Created in June, 2014, CloakCoin is a Proof-of-Stake privacy coin offering anonymous transactions. Cloak is a self-funded project and had no pre-mine or an Initial Coin Offering (ICO) phase. The core team is based in Germany and the project’s code has been audited by the Nasdaq listed company, Cognosec. Their goal is to contribute to the creation of a more secure and private world, by expanding their community in many countries across the globe.
How does it work?
Enigma Payment System
Enigma is CloakCoin’s private, secure and untraceable payment system, that forms the basis of future development and provides the underlying transaction system for the decentralized applications running on the CloakCoin network.
Users can hold their CloakCoins in their wallets and earn a 6% interest through the Proof of Stake system. CloakCoin has no master nodes, so every Cloaker with a balance acts like a master node. Anyone with Cloak coins can participate in cloaking operations as an Enigma node, which allows them to leave their wallet running in Staking mode, to allow it to passively assist in Cloaking and earn significant rewards. There is a minimum of 1 Cloak recommended to earn staking and Enigma rewards.
CloakShield allows the encrypted sending of data to one or more recipients.
It provides secure communications between nodes on the Cloak network using symmetric RSA encryption, backed by an Elliptic Curve Diffie Hellman (ECDH) key exchange. The CloackShield also enables Onion Routing, a technique (used by TOR) for anonymous communication over a computer network. In an onion network, messages are encapsulated in layers of encryption, analogous to layers of an onion. The sender remains anonymous because each intermediary knows only the location of the immediately preceding and following nodes.
Monthly Youtube Updates
CloakCoin has many global coordinators for different languages, and besides that, they also do a monthly update on their Youtube channel, in a series called Around the Cloak. You can visit and subscribe to their Official Youtube Channel here.
General Bytes ATM
CloakCoin is available for purchase & sale on General Bytes, one of the largest Bitcoin ATM manufacturers in the world with over 3000+ ATM’s in 70 countries! The currency is accepted by a lot of merchants with more added to the list every month. You can also check their partnerships on their website.
I contacted the project’s manager, Stefan Kender a.k.a LasVegas83, to talk about CloakCoin’s history, their vision about a free privacy-focused world, the technical details of anonymous transactions and what the future holds for CloakCoin in 2019.
Q: Hello, can you start by introducing yourself?
A: Hey! My name is Stefan Kender, and I am the project manager at CloakCoin. I have over 14 years of experience managing projects in different areas. Inspired by the potential impact of blockchain technologies in the financial world, I got involved in the Cloak Project in 2014 and rebuilt with my great team the Cloak Project with a lot of ambition.
Q: Does someone need to download all the CloakCoin blockchain to become a node? What is its size?
A: Yes, the blockchain must be stored on the hard disk. As soon as the CloakCoin Wallet is installed and started the blockchain will be downloaded automatically. The current size is approx. 1.7 GB. After the blockchain has been fully synced you are a full node or Cloaker as we say.
Q: Does Cloakcoin have its own blockchain? Is it a Bitcoin fork?
A: CloakCoin has its own blockchain and is a fork from Bitcoin. CloakCoin is based on the ‘Blockchain’ concept but has added some very simple and clever layers of communication and a sophisticated off-chain coin mixing system making it impossible for 3rd parties to trace payment transactions between CloakCoin wallets. Our developer implemented the PoSA³ (now ENIGMA) technology in 2015. In 2018, Cognosec a NASDAQ-listed cybersecurity company audited the ENIGMA technology. CloakCoin uses the Proof of Stake (PoS) consensus with an incredible 6% interest per year. Cloak uses the x13 algorithm with a block time of 60 seconds and has a current coin supply of 5.1 million.
Q: What are your thoughts on privacy in the modern world? In this digital era, how can we utilize the blockchain technology and how important is the economic sovereignty of the individual?
A: Privacy is a problem in the modern world. It is more important than ever. The increasing digitalization of large parts of our society means that we are very vulnerable to data misuse. It’s time to protect privacy! Everyone has the right to privacy!
