CloakCoin is both a currency and system that aims for secure, private and anonymous transactions worldwide. CloakCoin was established in 2014, a time when Bitcoin was on a downtrend due to poor anonymity and security.
CloakCoin uses the same concept as Bitcoin but with a few alterations such as coin mixing, communication, and anonymity in order for CloakCoin users to ensure they have one hundred percent freedom. The white paper for CloakCoin can be viewed at https://bit.ly/2JJrg5A (24 Pages PDF)
Transaction Speeds
CloakCoin has made transaction speeds a high priority as they claim to only take up to sixty seconds in comparison to Bitcoin which can take up to ten minutes. CloakCoin however doesn’t specify on their website anywhere why the transaction speeds are significantly faster as most of the time it’s just statements but with no real information to back it up.
Anonymity & Privacy
CloakCoin has made it clear they want to be completely anonymous and private in order to fulfill their user’s needs, as the coin has an onion routing system in place which allows users identification out of transactions.
In turn, this means nobody can trace the identity of senders or receivers making them “anonymous”. CloakCoin has made CloakShield which uses end to end encryption which allows for communication to be secure and allow blockchain traffic to flow. With all these anonymous and private features, CloakCoin has stated they don’t support illegal activity and are aiming for more financial freedom in this world.
Proof of Stake System
CloakCoin users are able to stake their coins in order to make a passive income. Staking on with Cloak means that however many coins are staked in your CloakCoin wallet will earn you six percent interest per year.
CloakCoin made a good decision implementing a proof of stake system rather than mining as it is far more energy efficient and a lot easier for newcomers wanting to support the project instead of having to wait for mining parts to come which are expensive as of now due to the high mining demand in GPU’s.
