Category Archives: Cryptocurrency

Greatest Online Hack And Attacks – How To NOT Become A Victim!

Greatest Online Hack And Attacks – How To NOT Become A Victim!

The Internet Is Amazing, Yet Ruthless!

While the commercialized version of the internet we know of today began to take shape from the late seventies to the early eighties, many forward thinking investors and entrepreneurs cemented themselves in history and generated a league of long term, generational wealth.

However it hasn’t been plain sailing, the internet has created opportunities for companies such as Microsoft, Cisco, Amazon and so on but also for ‘bad actors’ and fraudulent entities seeking to manipulate, steal and take advantage of people’s vulnerabilities.

In this article, we will be looking at several examples of successful hacks, data breaches and attacks and solutions to help prevent it happening to yourself!

TalkTalk Data Breach

In late 2015, popular UK internet service provider Talktalk announced that up to 157,000 of customers’ data had been compromised.

Reports on the incident detailed the hackers had access to sensitive information such as account details, DOB, addresses and up to 15,000 bank account and sort-code numbers were stolen.

At the time, news of the event triggered Talktalk’s share prices to plummet by about a third of their original value!

The Conficker Worm Of 2008

While this is not the most detrimental example in comparison to others, its longevity is something worth noting.

The Conficker worm is malware software that replicates itself and compromises any machine it gets on to, creating havoc by spamming your device or opening backdoor vulnerabilities by becoming a keyboard logger, meaning any passwords or sensitive information entered on your computer are automatically stored and sent elsewhere without you knowing about it!

Another dangerous feature of this resilient bot, it can deactivate your anti-virus in order to protect itself, it has been going from computer to computer for over eight years and is indeed something to look out for.

Mt Gox Exchange Incident 

Quite possibly the most notorious event in the Bitcoin and Blockchain industry, up until early 2014 Japanese based Mt Gox handled over 70% of the transactional volume of the Bitcoin network and was at the time the largest cryptocurrency exchange in the world.

This was brung to a sudden conclusion as the exchange fell victim to an unforgettable hack and bad actors managed to steal up to 850,000 Bitcoins!

The exchange shortly after declared bankruptcy and with the bulk of Bitcoin transactional volume gone and stolen Bitcoin circulating the eco system, it triggered an eighteen month bear market which effected the entire cryptocurrency markets up until late 2015 and early 2016.

Coincheck

Another cryptocurrency hack, Tokyo based exchange Coincheck experienced the theft of 523 Million NEM coins in early 2018, resulting in over $500 Million stolen from the exchange.

Reports from the exchange detailed that funds held in ‘hot’ (online) wallets had been compromised, since the attack Coincheck has announced it plans to reimburse victims and is in the process of tracking and retrieving the stolen NEM coins.

FBI Hacked By 15 Year Old

In November 2016 a 15 year old boy hacked the servers of the FBI and released detailed information about every undercover agent in the United States!

The data was released on the Dark Web with the most notable point about this hack being that the boy was a total amateur, yet managing to breach the data of what many thought was the most advanced and secure system used by the US Government!

Wannacry Ransomware Attack

An entirely avoidable incident, in May 2017 a worldwide attack was carried out by using the ransomware cryptoworm, which targeted computers running the Microsoft operating system and encrypting the data on the machine.

The hackers demanded Bitcoin if users wanted to restore their computers, and yes some people did pay the ransom! You can view the Bitcoin addresses here!

This rendered computers using older versions of Windows useless, leaving hospitals, businesses and many other computer-orientated industries at the mercy of the hackers, it was later announced that North Korea was behind the incident.

Global Ongoing DDOS Attacks

DDOS or Distributed Denial Of Service Attack is something which happens on a daily basis across the world, you can also view the biggest DDOS attacks online.

How a DDOS works is quite simple, an attacker will literally flood the receiving server with overwhelming amounts of data, overloading its connection and triggering a crash.

