Interview/Presentation
Q/A full script
Interviewer:
So, there are 23,000 cryptocurrencies out there. Why do we need another one? What is so special about TNT?
Expert:
To fully understand why TNT is so special, we need to revisit the original 2008 Bitcoin white paper. The author, under the pseudonym Satoshi Nakamoto, extensively discussed the problem of "double-spending" but did not identify its root cause: asymmetric information. The impact of asymmetric information on market transactions has been extensively studied by economists like George Akerlof. Akerlof, along with A. Michael Spence and Joseph E. Stiglitz, was awarded the Nobel Prize in Economics in 2001 for his work on markets with asymmetric information. In his famous 1970 paper, “The Market for ‘Lemons’,” Akerlof delved deeply into how asymmetric information can lead to significant market inefficiencies and fraudulent behaviors. It's been understood since the 1970s that fraud, such as spending counterfeit money or double-spending Bitcoins, is impossible without either involuntary exchange or asymmetric information. Since you can't force anyone to do anything involuntarily over the internet, fraud like double-spending can only occur in the presence of asymmetric information.
Transparent Network Technology (TNT) is a revolutionary payment processing system that uses batch processing to completely eliminate information asymmetry across all TNT nodes, achieving full transparency. This approach results in numerous benefits, including enhanced security, lower transaction costs, and better compliance with regulations.
Interviewer:
Wow. So wait a second. What is batch processing, and how does it differ from regular consensus methods?
Expert:
Batch processing is a method that banks have always used—ever since the Italian Renaissance, when banks started using double-entry bookkeeping as described by Luca Pacioli—in order to eliminate fraud caused by nodes being asymmetrically informed. Traditionally, banks don't accept new payments at night, allowing all branches to synchronize information about current account balances and pending payments. TNT similarly employs batch processing.
For example, consider a simple TNT bank ledger where all peer-to-peer nodes collectively agree to accept payment requests only during odd minutes and then process these collected payment instructions during even minutes. This ensures full transparency. Batch processing inherently eliminates all information asymmetry in processing payments: all honest nodes in a TNT system agree to stop accepting new payments at a pre-scheduled time, similar to how banks close at 5 PM. This pause in accepting new transactions allows all TNT nodes to achieve full transparency about current balances and pending payments. With this method, there is ample time to reach full consensus through universal agreement, without the need for mining.
By using batch processing, TNT ensures that all nodes have the same information and can verify transactions accurately, greatly improving overall security. This method contrasts with regular consensus methods, where transactions are processed continuously. Continuous processing is precisely what leaves room for discrepancies and fraudulent activities due to the lack of synchronized information across nodes, and necessitates wasteful mining.
Interviewer:
Can you talk about the specific benefits and advantages that your batch processing consensus algorithm brings to the table versus competing alternative cryptocurrencies?
Expert:
We address the problem of double spending—rooted in asymmetric information—by fully eradicating all information asymmetry through achieving consistent and full transparency via batch processing. This approach not only significantly improves efficiency and security, but also allows us at TNT-bank to offer our clients substantial additional functionality not currently supported by any competing DeFi (decentralized finance) platforms. Here is a partial list of the most significant benefits of TNT:
Faster Processing Speed: Our system can easily achieve transaction speeds and volumes comparable to those of Visa and Mastercard.
Lower Costs: There is no need for mining, as consensus is achieved through real-time synchronization and by checking digital signatures.
Zero Risk of Ex-Ante Fraud: With all nodes symmetrically informed, the risk of fraud as payments are recorded is eliminated.
Full Security Ex-Post: Every wallet signs a hash of the update block, ensuring authenticity and security. TNT also means True-No-Trust, being the most future fraud-proof blockchain file format possible.
Legally Binding Contracts/Fractional Ownership: This feature allows for contracts and fractional ownership that are legally binding by requiring that not only all debits but also all credits be authorized via proper digital signatures. By having both the buyer and the seller sign each transfer of TNT coins, we make these transactions legally binding.
Full AML Compliance: Transactions involving illicit funds can be rejected by having the recipient decline the credit by not signing it. This allows TNT bank money to be as AML compliant as any competing fiat money unit, such as the Euro or the US dollar, functionally speaking.
