Dash (Formerly Darkcoin)

MONDAY 19TH MAY 2014

Darkcoin

Darkcoin is up 3x this week and 8x over the last 3 months. It is the 7th largest cryptocurrency in the world with a market cap of  $28mill – Lee Banfield

 

Darkcoin’s unique anonymous payment, DarkSend, allows anyone to make transactions anonymously.

The innovation is in the mixing of inputs and outputs going through the DarkSend system. A users payment is automatically split into smaller denominations and pooled with the split-up payments of other users. Receivers of these payments draw these denominations automatically from the pools until they have received the correct amount . Anyone seeing the blockchain will see payments being made but they won’t be able to see who paid who. – darkcoin.io

 

MONDAY 26TH MAY 2014

Darkcoin

Darkcoin is a Bitcoin clone which was released with basically no changes at all to the system, but with CoinJoin (https://bitcointalk.org/index.php?topic=279249.0) privacy as a sales pitch.

It’s certantly not the first time that I’ve posted about something technical where some altcoin then popped up with it as a sales feature on its whitepaper without even bothering to implement it.:-/

The funny thing is that CoinJoin’s primary advantage is the network support for it is already part of Bitcoin since day one. Maybe it’s not /completely/ pointless to launch a new cryptocurrency around CoinJoin simply because a commitment from a lot of users to use it might increase the anonymity set… but as far as I can it’s nearly completely pointless (esp since in Bitcoin some ordinary transactions look like CJs).

If you’re going to do something incompatible at the protocol much better can be done— as shown in practice by Bytecoin, or in theory in ZeroCash and ZeroCoin. … even there isn’t not a requirement to start up a whole new currency for it, but at least not pointless. CoinJoin isn’t the be all end all of transaction privacy, but at least you don’t have to switch currencies or convince people to deploy improvements to Bitcoin in order to make use of it.:) – Greg Maxwell

 

TUESDAY 27TH MAY 2014

Cryptonote Coins vs. Darkcoin

Monero was forked from Bytecoin, and was not premined.

It uses Greg Mawell endorsed Cryptonote, which is the “ring signature” tech behind bytecoin.

“I wouldn’t be surprised if none of the current implementations of it are around in ten years though: Bitcoin emerged at a surprisingly mature state, the BCN/MRO/FTM stuff isn’t yet anywhere near as mature. But certantly darkcoin is totally uninteresting compared to this stuff. They’re also free of the trusted initialization challenges zerocash has” – Greg Maxwell

 

Tuesday 27th May 2014

“Don’t let speculative experiments at the margin distract from the most mind-blowingly awesome monetary system mankind has ever seen – Bitcoin proper” – Erik Voorhees

The altcoin market is a shambles. “Speculative experiments” is an overly generous description of almost all altcoins.

What is claimed to be “experimentation” or “next generation” is mostly a lying fraudulent mess of  worthless get rich quick schemes. This is unfortunate, as the stakes for creating a genuinely successful digital currency couldn’t be higher. Bitcoin is currently the market leader, but hasn’t won yet so you would think it would be all to play for.

This is not the case. Founders who have a decent name, brand, logo (blackcoin) or a seemingly decent feature (darkcoin) could not resist the temptation to cash in on a quick instamine pump and dump over a couple of months, rather than build a coin up that aims for real merchant adoption over a period of many years.

Bitcoin is a remarkable experiment. Despite having 5 years to create a better model, most competitors have failed to balance the tough problem of allocating a coin in a sustainable way.

Even after 5 years, nothing comes close to bitcoin in integrity and utility. – Lee Banfield

 

Tuesday 23rd September 2014

Open Transactions vs. Darkcoin

It seems that the main reason Chris Odom and many of the supporters of Open Transactions aren’t that excited about altcoins is that they understand what this project can do for Bitcoin. One feature that Odom specifically pointed out is anonymity. Altcoins such as Darkcoin and Anoncoin are looking to take advantage of the fact that anonymity and privacy are two areas where many Bitcoin users would like to see improvements. As a side note about anonymity during the altcoins panel, Odom noted, “Open Transactions uses Chaumian untraceable cash. You don’t need an altcoin to do it.”

In addition to providing enhanced privacy and security measures for any financial instrument issued on the platform, Open Transactions can also be used for microtransactions and instant confirmations. These features are made possible by the fact that Open Transactions is simply a system of federated servers rather than some kind of blockchain technology. While it does not come with the same level of security as a blockchain, there are only certain types of transactions where blockchain-level security is actually needed. A user can always keep savings on the blockchain in cold storage and use an OT server as their hot wallet. It should be noted that voting pools (see video presentation by Justus Ranvier) will make it impossible for a single server to run away with a customer’s bitcoins – Kyle Torpey

 

Thursday 9th October 2014

Bitcoin vs. Darkcoin

While Bitcoin offers nothing resembling anonymity to persons who do not care to work in the  betterment of their interests, Bitcoin offers opportunities to get great anonymity and protection in accordance to the quality of their effort. Anonymity is like censorship. You can get anonymitythrough the expenditure of work and resources. You can avoid censorship by expending work and resources.