The online infrastructure of the West is bombarded with DDOS attacks on a daily basis and anyone from their home can launch an attack, it’s also very common for people to gain the IP of someone from Facebook and flood their internet connection with data.

In the most severe cases when an attacker has the resources a DDOS attack can be extremely disruptive, an example of this is when numerous popular websites, Amazon, Twitter, Netflix and many others became compromised as their servers were literally overloading from extreme levels of data.

Blockchain 51% Attacks And Network Spamming

Even a Blockchain can be rendered useless by similar attacks, a 51% attack is where ‘bad actors’ possess the majority or more than half of the processing power on the respective Blockchain.

With this they can mine empty blocks, slow down the network and generally cause chaos, however for this to be successful on a Blockchain such as Bitcoin or Ethereum’s the ‘bad actors’ will need considerable amounts of processing power, so far the largest Bitcoin mining pools only hold 20% each of the collective processing power.

Spamming the network is again another simple yet effective method of slowing down a Blockchain, providing vast resources are available.

Bitcoin throughout 2017 was spammed with useless transactional data, to the point that its transactional capacity was bloated, this triggered higher transaction fees as the blocks became full.

In late 2016 Ethereum was subject to a vulnerability which meant DDOS attacks could slow down the network’s ability to process information – this resulted in Ethereum forking to patch the vulnerabilities.

How To Avoid Becoming The Victim

Nothing online is 100% impregnable, but there are certain measures that help reduce the risk of being compromised online.

Run regular anti-virus sweeps, Trojans and malware (similar to the Conficker Worm) are extremely dangerous, your computers built in defences and some anti-virus software may not detect it.

Malwarebytes is a free anti-virus, which allows you to scan your device for any suspicious programs, you can delete it after scanning and it usually detects most types of malware, however there are no guarantees of this.

Don’t open suspicious emails, many keyboard loggers and spam bots can use your email to get into your computer, simply by you opening the email allows the malicious program to activate and record all your password entries, website history and even enable it to watch your screen.

Be mindful of who the email is from and keep personal and business emails separate, do not download files from unverified websites, these are likely fraudulent.

Have a work computer and personal computer, it helps to spread risk, having one computer for all your daily tasks can leave you open to being compromised.

If your work device is compromised due to the company being hacked, your personal documents and pictures remain unharmed and vice versa.

Another reason for keeping multiple devices is to prevent individuals from having access to your sensitive and private data.

Phishing, Fake websites and looking out for websites that don’t use HTTPS, in the top right corner of your address bar you will notice a padlock, meaning your information you put in is private (supposedly).

Also this is an excellent way to determine if a website is genuine or not, some websites will literally copy and paste the website template to a fake domain and pretend to be the desired website, many victims from this type of fraud are users of cryptocurrency exchanges.

With a fake login portal you are unwittingly providing bad actors with your username, password and much more!

Never store passwords or private data on a computer or server, for those with cryptocurrency, storing your private key of upmost importance, writing it down on paper and keeping it safe is the ultimate defence, but also not letting websites remember your passwords and debit/credit card information is also key.

Again, as mentioned earlier malware can store every keyboard stroke you enter, only enter financial and personal data on the most trusted and secure websites.

Always be cautious when online, do not trust anything you see and always conduct your own research before signing up or purchasing.

Coinbase Ordered by IRS to Hand Over 13,000 Users’ Data IMMEDIATELY!

Coinbase Ordered by IRS to Hand Over 13,000 Users’ Data IMMEDIATELY!

The Ongoing Battle Between Coinbase and the IRS!

It’s no secret that the IRS has been hot on the heels of Coinbase and its users’ transactional information for over a year, with Coinbase receiving a John Doe summons dating back to December 8th, 2016, with further demands throughout 2017 that transactional data from 2013-2015 was to be handed over.

Coinbase fought back and won a “partial” victory, reducing the amount of data demanded for submission. Unfortunately, while that battle was won, the war was not!

IRS Wins! Summons Will Affect Thousands of Users!

