[HN Gopher] Signal adds a payments feature with a privacy-focuse...
       ___________________________________________________________________
        
       Signal adds a payments feature with a privacy-focused
       cryptocurrency
        
       Author : josh2600
       Score  : 166 points
       Date   : 2021-04-06 16:23 UTC (6 hours ago)
        
 (HTM) web link (www.wired.com)
 (TXT) w3m dump (www.wired.com)
        
       | gojomo wrote:
       | Wow, a cryptocurrency that's _also_ dependent on Intel(tm)
       | SGX(r)!
       | 
       | What wonders will Intel's Signal subdivision offer next?
        
       | ivoras wrote:
       | Well, if any cryptocurrency is to gain really wide adoption, this
       | is the way to go: integrate it into something a large number of
       | people already use. And judging by what WeChat does, a chat
       | client is an excellent choice - after all, money sending is a way
       | of communicating something (an abstract form of "value" in this
       | case).
       | 
       | I only wish it were done differently - maybe we'll get answers to
       | these questions:
       | 
       | - Why not airdrop everyone a 100 pieces of whatever coin (or even
       | just 1, assuming the coin can be subdivided into tiny bits)? I'm
       | asking because I believe the value of this kind of coin usage
       | will come from its daily users, not from exchanges, but that's a
       | long game. Even if today it's worth 0, if the UX is good enough
       | and it proves to be secure, people will start assigning value to
       | it.
       | 
       | - Why pick a cryptocurrency almost noone has heard of? For
       | example, related to the above question, why not buy or mine a
       | million Doge and gift every account a 1 doge (presented as 1
       | thousand mili-doge)? People will start assigning (more) value to
       | it sooner or later if it's easy to use. Feel free to substitute
       | almost whatever instead of Doges (maybe something with PoS and
       | give the users the warm fuzzies with apparent increase in value).
        
       | ZoomZoomZoom wrote:
       | Again, Signal shows there's some undercurrents going on
       | constantly in the organization and bringing private and ethical
       | messaging solution to the public is not the sole goal. Another
       | affirmation for those who kept on recommending Matrix/GNU
       | Jami/XMPP instead.
       | 
       | At this point, if you really need this broad functionality Signal
       | are aiming to provide, why not Status.im? At least their tech is
       | cool.
        
       | abstractbarista wrote:
       | The proper choice would have been Monero.
        
       | bluefox wrote:
       | So Signal is now a payments app? Really? Installed Element and
       | will be phasing Signal out of my life.
        
       | josh2600 wrote:
       | Hi!
       | 
       | I'm the CEO of MobileCoin. If anyone has any questions please
       | feel free to ask here. We've been working on this project for
       | four years and it has been a labor of love. There's a lot of new
       | technology here.
       | 
       | We exist in a highly regulated space so it's possible some
       | questions will require reaching out to lawyers to make sure we
       | answer them in a way that's compliant so please don't feel
       | offended if a response takes a while to come back.
       | 
       | The best set of docs for how the whole thing fits together is our
       | book "The Mechanics of MobileCoin"[0].
       | 
       | We'll be around here and on our forums [1] to answer questions.
       | Please also check out our foundation website[2]. The github[3] is
       | also a lot of fun, especially the section on Fog[4].
       | 
       | [0]https://github.com/UkoeHB/Mechanics-of-
       | MobileCoin/blob/maste...
       | 
       | [1]https://community.mobilecoin.foundation
       | 
       | [2]https://mobilecoin.foundation
       | 
       | [3]https://github.com/mobilecoinfoundation/mobilecoin
       | 
       | [4]https://github.com/mobilecoinfoundation/fog
        
         | bdcs wrote:
         | The Oblivious RAM implementation is incredible
        
         | fblp wrote:
         | Hi Josh, thank you for taking questions. Can you speak to the
         | financial distribution of coins/funds for the employees and
         | foundation?
        
         | tgsovlerkhgsel wrote:
         | Assuming an attacker fully compromises SGX for machines under
         | his physical control (e.g. can execute arbitrary code inside an
         | attested enclave), what can the attacker do/what security
         | properties of MobileCoin break?
         | 
         | I know Moxie seems to put near-complete trust in SGX, but many
         | security professionals don't.
        
         | Forbo wrote:
         | I tried going to https://buymobilecoin.com/ as referenced in
         | https://www.mobilecoin.com/terms-of-sale.html but get a
         | Cloudflare "Error 1020" page. What's up with that?
        
           | josh2600 wrote:
           | This occurs when you try to access it from a US-IP.
        
             | deftnerd wrote:
             | Cloudflare lets you create custom error pages [1]. I would
             | recommend making one for any geo-restricted pages. The
             | benefit is that you can emulate your site theme and have an
             | opportunity to explain the reasoning for the geographic
             | restrictions.
             | 
             | [1] https://support.cloudflare.com/hc/en-
             | us/articles/200172706-C...
        
         | codethief wrote:
         | Hi Josh, thanks for taking the time!
         | 
         | My question, to both you and (especially) Moxie: Why do you
         | trust Intel SGX so much (for Signal but now also MobileCoin)?
         | Why are you not worried about vulnerabilities? As you're surely
         | aware, even Matt Green who is/used to be(?) the biggest fan of
         | Signal[0] is very concerned[1] about SGX. I don't question your
         | intentions but the fact that Signal as an organization has
         | stayed completely silent about this is... worrisome and at the
         | very least taints your reputation of openness and
         | trustworthiness. With MobileCoin now relying on it, too (more
         | or less), this only seems to be getting worse.
         | 
         | [0]:
         | http://web.archive.org/web/20200201112751/https://signal.org...
         | 
         | [1]: https://blog.cryptographyengineering.com/2020/07/10/a-few-
         | th...
        
         | mbesto wrote:
         | Why does a decentralized communication system need a defi based
         | payment system that has the requirement of a CEO to run it?
        
           | josh2600 wrote:
           | I don't run anything related to the protocol. The protocol
           | governed by the MobileCoin Foundation, an independent board
           | of directors. The foundation makes recommendations about how
           | the network might behave, but ultimately it's up to the node
           | operators to decide what code they run.
        
             | mbesto wrote:
             | So what organization are you the CEO of? Is it a for-profit
             | entity? What is that entities relation to the protocol?
        
         | hiq wrote:
         | Hi, I still have to read the docs more thoroughly, but given
         | that these HN threads die out quickly, I'd rather ask now that
         | I have the chance, so forgive me if some of these are answered
         | in the docs:
         | 
         | 1. how does MobileCoin make money?
         | 
         | 2. how many coins do you / does MobileCoin own?
         | 
         | 3. related to that, are there mechanisms in place to prove that
         | this is not a pump and dump? Or simply, how do I know it's not
         | one and it's here for the long-term?
         | 
         | 4. what's the threat model of the blockchain you're using? E.g.
         | for Bitcoin, the chain is compromised once 51% of the hashing
         | rate belongs to collaborative evil miners (as a rough
         | approximation). What about MobileCoin? When would something bad
         | happen? How is it prevented?
         | 
         | 5. how does MobileCoin compare with privacy-oriented
         | cryptocurrencies such as Monero?
         | 
         | P.S.: you might wanna add a F.A.Q. section somewhere for the
         | questions I've mentioned and the others in this HN thread,
         | right now we either have to blindly trust the claims on
         | https://www.mobilecoin.com/ or going through the 133 pages of
         | https://github.com/UkoeHB/Mechanics-of-MobileCoin, there should
         | be some intermediate tech documentation (or does it exist
         | already?)
        
           | PragmaticPulp wrote:
           | > 1. how does MobileCoin make money?
           | 
           | MobileCoin pre-mined the coins and is selling them to users.
           | According to other comments, they hold 85% of the coins.
           | 
           | The CEO is commenting in this thread with a link to buy the
           | coins. They make money by selling these coins.
        
         | qqii wrote:
         | Thanks for answering questions, it's nice to see that
         | MobileCoin shares so many similarities with Monero with changes
         | that seems to make decent tradeoffs for usability. I have a few
         | questions:
         | 
         | What is the identity and distribution behind the current
         | mobilecoin nodes? What are the requirements for running a node?
         | Since there is no node rewards how will nodes funded in the
         | long term (10+ years)?
         | 
         | Does mobilecoin employ something similar to Dandelion++? What
         | prevents nodes or those running fog from performing timing
         | based attacks? Is mobilecoin suseptable to any other attacks
         | (e.g. Poisoned output, subaddress association)?
         | 
         | How will the mobilecoin foundation and continued development be
         | funded in the long term (10+ years)?
         | 
         | If SGX is found to be vulnerable/no longer fit for purpose is
         | there a mitigation plan?
        
         | CynicusRex wrote:
         | Can late MobileCoin adopters buy the same amount of coin for
         | the same price as early adopters or is it a multi-level
         | marketing pyramid scheme like the rest of the crypto"currency"
         | greed and spam inducing cesspool?
         | 
         | https://www.cynicusrex.com/file/cryptocultscience.html
        
           | troquerre wrote:
           | MobileCoin is already liquid on multiple exchanges so the
           | coins would just be purchased at whatever the market price
           | is. It also doesn't make sense for late adopters to get the
           | same price because there's a lot more risk associated with
           | being an early adopter than a late adopter. This works both
           | ways -- if something bad happens to MobileCoin that tanks the
           | price late adopters would be able to buy at a cheaper price
           | because the new information gets priced in.
        
             | CynicusRex wrote:
             | >"It also doesn't make sense for late adopters to get the
             | same price because there's a lot more risk associated with
             | being an early adopter than a late adopter."
             | 
             | Often repeated but false. Early adopters mine or buy large
             | proportions at negligible prices while late adopters mine
             | or buy negligible proportions at large prices.
        
               | gsich wrote:
               | There is no guarantee that there will be late adopters.
               | So yes, there is risk.
        
       | femiagbabiaka wrote:
       | Random fact I found interesting: The Long Now Foundation is one
       | of the featured funders behind MobileCoin.
        
       | edsimpson wrote:
       | MobileCoin looks fantastic! Seems to solve the major pain points
       | of Bitcoin: fast transactions, low transaction fees, private and
       | no massive environmental impact with mining. Any ETA on when this
       | will come to the USA?
        
         | hhjj wrote:
         | Looks like it depends on SGX, so basically delegates trust to
         | Intel. Bitcoin doesn't depend on trusting anyone.
        
           | crystaln wrote:
           | SGX is only used for an extra layer of privacy, beyond what
           | any other currency offers. SGX is not used for the security
           | of the currency. This criticism has been answered countless
           | times.
        
             | sudosysgen wrote:
             | Many cryptos offer forward secrecy and completely opaque
             | ledgers without any reliance on SGX.
        
             | hhjj wrote:
             | Why does the FAQ 2. say i have to run consensus-service
             | with intel SGX to participate with other validation nodes ?
             | Doesn't that imply the consensus is dependent on SGX ?
        
           | alexmingoia wrote:
           | You have to put the keys _somewhere_.
           | 
           | Storing keys in SGX and using attestation to ensure only
           | valid nodes access them is significantly more secure than not
           | using the SGX.
           | 
           | Using SGX gives a Signal user's phone the same level of
           | security as using a hardware wallet like Ledger Nano.
        
             | orph wrote:
             | Keys are not stored in SGX. Keys never leave the phone.
        
