• Market Cap: $3,394,581,211,806.79
  • 24h Vol: $112,105,250,004.62
  • BTC Dominance: 61.70%
XBT.Market
Advertisement
  • Home
  • Coins MarketCap
  • Crypto Exchanges
  • Crypto Calculator
  • Top Gainers and Loser
  • News
  • Contact Us
No Result
View All Result
XBT.Market
No Result
View All Result
Home Bitcoin

Using Bitcoin To Establish VPN Connections Without Trusted Third Parties

Jon Hartney by Jon Hartney
July 23, 2022
in Bitcoin, Blockchain, Business, Market
0
Using Bitcoin To Establish VPN Connections Without Trusted Third Parties
189
SHARES
1.5k
VIEWS
Share on FacebookShare on Twitter

A Bitcoin VPN allows two or more parties to discover each other and be able to communicate privately over the public internet without trust.

Related articles

Washington’s second-biggest city, Spokane, bans crypto ATMs

Washington’s second-biggest city, Spokane, bans crypto ATMs

June 18, 2025
Archetyp dark web market shut down, but ecosystem adapts: TRM Labs

Archetyp dark web market shut down, but ecosystem adapts: TRM Labs

June 18, 2025

This is an opinion editorial by Moustafa Amin, a technology leader with more than 20 years of professional experience across large organizations, service providers and telephone companies.

Bitcoin is undoubtedly the world’s newest form of money. Governed by no central authority and controlled by no one, it represents the financial rescue that the world is looking for. In my opinion, Bitcoin freedom can be extended to escape eavesdroppers that work relentlessly day and night to intercept, monitor or even control our online activities.

Traditional VPN

Today, if two endpoints want to talk privately to each other, they typically need to do so via a trusted, third-party intermediary. As an example, consider what happens if any two endpoints want to set up a virtual private network (VPN) tunnel between themselves to carry on a private conversation over the public internet. They need to first be able to find out about each other. This is the discovery part.

If the two endpoints can somehow find each other, they may still not be able to directly communicate — for example, if they have private IP addresses or are hidden behind broadband routers or gateways. This is the data communication part.

Additionally, if more than one device wishes to share the same VPN channel to talk to each other, then additional information needs to be exchanged between all VPN points.

The first two parts of this process entail using a third party to facilitate discovery and communication. For example, the two endpoints need to buy a service from a VPN service provider and specify that they wish to communicate. The service provider serves as a trusted intermediary to the two parties.

(Graphic/Moustafa Amin)

Challenges

This third party not only needs to be trusted, but also must be reliable. If it is compromised, then the privacy is gone. It also needs to be always online. If this third party was to go out of business, the two endpoints cannot communicate with each other.

One pressing issue that is present in this centralized VPN model is the need to propagate a shared key to the communicating entities that they use to encrypt and decrypt the traffic between them. This key exchange usually happens over a separate channel — an out-of-band channel (think: email, phone, text message, etc). This apparently lacks the desired privacy-prohibiting eavesdropping or unlawful interception of the shared key.

Also, it is not uncommon in some countries to restrict known VPN ports. It happened to me when I opted in for an annual subscription for a well-known VPN service. I found that my VPN client couldn’t connect to any VPN server worldwide. I opened a case with the provider and fortunately, they understood the situation and refunded my money.

Moreover, some banks or other traditional financial systems (credit cards or payment processors) can deny or restrict payments if one attempts to subscribe to known global VPN services.

Now, the question becomes: How do we allow two or more entities to communicate among themselves without the use of third-party intermediaries, thus avoiding all these issues? To answer this, I am glad to introduce Bitcoin VPN.

What Is Bitcoin VPN And How Does It Work?

Bitcoin VPN is a solution that leverages the Bitcoin network (Layer 1) or the Lightning Network (Layer 2) to allow two or more parties to discover each other and be able to communicate privately over the public internet.

As with traditional VPN, a Bitcoin VPN client needs to access the web portal of their desired VPN service. This client could be a telecommuter that needs to be connected and access their corporate headquarters, or a normal VPN user who wants to access the internet from another location to bypass some content restriction for example.

When they opt for the VPN service, the client will be presented with a Lightning invoice or simply a wallet address along with an equivalent transaction amount that needs to be sent. In the case of a telecommuter, the transaction amount should be minimal (no enterprise would bill their employees to connect to their network). For a regular VPN service, the transaction could be an hourly bill.

In all cases, the client sends the transaction to the presented Bitcoin address.

Once received, the VPN server responds by sending back to the client a transaction and passes the server public key as a clear text embedded in the transaction metadata.

