Cloakcoin

CloakcoinI chose Cloakcoin as the Random Coin of the Day today for it’s unique exchange integration with its wallet. With centralized places like eBay, sellers often get the raw end of the stick and are unable to handle their own business’ transactions. Will Cloakcoin take over what eBay has failed to do and create a fair environment for trading with their new OneMarket trading platform as well? Although the Windows wallet on their website is missing OpenSSL DLL dependencies and doesn’t have any instructions on where to find these files, the aspect of having a built in exchange is something a lot of people are looking forward to. Let’s see what the future holds for this exciting coin.

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Cloakcoin Review

Cloakcoin’s team was hard at work and was unavailable for an interview. Below is information I learned about the coin while scouring the interwebs.

Market Cap: $5,468,421
Maximum coins issued: 4.5M CLOAK
Hash algorithm: x13
PoW or PoS: Was both, now only PoS at 6%
Is it able to be mined: No
Exchanges: BitTrex, MintPal, Cryptsy, AllCoin, LazyCoins
Block explorer: BlockExplorer
Launch date: June 3rd, 2014

What is the coin’s purpose?

Cloakcoin’s main purpose is to provide a coin that allows for true anonymity. They’re working on a fully decentralized anonymity structure, but right now they have their development team hosting mixing services. No one has ever built a decentralized mixing service yet. Cloakcoin isn’t just another Darkcoin clone. They have quite an elaborate amount of features creating its unique anonymity features, such as PoSA. Check out the article Josiah wrote exclusively on Cloakcoin’s anonymous transactions.

Aside from anonymity, the coin team has implemented a built in currency exchange that uses the APIs for some popular exchanges. You can watch a video of their development of this feature, on their website. It’s quite interesting to watch.

What problem does it solve?

Cloakcoin seeks mainly to solve the problem of anonymity not being fully decentralized. In whitepaper one on the Cloakcoin website, which stands as a frequently asked questions paper, one of the questions asked, “Wouldn’t a fully decentralized, trustless system baked into the network protocol be more of the “holy grail?”

It would be the Holy Grail but also has a high level of complexity. Nobody has successfully implemented such a system yet without running into technical roadblocks and network problems. Cloak is instead starting with an achievable design that can be put into live operation rapidly and then be evolved over time to reach the grail.

What are the coin’s future endeavors?

The team is working on a new project called “OneMarket” that will allow for decentralized trading. Say goodbye to eBay and the way they allow their sellers to be scammed out of business by fraudulent buyers. Say goodbye to PayPal saying if you can have your money or not. Say goodbye to the headaches you once encountered by using any centralized marketplace, and say hello to OneMarket!

From the OneMarket whitepaper:

Abstract: An entirely peer to peer form of internet e-commerce that will permit buyers and sellers to trade with one another without a governing central point of control. The existing Cloakcoin block-chain, a descendant of the Bitcoin protocol, provides a key part in distributing the “public marketplace listings ledger” across an existing p2p network. OneMarket is designed to be a decentralized, trustless, self-organizing, and self-regulating system to facilitate trade.

There will be some drawbacks to this, but it’s a darn site better than loosing your products or your hard earned money at the whim of some disgraceful third-party. The current drawbacks are due to the way the block-chain technology works. A couple of the biggest ones I saw in the list are that you’ll have a 1,000 character limit on your listing, and you will need to link to hosted versions of your pictures. In case you’re wondering what 1,000 characters looks like, it’s roughly double the length of the “Abstract” quote above. It isn’t much, but if you’re in need of a larger description, Pastebin’s your friend.

Having these limitations prevents block-chain bloat. Personally, I’d like to see them do a direct Pastebin integration, so the software pulls the article content from your raw Pastebin link. It would partially decentralize things, but to some the trade-off might be worth it. The same could happen by loading the hosted image’s URL for the picture.

Is anonymity important to you? What about API integration in a wallet or a P2P marketplace? Do you have any suggestions you’d like to let the developers know about? Leave a comment below or discuss this in the CCN forums. I’d like to hear from you.

Disclaimer: I do not own any CloakCoin.