Cryptocurrency and Darkcoin: anonymity, security, and applications

Crypto Currency

Cryptocurrency

Crypto is a term that is an abbreviation for cryptography. In accordance to Vacca (2010), the word cryptography emanates from two words crypto and the Greek term graphikos. The former means a secret that is hidden or concealed while the latter means for writing. The two words when joined together mean a concealing place for notions, words, images and sounds. A cryptocurrency is form of exchange similar to normal currencies for example Euros, Dollars, and Pounds but are created purposefully for exchanging digital data and information through a procedure that is made conceivable by means of particular ideologies of cryptography. In essence, cryptography is employed in safeguarding the transactions and to regulate the generation of new coins. The original or the initial cryptocurrency that was formed and generated is Bitcoin which was unveiled in the year 2009. In the present day, there are numerous other cryptocurrencies which are better known as Altcoins.

How it works?

The whole concept of cryptocurrency emanated from Satoshi Nakamoto who came up with and developed Bitcoin. Cryptocurrencies is basically cash that is electronic. Through cryptocurrency it is possible to have the final transmission, not just doubling, of digital assets in a manner that can be confirmed and substantiated by users devoid of making use of other third parties. This basically works by making use of three kinds of systems which are peer-to-peer (P2P) networking, public key cryptography and also a system that indicates there is proof of work. Similar to PayPal, which is a third party intermediary for transferring funds, cryptocurrencies structures make use of a ledger, which is referred to as the block chain. All of the transactions that are undertaken through the cryptocurrencies such as recording and reconciling are done in the block chain. Nevertheless, different from the ledger that is used by PayPal, the block chain is not sustained or administered by a centralized entity. Instead, the ledger is a public file or document that is circulated in a P2P manner all through thousands of nodes in the structure of a cryptocurrency. New transactions taking place are tested through the block chain to ensure that no similar cryptocurrencies such as darkcoins or bitcoins have been previously used. However, this verification is not undertaken by one solitary trusted third party intermediary. Instead, this whole process is undertaken by numerous users instead and the work is distributed among thousands of users who donate their computing ability to resolve and preserve the block chain account book (Higgins, 2014).

DarkCoin: Its anonymity and safety and use

Darkcoin, abbreviated as DRK, is an openly found or obtained digital currency, which that is established as privacy. This particular digital currency enables an individual to keep his or her finances in a private way as they undertake transactions which are identical to cash. This online currency offers the confidentiality and privacy necessities that Bitcoin is not able to provide because of the fact that Bitcoin is transparent in nature. There are numerous individuals, or better yet, users of Bitcoin who have a preference of not having their bank account balances or the financial transactions undertaken to be accessible or seen publicly by everyone. Darkcoin is anonymous in the sense that it incorporates the finest privacy and secrecy technologies and mystification as well as complications of internet protocol (IP) addresses. However, it is imperative to note that the aspect of privacy when it comes to cryptocurrencies is still developing and in progress. In as much as developments and improvements are being undertaken, it is implausible that there will be guaranteed one hundred percent anonymity in the immediate periods by any cryptocurrency.

What is Dark send?

One of the key and main constituents of darkcoin is Darksend. This is a peer-to-peer (P2P) networking structure which packages and puts into place small financial transactions into larger financial transactions that are mysterious and secret. Darksend is centered and founded on the whole conception of CoinJoin which was formed by Gregory Maxwell, the inventor and creator of bitcoin and serves as the main aspect that bundle up financial transactions. Different from bitcoin, with regards to darkcoin, this unification and fusion makes it way more challenging for an individual to determine or establish the where the payments within the network are coming from and where they are headed to. Darksend similarly integrates the structure and set up of masternodes that take account of the financial transactions in a devolved and spread out way (Higgins, 2014).

What is Masternodes?

Masternodes operate in a system that shows evidence of service and act as the bundlers of the financial transactions and attain about ten percent of the chunk compensation for undertaking that. In accordance to this structure, there is a system for selecting masternodes which in turn arbitrarily allocates specifically which maternode will handle a whole bundle of darkcoin financial transactions. According to Higgins (2014), masternodes successfully and efficiently take delivery of dividends that level out all through the network over a period of time. It can be noted that it takes up one thousand darkcoins to structure a masternode. This makes certain that only those who partake in organizing and establishing the network have a bestowed interest in playing a part, as well as precludes poor performers from infiltrating on the transactions which are taking place in the whole darkcoin network.

How can I use Dark send?

The conception that Darksend is totally decentralized which repudiates any need for meeting or making use of a third party. In the present moment, there is a restriction of only one hundred darkcoins for every transaction when transferring funds with Darksend. However, this does not seem that it will be restricting in the forthcoming periods as this is something that can be solved and ought not to be perceived as suppression. The whole procedure for transaction in Darksend to be brought into light on the counterparts folder takes about one and sixty seconds but the advantage is that this makes it hard and extremely difficult to discover or trace from which folder the transaction was initially generated. This is discretionary and elective at the moment, which is a good manner of having it considering it offers the user the chance to generate a financial or business transaction. This financial or business transaction can be traced by choice which could be of great use in a number of situations (Higgins, 2014).