               | alexmingoia wrote:
               | Can you provide more detail?
               | 
               |  _"Running MobileCoin in an SGX enclave allows nodes to
               | securely manage keys for users. A client can perform
               | remote attestation to its MobileCoin node before
               | transmitting its keys into the remote enclave along with
               | a short recovery PIN. The MobileCoin node can then rate
               | limit authenticated access to the keys, while the enclave
               | prevents the node operator or anyone who compromises the
               | node from circumventing the software and attempting to
               | brute force access to the keys directly. In this way,
               | user keys can reside safely in a node and survive across
               | application reinstalls or lost devices, without having to
               | trust the node operator or the security of the node
               | computer, and without having to memorize or safely store
               | extremely long recovery passphrases."_
               | 
               | https://mixin.one/assets/MobileCoin-Whitepaper-
               | EN_FINAL.pdf
        
               | [deleted]
        
               | orph wrote:
               | See #5 for more details:
               | https://github.com/mobilecoinfoundation/mobilecoin#faq
               | 
               | > 5. Will I need to put my keys on a remote server to
               | scan the blockchain for incoming transactions?
               | 
               | > Keys will never leave your mobile device. This is a
               | challenging problem and we are very excited to share our
               | solution when we release our mobile SDK software.
        
               | bigiain wrote:
               | Ahh, right. Nice. So keys never leave the phone due to
               | magical hand waving. Got it.
        
         | maclured wrote:
         | MobileCoin isn't the only fast privacy coin in town - particl
         | has most of the same features if not more, including a private
         | ebay-style marketplace which should be ready for prime time in
         | just over a month (all being well). And you can buy it on US
         | exchanges today.
         | 
         | [1] particl.io
        
       | RL_Quine wrote:
       | How much did MobileCoin pay for inclusion in Signal?
        
         | BlueMatt wrote:
         | According to coinmarketcap, MobileCoin's "Fully Diluted Market
         | Cap is $15,638,578,369.65". If we take a conservative
         | assumption of a 1% advisor grant (which would be very
         | conservative for a system that has been pitching signal
         | integration as its primary feature for years), then that would
         | put the value of the integration at around $150 million today
         | (or tens of millions a few weeks ago).
        
         | 13rac1 wrote:
         | https://www.wired.com/story/mobilecoin-cryptocurrency/ It is
         | Moxie's, the creator of Signal, pet crypto project.
        
         | josh2600 wrote:
         | MobileCoin has not yet paid Signal anything for integrating
         | MobileCoin. We intend to donate a great deal of money to Signal
         | over the coming years.
         | 
         | We believe in Signal's mission and we think that the world is a
         | better place with Signal in it.
        
           | RL_Quine wrote:
           | Moxie Marlinspike is listed as an advisor for MobileCoin, was
           | this not a paid position?
        
             | josh2600 wrote:
             | Moxie != Signal.
             | 
             | Moxie, as an individual, is a paid technical advisor to
             | MobileCoin but the reality is that we could never pay Moxie
             | what his time is worth. I am thankful that he has chosen to
             | help make this project a reality.
        
               | fourstar wrote:
               | >Moxie creates Signal
               | 
               | >Moxie advises MobileCoin
               | 
               | >MobileCoin gets integrated into Signal
               | 
               | Hm, yes, must just be one large coincidence that this
               | "integration" happened.
        
               | pixxel wrote:
               | And a reason surfaced to continue to connect users to
               | their phone numbers...
               | 
               | >>The UK also has receiver verification. If I try to send
               | to an account and it doesn't match the name I'm sending
               | to, my bank will warn me. How do you stop impersonation?
               | 
               | A: Signal relies on phone numbers for identities. Other
               | apps that integrate MobileCoin may have a higher
               | threshold for identification.
        
               | slenk wrote:
               | Unfortunately, Moxie is Signal because he won't let
               | anyone else (open-source clients) connect to the Signal
               | servers OR run their own.
        
               | lrvick wrote:
               | Signal is entirely centralized and Moxie runs the
               | organization.
               | 
               | For all intents and purposes Moxie is 100% in control of
               | the Signal network and could shut it down or release a
               | malicious update that plaintexts messages at any time.
        
               | BlueMatt wrote:
               | The revelations from the Platformer article [1] about how
               | Signal works inside make it pretty clear that Moxie ~=
               | Signal.
               | 
               | [1] https://www.platformer.news/p/-the-battle-inside-
               | signal
        
               | aaaxyz wrote:
               | That is just sad.
               | 
               | I've been a longtime signal user (since the
               | textsecure/redphone days). I've always given moxie a pass
               | on his controversial decisions (no federalisation, no 3rd
               | party clients, no fdroid repo, relying on Google play
               | services, being slow to release serverside source code)
               | because the team was small and obviously had to cut
               | corners somewhere.
               | 
               | But learning that they spent their time adding support
               | for a (premined?) cryptocurrency just because it's
               | Moxie's pet project is disheartening. What are the odds
               | that this would've been merged into the project if it had
               | been a merge request opened by someone from the outside?
        
       | vitno wrote:
       | I am incredibly disappointed in the Signal team. I don't want
       | cryptocurrencies (or even any payments!) in my primary text app.
       | Crypto/blockchain is fine, but if I want to use it I'll download
       | a different app.
       | 
       | I'm finding this announcement creates some uncertainty in my head
       | about Signal's long-term future.
        
         | fastball wrote:
         | How did you want Signal to monetize?
        
           | lrvick wrote:
           | Maybe like Matrix did?
           | 
           | Sell turn key servers for people that lack the time or
           | interest to run their own.
           | 
           | Federated and ethical.
        
             | [deleted]
        
             | fastball wrote:
             | Yep, that is one option, though that doesn't seem like the
             | route Moxie wants to take from what I've seen. He seems to
             | think that you need a cohesive centralized platform if you
             | want to be competitive (2016)[1].
             | 
             | At this point if you want federated it probably makes more
             | sense to just use Matrix.
             | 
             | [1] https://signal.org/blog/the-ecosystem-is-moving/
        
           | RL_Quine wrote:
           | > _Signal Foundation is a 501c3 nonprofit. We're proud of
           | that designation and we're out to prove that a nonprofit can
           | innovate and scale as well as any business driven by a profit
           | motive._
           | 
           | https://signalfoundation.org/
        
             | fastball wrote:
             | Unsurprisingly money is still needed to pay for development
             | and hosting costs, and Brian Acton's loan won't last
             | forever.
        
               | vitno wrote:
               | This explicitly doesn't monetize Signal so this line of
               | argument isn't particularly relevant.
        
               | TameAntelope wrote:
               | There seems to be a very large amount of outstanding coin
               | that the founders just happen to control...
        
       | lvs wrote:
       | Why this particular coin that nobody uses? This seems weird. Is
       | this a monetisation scheme we should be worried about?
        
         | fourstar wrote:
         | IMO Signal/Moxie "advises" this project, so to me this seems
         | like their way of cashing out (I'm assuming they hold the
         | majority of coins), given that Signal itself is a not-for-
         | profit organization. At least that's what I'd do if I were
         | Moxie.
        
           | tradertef wrote:
           | They hold majority..
           | 
           | Geee 1 hour ago | unvote [-]
           | 
           | There are 250 million units of mobilecoin, and majority of
           | them are owned by the founders. Only 37.5 million have been
           | distributed. With current price ($65), they're worth $14B
           | already. This makes the project a scam and impossible for it
           | to work as a reliable money that holds value. Bitcoin had no
           | pre-mine and has been fairly distributed from the start.
        
             | rOOb85 wrote:
             | I haven't seen any sources to back that up. Just that one
             | comment claiming those facts.
        
       | bilal4hmed wrote:
       | With Signal not releasing their server code and now this, I
       | regret using and asking a good chunk of my base to move to
       | Signal.
        
         | adamsvystun wrote:
         | This is not entirely true. There has been a delay (11 month) in
         | the sync of the server code with a public GitHub repo.
         | Currently all commits are there:
         | https://github.com/signalapp/Signal-Server/commits/master
        
         | ciconia wrote:
         | My thoughts exactly. This makes a very bad impression.
        
         | codethief wrote:
         | I haven't made up my mind regarding the payments feature yet
         | but yeah, what's up with the server code? Why hasn't it been
         | updated in over a year?[0]
         | 
         | Also, why do the Signal developers trust SGX so much and have
         | stayed completely silent about SGX vulnerabilities - even when
         | the cryptographers whose quotes they used to put on the
         | signal.org home page[1] are increasingly critical?[2]
         | 
         | Finally, why is there no open communication about major events
         | like the Signal PIN UI fuckup last year or the server issues
         | earlier this year? Foundation or not, if no communication is
         | happening and they're not demonstrating that they're capable of
         | openly admitting mistakes and learning, they're not gaining the
         | trust of anyone.
         | 
         | Don't get me wrong, I've been a die-hard fan of Signal since
         | the early TextSecure days and have convinced > 100 people to
         | switch but I'm starting to have a bad aftertaste and some of my
         | friends (equally big Signal fans) are, too.
         | 
         | EDIT: Looks like the Signal server repo[3] was updated _today_
         | , as this article[4] (in German) attests to. I had last checked
         | the repo this past weekend. I suppose the repo hadn't been
         | updated to keep the MobileCoin thing secret but I do wonder:
         | Why not simply create a private branch instead of risking one's
         | reputation for openness?
         | 
         | [0]:
         | http://web.archive.org/web/20210311053716/https://github.com...
         | 
         | [1]:
         | http://web.archive.org/web/20200201112751/https://signal.org...
         | 
         | [2]: https://blog.cryptographyengineering.com/2020/07/10/a-few-
         | th...
         | 
         | [3]: https://github.com/signalapp/Signal-Server
         | 
         | [4]: https://www.golem.de/news/crypto-messenger-signal-server-
         | nic...
        
         | [deleted]
        
       | hlieberman wrote:
       | Why not use GNU Taler, if you insist on integrating a irrelevant
       | payment mechanism?
        
         | alexnewman wrote:
         | What's that?
        
           | viro wrote:
           | I can't upvote this enough.
        
           | remirk wrote:
           | Their website is pretty good and answers your question better
           | than I could: https://taler.net/en/principles.html
        
         | summm wrote:
         | Because GNU Taler wouldn't allow them to get rich quick.
        
         | olah_1 wrote:
         | GNU Taler would have been far _more_ relevant because it is a
         | generic payment processing service and not tied to any specific
         | coin.
        
         | [deleted]
        
       | raspyberr wrote:
       | Super sad that they didn't choose Monero.
        
         | AfouToPatisa wrote:
         | Multiple reasons why MOB over monero but I will state only the
         | most practical one, using the stellar consensus a tx takes
         | 3-5sec. With monero that's more like 1-2mins if Im not mistaken
         | which is a big no-no for the usecase of instant mobile private
         | payments. Fees are also super low w/ mob (0.01)
         | 
         | TLDR: UX
        
           | selsta wrote:
           | XMR transaction can show up instantly once they are in the
           | mempool, a user does not have to wait for a confirmation to
           | see a transaction. Obviously there are uses where you want to
           | wait for confirmations, but for the use case of sending money
           | to friends it isn't necessary.
           | 
           | Fees are also in a similar range (0.01).
        
         | olah_1 wrote:
         | It is. Monero community seems to have made so many choices that
         | prove it is dedicated to the "digital cash" use case (dynamic
         | block sizes, constant tail emission, etc).
        