As everything is publicly stored on the Bitcoin ledger and to avoid any possible eavesdropping, the client encrypts the following data using the received server public key:

  • Client public IP address.
  • Client public key.
  • Other options that would be needed for the VPN connection (port number, etc.).

The client sends another transaction to the server, embedding the encrypted message from the previous step in the transaction metadata.

The server decrypts the encrypted message using its private key.

Equipped with all required information for the VPN, the server then establishes the required VPN tunnel to the client (public IP address: port number) and pairs by utilizing the client public key for the VPN encryption. Note how this differs from a traditional VPN where the client is usually the initiator of the tunnel.

Three-way handshake and VPN tunnel establishment (Graphic/Moustafa Amin)

For anyone who would argue that the same could be achieved with other cryptocurrencies, my goal with Bitcoin VPN is to avoid the centralized nature and subsequent challenges of traditional VPNs by leveraging the true and most decentralized ledger out there (Bitcoin). Just put aside your desire to control and/or make money by uselessly injecting your inferior altcoin of choice in the conversation.

Finally, it is apparent that Bitcoin, with its unique decentralized architecture, offers unlimited opportunities other than its apparent financial capabilities.

This is a guest post by Moustafa Amin. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc. or Bitcoin Magazine.

Read Entire Article
Tags: bitcoinMagzineCryptocurrencyInvestmentMining Bitcoin
Share76Tweet47

Related Posts

Washington’s second-biggest city, Spokane, bans crypto ATMs

Washington’s second-biggest city, Spokane, bans crypto ATMs

by Jon Hartney
June 18, 2025
0

Spokane City Council has banned crypto ATMs to curb rising scams, giving

Archetyp dark web market shut down, but ecosystem adapts: TRM Labs

Archetyp dark web market shut down, but ecosystem adapts: TRM Labs

by Jon Hartney
June 18, 2025
0

The Archetyp dark web market had over 600,000 users, a total transaction

Solana (SOL) Tests Support After Dip — Bounce or Breakdown Ahead?

Solana (SOL) Tests Support After Dip — Bounce or Breakdown Ahead?

by Jon Hartney
June 18, 2025
0

Solana started a fresh decline from the $160 zone SOL price is now consolidating losses and might decline further below...

$150,000 Bitcoin Is In Play—Unless This One Macro Metric Snaps

$150,000 Bitcoin Is In Play—Unless This One Macro Metric Snaps

by Jon Hartney
June 18, 2025
0

Bitcoin may be gearing up for a renewed surge, but according to trader Josh Olszewicz, the bullish setup is walking...

Bitcoin and HYPE could get $844M total windfall from 4 public US firms

Bitcoin and HYPE could get $844M total windfall from 4 public US firms

by Jon Hartney
June 18, 2025
0

DDC Enterprise and Fold Holdings have confirmed raises worth a total of $778

Load More
  • Trending
  • Comments
  • Latest
SUI Price Hits All-Time High – But Questions About Valuation Remain

SUI Price Hits All-Time High – But Questions About Valuation Remain

October 17, 2024
Solana Targets $160 Resistance As TVL Hits New Yearly Highs

Solana Targets $160 Resistance As TVL Hits New Yearly Highs

October 17, 2024
Bitcoin Price Holds Firm: Can It Power Toward New Gains?

Bitcoin Price Holds Firm: Can It Power Toward New Gains?

October 17, 2024
Dogecoin Holder Base Falls To 6-Month Low, But Analyst Believes DOGE Price Is Headed To $10

Dogecoin Holder Base Falls To 6-Month Low, But Analyst Believes DOGE Price Is Headed To $10

October 17, 2024
All aboard! Elon Musk’s Vegas Loop now taking Dogecoin payments

All aboard! Elon Musk’s Vegas Loop now taking Dogecoin payments

0
Crypto owners banned from working on US Government crypto policies

Crypto owners banned from working on US Government crypto policies

0
Korean startup Uprise lost $20M shorting LUNC

Korean startup Uprise lost $20M shorting LUNC

0
Ethereum testnet Merge mostly successful — ‘Hiccups will not delay the Merge.’

Ethereum testnet Merge mostly successful — ‘Hiccups will not delay the Merge.’

0
Washington’s second-biggest city, Spokane, bans crypto ATMs

Washington’s second-biggest city, Spokane, bans crypto ATMs

June 18, 2025
Archetyp dark web market shut down, but ecosystem adapts: TRM Labs

Archetyp dark web market shut down, but ecosystem adapts: TRM Labs

June 18, 2025
Solana (SOL) Tests Support After Dip — Bounce or Breakdown Ahead?

