How does Telepathy work?
Last week we looked at Teleport: James’ system for enabling anonymous BTCD transactions. Teleport uses secure messaging to send information about a transaction outside of the blockchain, so that the recipient can execute the transaction and take possession of the funds when they want to (thereby removing a major route by which traditional cryptocurrency transactions can be traced). Of course, this relies on secure communication: it doesn’t matter if the transaction can’t be traced on the blockchain if sender and recipient can still be tracked off the blockchain.
Encryption is routinely used to protect communications from unwanted snoopers. But whilst an attacker may not be able to read the content of your messages, anyone monitoring the network can still see who is communicating – giving them an important source of information to build on. This is the problem Telepathy is designed to address.
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