Anoncoin project purpose and description
What Is Anoncoin?
Anoncoin is a decentralized and open-source cryptocurrency designed with the primary goal of enhancing privacy. Originally, it was created as a fork of Litecoin but was later updated to include the latest aspects of Bitcoin Core 0.10.
The project was created by Meeh who was concerned that the onslaught on cryptocurrencies by governments was likely to halt them from further growth. Therefore, he wanted to craft a reliable coin that people could use without worrying about third-party seizures.
- The history of Anoncoin (ANC) in the market
Since its establishment in 2013, Anoncoin has performed relatively well in the market making the community to believe it could be the next big thing in the market. When the coin first hit the market in July 2013, the value was $0.02. Then, it grew marginally to hit $0.2 by 20th November 2013 before shooting up to $11.97 in early December of the same year. This was an impressive growth of more than 59,600% from the starting price.
After the positive show towards the close of 2013, the price took a downward trend reaching $0.6 by May 2014. He downtrend continued making Anoncoin hit $0.01 in the first quarter of 2017
What is the problem that Anoncoin Solves?
When Anoncoin was released in 2013, a raft of issues had become characteristic of the industry. But the Anoncoin founders and developers opted to handle the following two issues.
- Lack of privacy
The conventional setting of a banking system does not have any privacy. From cashiers and managers to the political system, your financial account, getting your financial details is easy. This is why cryptocurrencies were created. But the issue of privacy continued being a major hurdle, especially for the pioneer coins. Take the case of Bitcoin.
When Bitcoin was launched in 2009, people thought that they had finally found the reliable solution for optimal privacy. But it soon emerged that Bitcoin is not as private as people expected. Here are the main methods that your transaction details can be accessed by third parties.
First, user info can be known through transaction graph analysis. The graph evaluation helps to identify trends and drawing a conclusion on who is related to them. This analysis is made possible because though Bitcoin only uses pseudonyms that hide the personal names, the addresses are accessible.
- IP address analysis
The main goal of IP address analysis is trying to identify the computers that host Bitcoin full nodes that broadcast transaction. The process involves evaluating the thousands of Bitcoin full nodes to narrow down to those from a specific area.
Though very complex and less refined compared to transaction graph evaluation, it is still possible using modern technology. Lack of privacy has made a lot of Bitcoin users to opt for other coins that guarantee optimal anonymity.
- Centralized mining
To run decentralized networks such as Bitcoin or Litecoin, the system relies on a network of miners to distribute the native coins. After Bitcoin release, mining was easy because the mining difficulty was low. This implies that any person with a CPU or GPU could comfortably mine and own the native coins.
The growing demand, popularity, and commercialization of crypto coins saw a lot of players developing interest in mining. The ultimate impact was the development of Application specific integrated circuits (ASICs) that generate a lot of mining power. While this sounds good, it marked the beginning of a major problem of centralized mining.
Because ASICs are very expensive, only those with a lot of money can afford them. This implies that mining becomes a rich man affair. As more coins fall into the hands of a few pools, mining companies, and rich people, there is a danger of 51% attack.
How Does Anoncoin Solve The Problem?
To address the above issues, the Anoncoin uses a multi-dimensional approach that includes the following strategies.
- Anoncoin uses Invisible Internet Project
Invisible internet project (abbrev 12p) is an anonymous overlay network within another network. The target of adopting the 12P at Anoncoin was to help protect communication from dragnet suvei8llance and monitoring via third parties like ISPs.
The technology operates as a simple layer to help users carry messages anonymously and securely between each other. Besides, all messages are end-to-end encrypted while the end-points use cryptographic identifiers (call them public keys) to decode the info.
In order to anonymize the messages, the Anoncoin uses 12P routers built on inbound and outbound tunnels. When a client makes a transaction, it is run through the routers to ensure it runs anonymously.
- The application of the Onion Router (Tor)
The onion router is software for facilitating anonymous communication. The process involves directing traffic via a free and volunteer overlay network that comprises of thousands of relays to help conceal user’s location and transaction details.
By employing Tor, Anoncoin users are assured that their activities cannot be easily traced even by third parties. This implies that you can enjoy running transactions without worrying that third parties such as government agencies will easily know about. However, it is important to avoid using exchanges that have know your customer (KYC) requirements because the details you want to cover will be revealed.
- Total decentralization
To help advance the course of anonymity and centralized mining, Anoncoin operates as a completely decentralized network. The network uses a system of nodes spread in its network. This implies that it does not rely on a centralized system such as banks and credit cards.
Initially, the Anoncoin used scrypt proof of work (PoW) because it was memory intensive. However, a new update 0.9.7.1 released on October 23rd, 2018 set the Anoncoin from scrypt to GOST R proof of work. The shift is expected to help make mining the Anoncoin network more difficult for parties using ASICs.
