CryptoCoinsRevolution.com: What is Darkcoin?

What is Darkcoin?

Darkcoin is a peer to peer cryptocurrency that makes use of a closed source system known as Darksend for adding privacy in transactions. Darkcoin makes use of new chained Hashing algorithm approach known as X11 for its proof of work. Instead of the option of using the Secure Hash Algorithm SHA-256 or scrypt it uses 11 rounds on separate hashing functions. The function of chained hashing, high end CPUs that gives average return like GPUs. Other difference of the algorithm is that GPUs operates around 30% below wattage than scrypt and 30% to 50% more cool, making it easier to set up computer and ensures minimum energy bills for miners. Darkcoin is the first centric cryptographic cerrency on the basis of Satoshi Nakomot Bitcoins. Darksend is a technology used for transferring anonymous block transactions inputted directly in the client by using extensions to the protocols. A better version of proof of work uses a chain of Hashing algorithms and replaces SHA-256 algorithm resulting to a slower encroachment of an advanced mining technology. The DarkGravityWave was invented to offer a fast response to large mining power fluctuations.

Darksend

This is a coin mixing service that is based on CoinJoin. Its development is active RC3 and will be an open source after its finalization. In recent implementations, it has added privacy to transactions by merging identical inputs, from different users, in one transaction and various outputs. Because of the identical inputs, transactions cannot be traced directly, making the money flow complicated. Mixing of Darksend is done on masternodes, which posses the function of confirming the transactions. For ever round of Darksend, there is a selected masternode to carry out the coin mixing. Masternodes may not be trusted, meaning that they cannot steal coins from users. But they know where the coins are coming from and where they are heading. This is impossible with DarkSend+RC4; it merges multiple Masternodes in form to avoid complete understanding of input and outputs. To prevent bad actor scene, whereby many masternodes are used by an adversary that intends to deanonymize transactions, there has been an implemented disincentive by the requirement of 1000 Darkcoins to claim and use a masternode.

X11

X11 is the name of the proof of work chain algorithm which was invented in Darkcoin on January 18, year 2014. It was inspired by the chained hashing approach of Quark, and adds another depth and complexity by inflating the hash numbers, but it is different from Quark in that the hashes rounds are determined as a priority instead of the hashes that is picked randomly. The algorithm of X11 makes use of multiple 11 rounds of different hashes namely: shavite, simd, echo, cubehash, keccak, jh, groestl, bmw, blake, thereby making it faster and safer and more sophisticated cryptography hashes operated by new cryptocurrencies.

Mining Darkcoin

CPU and GPU is an important part of the proof of work scheme to authenticate transactions. Darkcoins as a cryptocurrency can be mined. At the recent mining rate, around 2.880 new coins are created per day, with the increased number around 22 million in the next decades. CPU and GPU mining are done with bakanced ratio of 1:5 for the hash rate generated between the best CPUs against best GPUs.

THE MINING PROCESS

here are 2 methods for mining Darkcoins. The first one is Solo Mining, whereby the miner tries to locate new blocks for the networks. It is not commonly used because of its stress to find a block closely, without possessing major hash power. The most used way to mine is mining pools, whereby users merge its own processing power and that of others for achieving finding blocks frequently. The reward earned is shared among the pool users. Users have options for two pools, decentralized P2Pools and Centralized pools. The first option is preferred to avoid pool or group of pools from controlling larger percentage of the network hash rate, which might be risky for the network.

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