The inadequacies of Bitcoin that became apparent as the years wore on created the opportunity for creation of other altcoins. One of these altcoins is Cloak Coin. Cloak Coin seeks to address scalability concerns and limited autonomy common in Bitcoin.
Why Cloak Coin?
Cloak coin was developed in 2014 to address some inadequacies of existing Cryptos. The fundamental selling point is that this is a cryptocurrency that would guarantee total privacy. It has the edge of simple yet effective communication and privacy layers.
The development team utilized an off-chain coin mixing system. This made it impossible for 3rd parties to trace or snoop on transactions between Cloak Coin wallets.
Notably, the company has gone to great lengths to emphasize that the platform’s enhanced security and privacy features are not meant to encourage illegal activities. This is because the unfortunate tag of fraud and possible money laundering comes easy for anonymous altcoins
How does Cloak Coin work?
This platform has the following features to facilitate optimum performance;
- High level of privacy– As highlighted earlier, this coin is based on the Bitcoin concept but has several additional layers of privacy. The routing system helps protect the ID of users. Users who treasure anonymity are well served by this feature.
- The ENIGMA protocol– This technological advancement primarily ensures monetary transactions are fully private and untraceable.
- The platform is user-friendly– This is because anyone with a smartphone can navigate the Cloak Coin blockchain and wallet. The platform is smooth and accessible.
- Easy to earn-Once you download the Cloak Coin wallet one can easily trade CLOAKs and also participate in the PoS system. The juicy part is that you can earn a yearly 6 percent interest on the value of the CLOAKs stored in your wallet.
- Transactions are much faster than you would experience using Bitcoin. To illustrate this it takes only a minute to process a CLOAK transaction while a Bitcoin transaction lasts an average 10 minutes.
CLOAK Coin Wallet
As highlighted you can get a reward of 6 percent per year for holding your Cloak coins. There are a variety of wallets for storing the coins online and offline. There are wallet options for windows, Linux, Mac Os, cloak paper wallet among others. Alternatively, there are secure cold wallets like Trezor for long term storage.
Investing in Cloak Coin
There were initial concerns about the viability and legitimacy of this project. This is because the privacy features bring a negative tag drawing unsavory elements. However, the persistence and consistency of the development team has swayed opinions.
This altcoin was at its peak during the cryptocurrency hype of 2017. At the moment growth has capped off and some semblance of stability attained. Regardless, Cloaks are still worth investing in especially given the annual interest of 6 percent annually purely because of holding it.