NavajoCoin - The Unbreakable Code

Decentralized anonymity through double Encryption

Optional Decentralized Anonymity in cryptocurrency is a feat yet to be achieved. It would provide the ultimate union between transparency/verifiability and today’s much sought after privacy. To achieve ODA, we will be introducing a new concept to cryptocurren-cies which we will call SubChains and who-se application is to be stretched far beyond 01anonymity. Sub-chains are partial chains that still depend on and are verified along the main chain but are not essential to the running of the main network and therefore an individual node’s involvement in a subchain is optional. They are the plugins/add-ons/extensions of the blockchain!

Bitcoin along with many other cryptocurren-cies of its generation have revolutionized the world of today. Though very few are aware of its potential and future applications, the de-centralized consensus ledger is a solid basis for applications beyond our imaginations.During the past year, the light was shed on the criminal activities of various governments around the world which involved illegal and abusive mass surveillance and data collection. The cryptoworld was deeply struck by this re-velation and started rooting for coin functions that would insure their right to both financial and communication privacy.Bitcoin and other cryptocurrencies based on its protocol have a transparent block chain which is the equivalent of a public ledger. With this implementation, your privacy is protected only as far as your link with an address. Today, with the presence of exchanges and other ser-vices that require your personal identification, keeping your identity separate from your coins is proving to be an impossible feat.New coins emerged and on the financial privacy scale centralized mixers appeared, followed by decentralized mixers and a new blockchain technology based around anonymi-ty called Cryptonote. Zerocoin is also a major contender in the anonymity race and a highly anticipated technology. Each have been critici-zed for their weaknesses with the centralized mixer obviously being the weakest as it has a single point of failure. Decentralized mixers 02actually do not offer anonymity and blockchain analysis can mathematically link (no direct link in the blockchain) addresses. Another weak-ness lies in the fact that anyone, especially at a coins infancy age where it is cheap, can ac-quire a majority of the mixing nodes and have a full visibility of the supposedly anon transac-tions along with irrefutable blockchain proof. To summarize, mixers of any kind only obfus-cate transactions. Cryptonote is majorly cri-ticized for its blockchain bloat which limits its scalability along with its inability to offer trans-parency but offers a solid basis for anonymity. Zerocoin offers the greatest privacy but offers zero transparency and in the case of being compromised, no one will know. This is both a scary and impractical truth for an economy on which thousands or millions depend.Thereby in this whitepaper we would like to introduce a completely unique state-of-the-art anonymous technology. Its use of decentrali-zed nodes, a subchain, and double encryption right from the nodes guarantees true anony-mity while still maintaining the option of having fully transparent transactions and in no way bloating the backbone of the system (main chain). The inputs and outputs will be in such a manner that the origin of the transaction as well as the recipient cannot be correlated, lin-ked to one another, or be traced on the block chain as there will be no evidence on it. This technology will therefore be implemented in the next NavajoCoin Wallet Version which will be released on the 9th of March 2015.

Navajo Anonymous Technology

1. The Navajocoin wallet talks to the Navajo API and asks for a random Navajo Magic Gateway (NMG) send NAV through anonymously.

2. The API finds a random NMG, checks that it is running and able to process incoming anonymous transactions, then sends the chosen NMG‘s details back to the wallet.

3. The wallet sends the coins to the random NMG with the encrypted destination information attached.

4. The incoming NMG node talks to the API and asks for a random Choctaw Star Gate (CSG) to send the coins out to the destination.

5. The API finds a random CSG, checks that it is run-ning and able to process outgoing anonymous tran-sactions, then sends its details back to the NMG.

6. The destination address is decrypted then re-encrypted with a new key and sent through the private Navajo Subchain.

7. The NMG strips the destination information from the incoming transaction, mixes the coins with other pending transactions and sends the Navajo coins to the CSG in a series of small, randomized transactions to further obfuscate their route.

8. The CSG node receives the subchain transac-tion and decrypts the destination address from the transaction. The CSG then sends out the correct amount of Navajocoins to its intended destination in a series of small randomized transactions.

Transactions are sent the same way as any bitcoin transaction. The coins are sent from the sender’s wallet directly to the recei-ver’s address and are fully visible and verifia-ble on the blockchain.In order to conduct an anonymous transac-tion, the wallet will need to select a node th-rough which the transaction will be channeled, present the recipient’s address, and get into Navajo mode through an available GUI button. The nodes are decentralized, and as transac-tion volume grows, more nodes will be added.When a transaction is received at the An-onymizing node, the destination information is encrypted by a cryptographic hash func-tion and then that information is broadcasted through the subchain to instruct the outgoing node where to send the NAV funds. The node is the gateway to the subchain.The NMG and CSG are the most important part of the entire operation and work in con-junction. They run on an independent sub-chain and are of course fully decentralized. The NMG is the decryption mechanism and

the CSG is the gateway back to the main chain.The NMG receives the encrypted transaction information that only includes the destination address and the amount, decrypts it, then re-encrypts it with another public key and relays it to the CSG through the subchain. The CSG receives the subchain transaction, decrypts the destination information and verifies the transaction integrity before broadcasting the final transaction on to the main chain; sending the coins to its recipient address in smaller, random denominations.

The recipient will receive the respective amount of coins intended to be sent to their destination address, therefore completing the transaction and thus the coins in no way can be traced back to the original address through any analysis of the Block Chain / Public Led-ger, the subchain or in any other way. What appears on the main blockchain is a transac-tion with a destination and amount only and without an origin.The Coins received in this manner are in no way traceable to the original and there will never exist documented proof on either chain linking any addresses. To counter the type of analysis where one would just look for similar amounts we have mixed and then split the transactions into a smaller random denomina-tions.The efficiency of the system plays an im-portant role in evaluating this system. It takes 3 confirmations all within the network for the coins to be sent and received using the an-onymous technology therefore there are no disadvantages of using the technology against the conventional

sending and receiving of coins between two addresses.The nodes will be decentralized, but to begin with they will be maintained by the Navajo Coin Foundation. We are working to find a secure way that we could distribute the code for users to setup their own nodes, while still being able to guarantee the integrity of the Anonymous Network.

Messaging:

Previously we released the Navajo Chat Client which features group chat and private messaging as well as username reservation and recovery. While already encrypted, will be migrating all this communication to being conducted over SSL. The next feature we‘re working on will be an anonymous, decentrali-zed messaging system that runs on the main network. The idea being that it will allow users to share information by broadcasting encryp-ted messages using a decentralised subchain in the same manner that the transactions are conducted. We consider the messaging sys-tem to be another backbone of other subchain features we plan on releasing.

The on Wallet Messaging service will have its own subchain which will act as a regis-ter of nicknames. Nicknames will be tied to addresses instead of having passwords. An available balance will also be required to chat. The reason for this is to prevent spam and abuse of the system. Since the system is decentralized, banning someone is in effect not possible. However, we have come up with a feature where each node is able to ban/stop listening to a nickname for a specified period of time or forever. If all the network does the same, then the user is as good as banned.

source: http://navajocoin.org/pdf/navajocoin.pdf

NavajoCoin - The Unbreakable Code