Bitcoin Banknotes

[nicktalman93]

As the popularity and value of Bitcoin increases so do its adoption. Recently, about 4,000 new ATMs were introduced in Argentina. A drastic transformation in this sphere is being brought by Tangem that is trying to make the cash like transaction through cryptocurrencies a possibility for the users.

Tagem, a new smart banknote platform is launching the bitcoin banknotes in Singapore, which is known for its blockchain and crypto favorable regulatory measures. The notes will be on sale at the Megafash Suntec City store. The aim is to mass produce the physical notes of bitcoin in millions by the end of 2018.

Continue reading: https://coingape.com/bitcoin-banknotes-ready-to-replace-traditional-currency/

[1714841643]

1714841643

[Xester]

As the popularity and value of Bitcoin increases so do its adoption. Recently, about 4,000 new ATMs were introduced in Argentina. A drastic transformation in this sphere is being brought by Tangem that is trying to make the cash like transaction through cryptocurrencies a possibility for the users.

Tagem, a new smart banknote platform is launching the bitcoin banknotes in Singapore, which is known for its blockchain and crypto favorable regulatory measures. The notes will be on sale at the Megafash Suntec City store. The aim is to mass produce the physical notes of bitcoin in millions by the end of 2018.

Continue reading: https://coingape.com/bitcoin-banknotes-ready-to-replace-traditional-currency/

The creation of bitcoin banknotes is with the futuristic view that bitcoin could hit a million dollars in the coming years. At the same time its goal is to increase the bitcoin users all across the country even to areas without electricity, computer access and internet connection. This will be one of the reason why bitcoin will be increasing tremendously in value in the coming years but as long as its production is monitored and transparent then everything will go smooth.

[hotcoin1234]

As the popularity and value of Bitcoin increases so do its adoption. Recently, about 4,000 new ATMs were introduced in Argentina. A drastic transformation in this sphere is being brought by Tangem that is trying to make the cash like transaction through cryptocurrencies a possibility for the users.

Tagem, a new smart banknote platform is launching the bitcoin banknotes in Singapore, which is known for its blockchain and crypto favorable regulatory measures. The notes will be on sale at the Megafash Suntec City store. The aim is to mass produce the physical notes of bitcoin in millions by the end of 2018.

Continue reading: https://coingape.com/bitcoin-banknotes-ready-to-replace-traditional-currency/

With this new technology item introduce into the market it might have some effect on helping to raise the awareness of btc to more people. Since this physical note can attend to problem like transfer fee and from online to offline we can expect more demand in btc for the coming years if it is being adopt by public and crypto users.

[Spaffin]

Interesting in themselves and worthy of attention are Singapore banknotes with a par value of 0.01 and 0.05 bitcoins. While it is difficult to imagine how these banknotes will go as a means of payment, but how they can be used as bonds. The organization that issued them should guarantee their redemption at par value in the case of presentation for payment. At the same time, bitcoin, as everyone expects, should increase substantially in price. This makes it possible to use them in this capacity, than simply as a payment method for mutual settlements.
We see that new forms of application of crypto-currency are being created, including their combination with conventional cash. This indicates that the crypto currency is still developing and the possibilities of its application are still enormous.

[infofarmer]

Co-founder of Tangem here. The crypto value is on the Tangem Notes, inside the secure chip — in the form of a unique private key which is impossible to copy. You can redeem any Tangem Note directly to blockchain without a third party — using an open NFC protocol. We provided reference apps for Android and iOS (only Android can redeem / extract the value at the moment).

Tangem as a company does not hold any cryptocurrency associated with Tangem Notes — we're just developing the technology and making sure the banknotes are impossible to hack or tamper with at any point in the supply chain or in public circulation.

The redeemable nature of Tangem Notes mean you have to verify their current value over NFC when receiving them from someone you don't trust. We rely on the high and growing NFC smartphone penetration. Offline balance check will be available through trusted attestation, but for now an internet connection is required, because the app will check against the blockchain, using electrum nodes.

[butka]

Co-founder of Tangem here. The crypto value is on the Tangem Notes, inside the secure chip — in the form of a unique private key which is impossible to copy. You can redeem any Tangem Note directly to blockchain without a third party — using an open NFC protocol.

What I was able to deduce from the linked article in the OP, your note is suitable for users without any technical knowledge regarding Bitcoin and the underlying technology.

You say that the private key is stored in the card itself, and your app will connect to the Bitcoin network to check the balance or use the funds.

What I'm interested in is how you plan to protect the users' private keys (even from employees of your company)? This is important, even though the value stored on these cards is not so big.

[veejay2716]

It's just only means that bitcoin became more popular and very well known all over the countries and the blockchain technology has been more developed that's why they created this kind of bank notes that is impossible to hacked or tampered.