Interviewer:
Well, I think even I understand why 1-3 make sense, but can you explain?
Expert:
Sure, let’s break it down:
Faster Processing Speed: Bitcoin transactions are slow because miners have to spend time solving complex puzzles to prove they’ve done the work and earn Bitcoins. TNT uses batch processing to form update blocks periodically in time, without mining, drastically speeding up the process. Our system is capable of handling transaction volumes comparable to major credit card networks like Visa and Mastercard.
Lower Costs: Mining requires substantial computational power, energy, and cooling, leading to high costs. TNT’s consensus mechanism relies on real-time synchronization and digital signatures, without mining, meaning the real-world costs of managing a TNT blockchain are minimal compared to the needless waste associated with Bitcoin.
Zero Risk of Ex-Ante Fraud: In competing systems, some nodes have more information than others at any given time due to continuous payment processing, which leads to potential fraud. TNT always keeps all nodes symmetrically informed, as they all have the same information at the same time. This eliminates the risk of fraud before it happens.
Interviewer:
What about number 4? What makes the TNT blockchain so secure ex-post?
Expert:
What sets the TNT blockchain apart is its native file format, designed to be the most future fraud-proof (FFP) from the start. We take the existing, poorly designed, and insecure Bitcoin blockchain file format and make it fully secure by including the minimum set of digital signatures necessary to provide absolute certainty in the authenticity of the TNT-bank’s ‘one-unique’ future fraud-proof blockchain, which demands True-No-Trust. TNT's approach makes it the most robust and secure blockchain, both in theory and practice.
Interviewer:
Wait a second. Are you telling us that it is impossible to steal TNT coins the way the FBI legally confiscates Bitcoins? How does that work?
Expert:
Well, let's break it down. The Bitcoin blockchain's immutability relies on the digital signature of the miner who signs the hash of the update block with their private key, which matches the public key of the wallet that collects the reward for processing the block of payments. This prevents perpetrators from distributing a fraudulent version of the blockchain. To propagate a fraudulent version of any one blockchain, one would need to obtain the private keys of each wallet that has signed the cryptographic hash of each update block. If the FBI needs to legally confiscate Bitcoins, they could do so by obtaining each miner’s private keys, which would then allow them to distribute an alternative ‘inauthentic-but-just’ version of the original, ‘authentic’ Bitcoin blockchain.
Interviewer:
And how is TNT different?
Expert:
TNT takes security to an entirely new level. Instead of just mandating that the miner signs the hash of the update block, every single wallet signs that hash value in our future fraud-proof TNT. This means that for an update to be considered future fraud-proof and included in the TNT blockchain, it must be authenticated with a digital signature from each and every wallet. And not just every wallet involved in any payment being processed; we mean every single wallet, bar none, with any coins in it at all, in the entire blockchain.
Interviewer:
Wow there, hold your horses! There are millions of wallets. How do you collect a digital signature from each one? When and how do you do this?
Expert:
TNT uses batch processing, providing ample time to collect signatures from each wallet, so there’s no problem collecting everyone’s signatures. However, storing all these signatures with each update would be terribly inefficient as the number of peer-to-peer nodes increases. This is why we introduced the idea of requiring that each wallet have two public/private key pairs: one key pair for digitally signing the debits and the other pair for signing the credits.
Interviewer:
Well, that’s new! How do the dual key pairs function within TNT-banks?
Expert:
Each wallet in TNT has two key pairs. The first key pair is used to digitally sign and authorize debits or spending requests. The second, or dual-approval key pair, is used to digitally sign and authorize credits. Without the digital signature matching the dual-approval public key of the receiving wallet to authorize the credit, no payment is considered valid. This dual-approval digital signature is also used by each wallet to sign the hash value of each update block, ensuring it is valid and included in the TNT blockchain.
Interviewer:
Well, that’s nice, but how does it make the system any more efficient?