Solana (SOL) Tests Support After Dip — Bounce or Breakdown Ahead?

June 18, 2025
$150,000 Bitcoin Is In Play—Unless This One Macro Metric Snaps

$150,000 Bitcoin Is In Play—Unless This One Macro Metric Snaps

June 18, 2025

XBT.Market

This website is an automated news feed powered by the Nebulome cloud system. The site is made possible by YYC TECH Consulting and Alberta Digital Mining Company. As a team with major crypto and bitcoin enthusiasm, we have curated major sources of news, trading and financial data to bring you, our viewer, an unbiased source of truth.

Recent Posts

  • Washington’s second-biggest city, Spokane, bans crypto ATMs June 18, 2025
  • Archetyp dark web market shut down, but ecosystem adapts: TRM Labs June 18, 2025
  • Solana (SOL) Tests Support After Dip — Bounce or Breakdown Ahead? June 18, 2025
  • $150,000 Bitcoin Is In Play—Unless This One Macro Metric Snaps June 18, 2025
  • Bitcoin and HYPE could get $844M total windfall from 4 public US firms June 18, 2025

News Categories

  • Bitcoin
  • Blockchain
  • Business
  • Market

Tags

bitcoinMagzine Cointelegraph Cryptocurrency insidebitcoins Investment Mining Bitcoin NewsBTC

Quicklinks

  • Home
  • Coins MarketCap
  • Crypto Exchanges
  • Crypto Calculator
  • Top Gainers and Loser
  • News
  • Contact Us

© 2022 Xbt.Market - Powered by YYC Tech Consulting & ADMCO.

No Result
View All Result
  • Home
  • Coins MarketCap
  • Crypto Exchanges
  • Crypto Calculator
  • Top Gainers and Loser
  • News
  • Contact Us

© 2022 Xbt.Market by Nebulome.

