Navajocoin is a proof of stake cryptocurrency launched in July of 2014. It uses POS to mine blocks which means it is more environmentally friendly because there is no need for huge mining farms endlessly hashing and wasting electricity. Navajocoin features a state of the art anonymous system featuring subchains and a decentralized network with anonymizing nodes.
The Anon Technology
There are different implementations of an anon transaction technologies between different cryptocurrencies. The first and the most basic one is a centralized coin mixer. A perfect example is bitmixer.io or bitcoinfog on the tor network. They are single coin mixers which need to be trusted in order to mix your coins. You have to trust that the coin mixer is not going to scam you and take your coins. You also need to trust that the coin mixers is in fact does not store any data regarding the trasactions you are trying to mix/tumble. A better solution to establishing anonymous transactions is Darkcoin’s Darksend, where obfuscation is achieved by using network nodes in order to break up and reroute the flow of money in a way that is hard to track down. Further obfuscation takes place by using similarly sized pools of money which makes it difficult to pin-down identical amounts to a certain transaction especially when multiple transactions are occurring simultaneously, all with the same amount of money. Multiple rounds of mixing are employed so that tracking payments becomes exceedingly difficult as the number of mixing rounds increases.
With the use of subchains, Navajocoin looks to solve the problem of the ability of mathematically deanonymizing the transactions. Using subchains the transaction amount and destination is anonymized through a private and encrypted subchain. This breaks the chain of events between the sender and the receiver which makes it impossible to prove beyond a reasonable doubt that Alice sent coins to Bob. Using the NMG (Navajo Magic Gateway) between the sender and the receiver makes all communication double encrypted and scrambles the newly generated wallet addresses. For more information regarding the subchains and the anon technology refer to our previous story on Navajocoin.
Unlike 99.9% of altcoins out there Navajocoin has been around for 6 months the development team has promised features and so far they have delivered. The state of the art anonymizing network solves critical problems with current implementation of anon transactions, if the Navajocoin development team can pull off the promised features there is no saying how high Navajocoin can go. With the anonymizing network now in beta testing Navajocoin shows promise as an up and coming cryptocurrency. As a disclaimer this is not a sponsored story and we do not have any invested NAV. If you are an investor looking to invest into a cryptocurrency you must do your own research before making a decision.
If you liked this article follow us on twitter @themerklenews and make sure to subscribe to our newsletter!