What is CloakCoin?
CloakCoin was first launched in June 2014. After skyrocketing initial success, the project sank among rumors of a pump & dump scam and lack of development of promised features. The project was eventually abandoned by its creators.
On the 14th of October 2014, a new team of developers composed of members of the community took over the project and set out to accomplish what the previous team failed to do: A fully anonymous trustless cryptocurrency. Trustless is defined as not having the need to trust a third party to provide secure and 100% private transactions. Team Cloak started from scratch and managed without ICO or raising of venture capital to build a true privacy coin. All costs like exchanges listings, marketing activities, audits, development, and other costs have been on the team's own cost — private funds!
What is Cloak?
Bitcoin was the first cryptocurrency to facilitate borderless, peer-to-peer transaction. We’ve taken the same concept of global, trustless payments, and added an unbreakable layer of privacy protection.
Attributes shared between Bitcoin and our project’s native crypto, CloakCoin, include open-source code plus an auditable coin supply. Underneath our upgrades over the world’s first crypto — 6% annual coin-holder rewards, 60-second transaction speeds, and an environmentally-friendly network — lies an unwavering dedication to financial privacy.
CloakCoin is an open-source cryptocurrency and worldwide payment system. CloakCoin is one of the first decentralized concepts in the crypto market that address Bitcoin's inadequacy in offering true anonymity. By using an algorithm that provides total privacy, CloakCoin aims to empower people with financial freedom and data privacy in a simple, practical, economical and virtually instantaneous manner.
CloakCoin was a dual PoW/PoS (Proof of Work, Proof of Stake) coin, which is now in the Proof-of-Stake (interest-bearing) stage.
CloakCoin's purpose is to give its owners innate financial freedom. CloakCoin distances itself in supporting illegal markets, activities or malicious elements acting to harm others in any way. The Team repeatedly reiterates that the software should never be used to cause any kind of damage or injury to individuals or organizations.
Since 2014 CloakCoin's motto is Peace & Love and every official announcement is terminated by this message.
What is ENIGMA?
ENIGMA is at heart a decentralized, off-blockchain mixing service which allows users on the CloakCoin network to transmit Cloak privately and securely to each other. It has been designed to ensure the mixing process is both secure and untraceable to third party observers. This ensures a user’s Cloak coins are kept safe during transfer and that the sender and receiver cannot be tied or associated. Cloak coins are never transferred to an intermediate party during Cloaking, so coins remain safe. We have also worked hard to ensure the ENIGMA system rewards users who assist in Cloaking transfers and will continue to improve the process and further incentivize active participants. Anyone with Cloak coins can participate in Cloaking operations, which allows them to leave their wallet running in Staking/Cloaking mode to allow it to passively assist in Cloaking and earn significant rewards.
If Alice wants to anonymously send $CLOAK to Bob, without risk to her funds, she can now use ENIGMA to 'Cloak' her transfer to Bob. To do this, Alice sends a request to the Cloak network, detailing her public session-key, how many mixers she requires and the amount of Cloak she wishes to send. Other ENIGMA nodes on the network will assist Alice in 'Cloaking' her transaction by providing their own encrypted inputs and outputs for the transaction. The ENIGMA process has also been carefully designed to avoid Cloakers being aware of the true recipient of an ENIGMA transaction. ENIGMA utilizes CloakShield to provide end-to-end encryption and ensure data integrity to protect you from snooping third parties on the network.
CloakShield is utilized for all sensitive off-blockchain communications within the Cloak system. ENIGMA has been designed to allow Cloak nodes to cooperate without exposing themselves to risk from malicious third parties or bad actors on the network. This ensures that no one participating in a ENIGMA transaction has their funds exposed to risk of theft. If an ENIGMA transaction fails or expires before completion, funds are unlocked and returned. Cloak users who have 'Cloaking Mode' enabled will assist in cloaking transactions, for which they earn a reward. 'Cloaking Mode' does not require a full wallet unlock and functions when the wallet is 'unlocked for staking only'. ENIGMA transactions incur a fee, which is used to cover the network transaction fee for the finalized ENIGMA transaction and reward 'Cloakers'.
Cloakcoin Security and Privacy Protection
CloakCoin is a peer-to-peer off-chain mixing service network without master nodes, custom blockchain formats, external databases, or ledgers (like sub blockchains).
Communications between all peers are encrypted using a TOR-like onion routing system called CloakShield. Transactions are supported by users of the CloakCoin network called 'Cloakers', who provide fake inputs and outputs. Cloakers help to obfuscate the link between the sender and the recipient of a transaction. Any user with a connected wallet client is eligible to be a Cloaker, the only condition is to have a positive balance on the wallet. No data is logged and no information remains that would allow a researcher to trace back transactions.
Cloakcoin Security Audit
In January 2018, the NASDAQ-listed cybersecurity company Cognosec conducted a Security Audit of the ENIGMA technology and the CloakCoin Client. The aim of the assessment was to provide an independent and reliable opinion on the security of the CloakCoin application and specifically on the ENIGMA technology.
The Security Audit shows a good public recognition of our work and the trustworthiness of the project.
CloakCoin Business Pitch + Project Vision Video
This is our project pitch for marketing and application forms. Everyone can use it and we would be pleased if you can spread it in the crypto sphere. The most important information about CloakCoin in one Pitch and Video to prove that the CLOAK brand is a true privacy coin.