         | dethos wrote:
         | The tech behind this new "coin" they are using seems to be
         | based on Monero. Even their book [1] says the following:
         | 
         | > 'Mechanics of MobileCoin: First Edition' is an adaptation of
         | 'Zero to Monero: Second Edition', published in April 2020.
         | 
         | [1] https://github.com/UkoeHB/Mechanics-of-
         | MobileCoin/blob/maste...
        
         | matheusmoreira wrote:
         | That was my first thought as well. Why didn't they pick Monero?
         | I don't see how any other coin could be better.
        
           | PragmaticPulp wrote:
           | Using an established cryptocurrency doesn't provide a good
           | way for them to profit.
           | 
           | MobileCoin is pre-mined and the majority of coins are held by
           | founders and the MobileCoin organization. They want to sell
           | you coins, so partnering with Signal to force you to buy
           | their coins to transact on the app gives them a revenue
           | stream.
           | 
           | If they simply added Monero, they wouldn't be able to sell
           | you coins.
        
           | wjntzf wrote:
           | No near-instant confirmation, maybe. At first glance not a
           | big problem for users, but can run you into a lot of problems
        
           | justupvoting wrote:
           | Only thing I can think of off the top of my head is optics
           | (most of the installed userbase for signal has probably only
           | ever heard of monero in a negative light).
        
       | txr wrote:
       | I'm not sure this solves any problem users have. Due to the
       | nature of Signal requiring the phone number of the counter part
       | to be in the phone book this feature will mostly be usable with
       | friends or people you know directly. A feature which some users
       | might want is to easily send money to a friend. These transfers
       | will therefor be inherently be based on the countries currency.
       | I'm not sure people will accept a cryptocurrency which value
       | fluctuates in relation to the normal currency.
       | 
       | For other uses cases they can use a cryptocurrency directly (even
       | MobileCoin) from another app. I can understand that
       | cryptocurrencies are very interesting from a technical and
       | cryptographic point of view. But in their current state most of
       | them a more for speculation and doing state of the art computer
       | science.
       | 
       | Therefore I think this totally useless in the signal app.
        
       | tradertef wrote:
       | This is really really sad. It removed all my trust in Signal.
        
       | EGreg wrote:
       | https://community.intercoin.org/t/signal-another-centralized...
        
       | dash2 wrote:
       | I don't know if crypto is good or bad, but I can't imagine this
       | feature driving Signal uptake. It would be better to focus on
       | allowing ordinary payments in GBP via Signal. Even if the
       | payments themselves weren't private, the messages still would be.
        
       | mikeiz404 wrote:
       | For those wondering about volatility...
       | 
       | > MobileCoin also remains even more volatile than older
       | cryptocurrencies, with constant price swings that will
       | significantly change the balances in a user's Signal wallet over
       | the course of days or even hours--hardly the sort of issue that
       | Venmo users have to deal with. (Since March 27, MobileCoin's
       | value has shot up nearly 600 percent, possibly due to rumors of
       | the impending Signal integration or possibly the result of a
       | "short-squeeze.")
       | 
       | > To try to tame that volatility problem, Marlinspike and
       | Goldbard say they imagine adding a feature in the future that
       | will automatically exchange users' payments in dollars or another
       | more stable currency for MobileCoin only when they make a
       | payment, and then exchange it back on the recipient's side--
       | though it's not yet clear if those trades could be made without
       | leaving a trail that might identify the user. "There's a world
       | where maybe when you receive money, it can optionally just
       | automatically settle into a pegged thing," Marlinspike says. "And
       | then when you send money it converts back out."
       | 
       | https://www.wired.com/story/signal-mobilecoin-payments-messa...
        
         | wjntzf wrote:
         | The project is brand-new, what do you expect? In any case, the
         | end-game is to use MOB for the transaction and instantly
         | convert to fiat, so volatility would not be of concern to the
         | end-user
        
           | Jommi wrote:
           | " the end game is to make the user buy a house, sell the
           | house to the other user, and make that user sell the house
           | into fiat, it's that simple!"
        
         | Anon1096 wrote:
         | Are there any tax implications of sending someone
         | cryptocurrency that has appreciated? Say you owned 1 million in
         | mobilecoin a month ago that is now 6 million, can you just send
         | it to someone and avoid the capital gains tax? And if not, do
         | apps like Signal have to report these earnings on transfer from
         | mobilecoin to USD? (since signal plans to facilitate it in some
         | way)
        
       | nickthemagicman wrote:
       | 1. MobileCoin premines 250m coins
       | 
       | 2. Moxie gets paid for being on their advisory board
       | 
       | 3. Moxie directs his non-profit to integrate MobileCoin in secret
       | 
       | 4. MobileCoin offers 1/5 of their premine for sale.
       | 
       | 5. Signal announcement spikes price to $60
       | 
       | How accurate is this?
       | 
       | via: https://twitter.com/lrvick/status/1379536536459431937
        
         | codethief wrote:
         | > 3. Moxie directs his non-profit to integrate MobileCoin in
         | secret
         | 
         | The fact that Moxie is collaborating with MobileCoin has been
         | known for _years_.
        
       | corobo wrote:
       | oh here we go..
       | 
       | I can't wait till we stop sprinkling bitcoin over everything. At
       | least when we go back to ads we'll stop getting the spam from
       | bots trying to claim their free $0.00003 in cryptocoin of the
       | week
        
       | mek wrote:
       | I'd be super excited if this was about Monero :/
        
       | qqii wrote:
       | Not a very surprising choice given Signals current use of SGX and
       | reliance on their centralised server. It's a bit of a shame as
       | MobileCoin doesn't offer as strong guarentees as other privacy
       | coins but I'm interested to see how they maintain privacy whilst
       | peg the transacted value - I can't imagine how they wouldn't have
       | to rely on an exchange for liquidity.
       | 
       | SCRT network is a similar project that uses SGX but supports
       | smart contacts so they could have a Maker like pegged token.
        
       | seany wrote:
       | What are the KYC requirements? I'm going to assume that it's
       | none, since it's privacy focused
        
         | rcMgD2BwE72F wrote:
         | Does KYC apply to all transactions or only to purchase of
         | currency?
         | 
         | Because I can get bank notes from an ATM and pay anyone in cash
         | without having an intermediary verify my identity when money
         | changes hands.
        
           | kasey_junk wrote:
           | Not over certain spending limits you can't.
        
             | seany wrote:
             | In practice, sure you can. You have to be careful about
             | getting it back into the normal banking system if you want
             | to do that; but you aren't going to be raided by the secret
             | service for handing someone 30k in a parking lot (something
             | I have done before)
        
       | yosito wrote:
       | If even Signal is compromised, I'm debating just going back to
       | WhatsApp for convenience and assuming that every message I send
       | and every contact I have is fully public information that can be
       | used by advertisers and governments to profile me.
        
       | meowfly wrote:
       | The comment from the article echos my own sentiments:
       | 
       | > Speaking solely as a person who is really into encrypted
       | messaging, it terrifies me that they're going to take this really
       | clean story of an encrypted messenger and mix it up with the
       | nightmare of laws and regulations and vulnerability that is
       | cryptocurrency.
       | 
       | Moreover, there are three other points I'd add:
       | 
       | 1. I don't like "do everything" apps like WeChat or Line. One of
       | Signals strengths was UX that focused on it's core competency.
       | Early in Signal's development they would add privacy features.
       | Lately they have been adding social features. This, however,
       | feels especially out of left field and likely to hurt the UX.
       | 
       | 2. This smells like dev resources will be spent building and
       | maintaining something not related to messaging.
       | 
       | 3. I've always had a "don't let perfect be the enemy of good"
       | rationalization that gives Signal autonomy to grow a privacy
       | centric messaging app despite the deficits (e.g lack of
       | federation). In contrast, I personally associate "crypto" with
       | "scam". There have been so many shady ICOs and pump-dump schemes
       | around crypto. This will taint the product for those of us who
       | don't think of crypto currency as being anything more than pump-
       | and-dump schemes and a way to buy dab rigs online.
        
         | takenpilot wrote:
         | In a lot of ways, the transfer of cryptocurrency is the same as
         | the transfer of generic messages.
         | 
         | It's only when you're transferring them back to
         | dollars/yuan/yen/etc. that it's suddenly currency from a
         | government.
        
           | gsich wrote:
           | So how do I get the cryptocurrency in the first place?
           | Especially Mobilecoin?
        
           | guerrilla wrote:
           | I'll tell you one way it's not, is as soon as someone commits
           | a crime who happens to use Signal and the media gets ahold of
           | this. It'll be a circus with terms like "dark webv and wha
           | not thrown arohnd. GPs point #3 is kind of important for
           | their reputation and if we want to onboard more people into
           | crypto messaging.
        
         | sequoia wrote:
         | > Early in Signal's development they would add privacy
         | features. Lately they have been adding social features.
         | 
         | This is intentional and relates to Signal's growth in the past
         | few years. It's not "a hacker tool for nerds" it's "a friendly,
         | easy to use chat app with stickers & voice messages (also
         | strong encryption)."
         | 
         | IRC does one thing and does it well, and barely anyone uses it.
         | The "clean technical vision" story isn't enough on its own.
        
           | BlueTemplar wrote:
           | Well, I guess that it can go both ways : you can have too
           | many or not enough features...
        
         | rapnie wrote:
         | Amen to all your points. I find this really disappointing. The
         | "yeah, but they are a non-profit so you can be assured they are
         | good custodians of the product" no longer goes for me.
        
         | guerrilla wrote:
         | Yeah I agree. I wouldn't mind so much if this were a second app
         | but this is kind of scary.
        
       | qrbLPHiKpiux wrote:
       | Is your backend open source, or not?
       | 
       | Haven't seen the git updated in a while.
        
         | brodo wrote:
         | Effectively not anymore. Here is a very recent german article
         | about it: https://www.golem.de/news/crypto-messenger-signal-
         | server-nic...
         | 
         | No updates in the repo for over a year and no answers from the
         | team. The whole crypto currency thing is also a red flag for
         | me. Matrix seems to be the better option by now...
        
           | dunefox wrote:
           | If anything, Threema is the best alternative.
        
             | pmlnr wrote:
             | No, it really is not. Matrix or XMPP.
        
           | hiq wrote:
           | Old news: https://github.com/signalapp/Signal-Server
        
         | hiq wrote:
         | Last commit 5 days ago: https://github.com/signalapp/Signal-
         | Server
        
           | olah_1 wrote:
           | This is either the mandela effect (I know for a fact that the
           | server was stuck on "April 2020" for at least 6 months), or
           | Signal intentionally hid development and then revealed it all
           | when they realized it was bad PR.
        
             | codethief wrote:
             | No, you're absolutely right. The repo had indeed been stuck
             | on "April 2020". I last checked it two days ago.
             | 
             | Wayback Machine for March 11: http://web.archive.org/web/20
             | 210311053716/https://github.com...
        
             | hiq wrote:
             | No, they just pushed today. They presumably didn't want to
             | talk about MobileCoin before it was ready.
        
             | Forbo wrote:
             | I saw that not too long ago myself. Purely speculation
             | here, but perhaps they opted not to publish any commits
             | until they had a chance to have their MobileCoin
             | implementation audited? Just wish they had been more
             | forthcoming about why they were not pushing commits.
        
       | approxim8ion wrote:
       | Them not allowing federation sucks, because I would absolutely
       | use a client with this removed.
        
