In principle, almost all cryptocurrencies offer the advantage of a decentralized currency system.
A single institution is therefore no longer able to block an account.
There are two possible attack scenarios for a cryptocurrency based on a blockchain.
If a miner in the network has more than half the hashrate (mining power), the blockchain can be mined. In this case, for example, transactions are entered that were never triggered by those affected. This attack is called 51% attack. Attacks of this type have already occurred on some blockchains, including Ethereum.
Another blockchain based on the ASIC network, for example, would be vulnerable to a 51% attack, since mining hardware was created directly for the ASIC algorithm on which Bitcoin is based. This hardware provides hashrates over multiple terrahashes for this algorithm. For comparison, one of the most powerful graphics cards on the market enables around 130 megahashes. (Hash, KiloHash, MegaHash, GigaHash, TerraHash).
The great advantage of the enormous power of the ASIC miners therefore has the decisive disadvantage that the cryptocurrency is less decentralized, since mining with graphics cards or even the CPU has become completely unattractive.
The notion of Bitcoin – decentralization – is complicated by this hardware.
Each additional blockchain on an ASIC network can therefore be simulated relatively easily by the Bitcoin network (51% attack). Therefore every new ASIC Blockchain is unattractive.
Even if the Bitcoin blockchain is very secure due to very difficult puzzles thanks to the enormous hash rate of the network.
The Bitcoin network seems to be comparable to the real estate bubble. For years, universities have been warning of the enormous power consumption and the resulting instability of maintaining the network.
The ASIC hardware cannot be used sensibly for any other application than for Bitcoin mining.
As a result, people with significant liquidity will primarily buy the hardware, thereby increasing the formation of a monopoly.
Tidecoin aims to ensure the best possible decentralization. For this purpose, yespowertide is used as the algorithm for the blockchain, which is CPU-friendly, GPU-unfriendly and ASIC-resistant. Since every computer, whether notebook or gamer PC, has a CPU, Tidecoin can be mined on all devices – including mobile phones and tablets.
A 51% attack can be counteracted in the best possible way in that the algorithm prefers hardware that is built into every PC or smartphone anyway.
cryptocurrencies, the transaction works in principle with an asynchronous encryption method.
In order to receive a payment, a public key is handed over, often called the payment address. Anyone on the network can send a payment to this address. The payment can only be decrypted with the SecretKey.
To send a payment, a signature is created with the SecretKey. The signature is sent to the network along with the public key. Everyone in the network is able to confirm the authenticity of the transaction using the signature and the public key.
The type of asynchronous encryption is comparable, for example, to end-to-end encryption in common messengers such as WhatsApp.
The problem with the currently common signature methods is that a secret key can be inferred from a signature with a public key. For example, with 256-bit encryption, there are 2^256 possible combinations. According to the current state of the art, a brute force attack is required, which tests all combinations iteratively. Encryption is therefore safe because of the enormous time wall that analog computers have. (On average, = 0.5 * 2 ^ 256 or = 0.5 * 2 ^ 255 iterations would be required.)
The Bitcoin wallet is also based on a 256-bit encryption approach.
A quantum computer works quite differently. The quantum PC has no binary bits but three states. A qubit has some kind of orientation. There are therefore states like “a little on” or “a little off”.
The register alone is therefore significantly more powerful than in a binary computer, since the number of possible combinations in the register will double with each qubit. (2 qubits 2^2 = 4 states, 3 qubits 2^3 = 8.)
The quantum PC becomes even more powerful, since there is no direct separation between the register and the processing unit, as is known from an analog computer.
At the beginning of the calculation process, the quantum computer will fill all qubits with the states.
The calculation does not take place iteratively but simultaneously – the quantum glow. After the states have been loaded into the quantum register, the quantum PC will calculate all the combinations provided at once in an annealing process.
This invention is disastrous for the security of the encryption methods that have been used up to now, since a sufficiently dimensioned quantum computer with about 2,000 – 4,000 qubits can reach the private key with one glowing process.
(Arithmetically, 256 qubits would be enough for a 256-bit encryption, but more calculation steps are required due to the occurrence of errors.)
All asynchronous encryption methods that allow a clear conclusion to a private key are therefore endangered by the quantum computer.
To put it more precisely. The encryption methods that have been used to date are deterministic algorithms (the same input always leads to the same output). Conversely (brut force attack), the connection also applies. In the case of asynchronous encryption, the deterministic algorithms aimed for in most cases pose a significant problem if security against quantum computers is to be guaranteed. To put it in numbers, the current RSA method would require a signature size of around 1 TB if it is to become quantum secure.
The Tidecoin uses FALCON as a signature for the transactions. Along with Dilithium, Falcon is one of the two finalists for the new NIST encryption standard.
State-of-the-art tech stack
A lot of new cryptocurrencies are released. In most cases, it is not a separate blockchain, but a token, which is usually based on the Ethereum blockchain.
There is therefore always a dependency for the tokens. It’s like the interaction in a company, between a parent company and a subsidiary.
Tidecoin has been based on its own quantum-safe blockchain and signature since the beginning, with the advantages outlined.
Many other tokens sometimes have several quadrillion coins as circulating supply. These massive amounts of circulating supply can suggest a false image of wealth to the buyer. There could be a distraction from the real benefits of the token, if there are any benefits at all. Tidecoin tries to provide real arguments based on a state-of-the-art tech stack instead of attaching itself to an existing blockchain and offering no real added value.
The two largest cryptocurrencies (Ethereum and Bitcoin) have a circulation supply of around 121 million Ethereum and a maximum of 21 million Bitcoin. At the time of their release, they offered great value. Tidecoin has set itself the goal of implementing a future-oriented Tech stack. Therefore, the maximum circulation supply from the Tidecoin is limited to 21 million coins in order not to provoke an unnecessary distraction from the enormous technical potential.