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What is CloakCoin?

2018-12-12 | CloakCoin

CloakCoin is a cryptocurrency that aims to facilitate secure, truly private, and untraceable decentralised transactions through its Enigma protocol.  Enigma is CloakCoin’s payment system, which also forms the basis for any future developments for the CloakCoin network, such as decentralised applications.

What does CloakCoin offer?

CloakCoin has been inspired by Bitcoin and uses blockchain technology in an attempt to change the way in which transactions are done and business is conducted. Cloakcoin wishes to improve upon the Bitcoin protocol by allowing truly private transactions. When Bitcoin was introduced, it was often hailed as a means of conducting anonymous transactions. The Bitcoin network allows users to perform transactions between addresses on the blockchain. These addresses look like seemingly random strings of characters and, by itself, do not identify any individual behind it. This aspect gives rise to the idea that transactions made in Bitcoin are anonymous. However, since all transactions are recorded on the blockchain, once an address can be linked to a person, their transactions lose much of that anonymity. With some exceptions, many ways to acquire or sell Bitcoin require users to provide information to verify their identity. Once this is done, their identity is linked to an address on the blockchain and coins going through this address can be traced indefinitely. From a privacy perspective, Bitcoin does not offer protection that can be relied on.

The team behind CloakCoin argues that the current pace of technological advancement and increase in connectivity make privacy more important than ever. Although Bitcoin allows us to transact digital currency securely between users anywhere on the planet, the CloakCoin team expects more and more regulation of the space in the future. From a libertarian perspective, CloakCoin tries to provide an answer to concerns that such regulation may be overly draconian as well as detrimental to the further development of cryptocurrency. With true privacy and anonymity on the payment network, attempts to regulate would be largely futile. As such, CloakCoin envisions a new future in which privacy is a fundamental right.