Comparing CloakCoin to the leading Privacy Coins in 2019
The essence of Bitcoin, upon its conception, was to give back financial power to the masses. Banks and other monetary institutions had control over money leaving the masses at their mercy.
Bitcoin offered freedom from such institutions. However, another need arose that was equally as pressing. The requirement for private transactions.
Most people may think that they have nothing to hide.
However, safety and security concerns arise from the ease through which people can be traced and their habits discovered over the financial transactions they make.
Having never declared privacy, there was a need for privacy coins that would offer the benefits of Bitcoin while ensuring that the transactions undertaken could not be traced; thus- the creation of privacy coins.
Privacy coins were set up to offer privacy during transactions done via cryptocurrency through innovations that would mask crypto wallet addresses among other specific identifiers.
Private crypto coins such as CloakCoin were among the first to be introduced to the market.
The anonymity promised by these applications and the ready market for these products and services influenced innovators to come up with more privacy coins such as Zcoin, Monero, Zcash, and Dash.
The privacy coin companies were banking on their anonymity appeal to break into the cryptocurrency market. However, the privacy coins offered more than just privacy; fungibility was another advantage users would enjoy once they started transacting through privacy coins.
The following section discusses some of the privacy coins in the market.
CloakCoin is an all-around privacy coin. Its main engine is Enigma which is an offchain mixing system that ensures privacy is maintained in all transactions.
In as much as privacy is the goal, convenience also has to be factored in. CloakCoin has impressive speeds which are up there with its competitors.
It is ten times faster than Bitcoin, and its transaction speeds also rivals that of some of its competitors, such as Zcash.
Enigma makes all transactions carried out via CloakCoin anonymous and private. CloakCoin is arguably an industry leader when it comes to these two attributes.
CloakCoin is fully anonymous and private. CloakCoin offers a perfect balance between privacy and convenience in the privacy coin space.
CloakCoin ensures that all transactions carried out via the platform are safe.
Users are assured that every transaction they initiate will be successfully executed through the application with no third parties involved thus increasing the privacy of the platform.
Fungibility is a crucial feature in privacy coins.
CloakCoin is fungible; hence the value of the coins transacted remains the same, while transaction history remains private.
Monero offers its unique system that ensures privacy and anonymity. Monero has robust systems; Stealth Addresses and Ring Confidential Transactions, for privacy and anonymity.
Stealth address prevents any links among addresses on the Monero Blockchain while ring signatures ensure that outputs are masked such that the original sender of the coins is unable to trace the movements of the sent coins.
Fungibility in Monero is also maintained. With fungibility users in Monero are assured that their coins retain the same value throughout their trading cycle.
Because of the lack of history, the coins are unable to be blacklisted.
Monero is on the front foot in terms of privacy as they are at the time of writing, working on Kovri, an extra layer of privacy and security in their system.
The most notable feature of Kovri is the dissociation of IP addresses from transactions which makes traceability even harder.
It is also important to note that Monero is fully decentralized and is led by volunteers.
Zcash uses the cryptographic privacy method “zk-SNARKs” (zero-knowledge Succinct Non-Interactive Argument of Knowledge).
This method ensures that the data sent can be verified as true without revealing the data. The technique employed is robust.
However, the challenge with Zcash is that privacy is optional; thus users have to opt-in.
Zcash is also slow compared to other privacy coins as the process of creating zero-knowledge proofs takes much time.
In terms of fungibility, it is possible for coins to be traced as Zcash only offers optional privacy.
More information on fungibility and how it applies to privacy coins such as CloakCoin can be found via the official CloakCoin wiki.
Zcash is also not fully decentralized. Zcash has some representatives that may influence the control of the platform.
CloakCoin released a native crypto coin wallet that helps in maintaining the privacy and anonymity users require.
CloakCoin’s secure crypto wallet is primarily for storing CloakCoins which can be staked yielding 6% in returns annually.
Rewards are a popular way of getting users to sign up. Zcash, Monero, and other privacy coins have their reward programs to stay as competitive in the privacy coin market.
Fungibility, decentralization and privacy are the key features through which privacy coins can be judged.
The higher the privacy coins score in these categories, the more likely they are to perform. All these privacy coins have their strengths and weaknesses.
Depending on the requirements of the potential user, any privacy coin may be suitable.
Based on the information provided in this article, cryptocurrency users are encouraged to make informed decisions about privacy coins and how they satisfy their individual requirements.