GOST R helps is helping to advance the course of decentralization by ensuring that as many nodes as possible can be involved in the Anoncoin system. Now, you can join the system as a node using the standard GPU or CPU and enjoy all the associated benefits.
What makes Anoncoin better than it’s competitors?
When Anoncoin platform was created, the founders and the development team knew that they were in stiff competition with other networks. Here are some of the main things that make Anoncoin better than competitors.
- The Anoncoin system allows users to operate in total anonymity. This means that users can enjoy sending value on the network on a peer2peer basis without worrying about being discovered by third parties. Indeed, even a court of lay cannot order for your details because the cryptocurrencies are not regulated.
- The Anoncoin network is cheaper and faster. Unlike banks that are profit-based, the Anoncoin system runs as a completely decentralized system. This implies that people sending value do it on a peer2peer basis without involving centralized entities such as banks. This makes the transactions direct and cheaper.
- The system allows users to join and own the network. When you decide to join the Anoncoin system, you become part of it. The nodes in the system help to confirm transactions through mining and with governance. You will, therefore, be called upon to help make crucial decisions about the network such as new features.
- The network has been in operation for many years. The crypto community has become very cautious about digital coins that are released to simply defraud investors. It takes a couple of years for a new crypto to be confirmed stable and its features demonstrated to work. In the case of Anoncoin, the crypto has been in operation since 2013 and its system has been proven reliable and effective.
How can Anoncoin be categorized?
Anoncoin is a truly anonymous and decentralized cryptocurrency. Its design and features such as the onion router system and application of the invisible internet protocol have all helped to guarantee users that their coins and information will be completely secure.
What’s Anoncoin’s vision on Security?
The Anoncoin’s vision on security is making its network and native coin the most secure and anonymous in the industry. The founders had observed the security issues in other networks and came up with the following strategies to keep the system secure:
- The system uses the advanced GOST R proof of work after shifting from scrypt proof of work algorithm.
- The development team comprises of a high tech team that progressively reviews the network to identify vulnerabilities and addresses them before attackers take advantage of them.
- The system operates as a completely decentralized system to ensure that the coins are evenly spread to prevent the danger of 51% attack.
- The coin has been performing relatively well in the market. This can be seen from the fast-growing community and the expected value growth.
Examples of Anoncoin’s use cases / applications
As the number of cryptocurrencies in the market keeps growing, one of the goals of Anoncoin’s development team has been to win as many applications as possible. Here are some of these use cases.
- You can use the Anoncoin to pay for goods and services in the markets. As more stores come out to accept digital coins, you will find it very easy to directly pay for goods and services. Simply check for the stores that accept Anoncoin to make direct payment.
Even in the event that only a different coin is supported, it is still possible to use Anoncoin by changing it to the supported token. Note that changing the coin to another will require using the services of an exchange.
- The Anoncoin is a reliable coin for saving money or investment. Because Anoncoin is completely private, you can save money in its system without worrying about third-party seizures. If the growing demand for the coin helps to push the price upwards, your savings will deliver good return on investment.
- Consider using Anoncoin to pay for your taxes. Unlike ten years ago when most governments never supported cryptocurrencies, things are changing. More administrations are realizing the benefits of crypto coins and supporting them.
In jurisdictions such as Singapore, Switzerland, and Arizona, you can pay for some government services. Take the case of Arizona.
In April 2018, Arizona passed bill HB 1091 that allows residents to pay for taxes using cryptocurrencies such as Anoncoin. According to HB 1091, the tax authorities in Arizona are required to convert the coin into USD and credit user accounts with the money immediately.
- Use the Anoncoin to trade in the markets. The crypto markets are the exchanges that bring together buyers and sellers so that prices are driven by forces of demand and supply. To trade in the markets such as Bittrex, you have to start by creating a user account and identifying an appropriate pair such as BTC/ANC or ANC/XRP.
To trade profitably in the markets, it is advisable to start by learning the inherent strategies. For example, you need to know about interpreting the market trends so that your moves are more profitable.
- Like other coins such as Bitcoin, Anoncoin is also a good token for sending value on a peer2peer basis. Because ANC coins are based on a completely decentralized, users send value directly without involving centralized third parties such as banks or credit card companies. This implies that your funds will be sent faster, more securely, and cheaply compared to conventional financial services.
NOTE: It is prudent to note that though Anoncoin has worked so hard to ensure that all transactions are anonymous, users are still vulnerable especially when they use the exchanges. These are markets run under the local laws and that require users to provide a lot of personal that can be used to identify them in line with know your customer (KYC) and anti-money laundering (AML).
In April, Coinbase said it would share details of traders who had handled more than USD 20,000 starting from 2015. This means that even if you enjoyed the privacy provided by Anoncoin, your privacy is still under threat.
The solution is using decentralized exchanges that do not require additional registration. Good examples include IDEX, Bancor and Waves DEX. The decentralized exchanges seek to extend anonymity espoused in the blockchains to trading platforms.