[infofarmer]

What I'm interested in is how you plan to protect the users' private keys (even from employees of your company)?

Nobody has access to the private keys, they are created by the chips inside Tangem Notes. You can't import or export these keys. You can't get them out in a lab, because the chip is an EAL6+ secure element. You can't hack the firmware — it's based on EAL6+ cryptographic libraries, has minimal attack surface and 100% audited both internally and by one of the best independent security groups.

Of course there's a limit to security and reverse–engineering labs in China get upgraded — we have a dynamic roadmap to improve security in anticipation of more sophisticated attacks and attack vectors.

[butka]

What I'm interested in is how you plan to protect the users' private keys (even from employees of your company)?

Nobody has access to the private keys, they are created by the chips inside Tangem Notes. You can't import or export these keys. You can't get them out in a lab, because the chip is an EAL6+ secure element. You can't hack the firmware — it's based on EAL6+ cryptographic libraries, has minimal attack surface and 100% audited both internally and by one of the best independent security groups.

Thanks for explaining this. I think it is an important point to emphasize, so the users of your notes can feel protected.

And, good luck with your project. I hope it can help promote and popularize the usage of bitcoin, which can only be a good thing.

[TheQuin]

The redeemable nature of Tangem Notes mean you have to verify their current value over NFC when receiving them from someone you don't trust. We rely on the high and growing NFC smartphone penetration. Offline balance check will be available through trusted attestation, but for now an internet connection is required, because the app will check against the blockchain, using electrum nodes.

Does that mean that the notes don't have the Bitcoin address printed on them? If not why was it done that way?

[infofarmer]

Does that mean that the notes don't have the Bitcoin address printed on them? If not why was it done that way?

Anything printed is trivial to counterfeit. When you validate a Tangem Note over NFC, there's a cryptographic challenge–response authentication which is impossible to fake. In a few milliseconds the app gets the public key and a proof that the private key is on the chip, as well as another digital signature that attests the manufacturing authenticity of the item.

Since we already rely on NFC and the secure chip to establish value and authenticity, adding too many physical cues could decrease overall security by making people rely on them in some situations.

If we apply Tangem technology to national cryptocurrencies, governments can limit redemption of the crypto banknotes they issue to accredited agents that guarantee physical destruction at redemption — then people can rely on physical properties for those banknotes.

[Tmandeep]

A Singaporean startup developing ‘smart banknotes’ for cryptocurrencies has launched sales of physical bitcoin banknotes with a pilot in a major Singaporean mall.

Describing itself as a ‘smart banknote platform’ that manufactures physical notes with denominated values of cryptocurrencies like bitcoin, Singaporean firm Tangem has debuted ‘Tangem Note(s)’ in a pilot launch at the Suntech City shopping center in the city-state today.

The ‘banknotes’ will carry their value in bitcoin on a chip inside each note and are available in denominations of 0.01 BTC ($98) and 0.05 BTC ($485) at launch.

The hardware inside each banknote – it isn’t made of paper – is a Samsung Semiconductor S3D350A chip which, according to Tangem co-founder Andrew Pantyukhin says, ‘addresses all known attack vectors on hardware and software levels” on a Medium post. The accompanying cold wallet is “uncopiable”, Tangem says, while its co-founder insists the hacking of a single banknote would prove ‘uneconomical’ and would only be restricted to a single banknote even in the event of a hack.


Image credit: Medium/Hackermoon
Each banknote costs the company $2 to manufacture. The co-founder says the company is ‘making millions of units now’ in a bid to facilitate crypto transactions that are “immediate, free and anonymous”.

Pertinently, transferring ownership of the notes and their value in bitcoin is instant when the banknote swaps hands. “Physically hand over the whole wallet together with the blockchain private key. No transaction fees, no need to await confirmation blockchain,” Tangem states on its website, adding that each note will be NFC-enabled, allowing a user to instantly verify the validity of the assets contained via a smartphone.

With bases of operation spread in multiple places around the world – its global headquarters is in the Swiss town of Zug, commonly known as ‘Crypto Valley’ – Tangem has plans to distribute its banknotes globally following its launch in Singapore.

‘As Singapore sets the lead, Tangem is delivering the first shipment of 10,000 production notes to prospective partners and distributors around the world for commercial pilots,’ the company said in a press release.

[TheQuin]

Does that mean that the notes don't have the Bitcoin address printed on them? If not why was it done that way?

Anything printed is trivial to counterfeit. When you validate a Tangem Note over NFC, there's a cryptographic challenge–response authentication which is impossible to fake. In a few milliseconds the app gets the public key and a proof that the private key is on the chip, as well as another digital signature that attests the manufacturing authenticity of the item.

Since we already rely on NFC and the secure chip to establish value and authenticity, adding too many physical cues could decrease overall security by making people rely on them in some situations.

