What is CloakCoin?
CloakCoin rEVOLUTION wallet v188.8.131.52
CloakCoin is a 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 a algorithm that provides total privacy, Cloakcoin aims to enpower people with financial freedom and data privacy in a simple, practical, economical and virtually instantaneous manner.
Cloakcoin is a dual PoW/PoS (Proof of Work, Proof of Stake) coin, which is now in the Proof-of-Stake (interest bearing) stage.
CloakCoin 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.
Cloakcoin was first launched in June 2014. After skyrocketing initial success, the project sank among rumours of a pump & dump scam and lack of development of promised features. The project was eventually abandoned by its creators.
On the 14th October 2014, a new team of developers composed from members of the community, and with c4shm3n as their leader 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. Has from 2018 the CloakCoin project is managed by lasvegas83 and development is carried out by anorak.
Cloakcoin Security and Privacy Protection
CloakCoin is a peer-to-peer offchain 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.
Overview of ENIGMA
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 a 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 a 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 Audit
In January 2018 Cognosec conducted a security audit of the Enigma technology and the CloakCoin wallet application.
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.