Dark Coins and Crypto Currencies Assessment

Excerpt from Assessment :

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.

Why crypto currencies are important

Cryptocurrencies are important for the reason that they enable and make it easy for the transmission of value from a distant or far off area without having to rely on trusted third parties. One major reason why cryptocurrencies are deemed to be significant is because they make it possible for two entities to have financial transactions electronically and not have any trusted third party intercessor involved. Up until the establishment of cryptocurrencies, the solitary method to overcome the double spending difficulty was to hire a trusted or be engaged with a third party intermediary. For example, two parties, say James and Virginia would have a user account with a third party which both of the parties trust, for instance PayPal. These trustworthy intercessors
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like PayPal maintain a record book of all the balances for the user accounts and the financial transactions. If Virginia wishes to send $200 to James, she relays this information to the trust third party intermediary which in this case is PayPal which sequentially goes ahead and subtracts this particular amount from Virginia's account and adds it to that of James. The financial transaction resolves and becomes zero. Virginia is not able to make use of the similar $200, and James is dependent on PayPal, which he has faith in, to make a verification of this. Through the invention and use of cryptocurrencies which are basically electronic currencies brought forth the solution to the issue of double spending devoid of making use of third party intermediaries (Dourado and Broti, 2014).

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…

Sources Used in Documents:

References

Vacca, J.R. (2010). Network and System Security. United Kingdom: Elsevier.

Cuthbertson, A. (2014). Darkcoin: The 'Perfect E-Cash' Cryptocurrency Emerging from the Dark Web to Trump Bitcoin, International Business Times. Retrieved from: http://www.ibtimes.co.uk/darkcoin-perfect-e-cash-cryptocurrency-emerging-dark-web-trump-bitcoin-1472144

Higgins, S. (2014). How True Anonymity Made Darkcoin King of the Altcoins, CoinDesk. Retrieved from: http://www.coindesk.com/true-anonymity-darkcoin-king-altcoins/

Tonewsto, A. (2014). Time for Islamic Law to Face the Bitcoin Question, ToNewsTo. Retrieved from: http://www.tonewsto.com/2014/10/time-for-islamic-law-to-face-bitcoin.html

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