nChain and other affiliated companies will be funding a large number of projects through our venture capital arm, nChain Reaction. In addition to this there are a number of projects that are important but not aligned with the corporate strategy within nChain. To this end, I will setting up my own investment arm personally that does not rely on the same level returns and may address some more politically sensitive topics.
My first funding project is the creation of a secure steganographic system to transport and distribute bitcoin (cash) transactions with a high level of anonymity.
I'm giving (at least) three months from today for the creation of a prototype. The best prototype will be awarded US$100,000 paid in BCH. If the angel funding proves successful, this will be further funded into later stages.
The requirements are:
  1. An application that runs on either iPhone or android (or both for extra points) that takes a photo using the local camera in the phone and then embeds a bitcoin transaction with in the image.
  2. The embedding will be completed using steganography in a manner that is undetectable
  3. The original image will be discarded and only the image with the transaction being saved
  4. The camera will embed random data into an image on any occasion when it takes a photo
  5. The image will incorporate two sets of random data and one valid bitcoin transaction on any occasion where a bitcoin transaction is to be included
The application will include a server-side process. This process will scan images from selected registered sources and be paid as part of the transaction fee for the service.
In the initial version of the application, a simple proof of concept using a shared key can be allowed. The winner of this competition will be expected to extend the application to incorporate the following Diffie Hellman-based technique:
A successful late around applicant will be licensed technology for the use on the bitcoin cash or chain that will enable the embedding of a magnet file into a bitcoin transaction in a manner that allows for the secure distribution files over peer networks across DHTs.
The methodology described in patent "Determining a common secret for two Blockchain nodes for the secure exchange of information" would be able to be deployed allowing for the secure torrent based distribution of files that are encrypted to those parties who pay for transaction.
Techniques and intellectual property that allow the server to monitor and scan various sites for images and to determine whether said images incorporate an encrypted hidden process that only the server can detect using its own keys will be provided to the winning proof of concept. These processes are non-interactive and allow the server to pseudonymously accept payments without receiving any information about the individuals using the service.
Any applicant who is not selected for angel funding will be able to launch their own product without any interference on the bitcoin Cash chain even if using intellectual property they have been offered as part of this process.
The process is non-interactive. The server is expected to be economically viable and to make a profit in the long-term. That stated, in the short-term the service will be aimed towards growth. The application should be available to interact with programs such as WeChat and ideally would incorporate other services making it valuable as a camera application for more reasons than embedding bitcoin transactions.
Later stage applications will include blinding technology. In this, the server will not know the sending address of the person who embeds a bitcoin transaction within an image. The server will sign a blinded hash that will be returned on the server in a manner that a separate external process can take and forward allowing the user to have assigned valid transaction only after it is unblinded by a separate party. In this version of the application, blinded keys could be held within a server allowing for a transmission of a blinded transaction that would not act as a standard bitcoin transaction.
The Diffie Hellman process detailed within the above document allows for a secure non-interactive key exchange. The data to be embedded within the image will be encrypted using 256 bit AES and to share key distribution.
Details of how to apply and further technical information will become available during this week.
 

$20.25
$57.37

Reviews
12 of 12 reviewers say it's worth paying for

0 of 12 reviewers say it's not worth paying for
Comments
  earned 24.0¢
Wow. Many impress. Such privacy.
29.0¢
   5mo ago
1.0¢ 1.0¢ 5.0¢ 1.0¢ 25.0¢ 1.0¢ 1.0¢ 1.0¢ 4.0¢
  earned 5.0¢
BCH Gang selfies are going to be popular
10.0¢
   5mo ago
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  earned 0.0¢
Dr. Wright awesome
0.0¢
   5mo ago
  earned 20.0¢
I really should have learned computer science in college... that being said, as a small business owner, I'm looking forward to the day that technology like this will be simple enough to interact with anyone, anytime, anywhere!
25.0¢
   5mo ago
5.0¢ 25.0¢
  earned 70.0¢
Sounds very cool - tipped $25.00 to contribute to the fund.
75.0¢
   5mo ago
5.0¢ 25.0¢ 25.0¢ 25.0¢
  earned 0.0¢
This would be great! Tipped a couple Bucks..
0.0¢
   5mo ago
  earned $2.95
Hello Craig
I'll be buying this space for advertising my artwork :) I hope you don't mind...
Hai everyone, I'm an Artist currently living in Colombia and I Invite you all to check my Profile and Artworks...if you like it, feel free to vote or leave me a nice tip... I would really appreciate it 😉
Here some samples:
$3.00
   5mo ago
5.0¢ 25.0¢ $2.50 25.0¢
  spent 5.0¢
Why would I pay for this service if I can just use BIP 47? Post a reusable QR payment code and be done with it. No transaction charge needed. Also you can already use coin mixers. Just throw a little bit of BCH in the Coinmix.to hotwallet and spend and replace.
0.0¢
   5mo ago
5.0¢
  earned $1.05
Why, well a QR code is simple to detect. even the wallet, simple to detect and stop. Sending a TX from many places means using the Internet through government filters.
This allows you to embed and send a TX and even to have statements and conditions that allow for a TX to only be seen later.
In an extended form, the remove server that extracts and forwards a TX can act as an oracle and have no idea what it is forwarding, but respond based on external data.

$1.05
   5mo ago
5.0¢ 25.0¢ 50.0¢ 25.0¢
  spent 5.0¢
Is the user story correct?
The mobile app:
1) creates TX
2) takes picture and embeds TX in it
3) sends the picture via WeChat to someone or prints the image, or puts on social network sites
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The server scans those sites, and propagates TX. So the sender stays anonymous.
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In case of goods tagging (i.e. TX embedded in wine label) - it is enough to reference existing TX (that presumably was generated by other production system)
Edit: now I think I get it. Someone please tell me if I'm still wrong :)
0.0¢
   5mo ago
5.0¢
  earned 5.0¢
So, anybody living in an area where Bitcoin is banned can use the server with the Oracle to broadcast tx for them. But if you live in a country where Bitcoin isn't banned a reusable QR code will do. That's my take.
10.0¢
   5mo ago
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  spent 5.0¢
Thanks for all your hard work and dedication, and putting up with trolls and liars from, you know where. I hope this project succeeds and many more come in future.
0.0¢
   5mo ago
5.0¢