Deep Onion

 

The Team

Creator Unknown
Creation Date July 2017
Headquarters Unknown

 

Deep Onion project started in July 2017 and “anonymity” is its main feature. Unlike in Bitcoin where you have to sign KYC for every exchnage and the funds in your wallets can be tracked, DeepOnion uses the TOR protocol. Using TOR means that all your transaction information is kept annonymous, ensuring users’ privacy by hiding their IP addresses. Its wallet has a built-in TOR client and IP addresses of users cannot be tracked. DeepOnion offers a privacy coin with PoS staking, and some upcoming features.

Deep Onion does have some things going for it- It has passionate developers, a supportive user base, and active development. It is also one of the more “anonymous” coins on the market and benefits from its use of TOR. There have been some community disagreements surrounding the question of premine and airdrops, and the project is likely to struggle if regulation against Privacy Coins kicks in.

As can be guessed, the identities of the developers are unknown but they are fairly active on all social media platforms, mainly on Twitter and BitcoinTalk. The developers communicate often, clearly, and include the community when making important decisions about the project. Its official forum has more than 12,000 members and the team regularly organizes airdrop events. (At the moment, if you have a junior member level account at BitcoinTalk and 50 ONION in your wallet, you can participate in the airdrop.) This however has caused some controversy. Deep Onion went up spectacurly high with the crypto fever of January 2018, its market cap has since been going down, and as of summer 2018, it’s dialy trading volume is very low.

Issues/ Causes of Concern Around DeepOnion

Whilst DeepOnion is arguably very good at ensuring users’ privacy, one of its main sources of controversy is that most of the tokens were premined, and distributed for free via bounties and airdrops. It can also be argued that as DeepOnion didn’t have an ICO, this premine was necessary to give away tokens to support community use.

The developer team is anonymous. Whilst they are still being active and working on the project, this isn’t an absolute cause for worry, given the nature of the project, but does still leave warning signs.

Also, the technology isn’t unique. Using TOR is a benefit, but also will make it harder for DeepOnion to reach mainstream use or acceptance by the masses. As such the success of DeepOnion will likely depend on the loyalty of its own following. The project does however work, and offers a privacy coin with PoS staking

The main problem DeepOnion will probably face is attracting more users, and a wider community base, at a time of potential regulation against Dark Coins.

The Coin

Coin/Token Name ONION
Mining CPU, GPU, ASIC
Block Time / Transaction Fee 240 seconds
Total Supply 25,000,000

 

How DeepOnion works

ONION is a hybrid (PoW/PoS) coin that uses X13 algorithm. Currently, its PoW phase is active and it will create 20,000.000 coins. Block rewards are 8 ONION per block, but 98% of the total PoW supply is already pre-mined. In other words, you can mine only the remaining 2 million coins. The pre-mined blocks will be distributed for free via airdrop events to anyone holding at least 50 Onion tokens. This did seem to work for creating a degree of hype for the project in 2017.

When the PoS phase starts, block creation time will be 60 seconds and users will be able to gain interest by staking. Interest rates are 10% for the first year, 5% for the second year, and 1% for the subsequent years. Minimum holding time before PoS generation is 24 hours and maximum allowed accumulated coin age is 30 days.

The entire ONION network operates over the TOR network. ONION also suggests using a VPN service too, to hide the user’s location and ensure extra privacy. In addition, the TOR protocol secures and anonymizes network traffic between users. The TOR network protects the “transport layer” of the ONION network. To protect the transaction layer, ONION uses OBFS4 and ZeroCoin protocol. OBFS4 obscures transaction details and creates fake ones on the network, so it becomes impossible to understand which one is real. ZeroCoin protocol mints coins with no history from the blockchain and burns them after the transaction is complete. To put it simply, ONION combines ZeroCoin algorithm and TOR network to provide true anonymity.

ONION plans to offer these features too:

  • DeepVault: A storage space on the blockchain which can be reached via wallet. Any user can upload a document to the network and secure it with a hash value. This way, you can be sure that nobody has tampered with the contents of the file. Documents stored this way can be shared with other users too. For example, legal documents can be stored and shared via DeepVault. Or, “whistle-blowers” can use this system.
  • DeepSend: Another encryption protocol to further secure and anonymize transactions. ONION will add zk-SNARK encryption to its network in the future.
  • VoteCentral: The community can cast a vote to define new features and the development direction of the project.

The Future

Can Be Traded In Bittrex, Waves
Wallet(s) Windows (via Waves desktop app)
Mobile App iOS, Android (via Waves mobile app)

 

The roadmap of the project can be seen below:

  • Q1 2018: iOS, Android wallets. The launch of VoteCentral.
  • Q2 2018: PoS phase starts. Airdrop events end after distributing 18.000.000 coins for free. DeepSend launches.
  • Q3 2018 and later: Smart contract feature. Mainstream media actions.