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CloakCoin is a cryptocurrency that’s designed to facilitate anonymous and decentralized transfers. CloakCoin develops its own secure privacy protocol called ENIGMA. It enables private, and anonymous monetary transactions all over the world without compromising blockchain auditability. Anyone can participate in this digital system, and only a smartphone or computer is required.
CloakCoin first came onto the scene in the year 2014 and it uses the POS consensus protocol.
CloakCoin is based on blockchain technology using the same concept as Bitcoin, but with a few new changes. There has been an addition of encrypted layers of communication and a off-blockchain coin mixing system that provides high security and makes it impossible for third parties to trace any sort of private transaction between CloakCoin wallets.
Cloak Coin has a fast transaction. It takes around 60 seconds. It is an essential element in ensuring secure and private currency trades.
CloakCoin works with 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 onion routing system implementation, similar to TOR, called CloakShield. Private 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.
Security by Privacy & Anonymity
One of Bitcoin's biggest imperfections for users that seek privacy is Bitcoin's pseudo-anonymity. Through analysis of bitcoin's unencrypted network it is possible to trace back, from the public blockchain, the parties involved in a bitcoin transaction. Cloakcoin solves the problem of linkable adresses with the Enigma trustless consensus protocol and to improve security the Cloakshield infrastructure provides various layers of encryption on all network communications.
The blockchain system of CloakCoins is not incorporated with custom data or using side chains. It uses ENIGMA off-chain mixing to allow fully private and untraceable monetary transactions.
CloakCoin includes Proof-Of-Stake minting that makes use of held coins to protect the network instead of using expensive mining equipment. CloakCoin developers reject the idea of master-node implementation and to facilitate access to the rewards mechanism every wallet involved in the CloakCoin network is equally eligible to earn rewards from processing ENIGMA transactions.
All the coins used in CloakCoin transactions can be interchanged and they are all equal. Since CloakCoin's ENIGMA transactions can not be traced, there is no way a third party can identify the origin of a coin and thus devaluate it by its past history.
The latest price of CloakCoin (CLOAK) crypto currency is available on the BitcoinWiki by COIN360 widget.