Mixing Privacy and Proof-of-Stake
They’re launching in a growing market of privacy coins, hoping to deliver a superior product that might shake things up. DAPS Coin borrows all of the best ideas from other privacy coins like Dash and Monero and integrates them into one blockchain using proof-of-stake. It sports the Bulletproof Protocol, which drastically reduced the cost of Monero transactions last year.
From a technical standpoint, DAPS Coin is intriguing because of all the things it incorporates. In an exclusive interview recently, DAPS Coin CTO Andrew Huntley told CCN that the project is the first of its kind for several reasons.
We are direct competitors to those well-established [privacy coin] brands. What we’ve done is completely different from Monero. Where Zerocoin and Dash are staking coins – but their setups have to be a trusted setup. We don’t have that. Ours is a completely trustless scenario where we have implemented PoS in its entirety, but we’ve also managed to take the best parts of Monero, which is the ring confidential transactions, which some people said was impossible to do on a staking chain.
Huntley went on to explain that current Masternode implementations have some degree of centralization. He said that DAPS Coin manages to integrate the bulletproof protocol by working around certain technical problems presented by proof-of-stake. Namely, it enables nodes to verify the amount that a masternode holds but anonymizing the funds if they are removed from the masternode’s collateralization.
DAPS Coin CEO Adel de Meyer told CCN that she thinks the DAPS Coin project will” appeal to large companies who would like to use crypto but need a higher degree of privacy.”
The project believes that by having a focused development effort which was launched via an airdrop from another coin called Peepcoin, along with a corporate structure overseeing progress, they will achieve greater traction than some privacy coins have so far. A previous version of this article wrongly said that DAPS was born of an ICO, but Adel de Meyer corrected CCN:
“DAPS community was born in 2018 from an abandoned coin called Peepcoin/PCN. The decision was to cut ties with this old useless coin and build our own privacy coin and grow DAPS as a brand and solution. DAPS token was then created. Airdropped to holders of the PCN coin at a snapshot date taken in June 2018. Users claimed their DAPS tokens through a claiming process and got tokens airdropped at no cost. “
Who Will Be King of Privacy Coins?
DAPS enters a hotly contested, albeit relatively small sector of the crypto market.
Zerocoin protocol, a widely used zero-knowledge privacy-enhancing technology, recently suffered a severe flaw, and all coins based on it are vulnerable. The bug enables anyone to generate fake coins using the same zero-knowledge proof over and over again. The Zcoin team, who were previously responsible for the development of the protocol, reportedly won’t be doing anything about it.
This creates an opportunity for new contenders. Some believe that privacy coins will become all the rage during the next bull run, which we may have just entered.
Governments are actively floating the idea of “banning” cryptocurrency, which makes the transparency of traditional blockchains less appealing to people in some places.
DAPS Coin hasn’t entered mainnet yet, but their token has traded for some time on various exchanges. When they launch the blockchain in mainnet, DAPS holders will be able to exchange the ERC-20 token for DAPS.
If you happen to be in New York, they’re at Consensus, hoping to spread the gospel of proof-of-stake privacy technology to crypto enthusiasts.