Problems in cryptocurrency and the DeepOnion solutions

The massive growth of the coin market cap in the past months has brought to fore the many problems of in the market and that of Bitcoin (BTC) which is the dominant currency. Some of these flaws are high transaction fees, privacy issues, scalability issues and speed of transaction confirmations.

As at the time of writing this article, the market is capped at over 598 billion dollars with BTC dominance at 33.7 percent. And the total coin volume traded in 24 hour period is over 42 billion dollars.

These problems are expected especially those associated with Bitcoin. And this is how DeepOnion will solve them.

Anonymity

For BTC transactions, node traffic are not encrypted when sent via the network with peer addresses having clearly visible IP. And this information can be easily obtained using the “getpeerinfo” command in BTC wallets.

This weakness can be used for targeted attacks and network interruptions. It’s highly unsecure to involuntarily disclose your wallet IP address to the public without adequate security measures in place.

Another potential risk is that when your wallet address is linked to your IP, your identity will be disclosed and this can lead to an intelligence based attack.

With DeepOnion implementation of the anonymous TOR IP addresses, your wallet client’s IP address is protected and your financial assets are secured.

Privacy

The often quoted anonymous nature of BTC is not true because it’s built on a public ledger which is distributed over a decentralized network supported by miners and network users. And once a wallet address is tied to your identity either through a crypto exchange or commercial vendor, then your privacy is compromised.

The primary purpose of DeepOnion is to protect your identity by ensuring that all peer-to-peer connections are secured through The Onion Router (TOR) network.

Scalability

In BTC, all the nodes on the network are required to verify all the previous blocks within the blockchain by using cryptography. This requires a high amount of computing power, storage space and time to process the entire ledger.
DeepOnion has a block size of 1.5MB with each block holding approximately 3000 transactions and a transaction size of about 500Bytes.

Speed

There’s a limit to the speed at which BTC transactions take place because it relies solely on SHA-256 based proof of work (PoW) to process blocks and mint new coins.

The current confirmation time of a single block is 350 minutes which varies based on the difficulty level. This requires a minimum of six confirmations before it can be verified. What this means that it may take up to 35 hours to send and receive a payment successfully.

DeepOnion is the hybrid of proof of stake (PoS), and Proof of Work (PoW) coin, larger block sizes and faster block times to solve this problem with 62.5 transactions per second.

In the future, DeepOnion transaction speed will be improved upon by the implementation of the lightning network technology to approximately 56k/sec or less.

These solutions provided by DeepOnion are the qualities of a perfect payment platform in a modern world. It’s only a matter of time before DeepOnion becomes the de-facto cryptocurrency.