Re: BYTEBALL: Totally new consensus algorithm + private untraceable payments
Does this mean that every time I receive Blackbytes I have to do a full backup? If I will recover from seed, will I have 0 blackbytes?
Yes.Best way to be safe is to use a multi-device wallet, then each time you receive blackbytes the private data are replicated among all your devices.
My favourite analogy:
Think of Blackbytes as a post-it handed to you by the previous owner. The post-it says: "you are now the new owner". Together with handing you the post-it, the DAG registers that the previous owner is no longer the owner of these Blackbytes. The DAG does not register who received the post-it.
Now, if you lose this post-it, the previous owner can simply give you another post-it that says: "you are now the new owner".
If you want to give your Blackbytes to someone else, your post-it contains all the information you need to create a new valid post-it for the receiving user, and to register the change of ownership in the DAG.
Note that there's nobody to give you a new post-it if you sent part of your blackbytes, and lose the post-it that holds your change!
1of2 multisig wallet is the best way, except for a 1of3 which is even better
And BTW thank you for this nice analogy for the blackbytes mechanism - very easy to grasp.
But you have to note the following: With each additional device also increases the risk of being hacked.
At 1 of 3 it is enough to hack one device. So if you manage serious volumes I would recommend 2 of 3.
This corresponds to a 2FA authentication.
If you change the password regularly you have a very high security level.
I also suggested implementing time and volume based payment terms.
This can reduce a loss if you were hacked. But you can also do many other things e.g. Pocket money, Prepaid ..