Why Darkcoin Shows Long Term Potential

Darkcoin icon

These days, its rare that a brand new coin introduces useful new features that raise the bar for cryptocurrency. It’s rare that a developer releases a new cryptocurrency that separates it out from other altcoins. It’s rare that something like Darkcoin comes along and changes everything.

Let’s take a look at Darkcoin for a moment. Darkcoin is the world’s first completely anonymous cryptocurrency.

“But wait, isn’t Bitcoin anonymous?”

Well, yes. However, all transactions made with Bitcoin are publicized on a public ledger known as the blockchain. This blockchain allows transactions to tracked down back to individual Bitcoin addresses. From there, you can look at every transaction that address has ever been involved with. If you’re good at collecting data, you may even be able to track an address back to a person. That’s hardly anonymous, right?

Darkcoin changes that. Darkcoin still has a blockchain (after all, all proof-of-work coins require one in order to validate transactions), however, it is impossible to tie transactions made on it to specific people or addresses, because all transactions are pooled in the blockchain. When payments are made, it is still possible to see who sent Darkcoin and who sent it, however, it’s impossible to see a connection between the two parties.

So why is this useful? Well, today we live in a world where the government, large organizations, and suspicious wives seem to enjoy tracking our every move, including transactions made with cryptocurrency. Darkcoin makes this impossible, allowing you to hide your purchases from anybody who would be interested in viewing them. This opens up a lot of possibilities.

Some technical information about the coin: Darkcoin uses the X11 hashing algorithm, which is different than the standard Scrypt or Sha-512. The block reward is variable (2222222/(((Difficulty+2600)/9)^2)) and the generation time is 2.5 minutes. 84 million Darkcoins are set to be produced in total, which will take place over the next decade.

Darkcoin currently holds a price of around $10, only slightly lower than the price of Litecoin. I believe Darkcoin holds long term potential and the price is bound to slowly rise over time. Often times, prices can be easily manipulated when there is a low supply of them. However, I don’t think this is the case with Darkcoin. Investors such as myself are excited by the prospect that true anonymity brings, and are holding on to the coin for the long term.

Below is an infographic made by Lumeire on BitcoinTalk with more information on Darkcoin. I highly recommend looking over it!

Darkcoin Information Infographic

 

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