*************************************************************************** *** DEMONSTRATION HOW ADDRESSES ARE NOT GETTING COMPROMISED *** *************************************************************************** A. Initial situation: Alice wallet address 0: 1 B. Alice sends 1 IOTA to Charlie Alice wallet address 0: 0 Note: 1 IOTA is sent from address 0, 50% of address 0 private key (randomly) is revealed. C. A network wide snapshot is applied. D. After the snapshot Alice attach the same number of addresses she had before the snaphot. Alice wallet address 0: 0 E. Bob wants to pay Alice 10 IOTA. F. Alice creates an address and attach it to the Tangle. Alice gives address 1 to Bob. Alice wallet address 0: 0 address 1: 0 Note: Address 1 is attached to the Tangle. G. Bob sends 10 IOTA to Alice using address 1 Alice wallet address 0: 0 address 1: 10 H. Alice sends 10 IOTA to Dave Alice wallet address 0: 0 address 1: 0 Note: None of the addresses were used twice for outgoing transactions. I. Again a network wide snapshot is applied. J. After the snapshot Alice attach the same number of addresses she had before the snaphot. Alice wallet address 0: 0 address 1: 0 K. Karl wants to pay Alice 1000 IOTA. L. Alice creates an address and attach it to the Tangle. Alice gives address 2 to Karl. Alice wallet address 0: 0 address 1: 0 address 2: 0 Note: Address 2 is attached to the Tangle. M. Karl sends 1000 IOTA to Alice using address 2. Alice wallet address 0: 0 address 1: 0 address 2: 1000 Note: In this example none of the addresses were used twice for outgoing transactions.