         | RL_Quine wrote:
         | On some level, they can't prevent you from just using the
         | backend. Unfortunately just maintaining a fork with different
         | branding is essentially a full time job, I used to do this so
         | that I could use a work and personal number in two instances of
         | the app but it was too much effort to be worthwhile.
        
       | timwaagh wrote:
       | I was concerned about how signal was monetising. They barely
       | receive any scrutiny and people take them at their word too much
       | because they are supposedly non commercial.
       | 
       | This basically confirms my suspicions
        
       | alexnewman wrote:
       | I mined my first btc on a laptop when that was thing. It was so
       | hi tech when it was launched. It seems like it's features are
       | mostly gradual and around the edges.
       | 
       | Mobilecoin feels hi tech
        
       | drummer wrote:
       | This is huge. Huuuuuuuuge. I haven't checked MobileCoin yet but
       | hope it is as good with privacy as Signal but also decentralized.
        
       | mLuby wrote:
       | Is this bizarre feature actually some kind of warrant canary?
       | 
       | I thought Signal was already financially secure.
        
       | EMM_386 wrote:
       | Mobilecoin was flat for long time at around $7 and then on March
       | 28th started a dramatic rise to $66 today.
       | 
       | There were rumors in late January that Signal was looking into
       | Mobilecoin but that seems unrelated, and I'm not sure I buy a
       | short-squeeze scenario as mentioned on Twitter.
       | 
       | https://coinmarketcap.com/currencies/mobilecoin/
       | 
       | https://twitter.com/classicmacro/status/1375868871509442562
        
       | edent wrote:
       | The UK already has faster payments in all major banks. I can send
       | and receive money instantly from app or Web. Will yours be as
       | fast as that?
       | 
       | The UK has a problem with authorised push payment fraud. Banks
       | can recover funds which have been sent as a result of phishing /
       | fraud. How can I reverse a payment on your platform if it was
       | fraudulent?
       | 
       | The UK also has receiver verification. If I try to send to an
       | account and it doesn't match the name I'm sending to, my bank
       | will warn me. How do you stop impersonation?
       | 
       | There's no cost to sending payments on most mainstream banks. How
       | much do you charge?
       | 
       | Most banks let the user block receiving payments from specific
       | accounts. How do you stop harassers sending unwanted money?
       | 
       | Thanks!
        
         | leetcrew wrote:
         | > How do you stop harassers sending unwanted money?
         | 
         | idk, but this sounds like a great problem to have.
        
           | frakkingcylons wrote:
           | I wouldn't want to be barraged with messages from spammers
           | because they're sending me $.0001
        
           | Andrew_nenakhov wrote:
           | Not really. Someone steals money, sends them to you, your are
           | having lots of trouble proving you are not an accomplice. If
           | you are a government official, you can be framed as receiving
           | a bribe.
           | 
           | In russia government can send your organisation money from
           | abroad via an agent and then shut you down as a 'foreign
           | agent'.
        
             | Jtsummers wrote:
             | > In russia government can send your organisation money
             | from abroad via an agent and then shut you down as a
             | 'foreign agent'.
             | 
             | They could do this with traditional banking systems as
             | well. Presumably the Russian government has a high degree
             | of surveillance with regard to their domestic banks like
             | every other nation in the world has. Creating a false
             | financial trail is made slightly easier with crypto
             | currencies, but for a nation state it's not hard to do with
             | traditional banking systems.
        
               | Andrew_nenakhov wrote:
               | Creating a false trail is far more difficult than asking
               | some scoundrel send 100 euro while vacationing in Italy
               | or Spain. Also, for a FSB operative it is an opportunity
               | to go to spain to 'supervise' the operation, lol.
        
         | josh2600 wrote:
         | >>The UK already has faster payments in all major banks. I can
         | send and receive money instantly from app or Web. Will yours be
         | as fast as that?
         | 
         | A: MobileCoin is as fast (or faster in some cases) than a bank
         | payment in the UK with greater privacy. As far as settling back
         | to Fiat, if that's what you're asking about, the velocity of
         | that depends on on-ramp and off-ramp integrations which will
         | come over time (but it looks like there's no reason MobileCoin
         | can't help developers deliver payments at the same speed as
         | banks).
         | 
         | >>The UK has a problem with authorised push payment fraud.
         | Banks can recover funds which have been sent as a result of
         | phishing / fraud. How can I reverse a payment on your platform
         | if it was fraudulent?
         | 
         | A: Payments on MobileCoin cannot be reversed at the protocol
         | level. If you want escrow and reversibility, you should use a
         | wallet or payment service that supports those primitives. We
         | believe that developers will build such services on top of the
         | foundation of the MobileCoin protocol.
         | 
         | >>The UK also has receiver verification. If I try to send to an
         | account and it doesn't match the name I'm sending to, my bank
         | will warn me. How do you stop impersonation?
         | 
         | A: Signal relies on phone numbers for identities. Other apps
         | that integrate MobileCoin may have a higher threshold for
         | identification.
         | 
         | >>There's no cost to sending payments on most mainstream banks.
         | How much do you charge?
         | 
         | A: Fees are set by the foundation (which has a stated goal of
         | keeping transaction fees to around $.04 when the network isn't
         | congested). Currently fees are higher as they need to be
         | adjusted by a foundation vote.
         | 
         | >>Most banks let the user block receiving payments from
         | specific accounts. How do you stop harassers sending unwanted
         | money?
         | 
         | A: Signal doesn't allow people you haven't keypaired with to
         | send you funds. If you have accepted a message request from
         | someone, they can send you money.
        
           | hmsimha wrote:
           | Heads up, it would be useful on HN if you were to disclose
           | your affiliations / interests when posting, especially about
           | something like a cryptocurrency you helped design.
           | 
           | It gives readers a better sense of your ability to answer the
           | questions accurately, in addition to letting people make
           | assessments based on the potential conflict of interest.
           | 
           | Also, responding here and inviting discussion on a technical
           | level is possibly the best thing you can do for perception of
           | Mob, because this is a forum where those questions are likely
           | to get asked.
           | 
           | Edit: I see you've done that in another post on this thread.
           | Since we don't have anything like flair it would also help
           | people who don't read the whole thread.
        
             | josh2600 wrote:
             | Yes, this originally was a child comment to the thread
             | where I identified myself as the MobileCoin CEO. Dang
             | merged two threads and this got separated from the top-
             | level comment.
        
         | hiq wrote:
         | > Most banks let the user block receiving payments from
         | specific accounts. How do you stop harassers sending unwanted
         | money?
         | 
         | First time I read about that, how does this work in practice? A
         | person regularly sends you small amounts such that all you see
         | is their name whenever you log into your bank account?
        
         | dan-robertson wrote:
         | This was my question too. I don't really understand why the
         | U.K. was chosen as the initial market. At least in the U.S.
         | people are used to venmo and suchlike being services they might
         | use. My guess is that either the cryptocurrency people are
         | based in the U.K. or that whoever is in charge is viewing the
         | country as something like America but easier to get started
         | (anglophone but smaller market for testing or easier
         | regulations or less competition) however I don't think the U.K.
         | is a good substitute for America in this case.
         | 
         | The one venmo-like thing people _do_ use a lot in the U.K. is
         | probably something like revolut for dealing with different
         | currencies and international transfers (either for travel in
         | Europe or for migrant workers sending earnings abroad for
         | family or retirement). But a service that's only available in
         | the U.K. isn't much use for that.
         | 
         | I also personally don't really see the privacy use. I think I'm
         | willing to give up a reasonably large amount of private
         | information about the people on either side of a transaction if
         | it is effective at reducing fraud and making transactions
         | reversible.
        
       | rvz wrote:
       | So when Keybase added Stellar support for payments, this was met
       | with lots of hostility and disappointment, such as 'cryptocoin
       | bullshit' [0] or 'Yeah, I am not going to use any product
       | associated with anything cryptocurrency. Just smells bad. [1]
       | 
       | Now the same thing has happened on Signal; HN's favourite
       | messaging app. So why is this met with warm welcoming arms
       | especially when they are also going into cryptocurrencies?
       | 
       | Maybe the HN sentiment back then was filled with those who missed
       | the crypto bull-run of late 2017 and the same ones have missed it
       | again last year.
       | 
       | [0] https://news.ycombinator.com/item?id=16545092
       | 
       | [1] https://news.ycombinator.com/item?id=16546963
        
         | [deleted]
        
         | rapnie wrote:
         | No warm welcome by me.. on the lookout for something different
         | again. Btw, for people using Keybase and considering an
         | alternative, have a look at https://keyoxide.org .. project
         | still young, but very promising plus they intend to only focus
         | on the core features. No chat or other stuff mixed in.
        
         | ornornor wrote:
         | Maybe because people trust the signal project more than keybase
         | (which sold out to zoom, of all companies)
        
           | 627467 wrote:
           | Would only make sense if keybase incorporating stellar
           | occured after acquisition and not before (as it actually
           | happened)
        
         | leppr wrote:
         | I think it's 2 factors.
         | 
         | First, indeed the sentiment changed radically between now and
         | then. For some reason, this subject has always attracted
         | irrationality on HN. Back then any comment vaguely positive
         | about cryptocurrencies would accumulate downvotes, now threads
         | are full of clearly invested shills (you can see it in this
         | very thread).
         | 
         | Secondly and more specifically, Stellar, being a simple Ripple
         | fork with an equally dubious token distribution, was a weird
         | fit for Keybase.
         | 
         | MobileCoin, while having some of the same downsides (federated,
         | centralized token holders distribution) has a more interesting
         | design, and is closer to the actual cryptocurrency/cypherpunk
         | spirit thanks to its fully private transactions and balances.
        
         | tych0 wrote:
         | > So why is this met with warm welcoming arms especially when
         | they are also going into cryptocurrencies?
         | 
         | In the other thread it was not:
         | https://news.ycombinator.com/item?id=26713953
        
       | [deleted]
        
       | yoavm wrote:
       | I really wish Signal had stable voice and video calls before it
       | added this blockchain thing.
        
         | fastball wrote:
         | My voice calls have been very stable. What kind of issues are
         | you experiencing?
        
           | yoavm wrote:
           | They basically only work if I'm on a great Wifi and the other
           | side is too. As long as the connection isn't perfect, the
           | only way to continue the conversation is on Whatsapp (or
           | Zoom).
        
       | drummer wrote:
       | I hope Signal opens up to worldwide payments soon. If anyone
       | knows, some kind of roadmap would be nice to have.
        
       | morsch wrote:
       | Help Us Encourage Matrix Adoption
        
       | otoburb wrote:
       | Congratulations on the announcement.
       | 
       | >> _Those outputs contain the entire original supply of
       | MobileCoin (250 million MOB)_ [1]
       | 
       | Is the entire supply of 250M MOB available for sale on FTX, or is
       | only a restricted number of MOB tokens available for sale to UK
       | residents? Is it fair to assume that the MobileCoin Foundation
       | has no plans for an airdrop (unlike Stellar)?
       | 
       | [1] "Mechanics of MobileCoin", v0.0.39, pg. 133
        
         | josh2600 wrote:
         | A majority of the supply of MobileCoins is available for
         | purchase at https://www.buymobilecoin.com. We have many plans
         | for how to help users get coins but none that we are prepared
         | to disclose today beyond the aforementioned website.
        
