CLOAK is one of the few strongly privacy driven cryptocurrencies out there. And privacy is the last human right we have forgotten to fight for.
CLOAK is also incredible because it rewards every single coin holder that wishes to participate in maintaining the CLOAK transaction system called ENIGMA - something none of the top cryptocurrencies do for their users.
Before the following description of CLOAK, in advance, big news has to be announced. The source of ENIGMA will be open-source on 31st of December 2017. So everybody will be able to review the source code based on over three years hard work.
Hard work pays off and hence CLOAK ticks all the boxes when evaluating the long-term sustainability of a cryptocurrency:
Tight and active community
Strong developer team
Purpose of the project
How well designed the project is
At the time of writing, CLOAK is performing very well in coinmarketcap. When looking at the momentum it has gained since the start of December - the price has tripled this month.
It’s especially impressive how well CLOAK is trading against Bitcoin, something that few altcoins can say after Bitcoin’s dramatic December surge of over 7000$.
And there are good reasons for that.
Let’s compare CLOAK to other big cryptos on the scene right now. (Picture 1)
1. CLOAK has a low circulating supply compared to others
Let’s imagine that CLOAK is as popular as Bitcoin and attracts the same investment. CLOAK’s hard cap of 5+ million means every single CLOAK would be worth 3 times more than Bitcoin, which has a circulating supply of 16.5 million.
2018 is predicted to be the year of Altcoins. In 2017, Bitcoin has already given a large chunk of its hegemony in the total cryptocurrency market cap away. CLOAK should do well to seize a sizeable portion of this, once it’s noticed.
2. CLOAK uses PoS instead of PoW
The cryptocurrencies dominating the top of coinmarketcap all use the Proof of Work algorithm. But the investment that goes into sustaining Proof-of-Work (PoW) coins devalues over time because PoW coins require expensive hardware and a lot of computational power. As such, control of PoW networks also tends to centralize into the hands of a few.
CLOAK uses Proof of Stake (PoS), where the consensus in CLOAK can be reached based solely on the number of coins in staked wallets.
3. CLOAK is environmentally sustainable compared to others
PoS integrates the security and running of the blockchain into the coins instead of separate mining equipment. It, therefore, saves not just on hardware, but also electricity, making it much more environmentally friendly.
4. CLOAK rewards all its coin holders
To motivate coin holders to stake their coins into the service of the blockchain, CLOAK uses PoS without Master Nodes. As a result, CLOAK is able to reward all of its coin holders with 6% of their holdings per year.
Which investment yields a 6% return annually? None!
There are even more gains if your wallet secures Enigma transactions. The 1.8% charge taken from using Enigma’s extra layer of anonymity is divided among all participating nodes (wallets).
5. CLOAK offers true decentralization and anonymity to its users
Increased regulation is inevitable as cryptocurrency adoption becomes more widespread. Many are concerned regulation could stifle the libertarian aspects of cryptocurrency.
Anonymity for its users has never been a priority for Bitcoin in its quest for ubiquity. But CLOAK is a cryptocurrency designed to facilitate private, secure and untraceable transfers by using Enigma, a secure and decentralized, off-blockchain mixing service.
By using PoS without Master Nodes, CLOAK also achieves a wide spread of power across the blockchain, bringing true decentralization to its users.
To conclude, ask yourself this: are the cryptos popular now the Googles of cryptocurrencies? Or are they the Netscapes? If they’re the Netscapes, where is the Google of cryptos sitting right now?
CLOAK has been around since 2014, having 3 unrushed years to build up a solid and well-designed project. And in this time, the project has evolved, taking in lessons and keeping up with developments trending in cryptocurrencies. No wonder CLOAK is coming off so well and everybody is awaiting eagerly the open-source of ENIGMA on 31st of December 2017.
Author: Nele Maria Palipea