WHY WE NEED PRIVACY ON THE BLOCKCHAIN—THE VEIL SOLUTION
Blockchain technology and cryptocurrencies have continued to experience widespread speculative adoption, an evidence of which being the current market capitalization which has more than doubled from the market capitalization at the bottom of about $109 billion to over $280 billion as at the time of writing.
As cryptocurrency enthusiasts continue to bask in the euphoria of this recent price growth, this interest is not without its downsides. As cryptocurrencies continue to appreciate in price, it attracts a new wave of attention; both from investors, and cybercriminals. Recently, a leading exchange in terms of trading volume, Binance, which was previously thought to be impregnable due to its security was recently hacked, with over 7000 Bitcoins stolen, an indication of the level of sophistication and expertise of these hackers.
One of the major ways of staying safe within the blockchain space is by using cryptocurrencies focused on privacy and anonymity for transactions. Over the years, numerous privacy-focused cryptocurrencies have been developed, however, each has had its limitation(s).
Veil as a cryptocurrency project provides a solution to the challenges of anonymity and privacy which are currently being experienced within the blockchain space, providing a secure means of transacting without compromising the identity of involved parties and other relevant details of the transaction.
Veil was developed using three major technologies; RingCT, Zerocoin protocol, and the Dandelion protocol. These ensure that transactions are private and anonymous both at the level of the blockchain and at the network layer.
Ring Confidential Transactions (RingCT): This is the major technology upon which the first privacy coin Monero was developed. Veil chose to employ it as part of its core technologies due to its privacy features. RingCT effectively ensures that details of transactions are effectively obfuscated, ensuring that individual transactions cannot be monitored.
Zerocoin Protocol: Veil originally was built using the Zerocoin protocol for anonymity while employed zero-knowledge proof for verifying transactions. However, due to vulnerabilities which were discovered which exploited the libezerocoin library of the Zerocoin protocol (Libzerocoin exploit), Veil decided to opt for a more secure alternative, Sonic—an enhanced privacy technology which employs a variant of the Zerocoin protocol, Zero-Knowledge Succinct Non-interactive Arguments of Knowledge(zk-SNARKs) and a decentralized anonymous payment scheme (DAP).
It is important to note that this technology (Sonic) is currently under not being utilized by Veil as a result of the technical requirements involved in the process of transitioning to the new protocol. It is very essential that users understand the difference between privacy and anonymity, a transaction may be private but not necessarily anonymous and vice versa. Privacy refers to the transactions being unable to be monitored, while anonymity refers to the ability of the parties involved the transaction to remain unknown.
Dandelion Protocol: The dandelion protocol is an anonymity solution which serves to provide anonymity at the network layer. It effectively obfuscates the IP addresses of users, providing an extra layer of anonymity for users.
It is no longer news that global warming is a menacing threat to the lives of humans globally. Veil employs a dual-model consensus algorithm; Proof of Work and Proof of Stake. Proof of Work which involves cryptocurrency mining—the use of computers to solve complex cryptographic hashes which are associated with a block which contains transaction details on the blockchain, consumes a lot of energy and often generates heat. Proof of Stake, however, allows users to receive Veil as staking rewards for holding it in their wallets. This eco-friendly solution is also more cost-effective and serves as an effective model for rewarding holders.
Veil has a community rewards program which incentivizes members of the community for performing various tasks which promote the project and help develop the Veil ecosystem; both socially, and technically. Individuals can perform various activities on social media platforms like developing and post content on twitter, facebook, or write articles about Veil to earn rewards. Individuals with technical expertise can also help in developing the Veil ecosystem by assisting with development bounties. More details can be found here.
As more privacy and anonymity on the blockchain continues to grow in terms of demand, Veil with its hybrid consensus mode, always on privacy, and secure transactions will be one of the leading projects in the blockchain space for private and anonymous transactions.
Being a project dedicated to developing more privacy-oriented solutions and being ahead of potential security threats, Veil has an established Veil Labs which is the arm of the project in charge of Research and Development.
USEFUL LINKS:
Website: https://veil-project.com/
Reddit: https://www.reddit.com/r/veil
ANN Thread: https://bitcointalk.org/index.php?topic=5065331.0
Telegram: https://t.me/VEILProject
Discord: https://discord.veil-project.com/
Linkedln: https://www.linkedin.com/company/project-veil/
AUTHOR BTT:
https://bitcointalk.org/index.php?action=profile;u=2435032
UNIQUENESS: https://imgur.com/a/S4TqJj2
BV WALLET:
bv1q0d7frl3xlpayvzv7jces5ne2z820ck3zdqwy28