After more than 11 years since it was first introduced, Bitcoin still has difficulty being understood, even by some of the most adept tech geeks in the business. Dr. Craig Wright has dedicated a lot of time clearing the air lately in an attempt to put cryptocurrency back on its rightful track, and has just published a new blog post that is directed at a fundamental error some in the crypto space are making. Wallet keys need to be better protected and should follow the design as originally laid out in Bitcoin’s white paper.
Wright points to a project that he was asked to review a few weeks ago at the CC Forum in London. Ballet, a wallet alternative created by Bobby Lee, would make using crypto easier and give it a better “feel” by printing a paper wallet on a “piece of metal.” This has a flaw at its core, though, that shows there is a gap between how Bitcoin was meant to operate and how it has been interpreted.
According to the original Bitcoin white paper, “[A] new key pair should be used for each transaction to keep them from being linked to a common owner.” Putting a wallet address on a piece of metal is counter to this assertion and could never allow for the keys to change, since the addresses would have been printed.
According to a Financial Action Task Force (FATF) report from the 1990s, electronic cash had already been attempted and two versions introduced—one for ecommerce purchases and the other for face-to-face digital transactions. Ballet, according to Wright, attempted to serve both aspects, but falls short in both instances.
Wright explains in his post, “I’m starting to come to the belief that individuals seeking to create such products are actively engaged in creating solutions for the purpose and market of money laundering.