Announcing: Tumblebit™ from Stratis – a Trustless, Decentralized Privacy Solution for Bitcoin

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In a recent interview with Blockchain Edge, Chris Trew, head of Stratis, and Krushang Patel, head of communications, revealed how Stratis’ Masternode system within their Breeze Wallet is going to work – and it’s exciting to see what they’ve created.

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“To be clear, if you hold 100,000 Stratis, you’ll earn approximately 4-6 Stratis per day” says Krushang Patel, head of communications.

Their thoughts on Tumblebit, including various pros and cons, is as follows:

“If you own 25,000 Stratis or more, you can earn staking rewards. To earn staking rewards (i.e. “free Stratis”), all you have to do is hold 25,000 or more Stratis in your QT (core) wallet, and keep a synchronized full node running on your computer. Although the amount of Stratis you can stake is variable, for each 25,000 Stratis you hold, you’ll stake / earn approximately 1 Stratis per day,” notes Chris Trew, head of Stratis.

“To be clear, if you hold 100,000 Stratis, you’ll earn approximately 4-6 Stratis per day,” says Krushang Patel, head of communications.

Stratis has recently opened up another tier of rewards for holders of 250,000 Stratis or more – masternodes. By running a masternode, users can earn additional benefits above and beyond staking rewards of 12-15 Stratis per day.

Masternode owners can provide a Tumblebit™ service, acting as a Bitcoin tumbler. A Bitcoin tumbler allows users to send or receive Bitcoin in a more anonymous fashion, because their transactions are mixed, or ‘tumbled’ with dozens of other transactions of the same amount and size, obscuring whose Bitcoin came from where and was sent to where.

“Imagine I had a black box, and 20 different people all put in 1 Euro. I shook the box, then told 20 other people to pick out 1 Euro each. Assuming the serial numbers or other identifying information were not previously known (this is far easier with Bitcoin), you couldn’t tell that ‘your’ Euro went to a specific person, but the intended recipient would still receive their 1 Euro as agreed. In this way, you could anonymously send or receive money – this is what Tumblebit™ promises to do for Bitcoin (and other crypto) in the future,” notes Patel and Trew.

As a masternode owner, the benefits are as follows:

  •     Owners earn 1% of all Tumblebit™ transaction fees, which, over time as transaction volume grows, will likely double the value of their staking rewards, possibly more.
  •     Due to the amount of Stratis tokens needed a very limited number of masternodes will be available, which keeps transaction revenue high.
  •     Owners help to provide people a way to send or receive Bitcoin in anonymously, privately, and without worrying about 3rd parties compromising their money.
  •     Owners can continue to stake AND receive Tumblebit™ fees, because Stratis never needs to leave their core (QT) wallet. Soon, owners be able to keep their Stratis on a hard wallet and run a masternode as well.
  •     Owners IP addresses are hidden, because masternodes that help tumble transactions do so through the TOR (the onion router) network.
  •     Owners may not incur liability for tumbling Bitcoin (please consult legal counsel for advice) because all transactions are encrypted and unknown to the person tumlbing.
  •     The fee to send / receive Bitcoin anonymously is minimal – 1% of the transacted amount.
  •     Eterprise clients, such as crypto exchanges or financial services businesses, are honeypots for hackers who want to steal their money. By tumbling incoming and outgoing transactions from customers, a hacker’s ability to sniff traffic and steal is reduced, due to the encryption, anonymity of tumbling, and IP obfuscation of the TOR network.
  •     Users can receive tumbled Bitcoin without having to have Stratis’ Breeze Wallet – they can use your own preferred wallet, if you wish.
  •     Users can use Stratis’ Breeze Wallet as a secure Bitcoin and Stratis wallet, from which they can send your Bitcoin through a tumbler, even if they don’t run a masternode (more tokens supported soon in the Breeze Wallet)
  •     Coming soon, users be able to invest money in ICOs (again, check with legal counsel) in a more secure way, using Tumblebit™. Stratis is soon to launch an ICO platform that allows companies to create and promote their ICOs and accept tumbled Bitcoin (possibly tumbled Ethereum soon).

“Instead of only providing the positive aspects of Stratis Masternodes, we also wanted to honestly point out the current drawbacks” says Chris Trew, CEO of Stratis:

  •     Tumbling takes time – to ensure that ‘enough’ transactions are tumbled at the same time to preserve anonymity, privacy, and a trust-less environment, sending or receiving a tumbled transaction takes 10 blocks to confirm (10 minutes per block * 10 blocks = 100 minutes on average to send or receive a tumbled transaction)
  •     To keep transactions anonymous, users can send or receive increments of 0.1 BTC only at this time – this will soon change and be expanded to other denominations
  •     Users must pay an extra tumble fee of 1% of your transaction – a small price to pay for anonymous, private, and trust-less transactions that were the promise of Bitcoin since its inception
  •     To tumble BTC, a user must first send BTC to a Breeze Wallet, then tumble it – an extra step. To receive tumbled BTC, this is not required.
  •     Not only must qualified masternode owners own 250,000 Stratis, but they must also pledge and hold 5 BTC in their Breeze Wallet to qualify to run a masternode. The process is expensive, but worth it, if one believes in Bitcoin and crypto and its promise of anonymity, decentralization, peer-to-peer transactions, and more.

To find out more about Stratis token and their ongoing and upcoming projects, including Breeze Wallet, Masternodes, their ICO Platform and more, visit http://www.StratisPlatform.com, join their slack, telegram channel, and find them on social media.

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Josh Thomas
Blockchain Edge
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