           | lrvick wrote:
           | Down
        
       | donclark wrote:
       | So is this testing only available in the UK?
       | 
       | If so, maybe make that more clear or prominent?
        
       | Geee wrote:
       | There are 250 million units of mobilecoin, and majority of them
       | are owned by the founders. Only 37.5 million have been
       | distributed. With current price ($65), they're worth $14B
       | already. This makes the project a scam and impossible for it to
       | work as a reliable money that holds value. Bitcoin had no pre-
       | mine and has been fairly distributed from the start.
        
         | PragmaticPulp wrote:
         | The founding organization owns 85% of the total market cap of a
         | coin? That should be raising red flags for everyone involved.
         | 
         | There is no valid reason for the vast majority of what is
         | supposedly a currency to be owned by the company that created
         | it. Imagine if PayPal launched but required everyone to
         | transact in fractional shares of PayPal to get anything done.
         | Oh and by the way, those shares are majority owned by the
         | founders, but they'll sell you some so you can send them to
         | your friends.
         | 
         | This is ridiculous.
        
           | josh2600 wrote:
           | The majority of the MobileCoins are available for purchase
           | for non-us persons at https://www.buymobilecoin.com right
           | now.
        
             | PragmaticPulp wrote:
             | Yes, we're well aware that you would love to sell us those
             | coins you pre-mined.
             | 
             | That's the problem.
             | 
             | If Signal was serious about this they would have launched
             | their own fork instead of pitching a pre-mined coin to
             | their users.
        
               | xur17 wrote:
               | > If Signal was serious about this they would have
               | launched their own fork instead of pitching a pre-mined
               | coin to their users.
               | 
               | Agreed. They either would have launched their own fork
               | and distributed the vast majority to their users, or at
               | the very least chosen an existing project that was fairly
               | well distributed.
               | 
               | This makes me believe they primarily did this in return
               | for an incentive from Mobilecoin.
        
             | otoburb wrote:
             | The slashdot effect triggered Cloudflare's DDoS protection
             | and is returning errors for that page.
        
               | josh2600 wrote:
               | No, this is just what happens when you try to hit the
               | page from a US IP address.
        
             | fblp wrote:
             | There is only a "contact us" link on that page.
        
         | rOOb85 wrote:
         | Can you post your source for these claims?
        
           | marcinzm wrote:
           | Their own white paper (no longer hosted on their site it
           | seems) says they created 250 million tokens and pre-sold 37.5
           | million.
           | 
           | https://mixin.one/assets/MobileCoin-Whitepaper-EN_FINAL.pdf
        
             | josh2600 wrote:
             | This whitepaper is not the whitepaper I wrote back in 2017.
             | We took that down because it was ultimately not the design
             | we implemented. The full system design can be found here:
             | https://github.com/UkoeHB/Mechanics-of-
             | MobileCoin/blob/maste....
        
               | opheliate wrote:
               | Fyi, while the whitepaper marcinzm links to may not be
               | the design you implemented, it is the first result (for
               | me, at least, in the UK) when googling "MobileCoin
               | Whitepaper", while the Mechanics of MobileCoin repo
               | doesn't appear at all.
               | 
               | Just in terms of avoiding confusion, you might want to
               | reach out to mixin.one to try to replace that document
               | with one that clarifies that the design outlined there
               | was not used? Or publicise the actual design a bit
               | better? (I couldn't find a link to this repo on the
               | MobileCoin website, which is why I searched for the
               | whitepaper elsewhere in the first place).
        
           | Geee wrote:
           | It's in the whitepaper. There are 250 million coins in total,
           | and 37.5 million were sold in the ICO. I couldn't find any
           | information on further distribution or monetary policy, so I
           | assume the founders still hold them.
        
         | lottin wrote:
         | Bitcoin rates worse than North Korea in terms of wealth
         | distribution as measured by the Gini coefficient. [1]
         | 
         | [1] https://blog.dshr.org/2018/10/gini-coefficients-of-
         | cryptocur...
        
           | modeless wrote:
           | All calculations of this sort are fatally flawed because they
           | assume all the coins in one address are owned by one person.
           | That would be like calculating the US Gini coefficient
           | assuming that all bank accounts are owned by the CEO of the
           | bank.
        
           | doggosphere wrote:
           | A system which is 12 years old, of which many people have not
           | heard about, don't understand, or may not even care to
           | understand. In some countries its illegal to use. Most
           | countries have unfriendly tax treatment (capital gains on
           | your coffee purchase). Can't be paid in it. Can't yet pay
           | your federal taxes in it. Uncertain if the government will
           | one day ban it.
        
             | thaumasiotes wrote:
             | > Most countries have unfriendly tax treatment (capital
             | gains on your coffee purchase).
             | 
             | That's definitely unfriendly tax treatment. Is it different
             | from the tax treatment that applies to national currencies?
        
               | doggosphere wrote:
               | Not sure in the US, but in Canada you don't need to
               | report capital gain on foreign currencies if its under
               | $200.
        
         | orph wrote:
         | Even UK-only release in Signal means more people with
         | cryptocurrency wallets than all other cryptocurrencies
         | combined.
        
           | megameter wrote:
           | It's roughly similar to Brave's userbase, though Brave is
           | opt-in. Figures from 2020 put both in the low tens of
           | millions.
        
           | qertoip wrote:
           | MobileCoin is not a cryptocurrency.
        
             | otoburb wrote:
             | The Wired article that the CEO of Mobilecoin is implicitly
             | endorsing in this thread specifically categorizes
             | Mobilecoin as a cryptocurrency. At least, it doesn't seem
             | to be a distinction worth splitting hairs about (yet).
        
           | admax88q wrote:
           | Is the number of empty wallets of a cryptocurrency a useful
           | metric in any way?
        
             | mandelbrotwurst wrote:
             | I would say yes, at least to the extent that owners are
             | aware that they exist and potentially become more likely to
             | use.
        
         | MithrilTuxedo wrote:
         | Agreed. I was half expecting this was going to be using Monero,
         | one of the more popular privacy-oriented cryptocurrencies I
         | know of that's already being used.
         | 
         | E.g. the only cryptos I've seen people accepting on dark web
         | markets are Bitcoin and Monero.
        
           | akvadrako wrote:
           | Monero is clearly the most practical secure coin as evidenced
           | by it's popularity on the darknet. But I think what
           | MobileCoin offers is speed.
        
         | [deleted]
        
           | [deleted]
        
         | CynicusRex wrote:
         | No "pre-mine" doesn't mean fairly distributed. Bitcoin is a
         | multi-level marketing pyramid scheme as well. Early adopters
         | mine or buy large proportions at negligible prices while late
         | adopters mine or buy negligible proportions at large prices.
        
           | olah_1 wrote:
           | The gold and oil rushes weren't "fair" either. Fortune favors
           | the bold, I guess. I was salty for a long time about bitcoin
           | early buyers being filthy rich now. My saltiness clouded my
           | vision of the real value there. Granted, I think there are
           | better solutions than bitcoin now, but I respect it.
        
           | anonporridge wrote:
           | By this definition, every company stock is a multi-level
           | marketing pyramid scheme.
           | 
           | In fact, company stock is WAY worse, because the majority of
           | people are legally prohibited from investing in private
           | companies unless they're an accredited investor (already
           | rich). So, only rich people (other than founders and early
           | employees) are allowed to buy in at super low prices before
           | handing off the bag to the public.
        
             | PragmaticPulp wrote:
             | This is incorrect. Stock represents actual ownership of a
             | scarce resource (a company). That company would have value
             | whether or not it was explicitly sold as a stock. The value
             | doesn't come from the stock.
             | 
             | Cryptocurrency removes the underlying asset and simply
             | sells shares of artificial scarcity. It's only as valuable
             | as what people decide to trade it at, because it doesn't
             | represent ownership of anything other than itself.
        
               | chrisco255 wrote:
               | > This is incorrect. Stock represents actual ownership of
               | a scarce resource (a company). That company would have
               | value whether or not it was explicitly sold as a stock.
               | The value doesn't come from the stock.
               | 
               | Depending on the voting rights embedded in the share,
               | your ownership is likely meaningless. It doesn't
               | guarantee you rights to dividends necessarily and even if
               | it does, the company can just choose to never issue a
               | dividend (like Amazon). It doesn't necessarily grant you
               | voting rights for the Board of Directors either. Worse,
               | you have to go through a 3rd party broker to buy a share
               | or trust a company like Robinhood to hold your shares for
               | you. As we saw with GameStop, they can rug pull on you at
               | any time. With decentralized cryptos like BTC & ETH, that
               | can't happen from your own private wallet. You can always
               | transact.
               | 
               | Cryptos such as BTC & ETH are provably scarce, not
               | artificially scarce. You can validate supply at any time
               | by running your own node and joining the network. You
               | don't need anyone's permission to do that. It's a public
               | blockchain.
        
               | fwip wrote:
               | It's both provably scarce and artificially scarce.
        
               | PragmaticPulp wrote:
               | > your ownership is likely meaningless
               | 
               | That's not true. The shares still represent a claim on
               | the underlying company.
               | 
               | If someone wants to acquire the company, they have to
               | compensate you for the shares that you hold.
               | 
               | Companies can't simply wave a magic wand and steal value
               | from shareholders. There's more to stock ownership than
               | voting rights.
        
               | doggosphere wrote:
               | _Stock represents actual ownership of a scarce resource
               | (a company)._
               | 
               | Is there a limit to how many shares a company can issue?
               | No, a board can technically issue shares unto infinity.
               | There is no guarantee of scarcity, no guarantee they will
               | not raise more money.
               | 
               |  _That company would have value whether or not it was
               | explicitly sold as a stock. The value doesn't come from
               | the stock._
               | 
               | So when a company has no profit but a high valuation, is
               | this the market correctly discounting future predicted
               | cashflows and giving a company fair value, or is it some
               | sort of scam? Ex: Is NKLA actually a $5.2b electric
               | vehicle company? How about the spade of Chinese IPOs that
               | ended up being vaporware?
               | 
               |  _Cryptocurrency removes the underlying asset and simply
               | sells shares of artificial scarcity._
               | 
               | The scarcity isn't artificial. It's mathematically
               | provable, open source and auditable. If you think you can
               | manufacture "fake" btc on the blockchain, feel free to
               | try. If you think you can successfully fork and create a
               | whole new chain, you're also welcome to try.
               | 
               |  _It's only as valuable as what people decide to trade it
               | at, because it doesn't represent ownership of anything
               | other than itself._
               | 
               | This is actually factual for anything in existence. A
               | piece of bread. A $100m painting. You're starting to
               | figure out what peculiar creatures humans are.
        
               | PragmaticPulp wrote:
               | > Is there a limit to how many shares a company can
               | issue? No, a board can technically issue shares unto
               | infinity. There is no guarantee of scarcity, no guarantee
               | they will not raise more money.
               | 
               | The scarce asset is _the company_ , not the shares. Yes,
               | they can issue more shares, but those shares still
               | represent the same company plus the new investment money
               | raised by raising the shares. They're not creating more
               | company out of thin air when they issue more shares.
               | 
               | EDIT: To clarify some misconceptions in the comments
               | below: When a company sells more shares into the market
               | they are not simply diluting away existing shareholders.
               | The keyword is that they are selling shares, meaning they
               | take money in exchange for shares. The company's value
               | increases by the amount of money they take in exchange
               | for the sale.
               | 
               | Example: If a company is worth $1,000,000 and has
               | 1,000,000 shares outstanding, each share is worth $1. If
               | the company decides to sell another 100,000 shares and
               | the market buys them at $1/each, there are now 1,100,000
               | shares outstanding and the company is now worth
               | $1,100,000 because they took in $100,000 of cash via
               | share sales. Existing shareholders have not lost any
               | money or value.
        