Expert:
By using shared dual-approval public-private key pairs, naturally! While every user has their own unique spending (or debit) key, as you don’t want anyone else having the authority to spend your money, the dual-approval key can be shared among multiple wallets. The worst risk in temporarily handing over your credit approval key to a “bad” custodian is that they may inadvertently reject a payment you wished to receive. In such cases, TNT allows you to change your credit public key using your debit private key, enabling you to designate a different custodian. This means that a group of wallets can appoint a single custodian, such as a financial institution like JP Morgan, to validate transactions. This approach reduces the number of unique dual-approval key pairs needed. So, even if there are 100,000 wallets, there may only be a few dozen unique dual-approval public-private key pairs.
Interviewer:
What about those who prefer their own unique dual-approval keys?
Expert:
Each wallet has the option to purchase its own unique dual-approval key, providing flexibility and enhanced security for those who require it. Naturally, each unique key requires storing another unique digital signature in each and every update block—paid for by the wallets that opt to have one, collectively as a group—but it offers additional security for those who want it.
Interviewer:
Can you elaborate on how TNT ensures transaction legitimacy?
Expert:
The dual-approval system in TNT ensures that every transaction receives full authorization from both the sender and receiver. A Bitcoin payment requires a digital signature from the spending wallet to authorize the transfer. However, a TNT payment, to be considered valid, must be digitally signed and authorized not only by the spending wallet issuing the debit but also by the wallet being credited the funds. No TNT, true-no-trust payment without the receiving wallet’s credit-approval (or dual-approval) digital signature is considered valid. This process ensures that only legitimate transactions are included in the blockchain, providing a higher level of security and trust.
Interviewer:
So, while every wallet can have a unique debit key, the credit-approval key can be safely shared among multiple wallets to streamline the credit approval process, making the system both secure and efficient?
Expert:
Exactly. This approach ensures unparalleled security and efficiency, revolutionizing the blockchain ecosystem. For example, TNT can enforce AML compliance by requiring that bank clients use a credit-approval public key provided by an AML custodian. A custodian can then prevent the inflow of 'dirty' funds into any TNT wallet, avoiding issues like those that recently plagued BlackRock’s Ethereum wallet with, let’s say, 'coins of ill-repute.'
Expert:
Now, dear interviewer, having interviewed me, let us reverse roles. I would like to make sure you, dear interviewer, have grasped the concept of TNT fully. Can you begin by explaining how the TNT blockchain is functionally a better blockchain, being more secure and efficient?
Interviewer:
Certainly. TNT achieves its superior security and efficiency through two key innovations. Firstly, TNT utilizes batch processing, which ensures full transparency during the transaction processing and recording stage. This approach guarantees that all nodes are symmetrically informed, thereby eradicating any possibility of ex-ante fraud. Secondly, TNT employs a dual key system, requiring that each wallet must digitally sign the hash of each update block with their credit approval private key. This mechanism not only enhances security ex-ante but also ensures future fraud prevention ex-post trade, making TNT provably more secure than any competing alternative.
As for efficiency, TNT excels by eliminating the need for mining. Consensus is achieved in real-time through simple clock synchronization, which eliminates the excessive electricity consumption associated with traditional mining processes. For instance, Bitcoin mining, which is far less secure than TNT, consumed as much electricity last year as Argentina used for agriculture and home heating. Moreover, TNT's transaction processing capacity rivals that of traditional payment processing systems like Visa and MasterCard, providing both security and efficiency without compromising on performance.
Expert:
Wow, interviewer, that’s very impressive knowledge! You are clearly very smart and grasp things quickly. I can’t wait to hear your thoughts about what additional functionality TNT provides beyond traditional blockchains.
Interviewer:
Certainly, TNT provides several additional functionalities beyond what traditional blockchains offer. One of the key features is its support for legally binding smart contracts. These contracts are not just automated but are also compliant with legal standards, ensuring that transactions and agreements executed on the TNT blockchain hold up in a court of law. This greatly enhances the trust and reliability of transactions conducted on the platform.
Another significant functionality is TNT's advanced Anti-Money Laundering (AML) compliance. By integrating stringent AML protocols, TNT ensures that all transactions are monitored and verified in real-time, significantly reducing the risk of illicit activities. This makes TNT an attractive option for financial institutions and regulatory bodies while still retaining all the benefits of cryptocurrencies, such as a fixed money supply and diversification of counterparty risk, so no single bank failure impacts any cryptocurrency.