Here’s a good quote from Edward Snowden:
“Arguing that you don’t care about the right to privacy because you have nothing to hide is no different than saying you don’t care about free speech because you have nothing to say.”
Blockchain technology solves the core problems of decentralized systems, i.e., blockchain technology ensures that fraud is impossible. All this without a central instance. This should be an important factor in this day and age. Blockchain technology opens up the opportunity to decentralize the Internet. We have to work together because we are all in the same boat to realize this.
Q: Major companies like Google and Facebook have recently been accused of not protecting the user’s data. Also, Bitcoin’s creator, Satoshi Nakamoto, still remains anonymous to this day and we really don’t know who wrote the Bitcoin code. Do you have any concerns regarding the origin of Bitcoin and can privacy coins fulfill the cypherpunk vision for a free world?
A: Anyone who browses the Internet today leaves traces behind. Large service providers such as Facebook and Google have stored vast amounts of sensitive data from us. Apps used on our mobile phones can be linked to Facebook and Google to log in. Various apps such as dating, sports, and financial apps collect highly sensitive data and can be misused at any time.
I don’t know who the real developer of Bitcoin is. It could be the neighbor next door, a math professor, a cyber group or even government! Maybe it was a Greek. Even back in time, there was a supercomputer in ancient Greece. 😉
My opinion is that blockchain technology and cryptocurrencies are going to change the world. This also includes CloakCoin and Privacycoins. It’s only a matter of time!
Q: CloakCoin is in partnership with NEM. Is it possible that you will cooperate with other projects as well?
A: That’s right! We will participate in NEM events and represent our project as a privacy solution. We’re working on it to form new partnerships in the future. Furthermore, we are now a member of the PoS Alliance. The Proof of Stake Alliance is a group of developers, researchers, advocates, projects and businesses that have come together to improve and promote the use of Proof of Stake as a consensus mechanism.
Q: CloakCoin is a currency where everyone fairly receives 6% for staking. I noticed that your website supports 15 languages. Do you see the community expanding more in the future and attracting more users to the ecosystem?
A: That’s correct! Everyone with a Windows, Linux or Mac wallet receives a staking reward of 6%. That is one of our main goals! We would like to offer for every user information about CloakCoin. The tasks of our coordinator is to advise and support everyone in their own language. It is very important to us that people understand our unique technology!
Q: Do you have any plans for more merchant adoption?
A: Almost every day we announce a new vendor on our social media channels. We are working hard to build a worldwide mass adoption for CloakCoin. You can find our current vendors here: www.cloakcoin.com/en/vendors
Q: I read that the original founder & coder of CloakCoin has returned. What are the goals of the team and what can we expect from CloakCoin in 2019?
A: This is a somewhat longer story…
The true founder of CloakCoin left the project in 2014 with his team after manipulating the market with a pump & dump or rather exit scam. At that time, I was only a silent investor and lost a lot of money through it. There was a lot of unrest and nobody knew what will happen next.
Through long conversations with the injured, a friendship has formed after a while. Among them was Cashmen. We have decided to take over the project! Cashmen became the project manager and me his right hand. We have worked hard on the development for three years and financed the project out of our pockets. In 2017 Cashmen left the project for personal reasons and handed over the management as project manager to me. The developer and inventor of our untraceable transaction system ENIGMA left the project shortly after.
New developers quickly joined and we started to build a strong team. We have set up a global ambassador program and we now have seven coordinators in the organization who support us worldwide!
The development team has been working hard on improvements to our untraceable transaction system and has achieved great success. Recently, ENIGMA’s godfather joined the development team again and now supports us with the implementation of the dev fund, with the optimization and improvement of the ENIGMA system and PoS protocol.
The dev fund will generate $CLOAK which accumulates over time in a wallet address. Through the vote of the community about our decentralized governance system, $CLOAK can then be released and used for various activities to drive the project to more success. We have big plans and we look forward to an exciting and successful year in 2019 for privacy & PoS!
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