In November 2017, the San Francisco court ruled that Coinbase MUST hand over data of users who completed transactions of more than $20,000 through their accounts from 2013–2015!

“Moreover, Coinbase itself admits that the Narrowed Summons requests information regarding 8.9 million Coinbase transactions and 14,355 Coinbase account holders.

That only 800 to 900 taxpayers reported gains related to bitcoin in each of the relevant years and that more than 14,000 Coinbase users have either bought, sold, sent or received at least $20,000 worth of bitcoin in a given year suggests that many Coinbase users may not be reporting their bitcoin gains.

The IRS has a legitimate interest in investigating these taxpayers.”

Source: Petition to Enforce IRS Summons Pages 6-7

According to the recent notification sent out by Coinbase themselves, the categories of information demanded by the IRS range from private information to transactional data.

“On February 23rd, 2018, Coinbase notified a group of approximately 13,000 customers concerning a summons from the IRS regarding their Coinbase accounts.

The court ordered Coinbase to provide taxpayer ID, name, birth date, address, and historical transaction records for certain higher-transacting customers during the 2013-2015 period.

While Coinbase is unable to provide legal or tax advice, please refer to our Taxes FAQ for more information on taxes and digital currency.

Coinbase’s support article goes on to encourage affected users to seek professional advice on the matter.

If you have concerns about this, we encourage you to seek legal advice from an attorney promptly. Coinbase expects to produce the information covered by the court’s order within 21 days.”

Source: Coinbase Support

How Will This Affect Coinbase

While this latest development in the battle against the IRS does not come as a surprise, it leaves many unanswered questions.

As Coinbase is one of the leading exchanges in the world for purchasing Bitcoin, Litecoin, and Ethereum, will other regulatory authorities from other countries make an attempt to demand information about their citizens?

With the E.U. and other Western nations taking tax evasion via cryptocurrencies more seriously, the reality of this happening is actually a possibility!

It is likely that Coinbase will still trade and be “open” for business for many years to come, but as a business, it will probably take more steps to protect and make its customers aware of potential liabilities they could face in the years following.

Privacy Coins That You Stay Can Anonymous With

With Coinbase under the eye of the law and Bitcoin transactions being traceable by the addresses users send to, is there any privacy in the cryptocurrency space?

Below are some anonymous cryptocurrencies that use encrypted transactions to keep all activity on the network fully private and decentralized.

PLEASE NOTE that this is not investment advice, and when using these coins on a centralized exchange, the exchange will have the purchase history and know all data about the transactions and trades.

If you send via peer-to-peer without the exchanges, the personal sender and receiver only know the transaction!

ZcashThis cryptocurrency uses encrypted transactions to give the user full transparency on the network. This is achieved by using zk-SNARKS, which allows the encrypted transaction to be accepted on the network by miners.

Zcash is the result of the Zerocoin protocol, which is what Zcoin originally used. Zcash’s protocol is the 2.0 to Zcoin’s.

Where to buy:

Where to store:

 

MoneroThe primary currency used on the dark markets, Monero is another favourite in the privacy coin market. It is different to Zcash and other Zerocoin protocol-based cryptocurrencies, as it uses “ring signatures” and “stealth addresses.”

This works by creating one-time addresses for each transaction. The ring signature is a type of encrypted digital signature. A member of a group that each possess the keys can anonymously verify a transaction without it ever being traced back to them.

Where to buy:

 

Where to store

 

Always remember to fully research an exchange or cryptocurrency before purchasing or submitting your information, and research the respective laws of your country. Only invest what you can afford to lose, and be aware of potential tax liabilities in years to come.

Is Verge the Stealth Underdog in the World of Anonymous Cryptocurrencies?

 

 

What is Verge?

In this write-up, we return to privacy-based cryptocurrencies. Today’s chosen cryptocurrency is Verge (XVG). Originally named Dogecoindark after splitting from the Dogecoin blockchain in 2014, Dogecoindark rebranded to what we now know as Verge in early 2016.