               | blackearl wrote:
               | It doesn't matter if it represents the company because
               | the thing that shareholders care about is how much $ each
               | share represents. This is why a stock will tank when a
               | company talks about diluting their existing shares by
               | creating new shares out of thin air. What you're talking
               | about would be more akin to a stock split.
        
               | PragmaticPulp wrote:
               | When a company sells more shares, they money they raise
               | from selling those shares contributes to the value of the
               | company.
               | 
               | If a company sells 100,000 shares at a dollar each, the
               | company is now worth $100,000 more because they now have
               | another $100,000 on their balance sheet. No value is lost
               | in this process.
               | 
               | > This is why a stock will tank when a company talks
               | about diluting their existing shares by creating new
               | shares out of thin air.
               | 
               | Companies can't just declare that more shares exist and
               | dilute away shareholders like you said. They either issue
               | them as stock based compensation, which is an expense, or
               | they sell the shares to buyers, which means money goes
               | toward their bottom line.
        
               | blackearl wrote:
               | Value is lost to existing shareholders who have the value
               | of their shares diluted. Everything you're saying may
               | seem logical, but economics is often illogical and any
               | 1:1 $:stock sales still tank the share price.
        
               | PragmaticPulp wrote:
               | > Value is lost to existing shareholders who have the
               | value of their shares diluted.
               | 
               | You're confusing percentage dilution with absolute
               | diluation.
               | 
               | The shares represent the value of the company. The value
               | of the company has increased by the amount of money
               | raised. Each share represents a lower percentage of the
               | company, but this is offset by the fact that the value of
               | the company has increased _by the amount of money
               | raised_. The shares have not been diluted on an
               | _absolute_ value scale.
               | 
               | Owning 10% of a company worth $1mm is the same value as
               | owning 5% of a company worth $2mm.
               | 
               | If you own 10% of a $1mm company that raises another $1mm
               | by selling more shares, you now own 5% of a 2mm company.
               | Your percentage ownership is diluted, but your value has
               | not been stolen.
               | 
               | This is basic pre- and post-investment math. Shareholders
               | are diluted on a percentage basis, but not on an absolute
               | basis.
        
               | doggosphere wrote:
               | Assuming all shares are equal in class, voting power is
               | diluted.
        
               | doggosphere wrote:
               | OP was responding about stocks being just as much "multi
               | level marketing" because you still need someone to sell
               | the shares to, someone willing to pay more for it than
               | you did. So it is actually irrelevant to scarcity or
               | "intrinsic value".
        
               | chrisco255 wrote:
               | > but those shares still represent the same company plus
               | the new investment money raised by raising the shares.
               | 
               | No. Your shares were _diluted_ by the company issuing new
               | shares. Now your 100 shares are worth half as much.
               | Shares have predicted forward value embedded in their
               | valuation. When you buy a share, you're betting that
               | company will continue to grow. If it's having to raise
               | money and issue new stock, odds are it's struggling with
               | cash on hand. Maybe the bet will work out for you. Maybe
               | not. Stocks are gambling, though, don't let yourself
               | believe otherwise.
        
               | PragmaticPulp wrote:
               | > No. Your shares were _diluted_ by the company issuing
               | new shares. Now your 100 shares are worth half as much.
               | 
               | That's not correct. A company sells shares in exchange
               | for cash. That cash is owned by the company, which is
               | represented by the shares.
               | 
               | Companies can't simply dilute away their shareholders
               | like you're suggesting. The money raised by selling
               | shares doesn't simply disappear.
        
               | doggosphere wrote:
               | I own 10% of a company. Several rounds later, I now own
               | 2% of the company. It is possible the company is now
               | valued higher or lower than what I got in at.
               | 
               | Did I get diluted?
        
             | CynicusRex wrote:
             | The stock market being crooked doesn't mean bitcoin isn't
             | crooked as well. I'm critical of both.
        
         | bigiain wrote:
         | > Bitcoin had no pre-mine
         | 
         | /me glances at the great big pile of Satoshi coins...
        
         | tradertef wrote:
         | Thanks. Honestly, not surprising..
        
           | [deleted]
        
       | Forbo wrote:
       | > For now it's listed for sale on just one cryptocurrency
       | exchange
       | 
       | I think the article might be inaccurate. According to this,
       | there's at least four exchanges currently:
       | 
       | https://www.coingecko.com/en/coins/mobilecoin#markets
        
       | RL_Quine wrote:
       | This is garbage, and shouldn't be part of Signal.
       | 
       | Everything on the internet is being corrupted with adding
       | cryptocurrency scams where they absolutely don't belong, it turns
       | Signal from an obvious recommendation into something that makes
       | me hesitate. There's something to be said for focusing on doing
       | one thing well, and that doesn't mean turning a communication
       | platform into a kitchen sink.
        
         | josh2600 wrote:
         | Hi,
         | 
         | Before you label MobileCoin a scam, I would encourage you to
         | take a look at the Github. I think you'll see that we've made a
         | lot of very carefully considered choices on how to deliver a
         | great payments experience without many of the compromises other
         | cryptocurrencies have chosen. Of note, the speed of
         | transactions, much greener energy design, privacy-protections,
         | and mobile-first UX are differentiators. Many cryptocurrencies
         | have some of these features, but I don't know of any other that
         | has all of them.
         | 
         | Believe me, I have a lot of feelings about how absurd
         | cryptocurrency has become in the last decade. At its core, I
         | still believe that there is something beautiful in
         | decentralized ledgers and I think that this is the way that the
         | world will settle debts over the next hundred years. Signal
         | chose MobileCoin because nothing else met their performance and
         | privacy standards. In order to meet those goals we wrote a lot
         | of new technology that is fundamentally different from how
         | other cryptocurrencies are architected today (check out our
         | oblivious RAM implementation, for example:
         | https://github.com/mobilecoinfoundation/fog).
         | 
         | I love Signal and I started MobileCoin to help fund their work.
         | For me, a world with Signal in it is a better place.
        
           | RL_Quine wrote:
           | > _Signal chose MobileCoin because nothing else met their
           | performance and privacy standards._
           | 
           | Signal has obvious financial connections to MobileCoin,
           | something that frankly nobody else has ever heard of before
           | today. I find it really difficult to believe that MobileCoin
           | paying Moxie (which you've acknowledged), and Signal/Moxie
           | happening to choose MobileCoin for inclusion in Signal when
           | nobody wanted it was a coincidence. It's insulting to the
           | intelligence of the reader to even make that claim.
           | 
           | > _Before you label MobileCoin a scam, I would encourage you
           | to take a look at the Github._
           | 
           | What would that tell me?
        
             | bdcs wrote:
             | "Marlinspike notes, however, that neither he nor Signal own
             | any MobileCoins." https://www.wired.com/story/signal-
             | mobilecoin-payments-messa...
        
               | RL_Quine wrote:
               | > _" Moxie, as an individual, is a paid technical advisor
               | to MobileCoin"_
               | 
               | https://news.ycombinator.com/item?id=26715013
               | 
               | This seems incompatible with the spirit of the quote in
               | the article.
        
               | hiq wrote:
               | That's significant in this space, because it implies that
               | he does not benefit directly[0] from speculation on MOB,
               | and so has less incentives to get involved in a pump and
               | dump.
               | 
               | What I would still like to see for more transparency:
               | 
               | - legal commitment from the Signal Foundation that no
               | employee owns any MOB
               | 
               | - disclosure of money transfers between MobileCoin and
               | any Signal Foundation employee
               | 
               | Maybe some of this information could already be extracted
               | given the statuses of the entities involved?
               | 
               | [0]: he benefits indirectly because if MobileCoin stays
               | up, he'll probably stay as a technical advisor
        
               | EMM_386 wrote:
               | Are we talking about both Signals, or just the non-profit
               | Foundation here?
               | 
               | What about the LLC?
               | 
               | https://en.wikipedia.org/wiki/Signal_Foundation
        
               | maclured wrote:
               | _Yet_. There are a couple of trivial ways they could end
               | up with loads of coins and this statement could still be
               | true as of the date of the quote.
        
           | bjt2n3904 wrote:
           | Yow, the damage control is quick on this one. Off the front
           | page, too?
           | 
           | I don't care about your cryptocurrency. I don't care about
           | your cryptocurrency being offered in my messenger.
           | 
           | Let me put it plain and simple. You bring nothing to the
           | table for me but liability.
           | 
           | Nothing. But. Liability.
           | 
           | Signal's one and only feature is security. This feature is a
           | joke, and devalues Signal.
        
             | dang wrote:
             | Your comment breaks several of the site guidelines. Please
             | review https://news.ycombinator.com/newsguidelines.html and
             | stick to the rules when posting here.
             | 
             | The post went off HN's front page because it set off the
             | flamewar detector.
        
           | adamsvystun wrote:
           | Hi Josh,
           | 
           | The problem here is not that people think that MobileCoin is
           | not a useful technology or is not innovative. From what you
           | are describing it actually seems like a good combination of
           | features that are particularly suited for the messaging use-
           | case.
           | 
           | The problem is in the way the coins were pre-mined. It seems
           | (we don't really know from the outside) that the knowledge
           | that Signal would be using MobileCoin has been known early
           | on. With that knowledge it is very easy to make money by pre-
           | mining coins. The proper analogy here is insider trading. It
           | is immoral and that is why people are calling this a scam.
        
           | selsta wrote:
           | Why does the README mention CryptoNote when the project seems
           | to be based on Monero + SCP?
           | 
           | https://twitter.com/fluffypony/status/1379559273504641025
           | 
           | I guess the whitepaper mentions it, but that isn't suprising
           | considering koe wrote it.
        
         | TheCraiggers wrote:
         | Signal is competing against some big players in the messaging
         | space, at least some of which have money transfers. As long as
         | they abide by their principles and none of these features
         | impact privacy, I don't see how it wouldn't be viewed as a win.
         | 
         | A case could be made for it being bloat, but most consumers
         | don't care, and for Signal (or any messaging app) to be
         | successful, it needs to appeal to the common denominator.
         | 
         | And frankly, if this means I can send money to a friend without
         | Google getting yet more data about me, then even better.
        
           | candiddevmike wrote:
           | If you're that concerned about third party processors, most
           | banks and credit unions provide their customers a way to send
           | money between people fairly simply.
           | 
           | Signal providing this functionality is scope creep.
        
             | TheCraiggers wrote:
             | Scope creep? Perhaps. But then so are voice calls, video
             | calls, sending pictures, GIFs, etc. None of those things
             | are core to the experience of sending "lol" to a friend.
             | Despite the very correct statement that there already exist
             | services which do those things.
             | 
             | Yet, those features have almost become synonymous with
             | messaging apps. The market and consumers seem to want these
             | services combined, so here we are. My point was that
             | sending money is a feature that more and more messaging
             | services have. Hangouts (or whatever the hell it is called
             | these days), Whatsapp, Telegram, etc.
             | 
             | Personally, I would have liked it more if this wasn't tied
             | to some no-name cryptocurrency, but oh well.
        