If we apply Tangem technology to national cryptocurrencies, governments can limit redemption of the crypto banknotes they issue to accredited agents that guarantee physical destruction at redemption — then people can rely on physical properties for those banknotes.

Thanks. I've just been having a look at your website. It looks to be a very interesting development, good luck.

[anussayme]

I think it is possible that Bitcoin money will not be released into a shoe currency, there are now many people who invest in Bitcoin because there is a desire to be accepted in many countries around the world, I think there are many co The world has good growth but Bitcoin is still a developing currency in the world and is in 6th place.

[s100]

yes with this new technology item introduce into the market it might have some effect on helping to raise the awareness of btc to more people. Since this physical note can attend to problem like transfer fee and from online to offline we can expect more demand in btc for the coming years if it is being adopt by public and crypto users and  Interesting in themselves and worthy of attention are Singapore banknotes with a par value of 0.01 and 0.05 bitcoins. While it is difficult to imagine how these banknotes will go as a means of payment, but how they can be used as bonds. The organization that issued them should guarantee their redemption at par value in the case of presentation for payment. At the same time, bitcoin, as everyone expects, should increase substantially in price. This makes it possible to use them in this capacity, than simply as a payment method for mutual settlements and we see that new forms of application of crypto-currency are being created, including their combination with conventional cash. This indicates that the crypto currency is still developing and the possibilities of its application are still enormous.

[bitart]

Does that mean that the notes don't have the Bitcoin address printed on them? If not why was it done that way?

Anything printed is trivial to counterfeit. When you validate a Tangem Note over NFC, there's a cryptographic challenge–response authentication which is impossible to fake. In a few milliseconds the app gets the public key and a proof that the private key is on the chip, as well as another digital signature that attests the manufacturing authenticity of the item.

Since we already rely on NFC and the secure chip to establish value and authenticity, adding too many physical cues could decrease overall security by making people rely on them in some situations.

If we apply Tangem technology to national cryptocurrencies, governments can limit redemption of the crypto banknotes they issue to accredited agents that guarantee physical destruction at redemption — then people can rely on physical properties for those banknotes.

If it requires an NFC connection to chech the current balance, why the banknote is different from a mobile wallet? It's only that if you hand it over, it does not require a transaction to wait for? If the lightning network starts there will be no (or very short) time needed to the LN transactions to complete.
Maybe the only thing which is different is the anonymity if someone hands over the banknote and this has no track in any database...

You do a beta test with bitcoin and after you can start to work with national currencies?

[TheQuin]

If it requires an NFC connection to chech the current balance, why the banknote is different from a mobile wallet? It's only that if you hand it over, it does not require a transaction to wait for?

The fact that the private key always remains secret in the chip means that they seem to be made for handing them over like you would a bank note.

They aren't really notes but cards:



The problem I see with that is that they are selling them for $199 for a pack of 10 unloaded cards. So who is going to want to hand over a device worth $20 when they spend $100?

They look like a pretty cool hardware wallet but I couldn't consider them bank notes.

[bitart]

If it requires an NFC connection to chech the current balance, why the banknote is different from a mobile wallet? It's only that if you hand it over, it does not require a transaction to wait for?

...
They look like a pretty cool hardware wallet but I couldn't consider them bank notes.

This is like handing over your trezor or ledger nano S
I know it's easier to handle for a person who is not so tech savvy, but what in the other topic of this I've already asked the founder: what happens if I have this banknote (card) and by the time when I want to hand it over, the secure chip fails inside? I know that the coins will still sitting on the blockchain but how I can move them if I can't make a backup?
If I lose it, then it's the same like I lose a real banknote, because it's my fault, but if there is a hardware fault, that's not the same...

[TheQuin]

This is like handing over your trezor or ledger nano S
I know it's easier to handle for a person who is not so tech savvy, but what in the other topic of this I've already asked the founder: what happens if I have this banknote (card) and by the time when I want to hand it over, the secure chip fails inside? I know that the coins will still sitting on the blockchain but how I can move them if I can't make a backup?
If I lose it, then it's the same like I lose a real banknote, because it's my fault, but if there is a hardware fault, that's not the same...

From what I've read on their website there is no backup so if it fails or you lose it then you cannot get the private key to your funds any other way. This is what makes them different to other hardware wallets, the original owner has no access to the funds, only physical access give that.
This might be usable like a banknote if they were priced at a few cents rather than $20.

[NeuroticFish]

I think that if they improve their idea a bit, they can change this into Bitcoin cards you can make payments with, much more secure than the smartphone, clearly, and you don't have to get your Trezor with you.
On the other hand, compatible readers need to also be deployed in shops, I guess.

However, the idea is interesting, but it's too expensive. And backup option is a must.