Its primary function is to serve as an anonymous cryptocurrency for darknet and mainstream usage, while being able to conduct fast and secure transactions peer-to-peer.

The Competitive Edge: Wraith Protocol, Atomic Swaps, and Privacy

Verge has integrated its wallets with the Tor network, making the cryptocurrency immune to any form of surveillance or overseeing.

Tor (the Onion router) is a network that enables an anonymous exchange of information across a multi-layered network.

The Tor network sends its Internet traffic through a network of over 7,000 relays to conceal a user’s information and location with anonymized data packets and encrypted address information.

Users can also choose to use the I2P network, which has many similarities to Tor.

Is Verge the Stealth Underdog in the World of Anonymous Cryptocurrencies? Is Verge the Stealth Underdog in the World of Anonymous Cryptocurrencies?

Source: https://vergecurrency.com/assets/Verge-Anonymity-Centric-CryptoCurrency.pdf

Verge is also a multi-PoW algorithm cryptocurrency, making it fully mineable with a range of different mining equipment. This enables the network to benefit from more hashing power, which  creates a greater level of security for the Verge blockchain and its users overall.

Its block time is 30 seconds, compared to Bitcoin’s 10 minutes. This makes Verge much faster to use, with the added privacy options of stealth transactions, Tor, and I2P as well.

Another competitive feature on the Verge network is atomic swapping. This allows for the direct transfer of cryptocurrencies from one blockchain to another, such as Bitcoin to Litecoin or Vertcoin to Verge.

The Wraith protocol enables full privacy of transactions and any address information of the sender and receiver. This new feature is capable of being used via the Tor, I2P, or standard Internet networks.

Competitors to Verge in the Privacy Niche

Privacy is popular in the cryptocurrency space. With regulations and the U.S. Government declaring ALL cryptocurrency transactions taxable, 2018 could truly be the year of privacy-based coins.

Verge faces heavy opposition to become the leading privacy-based coin, but competition in a free market usually breeds innovative and advanced products, solutions, and services. Here are some of the top competitors Verge could steal the privacy dominance from:

Monero – Using the ring signature, it was a popular cryptocurrency on Alpha Bay before it closed.

Dash – While Dash has somewhat left the privacy niche, it still has the PrivateSend feature, which mixes addresses.

Zcash – Utilizing the Zero Coin protocol and ZK-Snarks, this protocol enables transactions to remain encrypted but still be valid on the network.

Zcoin – This is the precursor to Zcash, which also uses the Zero Coin protocol.

There are many more, but Verge has a strong community, and with the Wraith protocol in development, combined with the coming atomic swaps that allow cross-chain transactions, this could be the most exciting year for Verge yet.

Price Performance

Another big performer, Verge started 2017 at a fraction of a cent and had an all-time high in late December 2017 of $0.24. Despite its pullback, it has remained strong during the January 2018 correction.

Is Verge the Stealth Underdog in the World of Anonymous Cryptocurrencies?

Where to Buy

Binance

Bittrex

Cryptopia

Where to Store Privately

Official Verge Wallet Downloads

 

Disclaimer:

This is not investment advice. Please only invest what you are willing to lose, and conduct sound research. Always read the white paper.

Stellar Lumens (XLM): Is This the Year it Catches Up With Rival Ripple?

Stellar Lumens (XLM): Is This the Year it Catches Up With Rival Ripple?

What is Stellar?

Stellar is a blockchain network that can connect banks, payment systems, and people together using its native digital asset, Lumens. It seeks to make sending value as easy as sending an email.

While Bitcoin uses the proof-of-work algorithm, which requires miners to validate transactions on the network, Stellar uses the open source Stellar Consensus Protocol (SCP):

“The main differences between the Stellar network and Bitcoin are the following:

  • Stellar is based on a consensusalgorithm rather than mining. This means transactions confirm in a few seconds.
  • The supply of lumen increasesat a fixed rate of 1% a year.
  • Stellar aims to let you transact in your currency of choice (fiat or digital).”

Source: https://www.stellar.org/faq/#

Stellar Lumens (XLM): Is This the Year it Catches Up With Rival Ripple?

Source: https://www.stellar.org/papers/stellar-consensus-protocol.pdf

A simplistic way to describe Stellar is by saying that it is a more decentralized version of Ripple and its target user base is not aimed directly at financial institutions, but rather everyday users and technology businesses.

The SCP used by the Stellar network is derived from what Ripple uses, and as I’ll explain later in this article, it has a very intertwined history with Ripple!

Stellar’s Creation and its History With Ripple

Stellar was created from the Ripple protocol, and its co-founder, Jed McCaleb, was one of the original founders of Ripple.

While these two protocols are ultimately attempting to innovate global payments, they take different approaches to it.

Ripple’s primary focus is on innovating the financial institutions’ ability to settle cross-border payments (the very institutions Bitcoin seeks to make obsolete). Stellar is aiming at payment providers, technology companies, and individuals, making its technology available to the community.

The image below, from Bitcoinist.com, compares the differences between these rival digital assets. Interestingly, each time Ripple has experienced a price breakout, Stellar usually follows, similar to the relationship between Bitcoin and Litecoin.

Stellar Lumens (XLM): Is This the Year it Catches Up With Rival Ripple?

“Stellar.org connects people to low-cost financial services to fight poverty and develop individual potential.”

Source: https://www.stellar.org/about/

 

Decentralized Vs. Centralized

Key fundamentals separate these two networks. Stellar is a non-profit organization, and its technology is open source. It uses reserves to fund the Stellar Development Foundation (SDF), which is dedicated to the development of Stellar’s technology and application development within its ecosystem. As pointed out earlier, its target market is the retail user and technology companies.

In contrast to this, Ripple has 60% of its token supply locked up. It’s a for-profit organization that is building a global payment network (RippleNet) with the very institutions that drive down the purchasing power of nations and trigger economic implosions.

As mentioned earlier, Stellar’s technology is based on similar code to Ripple, and while Ripple is clearly the more centralized of the two, it remains to be seen which will emerge as the most efficient protocol. As they each evolve and move into different ecosystems (decentralized and centralized), so will their protocols and the technological requirements to thrive.

Morally and ethically, Stellar is the superior blockchain designed for the people, and it has the innovative ability to stay relevant and compete with Ripple’s technology. It can scale and bridge multiple fiat and cryptocurrencies together at a cost-effective rate.

Stellar’s Innovation and Scalability

The blockchain sector has always embraced entrepreneurism and innovation, as they’re vital for its growth and survival. Stellar embraces this as well, encouraging application and scalability development on its network.

Enter Mobius, a new payment application built on top of the Stellar network. By using the Stellar Consensus Protocol as its foundation, it allows for scalability, speed, and cost-effective transactions in a decentralized manner.

Price Behavior in 2017 and 2018

In 2017, Stellar experienced price growth of over 20,000%, making it one of the top-performing blockchain protocols.

Stellar suffered a brief downturn after peaking at the $0.90 region, as the cryptocurrency markets overall suffered a sharp pullback.

However, against Bitcoin, Stellar has been a strong asset to hold, and it has performed better during this turbulent January 2018 than many other digital assets.

Stellar Lumens (XLM): Is This the Year it Catches Up With Rival Ripple?

Five Reasons to Purchase Stellar Lumens

  • In late 2017 IBM revealed the successful results of a partnership with Stellar, it successfully settled transactions using the native digital asset of the Stellar network, Lumens (XLM).
  • Stellar’s asset Lumen (XLM) is becoming more liquid as the Blockchain space evolves, you can find it listed on most trusted exchanges. This creates a more resilient price and reduces the likelihood of price manipulation.
  • Something which is a hot topic in Blockchain is the regulations on digital assets and how it influences the cryptocurrency sector, Stellar is already compliant with regulators and its foundation is fully active and above board.
  • It has the technology to issue any asset, making it flexible with who can use it while providing the service in a secure and cost effective manner.
  • XLM allows any financial instrument to transfer as a form of money, by digitally representing existing currencies and assets on a fast and scalable network. Scalability is something the Blockchain sector is striving to solve and Stellar’s technology is setting the pace in this regard.

Where to Buy

Poloniex

Kraken

Binance

Bittrex

(Most exchanges will list Stellar Lumens)

Where to Store Privately

Ledger Hardware Wallet

Official Stellar Wallets

 

Disclaimer

This is not investment advice; full critical research is recommended before making any investment decisions.

Please always read the white paper before taking action. Research will provide confidence and help your judgement in these highly-volatile markets.

Lisk – Innovative Blockchain Application Platform

Lisk – Innovative Blockchain Application Platform

 

How Does Lisk (LSK) Work

Popular cryptocurrency Lisk is a blockchain focused on building decentralised applications in the programming language JavaScript.

Many programmers are familiar with JavaScript, Lisk offers the ability for grassroots talent to build, innovate and contribute to the network.

This enables powerful programs, smart contracts and sidechain applications to be developed on top of the Lisk network in a secure and decentralised manner.

Sidechains or off-chain applications are additional networks which can be linked to the respective primary Blockchain, this means a Blockchain can scale and implement new applications without straining the primary Blockchain.

An example of this is with Bitcoin itself, developing off-chain applications such as lightening network and RSK (smart application builder) to meet market demands without compromising or changing the original bitcoin Blockchain.

DPOS Algorithm And Voting

Lisk uses a Delegated Proof Of Stake algorithm (DPOS), this means each LSK coin carries one vote, enabling the largest holders of LSK to have a majority say in implementing solutions for the Lisk eco system.

Bitcoin, Litecoin and others use the Proof Of Work algorithm (POW), meaning the more hashing power your machine can generate the more likely you are to mine in profit and out compete other miners on the network.

With Proof of Stake, rather than hashing power being the deciding factor, it is based on how much of the native digital assets you own, which gives the user more influence on the network like hashing power.

Interestingly, Ethereum is currently in the process of switching from POW to POS, a transition that will take a few years but is currently underway.

Recent Price Movement

Lisk’s price movement has been one of the more stable and tamer ones if compared to other cryptocurrencies, despite not performing well against Bitcoin (so far) it has been an excellent investment in fiat terms.

Could this be a sleeping giant? innovative application building platforms are usually something the cryptocurrency market is bullish on and Lisk could have a very bullish 2018.

Source: https://coinmarketcap.com/currencies/lisk/

Where To Buy

Where To Store

 

Please remember to invest what you can afford to lose, conduct sound research in all assets before investing.

Zcoin – Built For Anonymous Transactions

Zcoin – Built For Anonymous Transactions

 

What Is Zcoin, Precursor To Zcash?

Zcoin is a privacy-featured cryptocurrency, using Lyra2, which is based on the Proof of Work algorithm similar to Bitcoin and Zcash. It implements the Zerocoin protocol, which enables the encryption of transactions using zk-SNARKS (Zero-Knowledge Succinct Non-Interactive Argument of Knowledge), another feature also similar to Zcash.

Zk-SNARKS work by allowing fully encrypted transactions to be confirmed as valid on the network, the Zerocoin protocol is the precursor to the Zerocash protocol, which was later developed for the Zcash.

How Does It Stand Out Against Rival Privacy Coins

In an industry where regulations are a concern, privacy is something in high demand in the cryptocurrency space, we have seen Monero, Zcash and even Verge rally in volume and price as privacy-focused cryptocurrencies meet the growing needs of the markets.

In the privacy niche there can be more than one winner, utilizing the effective zk-SNARK protocol is a step in the right direction, while Bitcoin transactions do not show user’s personal names or addresses, wallet addresses can be viewed on the Blockchain publicly and transactions can be traced easily.

Price Performance

Over time the Zcoin price has gained momentum, it has performed well against both fiat and bitcoin with many cryptocurrencies only performing well against fiat.

With governments issuing tough laws to tackle money laundering and tax evasion, we could see an explosion in volume and price for privacy-based cryptocurrencies, the fear of regulations could be used to an advantage.

Source: https://coinmarketcap.com/currencies/zcoin/#charts

Where To Buy

Where To Store It

Please remember to invest what you can afford to lose, conduct sound research in all assets before investing.

 

Ark – Connecting Blockchains

Ark – Connecting Blockchains

 

Linking Blockchains Together

With over one thousand different cryptocurrencies and almost as many Blockchains running, each has its own respective eco system and community, if we look at Bitcoin, Litecoin, Ripple and many others they are self-sufficient (providing there is power to make the network run) and evolving into their designed niche…

Imagine if these Blockchains could be linked together!

By using Smart Bridges, the ARK Blockchain can communicate with other Blockchains new and old alike, this could potentially create a multi-Blockchain network utilizing the key features of each chain.

A good example of linking Blockchains is the Atomic Swap application, which will be used by several Blockchains, Bitcoin, Litecoin, Ripple, Vertcoin and others. This enables direct exchange of coins from one Blockchain to another without the need of any exchange or third party, though still in development there have been multiple successful test transactions.

Linking cryptocurrencies and ultimately Blockchains together is the next step for scaling and combining innovative networks, ARK’s Smart Bridge technology could benefit the cryptocurrency space in the long run.

ARK’s algorithm is similar to Lisk, using a Delegated Proof Of Stake algorithm (DPOS), the cryptocurrency itself can used for voting on network solutions and pays up to a 10% ‘dividend’ when you vote for one of the chosen fifty one delegates.

By being able to vote on the network, holders of the coin can make decisions regarding the future of ARK and its development.

The Recent Price Rally

ARK ended 2017 well, with a price rally against the dollar towards the final weeks of the year, ARK also broke out of its downward slope against bitcoin.

Source: https://coinmarketcap.com/currencies/ark/

Where To Purchase

Where To Store

Komodo – How Does It Function and What Does It Do

Komodo – How Does It Function and What Does It Do

What Is Komodo, A Hybrid Of Bitcoin And Zcash?

Komodo utilizes the innovation of Zcash and the power of Bitcoin, this privacy based cryptocurrency uses zk-SNARKS, which works by encrypting the transaction data.

The Komodo protocol also uses the Bitcoin Blockchain using the delayed proof of work algorithm (dPOW) to process transactions giving Komodo the same level of security as Bitcoin itself.

While using similar privacy features to Zcash, Komodo’s dPOW works by using the regular POW algorithm but with an added mechanism, which notifies the Bitcoin Blockchain of any transactions on the Komodo network.

Information from the Komodo network is sent to the Bitcoin network by using pre voted nodes, which then insert transactional information into the Bitcoin network, this adds additional security to the network making it harder for ‘bad actors’ to hack the network or compromise it.

Privacy In A World Of Regulations

With regulations increasing in the cryptocurrency space, this could be an opportunity for privacy-based coins to increase in popularity.

Exchanges are the primary target for authorities to enforce a handover of investor’s transactional history, while Bitcoin’s Blockchain displays the transactional history for every user on its network other cryptocurrencies such as Komodo, Zcash and Monero anonymize the information, making it impossible to trace to another wallet address, as long as no third party exchange is involved.

Price Performance

What an amazing 2017 for Komodo holders, the price at the moment of writing trades at $9.79, and unlike many other alternative cryptocurrencies it is performing well against BOTH fiat and in Bitcoin.

As stated above, with the innovative edge of Zcash and the herculean network power of Bitcoin, combined with regulations and the market needing alternative solutions to remain private, 2018 could prove to be another fantastic year for the Komodo.

Many cryptocurrencies only perform well against the dollar, with a select few managing to keep up with Bitcoin’s price rally (percentage wise).

Where To Buy Komodo

Where To Store Komodo Privately