About CloakCoin

In the cryptocurrency universe there are more and more projects that focus on 'privacy by design'. This is not surprising, because the word 'crypto' is an abbreviation for cryptography. There are several projects, each with their own way of enabling privacy for the end user.

CloakCoin is one such project, it focuses on facilitating untraceable transactions. In this talk, we'll take a look at what CloakCoin is and how it works.

What is CloakCoin and how does it work?

What is CloakCoin?

Privacy, security and decentralized transactions is why CloakCoin was developed. CloakCoin uses the 'Enigma' payment system, a unique and anonymizing technology that enables untraceable transactions. The technology behind Enigma has been developed by organizations like Cognosec GMBH (a NASDAQ registered cybersecurity company) thoroughly tested and verified.

The project was developed with the aim of guaranteeing total anonymity in a world where privacy and freedom are increasingly endangered. Threats and perceived threats to national security are increasingly taking away the privacy of a citizen under the name of security. CloakCoin is based on the blockchain technology, but has found a solution to a very complicated problem in a smart and elegant way thanks to the addition of off-blockchain coin mixing.

How does CloakCoin work?

With Enigma, it is impossible for third parties to gain insight into transactions between the wallets and the blockchain. Today, CloakCoin is one of the best systems available for conducting private transactions. In addition, it is also one of the friendliest systems and gives anyone with a computer or smartphone the opportunity to participate in the new digital economy. CloakCoin is a pure peer-to-peer network and has no need to use masternodes, custom blockchain formats, databases or external ledgers where information is stored.

Most digital currencies (including bitcoin) are at risk of possible devaluation by third parties. An example of this is the seized bitcoins during an investigation into Silk Road. Digital currencies almost always leave a trail that can be followed with loss of value as a possible risk. Through Enigma's CloakCoins payment system, Cloak guarantees equality and interchangeability (also called fungibility). This makes devaluation less possible.

CloakCoin stands out as a leading privacy technology. Like most other cryptocurrencies, it can be kept in a wallet or on one of the many exchanges. By 'stacking' CLOAK you help to secure the Proof of stake (PoS) network and users receive an annual reward of about six percent. In addition, each wallet has the opportunity to receive additional rewards by participating as a Cloaker to enable Enigma transactions.