Steemit Crypto Academy Season 2: Privacy Coins/ Teacher: @levycore/ Student: @franklin.tsosa
1. Choose a Privacy Coin and perform a fundamental analysis of the coin in detail.
2. Describe the steps in creating a wallet for the Privacy Coin of your choice. (Screenshot required)
3. Explain the reason you chose the Privacy Coin. (State the advantages and disadvantages)
4. Conclusion.
As we all well know most cryptocurrencies use the de-centralized system as the main tool on their platform, offering their clients full control of their money whenever and wherever they want. What I did not know and thanks to the class of the teacher Clase: @Levycore currently there are a series of so-called private cryptocurrencies, which offer as their main product in addition to crypto, to maintain the user's privacy when using this type of asset in terms of payments or transfers, maintaining the same freedoms of cryptocurrencies. such as bitcoin in which you do not need a third party, type of account or cost for maintenance of the platform.
Next, by means of this research named private cryptocurrencies, we will investigate to deepen and obtain a wide knowledge of everything related to the private cryptocurrency Dash (Digital Cash) , as well as how to create your virtual wallet and finally we will culminate the research explaining the reason for selecting the private cryptocurrency mentioned above.
The name DASH comes from the combination of the words digital and cash, which means digital money. This cryptocurrency appeared for the first time in 2014 operating under the name of Xcoin, then it went through the name DarkCoin and nowadays it has the name explained above. It was the first cryptocurrency based on the bitcoin code but proposing within its structure essentially on these two points:
-Anonymity: Dash works in a different way than bitcoin, it offers the PrivateSend service on its platform, which manages to create total anonymity in relation to all Dasd transactions. (The maximum amount allowed for each transaction through PrivateSend is 1000 DASH).
-Super speed in transactions: Thanks to the service it provides called InstantX, it allows almost instantaneous transactions which depends on its enhanced network nodes. These nodes block the inputs in specific movements, being verified by the Masternodes network who transmit the transactions to the network thus avoiding the long waiting periods which are characteristic in a network such as bitcoin.
In its 6 years of existence, Dash has managed to consolidate a strong community of users on its platform because in terms of market capitalization it has a value of $1,919,550,669 net being its diluted capitalization ($3,576,898,008) with a price per crypto unit on June 1, 2021 of $193.80 USD, placing it at number 52 in the cryptocurrency raking.
With this brief historical review until today, the main task of Dash in the crypto market is privacy, and that is what it was created for. In the Dash ecosystem, the process that allows its high level of anonymity is known as PrivateSend which we have already mentioned. Now, in a more detailed way, I will expose this novel and unique characteristic system in Dash.
When it was originally designed it was named Darksend. It consists of an optional enhanced privacy system for transactions inspired by CoinJoin which is the one implemented in the bitcoin network. This system relies purely on Dash master network nodes instead of requiring a common network. The process involves coins being mixed (e.g. 0.01 DASH, 0.1 DASH, 1 DASH, 10 DASH, etc). The aforementioned mixes use an advanced method in each user's wallet and this in conjunction with the implementation of such a system allows the Dash masternodes (network) to send transactions using a special code on the Dash network allowing for greater privacy for the user.
It was baptized by the current name in June 2016 adding privacy to transactions by combining identical inputs from multiple users into a single transaction or multiple transactions. Because of the identical inputs, it makes it difficult to trace the origin of the commingled amounts, obfuscating the flow of funds, which compensates for the fact that Dash transactions without PrivateSend are not fungible.
Within its acquired functionalities I admire the recognition to the Dash work team headed by its founder Evan Duffield which through the ecosystem already created allows the high-level process of privacy in relation to the following phases:
Each amount of a Dash transaction is separated by common denominations. It is as if we were paying in cash. examples (e.g. 1 Dash, 1 Dash, 10 Das).
The wallet only sends a request specifying the amount to the master nodes (web Dash) which is to be mixed. No other details of the transfer are revealed.
After two other users send similar messages where the denomination matches, the mixing in the system at the nodes starts, alerting each user instantly in the middle of the transaction to send the mixed amount but to a different address created by the platform within the same transaction.
The wallets continuously repeat this process for each denomination transformed into a transfer making it more and more difficult to track a transaction.
All this process described above is carried out automatically on the Dash platform without requiring any extra steps from the users at the time of a transaction.
From my research on the subject, the Dash team has an official directory DASH. In addition, one of the safest ways to acquire this cryptocurrency is through exchange houses. Each of these exchange houses offers pairs to exchange with Dash that are fully available to acquire it by means of the currencies: United States (USD), the euro (EUR), and the yuan (CNY). in addition, there are usually pairs in cryptocurrencies such as BTC, ETH, and LTC.