Furthermore, TNT introduces True-NO-Trust (TNT) files, which are log files of relational database updates that ensure consistent coin balances in digital TNT bank accounts. These files are independently verifiable for authenticity using cryptographic techniques and peer-to-peer nodes. This level of transparency and accountability is unmatched by traditional blockchains.
Overall, TNT not only enhances security and efficiency but also introduces functionalities that cater to legal compliance, financial transparency, and advanced fraud prevention, making it a superior choice compared to traditional blockchains. We should not use Bitcoin and instead use TNT!
Expert:
Your explanation is very thorough, interviewer, and your excitement about introducing TNT to prevent the waste of energy is fully justified. It’s clear that TNT is designed to address many of the limitations of traditional blockchains while introducing new features that enhance its functionality and reliability.
Corporate Video Script
[Scene: A narrator, stands in front of a white background, dressed in professional, sexy attire. The setting is clean and minimalistic, giving a natural and focused look. She speaks the following:]
"In a world where digital transactions define our future and Bitcoin-backed ETFs are now fully legal, security is paramount. While Bitcoin is praised for its security due to its proof-of-work consensus method, it is also known that the FBI can, and has, confiscated Bitcoins. Imagine a currency that is truly secure, transparent, and fraud-proof, inherently more secure than any other digital currency. Well, you don’t have to imagine anymore, because we are here to introduce you to TNT, a True-NO-Trust layer ZERO blockchain!"
"Traditional blockchains like Bitcoin and Ethereum have revolutionized finance but come with inherent risks. The threat of a possible 51% attack and the fact that the FBI was indeed thankfully able to recover Bitcoins collected as ransom on several well-documented occasions means that your assets remain vulnerable long after transactions are completed, and that’s a fact!"
"But what if there was a way to eliminate such vulnerabilities?"
"Enter TNT: The first of its kind, a True-NO-Trust Blockchain, the most fraud-proof solution. TNT requires every wallet to sign every cryptographic hash of every update block, creating a truly immutable and secure ledger."
"Unlike other cryptocurrencies, where compromising a few private keys—whether belonging to Bitcoin miners or Ethereum validators—can lead to asset seizure, TNT mandates that all wallets, without exception, digitally sign the cryptographic hash value of each and every single update block. This makes unauthorized access impossible, even in theory. When every single wallet signs off on a transaction, it is, by definition, authorized."
"And if you think we are strict about block updates, when it comes to ensuring the legitimacy of TNT-bank payments, we are even stricter in terms of being fraud-free. In TNT, for a transaction to be classified as ‘valid’ in the future fraud-free, True-NO-Trust, Transparent Network Technology, TNT blockchain, both debits and credits must be authorized by two separate digital signatures, thereby preventing illicit transactions and ensuring full AML compliance. Just like no US bank will accept cash from a depositor who is unable to account for its source, TNT achieves AML compliance by refusing to accept dirty money into a clean, AML-monitored TNT wallet."
"TNT is not only more secure than any other cryptocurrency but also far less costly to operate, with lower latencies and higher throughput. By utilizing batch processing, TNT ensures a secure and efficient financial system, processing payments at the same rate and cost as Visa and MasterCard."
"Moreover, with TNT, law enforcement agencies can prevent fraud without participating in it, by enforcing AML compliance. Our transparent blockchain maintains integrity and security, safeguarding TNT-bank financial systems."
"TNT offers a groundbreaking approach to digital currency, combining robust cryptographic techniques with the most secure blockchain possible. It's more than just a currency; it's a new security standard for digital finance."
"Join the revolution. Choose TNT for a secure, transparent, and fraud-free future. With TNT, your financial integrity is guaranteed."
[Final Scene]
Visuals: TNT logo
Narrator: "TNT means True-NO-Trust because TNT is more likely to remain fraud-free in the future than any competing alternative digital currency. Secure a forever and fully fraud-free financial future today with TNT!"