CloakCoin’s strategy to secure a future where you can Be Your Own Bank
Dear CLOAK Community,
In light of recent decisions by a number of popular exchanges to de-list $CLOAK, and the withholding of specific reasoning why, called for the careful consideration by the CloakCoin project of its overall strategy moving forward.
One can only speculate on the regulatory pressures bearing down on centralized entities as they fight to maintain compliance with laws that govern the many jurisdictions in which they operate.
Questions arise around what measures must be taken in order to mitigate risks and the associated liabilities concerning the trading of digital assets designed to circumvent traditional financial institutions.
The important context is that all crypto projects face the same challenges of delivering peer to peer economic networks in the face of a rapidly evolving regulatory landscape. As we careen toward the digital dystopia of a cashless society, it’s critical that the right type of pivot and rebirth is taken.
Not only must we protect the ability to use privacy preserving cryptocurrency, but ensure they can be privately and safely acquired in the first place.
Introducing BYOB Exchange: The first truly private and decentralized exchange
In recent weeks the team has been evaluating the anonymous proposal submitted to our Github by an individual going by the name Lazaruski, who appears to have been very mindful of regulatory pressure.
By employing the expertise of some talented researchers and technologists, we were able to reach an agreement on the feasibility of the CloakX proposal.
Today we are officially announcing BYOB.Exchange and our commitment to a new direction, informed by a group of trusted advisors and experts.
We have taken into account thousands of suggestions, countless pages of feedback, and the deep insights of a number of key community members, to make this critical decision concerning CloakCoin’s future.
We pledge to adapt as follows:
- Shifting resource allocation to foster a developer-first laser focus that prioritizes software deliverables and user experience.
- Reorganizing the structure of our team to support the new direction, with careful management to ensure the best possible productivity.
- Producing high quality, easily understood technical documentation in order to attract new contributors and improve developer experience.
Much thought has been given to Cloak’s current technology, required development and product market fit within the wider crypto ecosystem.
What is BYOB Exchange?
The proposed implementation of BYOB Exchange is a decentralized exchange network built atop proof of stake nodes, that reserve a fract ion of machine resources to facilitate peer to peer trading.
Considering Cloak already has staking nodes and migration to the new BTC codebase is on track for completion, the network is well positioned to accommodate a DEX interface embedded directly in the new hierarchical deterministic (HD) wallet.
Through each wallet connected to the network, a fraction of the exchange interface would be encrypted and stored in a distributed manner on each machine participating as a staking node.
As CloakCoin does not incorporate masternodes, it naturally favours the decentralisation of the user interface, as well as the APIs of all supported cryptocurrencies.
What’s next for CloakCoin?
Learn more by visiting the BYOB Exchange landing page, or by reading the CloakX Proposal on our Github, which forms the basis of the software specification we have begun drafting.
As we are taking this new strategy very seriously and appreciate the feedback of our incredible community, we invite you to join the discussion in our Telegram group and extend our sincerest appreciation for your patience through this challenging time.
Long live CloakCoin!
Peace & Love