               | candiddevmike wrote:
               | > Scope creep? Perhaps. But then so are voice calls,
               | video calls, sending pictures, GIFs, etc. None of those
               | things are core to the experience of sending "lol" to a
               | friend. Despite the very correct statement that there
               | already exist services which do those things.
               | 
               | I think those would all be considered in scope for a chat
               | platform--theyre all various ways to share and
               | communicate.
        
           | RL_Quine wrote:
           | Signal needs to be reliable, safe and have a low barrier of
           | entry to achieve its goals of allowing widespread private
           | communication. I thought that when I recommended that my peer
           | group use it (at this point, all of my normal contacts use it
           | extensively), I could trust that it would remain clearly
           | focused on its mission- now I'll need to recommend it with a
           | caveat to just click through the scam marketing, ICO offers
           | and "airdrops".
        
             | kf wrote:
             | You're being really cynical in a way that doesn't reflect
             | the reality of the situation. This doesn't entail scam
             | marketing, ICO offers, and airdrops just because that's
             | something that happens in a lot of the rest of
             | cryptocurrency space.
        
               | RL_Quine wrote:
               | You missed the point. Even if Signal doesn't do the
               | typical cryptocurrency scam behaviour, I now somehow need
               | to try to explain to people why it is different to every
               | other thing in the space that does act like that. On the
               | face of it, if we assume that the inclusion of MobileCoin
               | in Signal is completely benign, it's something that's
               | never happened before.
               | 
               | Smoking causes cancer, but smoking these specific
               | cigarettes won't. Do you see the problem with trying to
               | describe such an absurd situation to somebody?
        
               | [deleted]
        
               | hiq wrote:
               | > You missed the point.
               | 
               | You're making a different point now though, you're saying
               | that people will associate it with scams which will hurt
               | adoption. You initially wrote that the UX would be so bad
               | that you'd have to convince users to bear with it anyway.
               | 
               | I don't know how they implemented it on the client side,
               | but it's possible they kept it light, as they've been
               | doing since the beginning. We'll see soon enough.
               | 
               | In terms of reputation, this is a long-term battle.
               | Signal used to be quite unreliable in a lot of aspects,
               | and hurt adoption. Now it's much better, making the
               | migration from other messengers way smoother. If they're
               | able to implement safe, private and convenient payments,
               | that's one feature other messengers won't have to lure
               | users away from signal.
        
               | codethief wrote:
               | > You initially wrote that the UX would be so bad that
               | you'd have to convince users to bear with it anyway. I
               | don't know how they implemented it on the client side,
               | but it's possible they kept it light, as they've been
               | doing since the beginning. We'll see soon enough.
               | 
               | I think you're confusing UI and UX. Yes, the UI could be
               | kept light but the user _experience_ can still be
               | confusing because a payments feature is... surprising.
               | Why would a messaging app come with a payments feature if
               | not to make money and exploit the user?
               | 
               | Not saying that this is happening here but this is what
               | people _think_ , i.e. the emotional _experience_.
        
               | hiq wrote:
               | OP wrote:
               | 
               | > just click through the scam marketing, ICO offers and
               | "airdrops"
               | 
               | That's what I meant by UX.
               | 
               | > user experience can still be confusing because a
               | payments feature is... surprising
               | 
               | Everything new is "surprising", that's a low bar. Chat
               | apps in China have had this feature for years now, and
               | it's also a feature in WhatsApp, a direct Signal
               | competitor.
        
         | devwastaken wrote:
         | If they didn't use some random 'coin' no one has heard of I'd
         | be on board. They're trying to compete in a bad way. They
         | should simply just use Stripe and be done with it. People want
         | an alternative to facebook messaging and PayPal. They don't
         | want superfluous cryptos.
        
           | RL_Quine wrote:
           | Moxie Marlinspike is listed as an advisor of MobileCoin, so
           | there's some obvious financial connections between the two.
        
             | RL_Quine wrote:
             | _" Moxie, as an individual, is a paid technical advisor to
             | MobileCoin"_
        
           | hiq wrote:
           | I think the end-goal is to provide privacy guarantees you
           | will never have with Stripe or other traditional payment
           | processors.
        
             | sudosysgen wrote:
             | You can't trust an app that is distributed through the
             | Google Play Store as a wallet with any kind of privacy
             | guarantee.
        
           | EMM_386 wrote:
           | > If they didn't use some random 'coin' no one has heard of
           | I'd be on board.
           | 
           | The founder of Signal actually created MobileCoin.
           | 
           | https://www.wired.com/story/mobilecoin-cryptocurrency/
        
           | immy wrote:
           | Signal was a random 'messenger' at one point too. They needed
           | a fast (in seconds) private way to send money. There wasn't
           | one. Until now.
        
         | CodeGlitch wrote:
         | With all due respect your comment seems to be coming from an
         | extremely privileged position. In many parts of the world,
         | people do not have the luxury of basic banking, where storing
         | and sending money is fraught with risk due to corruption and a
         | lack of infrastructure. Take a look at M-PESA [1] for a "last-
         | gen" solution using SMS.
         | 
         | I think what Signal is doing with MOB is pretty important work
         | for many non-western countries, and I wish them all the best.
         | 
         | [1] https://en.wikipedia.org/wiki/M-Pesa
        
           | sudosysgen wrote:
           | This is a very privileged position.
           | 
           | Cryptocurrencies don't solve third world banking, at all. You
           | still get paid in fiat, which you then have to convert to
           | crypto (using a bank), and you will never be able to have
           | most people get paid in crypto because then the government
           | can't get taxes reliably (thus they will ban it).
        
           | dan-robertson wrote:
           | Crypto currencies don't really solve the problems with a lack
           | of banking infrastructure. Usually people need some way to
           | get actual physical cash (remember, we're talking about
           | places where people don't really have access to modern
           | banking systems, not places where most people have bank
           | accounts and credit cards) in and out of the system. It's a
           | nice idea if everything magically happens in your digital
           | system but I don't think that can happen without a credible
           | way to bootstrap it involving lots of moving physical cash
           | first. I don't think it's credible to hope for third party
           | exchanges or tiny local businesses to provide these services,
           | and I also don't think it is credible to expect people living
           | in these underdeveloped places to take on the risk of price
           | volatility in some random cryptocurrency.
        
         | ncmncm wrote:
         | Agree. It would be OK to make Signal able to integrate payment
         | systems and make this thing compatible with that or with any
         | other comm that implements the interface. Tying them together
         | is pernicious.
         | 
         | Anyway Signal is itself pernicious by being tied to a phone
         | number and to Google Play services, and by being very choosy
         | about who gets ports.
         | 
         | I had high hopes for Matrix, once they got E2EE, but they have
         | flubbed that by requiring a very heavyweight bounce server that
         | won't fit on (e.g.) your typical home router or super-cheap
         | cloud VM. Matrix should enable a place to keep your message
         | archive independent of the bounce server, and allow gatewaying
         | a non-public storage service via the lightweight bounce
         | service.
         | 
         | But Element.io's business model is tied to heavy-weight bounce
         | service.
        
           | RL_Quine wrote:
           | Mastodon, Matrix and others suffer that issue greatly. You
           | can't really run single-user instances without running a
           | gigantic installation, when a minimal implementation of their
           | protocols should have no footprint to speak of.
        
             | lrvick wrote:
             | Dendrite is that minimal implementation to make single user
             | instances cheap.
        
               | summm wrote:
               | Yes, at some time in the future, but it is not usable
               | yet.
        
             | remirk wrote:
             | That was the case a few years ago. Matrix' server software
             | has improved a lot since then. It doesn't use much
             | resources anymore. Though there still is a large CPU spike
             | when I join a really large room (500+ users) for the first
             | time.
        
           | Arathorn wrote:
           | speaking as CEO of Element, our business model is _really_
           | not tied to Synapse being heavyweight at all - just the
           | opposite. We provide Synapse hosting starting at $2
           | /user/month, and so it's critical that running a server
           | (including sysadmin) costs us as little as possible in order
           | to be above water. We're not competing against self-hosters,
           | but catering to folks who aren't sysadmins and so want us to
           | host for them.
           | 
           | And as others have said, Synapse really isn't that
           | heavyweight these days (thanks in part to the performance
           | improvements driven by Element!)
        
           | lrvick wrote:
           | Have you seen matrix p2p?
           | 
           | Also anyone can run their own servers, and Dendrite can run
           | on very modest hardware like a Raspi.
        
             | ncmncm wrote:
             | Thank you, Dendrite is listed as "beta", and appears to
             | require Postgres?
        
               | bilal4hmed wrote:
               | Here is some info
               | https://matrix.org/blog/2020/10/08/dendrite-is-entering-
               | beta
        
           | miloignis wrote:
           | Just as a quick note, I run Synapse (the heavyweight server,
           | not Dendrite the light-weight one!) for myself and a few
           | friends on a modest 1GB of RAM VPS with a few bridges and
           | have no problems. Looking forward to Dendrite getting
           | feature-parity and swapping over to be even lighter.
        
           | codethief wrote:
           | > Anyway Signal is itself pernicious by being tied to a phone
           | number and to Google Play services
           | 
           | It's not tied to Google Play Services, you can download a
           | standalone version from signal.org. As for phone numbers, the
           | developers have been working on getting rid of them for a
           | while now - there's already a good amount of code on GitHub.
        
         | dang wrote:
         | " _Please don 't post shallow dismissals, especially of other
         | people's work. A good critical comment teaches us something._"
         | 
         | " _When disagreeing, please reply to the argument instead of
         | calling names. 'That is idiotic; 1 + 1 is 2, not 3' can be
         | shortened to '1 + 1 is 2, not 3._'"
         | 
         | https://news.ycombinator.com/newsguidelines.html
        
         | centimeter wrote:
         | If they weren't using this as an opportunity to pump some
         | shitcoin, this might make sense. Bitcoin Lightning integration
         | would be much less suspect, for example, because A) it's
         | already well established B) they're not going to make a quick
         | buck off it.
        
           | mikeyla85 wrote:
           | Lightning doesn't have privacy and Signal needs privacy.
        
       | leifg wrote:
       | What's the consensus function you use on the mobile coin
       | blockchain. Couldn't see if it's proof of work or proof of stake.
        
         | josh2600 wrote:
         | We use a modified version of the Stellar Consensus Protocol
         | that we reimplemented from scratch using Rust.
         | 
         | https://github.com/UkoeHB/Mechanics-of-MobileCoin/blob/maste...
         | << Page 81 is where you want to go.
        
           | eMGm4D0zgUAVXc7 wrote:
           | So this does seem to use some voting mechanism instead of
           | scarcity through PoW.
           | 
           | How do you prevent the sybil attack then if there is no
           | scarcity?
           | 
           | I.e. what prevents an individual from spinning up 10 million
           | nodes to get more voting power?
        
             | josh2600 wrote:
             | Stellar is essentially a liquid democracy system similar to
             | DNS. The core proof at the heart of David Mazieres paper is
             | that in a densely interwoven graph, any set of nodes in a
             | quorum slice reaching consensus _is_ graph consensus.
             | Regarding Sybil, nodes define their own trust
             | relationships, so membership is open but not automatic.
        
