|Creation Date||Q2 2014|
Cloak Coin is lightning fast, untracable, secure and private. It uses onion-routing privacy as default, or the upgraded Enigma for total untracability. Cloak Coin also rewards 6% annual interest for staking, and there only just over 5 million coins in circulation, and is highly respected by members of the crypto community.
Cloak Coin was created by a BitcoinTalk member named “TheDagger” in July 2014. The initial version of Cloak Coin had its problems, and got taken over by a pump and dump. In recent years, Cloak Coin has been taken over by a new team, led by one of its early investors, who have totally changed the project and revolutionised everyhing, for the better, except for the name. Cloak Coin is now well regarded and is taken seriously by many in crypto, largely due to a security audit report prepared by a NASDAQ-listed cybersecurity company (more info about this below) as well as heavy mentions by the well-respected and highly followed Clif High, whose followers seemed to pump up the price of Cloak Coin immediately after his reviews of the project were released in 2017 . It should be said that Clif High accurately realised a lot of the potential for Cloak Coin. The fortunes of Cloak Coin also increased after being listed on Binance.
The Cloak Coin team is most active on BitcoinTalk but they use other social media channels (Reddit, Twitter, Steemit, Telegram, Instagram) for communication too.
The project is highly respected as a privacy coin, and show this comparison on their website:
|Block Time / Transaction Fee||60 seconds / 2% of transaction|
|Current Value (Total)||$ 46,803,979|
CLOAK is a PoS coin that uses x13 algorithm: You cannot mine it but it can be staked for 6% annual ROI Its circulating supply is little over 5 million and minimum stake age is 1 hour.
How Cloak Coin Works
CLOAK uses a private, secure, and untraceable payment system called “Enigma”. This system “cloaks” all the identifiable information (sender, recipient, amount, etc.) of a transfer with the help of other users. Anyone with CLOAK can participate in “cloaking” operations, which allows them to leave their wallet running in staking or cloaking mode to allow it to passively assist in cloaking and earn significant rewards. Wallet users have two options: Use their wallet for staking or helping to make transactions private. The wallet users provide inputs and outputs to the transaction making it impossible to determine the true source and destination of the transfer.
The system works like this:
- When a user wishes to send a transaction, one of the wallets that operate on “cloaking” mode randomly gets selected.
- Selected wallet provides a list of transaction inputs and outputs to be used for the transaction. Basically, it “shuffles” the original transaction info with randomly generated values.
- This shuffled information is sent to other wallets on the network. Each other wallet shuffles the information more and checks the transaction to ensure the inputs and outputs they supplied are present in the “cloaked” transaction.
- After the transaction is checked by all other wallets, it is signed by a public key and sent back to the sender. Sender confirms the transaction, signs it with his private key and submits it to the network. After the transaction is complete, all wallets that helped receive rewards for their assistance. This reward is 2% of the transaction amount and it gets shared among all participating wallets.
Wallets communicate with each other using an RSA & ECDH encryption. They exchange data securely, and MIM (man in the middle) attacks are impossible. You can think of Cloak Coin as a TOR network: Users help each other to make transactions private and untraceable, and are rewarded with CLOAK. The sender always remains anonymous because each wallet knows only the location of the preceding and following wallets. Cloaking wallets also supply a series of “fake” recipient addresses in case somebody tries to perform a blockchain analysis to pinpoint the true output of an Enigma transaction. In layman’s terms, if somebody analyzes the transaction, he will see hundreds of recipients and won’t be able to know which one is “real”. TOR network works the same way. Only the sender knows who the real recipient is.
Cloak Coin’s security has been tested by a cybersecurity company named Cognosec, and everything seems good. Even professionals couldn’t crack the code and identify the parties of transactions. Although, they have pointed out a flaw in the network: A system like this one requires lots of cloaking wallets to provide full anonymity. If their number is low, it may still be possible to reveal the identity info. So Enigma system requires thousands of users to work as intended.
|Can Be Traded In||Bittrex, Upbit, Live Coin, Cryptopia, LiteBit.eu, Yobit, Mercatox, Open Ledger DEX, Binance|
|Wallet(s)||Windows, Linux, MacOS, Android|
|Can It Be Used in Real World?||No|
The roadmap of the project is:
- 2018: iOS mobile wallet, building lite wallets for desktop, libsecp256k1 integration to remove the dependency on OpenSSL
Cloak is potentially a great project- it provides a high level of anonymity and faster transaction times, with 60 second transactions. Cloak doesn’t as yet have a real world use, outside of the ability to send private transactions. Moreover, as explained above, it needs a healthy number of users to provide anonymity. If, for any reason, it loses 25% of its user base, for example, the anonymity level provided will be lowered significantly. Cloak does have competitors, primarily Zcash and Monero, which are better known, have a real world use and provide the same level of anonymity. However, as Cloak has such a small number of coins and a loyal following, including the likes of Clif High who has a huge following, it isn’t unlikely or impossible that Cloak Coin will go back to its previous highs.