Signal integrates privacy-focused cryptocurrency to its messaging app

Key facts:

Transactions within Signal will be made with the MobileCoin, MOB cryptocurrency.

MobileCoin aims to protect the privacy of users using Signal Payment.

Signal, an open source instant messaging and calling app, released a test update with various features yesterday, April 6, including the payments feature, Signal Payment. This new feature allows Signal users to receive and send money through the app, just as quickly as a text message.

According to the official Signal blog, payments with Signal Payment will be made through the network of MobileCoin, which has its own privacy-focused currency, MOB.

In an interview by Wired magazine with Signal creator and CEO Moxie Marlinspike, he said that the idea of ​​Signal Payment was to extend the privacy protection that Signal has so far offered in its encrypted conversations, to the new payment system.

There is a palpable difference in the feeling of what it is like to communicate through Signal knowing that you are not being observed or heard in front of other platforms (…) I would like to reach a world where you can not only feel that when you talk to your therapist through Signal, if not also when you pay your therapist for the Signal session.

Moxie Marlinspike, CEO and creator of Signal.

Signal was recommended by Elon musk and Edward snowden in January after the announcement of the new WhatsApp privacy policies, as the application prioritizes the protection of information and does not collect any user data.

Following this line, to safeguard the privacy of its users, Signal will have no way of accessing the balance information, transaction history or funds they have in MobileCoin or Signal Payment.

For now, the Signal Payment function will only be available for IOS and Android for Signal users who live in the United Kingdom. As the function develops, it will gradually open up in other countries.

MobileCoin started trading as a real value coin in December last year with a supply of 250 million coins. Following the announcement, the coin has skyrocketed from USD 6 per unit at a peak of USD 66. However, at this moment it experiences a setback that places it in USD 38 per currency, as can be seen on CoinMarketCap.

Since December of last year, the MobileCoin cryptocurrency began to trade as a currency of real value, going from being worth USD 6 each, to USD 66. Currently a MOB is valued at USD 38. Source: coinmarketcap.com

The MOBs received through Signal can be exchanged for now only through the FTX exchanges, which in 2020 launched futures contracts on the Bitcoin hash rate, as well as on Bitfinex, BigONE and HotBit.

Privacy within MobileCoin transactions

MobileCoin, like Bitcoin, is based on a UTXO transaction model, where each one of them is independent and therefore there is no unitary balance, although it can be reflected in this way before the user.

The network, as read on its GitHub, also uses the protocol called CryptoNote, used by Monero in its early days, and various obfuscation techniques such as Ring Confidential Transactions and Zero Knowledge Proof. The first technique mixes user transactions so that it is difficult to track them, while hiding the number of user transactions; while the second has the function of guaranteeing that a transaction has occurred without revealing its value.

MobileCoin finally uses the SGX function of Intel processors, to ensure that network servers remove all transaction information, leaving only a sort of crypto receipt confirming that this was done.