What is InstantX and what makes Dark coin special?

InstantX is a newfangled feature that is being advanced and established for DarkCoin, which will make is possible for almost instantaneous transactions. It is well acknowledged and recognized that one of the unique selling point of darkcoin as a cryptocurrency is the swiftness and promptness at which the users are able to send money or undertake transactions all over the world. Nevertheless, there is dissimilarity between perceiving a transaction turn up in a consumer's wallet, and in actual fact being able to spend it, an aspect that is one of the key downsides and shortcomings of bitcoin for numerous individuals. This particular feature or characteristic of darkcoin is making an attempt to ensure that the time period between receiving a financial transaction and having the ability to spend it to a minimum of two seconds or even less than that. According to Buntix (2014), Evan Duffield who is the developer of DRK verified a transaction using the InstantX feature from one wallet to another and the time period for that process took only two seconds to obtain the funds and make it possible for the funds to be spent. This particular feature necessitates DRK masternodes to create or generate an agreement or unanimity on the transaction. Once this unanimity is created, the inputs have to be locked, which undertook an overall time period of two seconds to set the transaction into place. The funds can be spent instantaneously once the transactions have been locked (Buntix, 2014).

Darkcoin in Saudi Arabia

The financial structure encompassed in Islam is recognized and renowned to be a realm that is filled with regulations and proscriptions that appear bizarre, outlandish, and alien to the western world. Aspects such as having interest rates, tasking risks and investing in products and merchandise that are considered to be unethical, for instance alcohol, pornography and weaponry are stringently forbidden. In actual fact, each product that has potential to be invested and vested in has to be given approval by the religious board of directors of the Islamic banks and financial instructions. Cryptocurrencies such as darkcoin are not exempt from this. Without a doubt, the financial environment or setting encompassing investing in darkcoin and cryptocurrencies is filled with obscurities in the realm of Islam. There has not been any kind of fatwa that has been handed out or dealt out against cryptocurrency, however up until now the final ruling as to whether Muslims can actually deal in cryptocurrency is not approved yet. On the other hand, considering the fact that darkcoin is not an inflationary currency compared to the usual currencies such as the euro and the dollar, this places it in a good position for being adopted and espoused in the Islamic financial world. In addition, darkcoin can be deemed to be good and can be adopted into the Islamic world due to the fact that it is decentralized in its own nature. The Muslim world has for a long time been in opposition with centralized authority. The peer-to-peer (P2P) nature of darkcoin goes hand in hand with this devolved and spread out mentality (Tonewsto, 2014).

In a number of ways, darkcoin can be of great benefit and use in Saudi Arabia. At the present moment, as highlighted above, the whole structure of darkcoin is non-existent. Numerous people are not aware and have no understanding regarding darkcoin. Saudi Arabia is an Islamic state and follows the Islamic financial system. The nation has great political and financial stability with regards to its economy as well as to its government administration. Following the Islamic financial system, there is no form of taxation in the nation. Taking this into account, the main thing to consider is who darkcoin should target. Since the cryptocurrencies are yet to be allowed and sanctioned by the religious board of directors, darkcoin should consider foreign workers to be its primary target. It is estimated that approximately nine million foreign workers work in Saudi Arabia. In turn, these foreign workers make use of third party intermediaries such as Western Union as well as Telemoney as a means of being able to transfer and send out part of their monthly or yearly salaries back to their native country particularly to their relatives and to their loved ones.

It can also be deemed that darkcoin is of benefit in Saudi Arabia for the reason that it follows plenty of what is laid out in Sharia Law. This is because the structure in which darkcoin is centered on is not centralized but is spread out. More so, darkcoin is not inflationary compared to the other currencies that are known and traded on an everyday basis. Nevertheless, cryptocurrency is yet to be permitted to be used in Saudi Arabia due to fears of money laundering. The anonymity of darkcoin which is one of its main selling points can be deemed to be one of its drawbacks as well. Due to secrecy and anonymity, illegitimate and prohibited transactions can be done in complete secrecy. For example, pornography which is disallowed in the nation according to Sharia law would be easily accessible without being traced or discovered. In the same manner, unconstructive products such as weapons can also be bought without having any paper trail by making use of darkcoin. What is more, all these transactions can be done promptly and in a speedy manner.

It is difficult to ascertain the exact manner which can make the religious board of directors of Islamic banks to sanction the use of cryptocurrencies such as darkcoin. However, it is certain that darkcoin will be a much beneficial and helpful network for foreign workers that are situated in Saudi Arabia. To begin with, every month or every year, the roughly nine million foreign workers that are based in Saudi Arabia incur numerous expenses that are deducted from their hard earned salaries to undertake financial transactions through third party intermediaries such as Western Union and also Telemoney. However, with the introduction of darkcoin, these workers will be able to transfer these funds to their loved ones in their native countries for a much lower expense or transaction fee. In addition, by making use of darkcoin, these workers will be guaranteed of being able to send these funds in a matter of seconds. Once the InstantX feature is employed these transactions can be undertaken in a matter of two seconds or even less. This implies that the workers, different from making use of third party intermediaries, will not have to stand for numerous hours in long queues at the end of every month while attempting to transfer funds.