employee had full admin access to his servers.

His employee then provided his ACTUAL PHYSICAL ADDRESS to the undercover

FBI agent. The FBI mailed 1 Kg (very highly cut) cocaine to said

employee, and arrested him on receipt. Said employee soon told the FBI

all that he knew.

So now the FBI had access to the servers. There’s no reason to suspect

that they needed to compromise Tor to gain access, or for anything else.

There’s more drama about the murder for hire stuff, but it’s irrelevant.

 

Tor Bot Net realm=bitcoin-mining-proxy

September 9, 2013 Posted by gatomalo

update -: Here is the poop – Skynet is bitcoin c&c and the Tor Zombies are Bitcoin miners- Here is the Botnets – :–http://arxiv.org/pdf/1308.6768v1.pdf -so I ran my crawler on them and got this little hit on all the Skynet were Bitcoin c&c Server

qdzjxwujdtxrjkrz.onion Skynet -realm=”bitcoin-mining-proxy” -HTTP/1.1 401 Unauthorized

URL of the Site — : http://qdzjxwujdtxrjkrz.onion
HTTP/1.1 401 Unauthorized WWW-Authenticate: Basic realm=”bitcoin-mining-proxy” Content-Type: text/plain Transfer-Encoding: chunked Date: Wed, 11 Sep 2013 16:16:57 GMT Proxy-Connection: keep-alive Sorry, I don’t know you.

on all the Skynet I get this realm – bit coin-mining-proxy- this is a secret hidden service that only if you have the right authorization in your torrc file the Tor website will reject you – So all the botnets have the right authorization name- pretty sweet setup I say- now 3million Tor Botnets turning Bitcoins – no wonder these zombies are real quite in Tor- got them-

Large botnet cause of recent Tor network overload - http://blog.fox-it.com/2013/09/05/large-botnet-cause-of-recent-tor-network-overload/

gAto sEe- ever since Aug 19, 2013 Tor has been getting a lot of users. First 1 million, then 2 million then over 3.5 NEW million Tor users in the last 25 days. So what is happening in Tor world is that they are going crazy, Tor relay operators have reported what looks like they are dDoS-ig their own relays sometimes. Lots of circuits built and broken and this has put a big strain on Tor.

Worst still these new 3.5 Million Tor users are just sitting idle and the Tor network is freaking out. To get a hidden service connection is almost impossible but I can still use Tor to use the clear-web with no problems. Thu Tor I can see my site- uscyberlabs and any other non-Tor site and it loads pretty fast. When I try the hidden Wiki – NO-GO

If I keep at it I will finally find a Tor-website- like my own that works and it loads.

my new toy in Tor- Secure Encrypted Tor Messaging website – http://tpgewiccpecsbajt.onion/ – so I know Tor is still working.

Tor Bot-Net -How to handle millions of new Tor clients – problem is messing with everyone.

Conspiracy theory

  • Left over FBI bonnet – from the Freedom Host Raid around Aug 5
  • Russian Bot-net
  • Some Tor Experiment gone -lOcO – NOT gAtO, at least this time.. mEoW
  • Was August 19 the starting date to run en masse from the NSA’s PRISM project?
  • Were European internet users downloading the latest American cable TV series via Tor only, thus overcoming blockades of sites like the Pirate Bay by European ISPs?
  • So some thought a botnet abusing the Tor network to hide its command and control server must be the reason of the sudden increase of Tor users.
  • The Mevade malware family downloaded a Tor component, possibly as a backup mechanism for its C&C communications.
  • TrendLabs says- “The actors themselves, however, have been a bit less careful about hiding their identities. They operate from Kharkov, Ukraine and Israel and have been active since at least 2010. One of the main actors is known as “Scorpion”. Another actor uses the nickname “Dekadent”. Together, they are part of a well organized and probably well financed cybercrime gang.”

The Tor network is overloaded – but they still have no idea what is going on in Tor and how to stop it and/or control it. So were do we go from here in Tor. I got my box working and some other tor websites may need to think about the version they use until we get this Tor-Bot net under control in Tor -gATO oUt

Client- Sep 09 09:56:05.868 [Notice] Tor v0.2.3.25

Server Tor v0.2.3.25 – on Linux - http://tpgewiccpecsbajt.onion/  - Testing my new site in Tor and I noticed

https://blog.torproject.org/blog/how-to-handle-millions-new-tor-clients