XELIS

Xelis is a blockDAG cryptocurrency that leverages advanced cryptographic techniques, including partial homomorphic encryption with Twisted ElGamal over Ristretto points on an elliptic Curve25519 (Edwards25519). This allows Xelis to achieve a balance between privacy, scalability, and regulatory compliance. Unlike fully private cryptocurrencies like Monero, Xelis employs partial homomorphic encryption to provide sufficient anonymity while maintaining efficient transaction processing and compliance with regulatory standards. This approach ensures faster transaction speeds, lower costs, and flexibility for users, making it suitable for both individual privacy needs and transparent business transactions. This allows Xelis to position itself as a robust and adaptable solution in the evolving landscape of digital assets.What is Twisted ElGamal over Ristretto Points?Twisted ElGamal over Ristretto points is an encryption scheme that leverages the ElGamal encryption method, optimized with augmentations of the Petersen Commitments for better performance, and utilizes Ristretto points to ensure secure and efficient handling of elliptic curve points. This combination results in a robust cryptographic framework that provides strong security guarantees, efficient performance, and improved privacy.<blockquote>ElGamal Encryption: ElGamal encryption is a public-key cryptosystem based on the Diffie-Hellman key exchange. It provides semantic security, meaning that even if an attacker sees the ciphertext, they cannot determine any information about the plaintext.</blockquote><blockquote>Twisted ElGamal: Twisted ElGamal is a variation of the traditional ElGamal implementation which incorporates Pedersen Commits to be faster for encryption, decryption and providing full compatibility with known zero-knowledge proofs technologies like Bulletproofs that Xelis utilizes. In addition, it allows us to reduce the ciphertext size per transactions, reducing its storage cost and providing lower network fees.</blockquote><blockquote>Ristretto: Ristretto is a technique for constructing a prime-order group from an elliptic curve group, specifically the Edwards25519 curve, in a way that avoids common pitfalls such as small subgroup attacks. Ristretto points are representatives of equivalence classes of curve points that form a prime-order group. This ensures that all operations are performed in a secure and predictable manner.</blockquote><blockquote>Benefits of Ristretto:Prime Order: Ensures that the group has a prime order, simplifying many cryptographic protocols and avoiding complex subgroup checks.Simplified Implementation: Reduces the risk of implementation errors that can occur with elliptic curve operations.Interoperability: Provides a consistent and well-defined structure for cryptographic operations.</blockquote><h2 id="header-0">Combining Twisted ElGamal and Ristretto Points</h2>By using Ristretto points, the Twisted ElGamal encryption scheme inherits the enhanced security benefits of a prime-order group. This mitigates risks associated with small subgroups and ensures consistent cryptographic properties. Twisted Edwards curves are known for their efficient arithmetic operations, and when combined with the Ristretto encoding, this leads to improved performance in cryptographic operations such as encryption, decryption, and key generation. This combination provides strong privacy guarantees, which are essential for applications requiring anonymity.<h2 id="header-1">Why does this all matter?</h2>By utilizing Twisted Elgamal over Ristretto points Xelis is able to ensure maximum privacy while limiting the time to verify the proof and reducing the size of the data utlized.Why Partial Privacy over Full Privacy?Partial privacy, as used by XELIS, offers certain advantages over full encryption, like that used by Monero. Xelis has chosen to only encrypt the balance/amounts of wallets and transactions, but leaves wallet addresses of senders and receiver&#39;s public. Here are some reasons why partial homomorphic encryption might be considered better in certain aspects:Scalability and Performance:<ul><li>Full encryption of all transactions and balances, as in Monero, can be resource intensive. It requires significant computational power and can lead to larger transaction sizes, which in turn can slow down the network and increase transaction costs. Partial homomorphic encryption can reduce the computational burden, leading to faster transaction processing and lower fees.