  • Steakhouse EURCV Morpho VaultSteakhouse EURCV Morpho Vault(STEAKEURCV)$0.000000-100.00%
  • FibSwap DEXFibSwap DEX(FIBO)$0.0084659.90%
  • TruFin Staked APTTruFin Staked APT(TRUAPT)$8.020.00%
  • bitcoinBitcoin(BTC)$84,372.003.58%
  • ethereumEthereum(ETH)$1,885.365.68%
  • tetherTether(USDT)$1.000.00%
  • rippleXRP(XRP)$2.186.84%
  • USDEXUSDEX(USDEX)$1.07-0.53%
  • binancecoinBNB(BNB)$617.995.03%
  • Wrapped SOLWrapped SOL(SOL)$143.66-2.32%
  • solanaSolana(SOL)$128.974.23%
  • usd-coinUSDC(USDC)$1.000.01%
  • dogecoinDogecoin(DOGE)$0.1736117.78%
  • cardanoCardano(ADA)$0.687.61%
  • tronTRON(TRX)$0.2342340.79%
  • staked-etherLido Staked Ether(STETH)$1,884.065.48%
  • Gaj FinanceGaj Finance(GAJ)$0.0059271.46%
  • Content BitcoinContent Bitcoin(CTB)$24.482.55%
  • USD OneUSD One(USD1)$1.000.11%
  • wrapped-bitcoinWrapped Bitcoin(WBTC)$84,309.003.84%
  • ToncoinToncoin(TON)$4.157.66%
  • UGOLD Inc.UGOLD Inc.(UGOLD)$3,042.460.08%
  • ParkcoinParkcoin(KPK)$1.101.76%
  • chainlinkChainlink(LINK)$14.027.76%
  • leo-tokenLEO Token(LEO)$9.211.17%
  • stellarStellar(XLM)$0.2743585.70%
  • avalanche-2Avalanche(AVAX)$19.647.71%
  • Wrapped stETHWrapped stETH(WSTETH)$2,256.395.40%
  • USDSUSDS(USDS)$1.00-0.01%
  • SuiSui(SUI)$2.429.03%
  • shiba-inuShiba Inu(SHIB)$0.0000137.71%
  • hedera-hashgraphHedera(HBAR)$0.17284810.00%
  • Yay StakeStone EtherYay StakeStone Ether(YAYSTONE)$2,671.07-2.84%
  • polkadotPolkadot(DOT)$4.257.34%
  • litecoinLitecoin(LTC)$85.265.04%
  • bitcoin-cashBitcoin Cash(BCH)$314.248.23%
  • mantra-daoMANTRA(OM)$6.301.94%
  • Pundi AIFXPundi AIFX(PUNDIAI)$16.000.00%
  • PengPeng(PENG)$0.60-13.59%
  • Bitget TokenBitget Token(BGB)$4.664.95%
  • wethWETH(WETH)$1,884.285.66%
  • Ethena USDeEthena USDe(USDE)$1.00-0.04%
  • Binance Bridged USDT (BNB Smart Chain)Binance Bridged USDT (BNB Smart Chain)(BSC-USD)$1.00-0.18%
  • MurasakiMurasaki(MURA)$4.23-13.71%
  • Black PhoenixBlack Phoenix(BPX)$3.351,000.00%
  • Pi NetworkPi Network(PI)$0.714.53%
  • HyperliquidHyperliquid(HYPE)$13.729.80%
  • Wrapped eETHWrapped eETH(WEETH)$2,003.675.53%
  • WhiteBIT CoinWhiteBIT Coin(WBT)$28.350.76%
  • moneroMonero(XMR)$217.841.31%
  • Zypto TokenZypto Token(ZYPTO)$0.037139-3.47%
  • uniswapUniswap(UNI)$6.217.66%
  • AptosAptos(APT)$5.395.79%
  • PepePepe(PEPE)$0.00000811.37%
  • daiDai(DAI)$1.00-0.01%
  • nearNEAR Protocol(NEAR)$2.635.26%
  • XT.comXT.com(XT)$3.08-1.65%
  • Layer One XLayer One X(L1X)$23.35454.66%
  • sUSDSsUSDS(SUSDS)$1.050.05%
  • okbOKB(OKB)$48.762.12%
  • gatechain-tokenGate(GT)$22.883.58%
  • crypto-com-chainCronos(CRO)$0.1015853.46%
  • Coinbase Wrapped BTCCoinbase Wrapped BTC(CBBTC)$84,342.003.68%
  • MantleMantle(MNT)$0.814.44%
  • Tokenize XchangeTokenize Xchange(TKX)$33.460.86%
  • internet-computerInternet Computer(ICP)$5.517.85%
  • ethereum-classicEthereum Classic(ETC)$17.074.81%
  • OndoOndo(ONDO)$0.817.47%
  • First Digital USDFirst Digital USD(FDUSD)$1.00-0.12%
  • aaveAave(AAVE)$168.6110.19%
  • Aerarium FiAerarium Fi(AERA)$7.14-13.11%
  • Ethena Staked USDeEthena Staked USDe(SUSDE)$1.170.30%
  • BSCEXBSCEX(BSCX)$237.310.49%
  • Official TrumpOfficial Trump(TRUMP)$10.354.36%
  • vechainVeChain(VET)$0.0233636.04%
  • cosmosCosmos Hub(ATOM)$4.538.09%
  • fantomFantom(FTM)$0.70-1.56%
  • BittensorBittensor(TAO)$231.277.72%
  • BlackRock USD Institutional Digital Liquidity FundBlackRock USD Institutional Digital Liquidity Fund(BUIDL)$1.000.00%
  • EthenaEthena(ENA)$0.3616194.37%
  • render-tokenRender(RENDER)$3.6710.91%
  • filecoinFilecoin(FIL)$2.927.72%
  • CelestiaCelestia(TIA)$3.181.75%
  • Black AgnusBlack Agnus(FTW)$0.000183423.46%
  • Lombard Staked BTCLombard Staked BTC(LBTC)$84,465.004.02%
  • POL (ex-MATIC)POL (ex-MATIC)(POL)$0.2063993.13%
  • KaspaKaspa(KAS)$0.0682239.38%
  • STAUSTAU(STAU)$0.17397910.95%
  • FasttokenFasttoken(FTN)$4.020.01%
  • Sonic (prev. FTM)Sonic (prev. FTM)(S)$0.5212.98%
  • algorandAlgorand(ALGO)$0.1896979.65%
  • ORA CoinORA Coin(ORA)$4.885.92%
  • ArbitrumArbitrum(ARB)$0.3397526.22%
  • Arbitrum Bridged USDT (Arbitrum)Arbitrum Bridged USDT (Arbitrum)(USDT)$1.000.07%
  • GGTKNGGTKN(GGTKN)$0.1121180.75%
  • kucoin-sharesKuCoin(KCS)$11.231.19%
  • Solv Protocol SolvBTCSolv Protocol SolvBTC(SOLVBTC)$84,076.003.32%
  • fetch-aiArtificial Superintelligence Alliance(FET)$0.4856098.68%
  • optimismOptimism(OP)$0.776.43%
  • StoryStory(IP)$4.75-2.68%