IPv6 — BSV’s Perfect Blockchain Partner – CoinGeek

The IEEE event in Montreal in October confirmed what many blockchain enthusiasts have known for some time: IPv6 and Bitcoin on the BSV blockchain were made for each other.

The transition from IPv4 to IPv6 means a generational change in the IP protocol, which is like the change from ARPANET to TCP/IP internet on 1 January 1983. A new version of the protocol has long been planned. IPv4 ran out of addresses in January 2011.

Now, as the world adopts IPv6 as the plumbing for the internet, the benefits of the new version of the protocol show the perfect match between IPv6 and Bitcoin.

According to speaker Lawrence Hughes, author of the forthcoming book Third Generation Internet Revealed: Reinventing Computer Networks with IPv6 1st ed. Edition, the number of existing IPv6 installations is far greater than expected.

Over 50% of developed countries already use IPv6, around 95% of wireless carriers use it and 41% of queries directed to google.com use IPv6 to search the search engine.

It is easy to see why the internet is ripe for IPv6. The protocol provides a staggering number of globally unique IP addresses to accept incoming nodes. More importantly, IPv6 allows you to make connections directly from one mobile device to another. In fact, each device on the Internet can have its own unique address range and communicate with each other using a secure peer-to-peer connection.

IPv4 forced devices to use a third party to exchange data. Network Address Translation (NAT) provides one-to-one IP address translation at a basic level and the ability to map multiple private hosts to one public IP address—such as the one provided to the router by an ISP.

To add security, implement TLS. In this case, one node is the server and one node is the client that must use password technology to connect to the server and route to another client. A node cannot be connected directly to another node. An intermediary is needed – such as a certificate server to provide certificates to each client. Using intermediaries breaks TLS.

Traditional email such as IMAP or FTP connections use a server that can be secured with TLS – an addition to IPv4. Unfortunately, you cannot achieve peer-to-peer connections and security.

However, by using IPv6 it is possible to achieve this. Each IPv6 device acts as both a client and a server. There is no need for an IMAP server since the information is already on each device when it negotiates with another device.

S/MIME adds a new layer of security to email and ftp. Nevertheless, a single certificate can be used for peer TLS and S/MIME and strong client authentication or other certificate services.

This is an exciting time to be active on the internet – all this information was downloaded from the IPv6 Forum.

This type of connection mechanism is very difficult to snoop end to end. With IPv6, each node is both a client and a personal server. Any node can accept incoming connections, meaning hackers cannot snoop on the end-to-end connection.

IPv6 enables peer-to-peer connections using a peer TLS (Transport Layer Security) connection. Peer TLS eliminates the need to have a server. Since most hacking and snooping happens on intermediate nodes waiting for instructions, it makes sense to use peer TLS. It is not necessary to have intermediate servers or NAT routers to provide security. IPSec is built into the IPv6 protocol by default.

Peer-to-peer connections are ideal for IoT and blockchain infrastructure solutions. IoT devices communicate as peers – offering end-to-end encryption – enabling the implementation of zero-trust architecture. Zero trust architecture moves network defense from the network perimeter to users, assets and resources.

Symbiosis of Bitcoin and IPv6

Dr. Craig Wright, author of the Bitcoin White Paper agrees with Hughes. He explained how IPv6 is perfect for Bitcoin. Launched in 2009, Bitcoin supported peer-to-peer transactions from its inception. Peers could talk directly to another peer with transactions recorded on the chain. Peer to peer offers direct communication. If every node has to search for a transaction, internet traffic will quickly grind to a halt.

IPv6 connectivity resolves every device on the blockchain searching for a transaction. Two users are connected directly. Each proves who they are by digitally signing with each other, the transaction is executed and recorded.

There is no need for any Usenet or other server. Electronic cash can be sent directly from one user to another with IPv6 – a different concept than implementations using IPv4 that need intermediaries.

These connections have anthropomorphic value – take a key, hash it, get a brand new key, and you have traceability – you can prove that you are the buyer of every transaction on the blockchain.

Nodes enforce transactions. The word “enforce” is important. The police do not enforce or change the rules, but only enforce existing rules. Nodes enforce rules that are fixed. The TCP protocol has not changed since it was introduced.

Software that is constantly changing is bound to have problems. Novell Netware regularly released software updates. Nevertheless, it has been discontinued along with DECnet and Banyan Vines. Forcing users to change protocols doesn’t help innovation, Dr. Wright said. If you change the protocol, it will never gain wide adoption.

Innovation is not based on tweaking the underlying protocols. If the protocol is stable, it allows innovation on a stable protocol that will last. You can create something that is stable and that lasts.

New business opportunity

Blockchain nodes exchange information between peers. With IPv6, there is no need for an intermediary as peer-to-peer happens by default. Therefore, if you use the blockchain, you should use IPv6.

Entrepreneurs can identify a business opportunity with IPv6. The savvy business can sell X509 or other types of certificates to users. There are potentially billions of devices that need a certificate. Casual users will need simple certificates, while other organizations may have more complex certificate requirements where users must prove their identity by providing additional documentation before receiving the certificate.

Bob and Alice will be able to directly exchange keys with each other—including authentication headers and packets—so they can implement end-to-end encryption between them.

Alice is talking to Bob. Bob proves his identity using any identity certificate such as X 509, or any client encryption. They negotiate with their communications and chats hashed and embedded in a bitcoin transaction stored on chain. There is no public information stored on the chain. However, there is a permanent record between both parties stored on the blockchain.

This is unwelcome news for money launderers, child pornographers or drug dealers. Legitimate businesses want a detailed unalterable record to show that you sold something.

This model – where two parties send information and settle the ledger – is a peer-to-peer exchange that is between two individuals, not a network full of secrets like the Silk Road, which shut down in 2013 and sent many of its operators into prison.

On the blockchain, all transactions are recorded – and can be tracked. It is irrelevant what is exchanged online, the transactions should not be centralized.

Paying cash now means you are giving away money to someone else. You give something to someone else. Bitcoin is handed to someone else and you no longer own it.

Decentralization pushes the transactions to the edge of the network. The nodes act as honest agents. Alice connects to Bob and confirms that she is talking to Bob, not Charlie. Once the verification is done, you can check the performance of Internet of Things (IoT) devices. Entities such as: automatic systems, contracts, licensing. Ownership can be set and transferred. You can own digital goods like you can own a physical item like a CD.

Audible can remove your rights to all of your books – Amazon can remove all of these at any time. But with IPv6 public addresses. Devices can move away from centralized messaging – shifting ownership to edge computing with Zero Trust Architecture.

Only with a stable protocol can innovation take place, and IPv6 gives users that opportunity. It is an opportunity that companies should fully embrace.

See: Dr. Craig Wright keynote at GBC22, A Better Internet with IPv6 and BSV Blockchain

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