               | [deleted]
        
               | eMGm4D0zgUAVXc7 wrote:
               | > Regarding Sybil, nodes define their own trust
               | relationships, so membership is open but not automatic.
               | 
               | Thanks for clarifying!
               | 
               | So you're expecting people to
               | 
               | - manually add peers to be able to use the network.
               | 
               | - manually monitor the said peers for if they do
               | malicious transactions, and manually ban them if yes.
               | 
               | Right?
               | 
               | How is this supposed to work considering that:
               | 
               | - most users won't care about manually adding peers.
               | They'll just add EVERYONE who offers to be added so they
               | can be done with it and use the system.
               | 
               | - most users probably won't even understand what a
               | malicious transaction is in the first place.
               | 
               | - the few who do will for sure not have the time to
               | monitor a network which does dozens or in the future even
               | thousands of transactions per second.
               | 
               | This seems just humanly impossible, there's by no means
               | sufficient human time available to manually monitor a P2P
               | network's content if the said content is super boring and
               | complex.
               | 
               | If it were a distributed social network you could expect
               | people to e.g. manually flag spam because using a social
               | network _implies_ reading the posts contained in it.
               | 
               | But manually reviewing money which strangers send to each
               | other is boring as hell, who will do this?
        
           | crazypython wrote:
           | How does Stellar Consensus prevent double-spends?
           | 
           | Imagine I have a private key to an address with 10 coins.
           | Imagine I spend the same amount of money (10 coins) on Mars
           | and Earth at the same time. There is a 10-lightminute gap
           | between Mars and Earth. Assume Mars and Earth have a similar
           | number of Stellar nodes. What happens in Stellar Consensus?
        
             | josh2600 wrote:
             | Stellar actually does nothing to prevent double-spends as
             | it is the consensus layer and not the ledger. The ledger
             | prevents double spends in mobilecoin by using a proof
             | called a "key image" which is part of CryptoNote
             | (https://bytecoin.org/old/whitepaper.pdf). Essentially, a
             | ring signature is produced by the user which says "one of
             | these N transactions belong to me" and the key image proves
             | that one of the members of the set is a valid transaction
             | without revealing which transaction was valid (and
             | preventing future reuse of the valid input).
        
               | fourstar wrote:
               | So essentially, this is a mashup between XMR (ring sigs)
               | and XLM (consensus protocol)? Why not use zk-proofs?
        
               | josh2600 wrote:
               | If you can find a way to do ZK-proofs that work in the
               | time constraints that we have (1-3 seconds end to end
               | transaction completion and finality), then we'll switch
               | to them. Right now this is the only way we could get the
               | performance we wanted.
        
               | eMGm4D0zgUAVXc7 wrote:
               | I don't understand the "key image" cryptography, but I
               | can't fathom how any cryptography, no matter how smart it
               | is, could prevent the user from:
               | 
               | 1) Creating a backup of their wallet on disk.
               | 
               | 2) Sending their coins somewhere, but not broadcasting
               | the transaction to the network, instead storing it in a
               | file.
               | 
               | 3) Restoring from the backup
               | 
               | 4) Sending the coins to a different address = double
               | spending them.
               | 
               | 5) Broadcasting the transactions in a very close timespan
               | to conduct the double-spend.
               | 
               | The _network_ needs to prevent this by storing, in an
               | non-forge-able fashion such as PoW, which transaction
               | happened first.
               | 
               | How does your system guarantee that?
        
       | lrvick wrote:
       | Signal is still centrally controlled and compiled by a single
       | entity and distributed only in an unsigned insecure form or in a
       | signed/verified manner only if you give up your privacy to
       | install with Google Play or the Apple store.
       | 
       | Those that only run open source software like myself have no
       | secure way to run Signal short of compiling every release by hand
       | which is impractical. Moxie has stated he will not support anyone
       | but his team compiling or distributing Signal binaries so third
       | party signed builds via privacy focused app stores like F-Droid
       | are out. All builds must also use Signal centralized servers even
       | though that centralizes TCP/IP metadata, etc.
       | 
       | Not to mention you need to show government ID to get a SIM to use
       | the Signal wallet for said private currency/messenger in 200
       | countries.
       | 
       | Secondly having a decentralized currency whose servers can only
       | run on Intel machines with Intel SGX is a very centralized supply
       | chain as well.
       | 
       | A single supply chain attack on Intel microcode or related SGX
       | updates could run malicious code and game over for the currency
       | globally? A government that sees MobileCoin as a threat could
       | make Intel do this.
       | 
       | With a SPOF on the supply chain of the only client people are
       | expected to use and another SPOF on the only hardware enclave
       | people are supposed to use for servers... decentralized is
       | technically true but not used in the same way as most other
       | projects that use that word.
       | 
       | I will keep an eye on this experiment though, because there are
       | some unique ideas here which could have value should your trust
       | anchors expand beyond Intel and Signal.
        
         | hiq wrote:
         | > distributed only in an unsigned insecure form or in a
         | signed/verified manner only if you give up your privacy to
         | install with Google Play or the Apple store.
         | 
         | > Those that only run open source software like myself have no
         | secure way to run Signal short of compiling every release by
         | hand which is impractical.
         | 
         | Nope: https://signal.org/android/apk/
        
           | stonesweep wrote:
           | You may be missing the subtle point - the APK provided is the
           | same one from Google Play, which includes the Google SDK
           | encumbered libraries (links? hooks? features?). If you run a
           | libre device without the Google Play store (non-Google
           | android build) then the software cannot function. The code
           | for the client is open source, but the act of compiling it
           | against the required Play store libraries encumbers the final
           | binary. F-Droid requires that all code compile without the
           | Google SDKs in order to be hosted (IIRC).
        
             | Mediterraneo10 wrote:
             | You are being a bit too subtle for many people. I think
             | most reading your post above are going to understand it as
             | claiming that the Signal APK downloadable from Signal's
             | website requires Google Play Services or the Play store in
             | order to run. That is not the case, as any LineageOS user
             | can tell you.
        
             | hiq wrote:
             | > If you run a libre device without the Google Play store
             | (non-Google android build) then the software cannot
             | function
             | 
             | I think you mean either of two things:
             | 
             | 1. running the APK they build on a device without Google
             | Service does not work
             | 
             | 2. running the APK they build on a device means it's no
             | longer running only libre software
             | 
             | 1. is not true, so I assume you mean 2. I guess that's
             | true, but in practice I think that the compiled dependency
             | doesn't do anything if you don't have the services on your
             | phone (don't quote me on that). It's not free software, but
             | it's still better than the competition.
        
               | stonesweep wrote:
               | I think it sort of floats in 2 territory and sort of
               | resembles the LGPL based kernel modules which require a
               | binary firmware blob to run (kind of, not exactly). In
               | order to create the APK, the code must compile against
               | the SDK and encumber it by binding to an API, however if
               | I understand this correctly in Android terms it means a
               | stub of non-free code is now inside your APK, instead of
               | say an external firmware blob. (I am not an Android coder
               | to know the subtle details here)
               | 
               | (I'm aware that the code will try and use Google
               | services, then if it fails it falls back to websocket(?)
               | - so the actual Services don't have to be present, but
               | the compiled APK contains the non-free hooks to use it if
               | present? I tried to use the word encumbered to reflect
               | that)
        
         | AfouToPatisa wrote:
         | Even if an SGX attack does take place, tx's aren't recognized
         | as the system is secured with Cryptonote's ring signatures (1st
         | reply in FAQ
         | https://github.com/mobilecoinfoundation/mobilecoin)
         | 
         | here too about 11mins in -
         | https://www.youtube.com/watch?v=e9afDQ_M5CU
        
           | codethief wrote:
           | The problem is: Signal already relies on SGX for lots of
           | other features (Signal PINs & Secure Value Recovery, contact
           | discovery etc. etc.) and these depend on SGX working as
           | advertized.
        
         | 2OEH8eoCRo0 wrote:
         | >compiling every release by hand
         | 
         | Clicking build in Android Studio?
        
         | ac29 wrote:
         | > Not to mention you need to show government ID to get a SIM to
         | use the Signal wallet for said private currency/messenger in
         | 200 countries.
         | 
         | There are less than 200 countries in total, unless you get very
         | creative with states that are arent recognized more more than a
         | handful of other countries, like Abkhazia or Transnistria.
         | 
         | You also dont need ID to buy SIM cards in the US, so I'm
         | curious on how valid this assertion is.
        
           | Mediterraneo10 wrote:
           | The OP is broadly right. You now need to show ID to buy a SIM
           | in many EU countries and beyond (e.g. Chile, Russia or
           | Senegal). A copy of the ID is given to the state in order to
           | link your identity to the SIM card. Even if you bought a
           | prepaid SIM before this policy or law came in, the mobile
           | provider may pressure you into paying online or by card
           | instead of cash, so that your identity can be linked to the
           | SIM through your payment.
           | 
           | I do wonder how long the US (or, for example, Finland) will
           | remain a holdout in this regard.
        
       | adamsvystun wrote:
       | I think you can argue that payment privacy is not as paramount as
       | message privacy and can be implemented with regular financial
       | mechanisms. Or at least such option should be given if you are
       | using your own cryptocurrency.
        
       | LockAndLol wrote:
       | I thought Session(1), a signal fork, was ridiculous for adding a
       | crypto currency, but now Signal is doing it too?
       | 
       | I don't want this stuff in my messenger. It's supposed to send
       | messages, not money. This is just going to accelerate my
       | departure from Signal - or at least the official client.
       | 
       | 1: https://getsession.org/
        
       | airza wrote:
       | The technology is cool, but I don't really know if I want KYC
       | regulatory risk in my encrypted messaging client. I just want
       | italics.
        
         | lrvick wrote:
         | Then why use Signal at all? You had to have KYC to get a phone
         | number in most countries which you had to give to Signal which
         | could expose your location etc via tower pings to anyone you
         | communicate with unless you port it to a VoIP number (how many
         | know how to do that?)
         | 
         | You also had to provide a phone number to get a Google or Apple
         | account to install Signal because anonymous signed install
         | methods are not supported, which moxie says is intentional to
         | collect analytics.
         | 
         | Signal may have end to end encryption but being anonymous is a
         | clear non goal.
        
         | josh2600 wrote:
         | I don't think Signal has any plans to scan your driver's
         | license. What they've built is a non-custodial wallet (IE, they
         | can't help you if you lose your keys, and they have no ability
         | to authorize or deny a payment on your behalf).
        
           | airza wrote:
           | In my opinion a lot of the spicy regulatory issues around
           | coins with private transactions are still not fully realized
           | because none of them have mainstream adoption. The problem
           | here is that Signal's goal to succeed as a mainstream
           | encrypted messaging client could have the unpleasant side
           | effect of bringing this technology under regulatory scrutiny.
           | Hopefully things won't come to that, of course...
        
         | troquerre wrote:
         | You don't need to KYC as it's just a mobile wallet -- same with
         | all the other crypto wallets out there. I'd be surprised if
         | Signal integrated features in the future that require KYC.
        
         | frosted-flakes wrote:
         | KYC = Know Your Customer/Client.
        
       | m4lvin wrote:
       | It seems this was posted five days too late.
        
       | WaitWaitWha wrote:
       | I think Signal should not marry a single crypto-currency, or
       | intermediary.
       | 
       | Add the feature, but come up with a solution that is currency
       | agnostic.
        
         | hiq wrote:
         | The arguments against federation would also apply to this
         | solution. Given that they don't like federation, it's logical
         | that they also reject this approach for their payment solution.
        
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