What is Cloakcoin?
What is Cloakcoin?
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 elements acting outside of the law.
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.
- 30th march 2016 - Version 126.96.36.199 - The first PoSA3 enabled wallet
- 3rd december 2016- Enigma released - It is a improved and renamed version of the PoSA3 algorithm.
- 18th february 2017 - Version 188.8.131.52 - With Enigma and CloakShield
- - NewFeature: Blockchain downloader implemented.
- - NewFeature: SendCloakedToAddress RPC command added.
- - Enhancement: Enigma Message system implemented.
- - Enhancement: "Copy TX ID" option to transaction view in QT Wallet added.
- - Enhancement: Block loading speeded up.
- - Enhancement: Improved PoS block validation.
- - Enhancement: Automatic wallet backup system implemented.
- - Enhancement: Refactor CloakShield to decrease traffic and improve reliability.
- - Enhancement: Refactor and improve Enigma input selection code.
- - Enhancement: Switch blockchain database format to LevelDB.
- - Enhancement: Removed 'NumSplits' from the Enigma process and increase min-cloakers by one.
- - BugFix: Retain coin-lock once a Cloaker signs an Enigma transaction until new block is received.
- - BugFix: Stop Cloakers supplying an extra blank output address causing the Enigma transaction to fail.
- - Misc: Renamed PoSA to Enigma.
- 20th February 2018- Version 184.108.40.206 - Evolution - Changes to the Enigma layer, based on and following the Cognosec audit/review, bug fixes and some general improvements.
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”. 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.
How does it work?
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 Cloak wallet application. The aim of the assessment was to provide an independent and reliable opinion on the security of the Cloak application and specifically on the Enigma technology.
The link for the complete report can be found on: