Cryptocurrencies was founded on a foundation of Decentralisation, Efficiency and Anonymity, the first two features are obvious but the third feature is evidenced by the fact that the founder of blockchain technology still chooses to remain anonymous, this is evidence to the fact that the founder of blockchain values his/her privacy and has developed a product that would enable people to make financial transactions efficiently and anonymously.
But Cryptocurrencies are not as anonymous as we might think because while these Cryptocurrencies has a transparent and public ledger that can be viewed by anybody, this is the very weakness it has because anybody can easily trace your transactions and even view the amount of money you have and trace every transactions that you have ever made, combine that to the fact that some major Cryptocurrency wallets are now making KYC compulsory for it's users, I think this is the first step in the move to link identities to wallet addresses.
But thankfully there are some Cryptocurrencies that are entirely dedicated to protecting our privacy and they are called Privacy coins, Monero was one of the first privacy coins to take the leap with its composition of RingCT Technology. Recently, the Tronix Token (TRX) took the same step by launching the Zero-Knowledge Succinct Non-Interactive ARguments of Knowledge (zk-SNARKS) technology. This was in light of TRX’s move to become a privacy coin.
Inherent Problems
The quest to become privacy coins is a good move. It allows the designated digital assets to protect the identity of the transacting parties and "mask" (cover) the transaction from third-party interference.
Yet, the current system is fraught with problems. First, the RingCT technology used by Monero (XMR) has over the years, proven to be less efficient compared to the advanced cryptographic methods that are now in vogue. On the other hand, the privacy status of Zcoin using the Zerocoin protocol is an irony of the sought-after privacy status. In its case, Zcoin’s privacy protocol can reveal certain transactions, which is not meant to be so.
The Power in a Name
Aside from the impressive features it promises to bring onboard, Veil Technology, by virtue of its name, "Veil", hints on the project’s quest to alter the current privacy options in digital assets. To enhance the privacy focus of cryptocurrencies, Veil Technologies combines relevant privacy technologies that will make crypto coins truly private.
Veil’s Hybrid Consensus Mechanism
The consensus system is one of the factors that propel the success of every crypto project. In its case, Veil Technology, in its bid to bring revolution and full-scale privacy to crypto coins, opted for a hybrid consensus mechanism.
Featuring the productive Proof-of-Stake (PoS) and Proof-of-Work (PoW) consensus mechanisms, the project aims at providing full-scale security and boosting mining activities on its network. The PoS consensus, in particular, triggers a reward mechanism that tips participants with the Veil coin after staking in the mining pool. On its part, the PoW consensus mechanism makes use of the ASIC-Resistant X16RT hashing algorithm to secure the platform. It also ensures an even distribution of coins.
Multiple Privacy Technologies
There’s no doubt that the goal of this project is to institute a crypto coin that will be more secure than competing coins. For this reason, it utilizes Zerocoin, a cryptography-based privacy protocol. Furthermore, it takes advantage of the maximum security offered by the Bitcoin v0.17.1 to provide optimum security of the platform and the underlying digital assets.
Coming over to the functionalities of these privacy components of the project, it’s important to note that Veil Technology has an eye for details. That’s why it went for the best cryptographic privacy technologies that can help in the actualization of its goals.
The Zerocoin has similarity to the Zero-Knowledge Succinct Non-Interactive of Knowledge (zk-SNARKS) technology. This is because of its ability to cover the details of the transacting parties (sender and receiver), and the transaction itself. On its part, the Bitcoin v0.17.1 blockchain software protects the platform against external attacks. It also has a tendency to resist attacks from quantum computers.
Finally, Veil Technology takes advantage of the Dandelion Protocol to remove the traces of a transaction. This works in unison with the Zerocoin protocol to make it hard to trace the source of a transaction within the network.
The Team
Securing the Future
There’s no doubt that the blockchain technology is prone to attacks. Digital assets that take premise on the platform are also at the risk of literally benefitting from such attacks. The best approach to the issue is to put on the shield of privacy.
The enhanced privacy features doled out by Veil Technology will not only help the project attain its goals, but will also become a standard for privacy-based coins. The time to secure the future of cryptocurrencies is now, and this project has working solutions to make it a success.
I have tried my best to present this amazing project to the best of my abilities without making the article too long and so I might have missed a thing or two, if you want to do an in-depth research about Veil or you simply want to know how the mining or wallet works, kindly check out the links below
WEBSITE | ANNOUNCEMENT THREAD | ABOUT VEIL | TELEGRAM | DISCORD
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