The topic of this article may not meet Wikipedia's general notability guideline. (October 2014)
Official Darkcoin logo
|Date of introduction||18 January 2014|
|Inflation||Estimated 22 million coins maximum, with a 7% decrease in the number of coins generated per year|
Darkcoin uses a chained hashing algorithm approach called X11 for the proof-of-work. Instead of using the SHA-256 (from well-known Secure Hash Algorithm family) or scrypt it uses 11 rounds of different hashing functions.
With chained hashing, high end CPUs give an average return similar to that of GPUs. Another side effect of the algorithm is that GPUs run at about 30% less electrical power than scrypt and 30% to 50% cooler, putting less stress on the computing setup and ensuring lower energy bills for miners.
Darksend is a coin-mixing service originally based on CoinJoin. Later iterations used a more advanced method of pre-mixing denominations built into the user's wallet.
In its current implementation it adds privacy to transactions by combining identical inputs from multiple users into a single transaction with several outputs. Due to the identical inputs, transactions cannot be directly traced, obfuscating the flow of funds.
Darksend's mixing is performed by Masternodes, servers operating on a decentralized volunteer network which have the responsibility of signing the transactions. For each round of Darksend, the user selects two to eight (or even more) rounds of mixing which vary the degree of anonymity achieved. Random Masternodes are then elected to perform the coin mixing. Masternodes are trust-less, in the sense that they cannot steal user coins, and the combination of multiple Masternodes ensures that no single node has full knowledge of both inputs and outputs in the transaction process.
To avoid a "bad actor" scenario, in which many Masternodes are operated by an adversary who wants to de-anonymize transactions, a deterrent has been put in place in which 1000 Darkcoins are required to own and operate a Masternode. As an incentive for operating a Masternode, chosen nodes earn 20% of the mining rewards.
X11 is a widely used hashing algorithm created by Darkcoin core developer Evan Duffield. X11’s chained hashing algorithm approach utilizes a sequence of eleven scientific hashing algorithms for the proof-of-work. This is so that the processing distribution is fair and coins will be distributed in much the same way Bitcoin’s were originally.
With chained hashing, high end CPUs give an average return similar to that of GPUs. An added benefit of the algorithm is that GPUs require approximately 30% less wattage and run 30-50% cooler than they do with scrypt.
Dark Gravity Wave (DGW)
Dark Gravity Wave (DGW) is a widely used mining difficulty adjustment algorithm created by Darkcoin core developer Evan Duffield to address flaws in Kimoto’s Gravity Well. It uses multiple exponential moving averages and a simple moving average to smoothly adjust the difficulty, which is re-targeted every block. The block reward is not adjusted strictly by block number, but instead uses a formula controlled by Moore's law:
Darkcoin was originally released as XCoin (XCO) on January 18, 2014.
- Greenberg, Andy. Bitcoin's nefarious cousin Darkcoin is booming Wired, San Francisco. 22 May 2014
- Bentley, Guy. Darkcoin: The cryptocurrency putting privacy first, City AM, London. 12 May 2014
- Duffield, Evan; Hagan, Kyle (18 March 2014) (PDF). Darkcoin: Peer-to-Peer CryptoCurrency with Anonymous Blockchain Transactions and an Improved Proof-of-Work System. Self-published. http://www.darkcoin.io/downloads/DarkcoinWhitepaper.pdf.
- "DarkSend". Darkcoin Wiki. Retrieved 29 June 2014.
- X11 chained hashed algorithm darkcoin.io
- Dark Gravity Wave darkcoin.io
- How Is Darkcoin Mining Unique? coinbrief.net. Retrieved December 30, 2014.
- Duffield, Evan. "The birth of Darkcoin". https://darkcointalk.org. External link in
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