Among the exchange houses where we can buy DASH we have:
To create the virtual wallet (wallet) of the private cryptocurrency Dash I decided to do the creation from my phone to get access wherever and whenever I want. We go to Google search engine and from there we put site "Dash official website" obtaining as results the Dash or the Dash app from the android play store.
After entering the play store we locate the app with the name Dash Wallet and click on download.
After downloading the app and proceeding with the installation on the device. We will open the Dash app where we will see this window, which will give us the start to the configuration of our wallet.
The first requirement of the app is to generate a password, which can only have four digits. Enter the password that you trust and do not forget to proceed to the next step.
The next step in the app is to write down a sentence which is composed of several words, which when you make the note, and continue with the next step of the app will ask you to place in the proper alphabetical order each of the words that make up the sentence you wrote down previously. This strategy is a security mechanism of the Dash app.
As a last step to finish the configuration of the Dash app wallet, we will configure the fingerprint sensor to add more security and facilitate access to our app.
Finally as you can see in the last image ends our wallet configuration, where it allows us to open and be able to investigate all the functions of the app: scan QR, buy and sell among other functions. As you could see in each step related to your image, the configuration is super simple, so following the instructions is an easy process to perform.
I really selected the Dash cryptocurrency because it is the most used in my country where I live Venezuela, in addition to the one used in payment methods. Recognized in the main supermarket chains such as Biomercados, a leading chain in the main cities of my country. Although here we are still in times of pandemic by covid-19, the merchants that are more used by Venezuelans every day are integrating to this technological vanguard that is presented as a solution for conventional payments. For us, the common working class Venezuelan, we see in a cryptocurrency the opportunity to be able to take care of our savings in the face of this wild devaluation that is experienced every day with respect to the Venezuelan currency (the bolivar).
In Latin America it is the most recognized cryptocurrency due to the program that is being developed in each Latin American country providing tools to the Latin American economy and educating the business community about the development that allows its ecosystem. Already explaining this important points we will try to investigate its advantages and disadvantages as a private cryptocurrency:
Advantages:
It is one of the most accepted private cryptocurrencies worldwide, for example in the Latin American region it is accepted in more than 5,000 stores and accessible in more than 700 ATMs and 90 exchange houses worldwide.
It is one of the cryptocurrencies with the highest transaction speed compared to the so-called crypto mother Bitcoin.
Payments through the implemented security system "InstantSend" are immediate as opposed to waiting times with other options.
The management in terms of commissions and expenses for transactions are relatively low, giving the client the possibility to grow in their assets.
Dash management is cross-platform, i.e. we can synchronize our money with different platforms and wallets.
-Disadvantages:
At the time of wanting to make a transaction in private mode its security system already named above only allows a maximum per user of 1,000 units of the cryptocurrency. Being a limitation in relation to the crypto if we talk about keeping a low profile in terms of privacy of a person's assets.
They have received harsh review in relation to their masternodes system and how their policies are financed to the user in terms of decentralization as it breaks this scheme a bit due to the existence of a voting program for each user who owns more than 1,000 Dash which composes one, thus obtaining the possibility to vote to test for project for the development of the ecosystem, expansion of the network or social program.
It is obvious that being a cryptocurrency and the type of system it offers, it is impossible to identify the income of funds entering the network being of illicit origin.
The community in general can be exposed to a tendency to be a point of creation of continuous FUD which is nothing more than the spread of fear and misinformation for someone to gain an asset advantage.
It has been a long way for me in this research which I fell in love with, having the opportunity to deepen more in recognition and technological development that today has the Das cryptocurrency as a virtual asset in the market and also to learn during this development that the crypto offers within its services a private system shielding any transaction that is decided to perform anonymously within its platform, which has been promoting and renewing its ecosystem for the development of both the company, trade and also thinking of the person who wants to empreder and to start in this wide world of virtual money.
As any asset in the world market has its pros and cons, always pointing towards managerial excellence, I had the opportunity to watch a video where its founder explains what policies Dash wants to implement for the growth of the planet, world economy and people common.
Now I can understand even more what that word meant in a store that says Dash is accepted, understanding that it is a crypto that has shown to be able to continue evolving in the market to offer from anywhere in the world the possibility of moving your assets with the greatest security and reliability that any bank can offer you and without any series of requirements to meet. Its slogan security and speed describe everything previously developed in these investigations. Without more to say, I hope I will accomplish the task with the objectives set in class.
Hi @franklin.tsosa, Thank you for taking my class in the 8th week.
You didn't put #cryptoacademy in your first 5 tags, review the rules and guidelines before doing your homework.
please teacher @levycore ,
I already made the correction. . I await your prompt reply . I await your prompt response, teacher, since I will really do my best to do it. lamneto the error since two labels do not separate them.