</li></ul>Regulatory Compliance:<ul><li>Full privacy can make it challenging for exchanges and other financial service providers to comply with regulatory requirements, such as those for anti-money laundering (AML), know-your-customer (KYC), and Markets in Crypto-Assets Regulation (MiCA). Partial homomorphic encryption can strike a balance by providing some level of privacy while still allowing for compliance with regulatory standards to track wallet inflows/outflows to identify and prevent illicit activities such as fraud, terrorism or other financial crimes. This strategy will allow Xelis to remain compliant with pending regulatory frameworks and not limit any potential exchanges in certain geographical regions.</li></ul>Auditability and Transparency:<ul><li>In some cases, transparency is necessary for auditing and verifying transactions. Partial privacy can provide a level of transparency that allows for auditing and public verification while still protecting sensitive information. This can be important for building trust with users and regulators.</li></ul>Usability:<ul><li>Full privacy can complicate the user experience, especially for those who are not technically savvy. Partial encryption can make it easier for users to understand and use the cryptocurrency, as it simplifies the process and reduces the need for advanced technical knowledge.</li></ul>While partial privacy has these advantages, it’s important to note that full privacy as used by Monero, offers unparalleled privacy and security. However, from a regulatory and compliance standpoint, these features can be seen as a risk. Ultimately the choice between partial and full privacy depends on the specific goals of the cryptocurrency and the needs of its user base.Thank you for taking the time to read this article on Xelis. If you enjoyed the content and found it helpful, consider supporting my work by sending a tip in Xelis $XEL. Your contribution goes a long way in helping me continue to create quality content like this. Your support is greatly appreciated!Tipping Address:xel:82zfcy3aa2pk2rzx6jpfnv7u3vkjcxhqs3hyghj45u9g2ccrrslsqk3vm3xImportant Links:Xelis LinkTree: <a href="https://linktr.ee/xelis" rel="noopener noreferrer nofollow">https://linktr.ee/xelis</a>Website: <a href="https://xelis.io/" rel="noopener noreferrer nofollow">https://xelis.io</a>Whitepaper/docs: <a href="https://docs.xelis.io/" rel="noopener noreferrer nofollow">https://docs.xelis.io</a>Github: <a href="https://github.com/xelis-project/" rel="noopener noreferrer nofollow">https://github.com/xelis-project/</a>Telegram: <a href="https://t.me/xelis_io" rel="noopener noreferrer nofollow">https://t.me/xelis_io</a>Discord: <a href="https://discord.gg/xelis" rel="noopener noreferrer nofollow">https://discord.gg/xelis</a>Twitter/x: <a href="https://twitter.com/xelis_project" rel="noopener noreferrer nofollow">https://twitter.com/xelis_project</a>Official Medium: <a href="https://medium.com/xelis-project" rel="noopener noreferrer nofollow">https://medium.com/xelis-project</a>Explorer: <a href="https://explorer.xelis.io/" rel="noopener noreferrer nofollow">https://explorer.xelis.io</a>Stats page: <a href="https://stats.xelis.io/" rel="noopener noreferrer nofollow">https://stats.xelis.io</a>Coingecko page: <a href="https://www.coingecko.com/en/coins/xelis" rel="noopener noreferrer nofollow">https://www.coingecko.com/en/coins/xelis</a>Livecoinwatch page: <a href="https://www.livecoinwatch.com/price/XELIS-__XEL" rel="noopener noreferrer nofollow">https://www.livecoinwatch.com/price/XELIS-__XEL</a>Coinpaprika page: <a href="https://coinpaprika.com/coin/xel-xelis/" rel="noopener noreferrer nofollow">https://coinpaprika.com/coin/xel-xelis/</a>Community medium: <a href="https://xeliscommunity.org/" rel="noopener noreferrer nofollow">https://xeliscommunity.org</a>Desktop/Mobile Wallet: <a href="https://github.com/xelis-project/xelis-genesix-wallet/releases/tag/0.0.5" rel="noopener noreferrer nofollow">https://github.com/xelis-project/xelis-genesix-wallet/releases/tag/0.0.5</a>Web-wallet: <a href="https://wallet.xelio.io/" rel="noopener noreferrer nofollow">https://wallet.xelis.io</a>

XELIS BlockDAG: Enhanced Privacy with Compliance

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