Darkcoin instead promises anonymity without work so long as you merely trust. Trust that these Master nodes actual provide the service promised. Trust that this protocol which is still being built is actually capable of fulfilling its promises. Trust that the developers are not merely rats or stool pigeons offering a honey pot in the hope that by entrapping others they might find absolution for their own sins. Trust that the people behind Darkcoin even intend that the system can work in such a way as they promise instead of merely supposing the project as a cash grab before rising off into the sunset.

The OpenSSL behavior behind HeartBleed spent two years in the wild. The Bash behavior behind “Shell Shock” is an artifact of last century. What kind of serious project would forsake the eyes, resources, and brutal mathematics behind the success of Bitcoin’s engineering simplicity while introducing complexity and fragility under the banner of usability? – Bingo Boingo

 

Wednesday 18th March 2015

Shapeshift Currency Exchange

ShapeShift’s exchange volume has been growing by 30% per month for the past six months. There is no easier or safer way to trade Bitcoin with Litecoin, Darkcoin, Ripple, NXT, Bitshares, and other leading digital assets.

There is no signup process whatsoever. You can now move between digital assets with the grace and elegance that only cryptocurrency permits – Emily, Shapeshift

 

Wednesday 6th May 2015

Buy on Amazon at Discounted Prices: Purse.io Integrates ShapeShift

Spend Tether, Dash, Litecoin, XRP, Monero, CounterParty, NXT & more at Amazon – Erik Voorhees

Supports the following countries: UK, Canada, Germany, Japan, China, France, Italy, Spain, India –ShapeShift.io

 

Sunday 26th July 2015

Monero vs. Dash

DREADz: If you were to buy $100 of one anon coin would you choose Dash or Monero or another I’m not aware of?

Peter Todd: Without a doubt I’d choose Monero over Dash – the latter is snakeoil, the former genuine crypto.

 

Saturday 2nd July 2016

In May 2014 I wrote a report looking to find a few coins that were potentially useful and not scams. I couldn’t find many because of the premined, instamined problem.

Most coins follow a predictable pattern. A quick pump launched by a few preminers, big hype, big market cap, scam people to get on board. Dumped. Crash by 90% or more. Often a dead cat bounce, doubling or tripling from those 90/95% losses, then a steady fall towards zero.

 

Here’s how the coins I analyzed on May 27th 2014 have performed since:

Category 1: Disqualified From My “Ethical / Useful List”

Dash (Darkcoin at the time)

May 27th 2014: Market Cap = $51.2mill

July 1st 2016: Market Cap = $47.8mill

-8%

 

NOTABLE CURRENCY COINS

The Dominant Anonymous Coin

Litecoin may be minimally useful as a backup blockchain, but it would make more sense for the number 2 digital currency in the world to be an anonymous coin.

A strong, dominant anonymous coin taking the number 2 spot with litecoin 3rd would seem like a sane world.

Privacy improvements in digital currencies are needed and although I’d prefer it to see it happen in bitcoin, I don’t mind seeing separate currencies working on it too.

Spending bitcoin through mixers is still the most popular way to pay for products on dark markets, but altcoins are accepted on some sites.

At the moment Dash is the most dominant anonymous coin by market cap, and Monero is the most technically advanced.

After years of hype, the anonymous coin Zcash (formerly Zerocoin and Zerocash) is scheduled to be launched on 26th September 2016 (although they have missed all of their previous milestone so further delays wouldn’t be surprising).

 

 

Dash

Dash (Darkcoin at the time)

May 27th 2014: Market Cap = $51.2mill

July 1st 2016: Market Cap = $47.8mill

-8%

Dash is ranked 7th on coinmarketcap.com and is currently the world’s biggest privacy focused altcoin (by market cap).

Apparently it’s the most active community on the BitcoinTalk forum.

Unfortunately Dash had a scam launch and serious doubts remain over how effective it is at protecting user privacy.

DREADz: If you were to buy $100 of one anon coin would you choose Dash or Monero or another I’m not aware of?

Peter Todd: Without a doubt I’d choose Monero over Dash – the latter is snakeoil, the former genuine crypto. – Sunday 26th July 2015

CONCLUSION FOR CURRENCY COINS

Disqualified Coins:

Dash

Bytecoin

DigitalNote

 

Legitimate Coins:

Litecoin

Monero

Lee Banfield, July 2016 Report: The Most Legitimate Altcoins

 

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