Cardano is preparing to make a significant advancement in its ecosystem with the upcoming launch of a token protocol that prioritizes privacy. This protocol, called Encoins, aims to revolutionize secure and confidential transactions on the Cardano network, positioning itself as a strong competitor to other popular networks.
In the world of cryptocurrency, privacy is of utmost importance, and Cardano is on track to become one of the most private networks with the introduction of this new privacy-enhancing token protocol later this month. Encoins seeks to empower individuals and provide a secure environment for digital interactions.
Encoins will leverage zero-knowledge (zk) proofs to enable the transfer of encrypted coins on the network. Users will be able to access this protocol by depositing ADA into the system and minting NFTs, known as ENCOINS. Each NFT will hold a constant redeemable value.
NFT holders will have the option to burn the NFTs and reclaim their corresponding value in ADA. However, this can only be done if they possess the minting key, ensuring a high level of security.
The new protocol will rely on decentralized relayers who will sign and facilitate all transactions. It will be powered by the ENCS token, and token holders can stake it with the relayers to secure the network. In return, they will receive a share of the fees generated by the protocol. Transaction fees will be split between the relayers and the DAO in an 80-20 ratio.
To become a relayer, individuals must stake a minimum of 100,000 ENCS tokens and have a system with a 2 GHz processor and 200 GB of disk space.
ENCS has a maximum supply of 15 million tokens, with 13.48 million (or 90%) already in circulation. The majority of these tokens were distributed to the Encoins community during the token’s Initial Stake Pool Offering.
Encoins is set to revolutionize privacy on the Cardano blockchain when it launches on November 30. This will mark the beginning of a new era of privacy enabled by zero-knowledge proofs. Additionally, the team plans to introduce Encoins V2 next year to expand the protocol’s capabilities and integrations.
The developers behind Encoins plan to build the protocol on Midnight, Cardano’s sidechain solution, which is expected to revolutionize smart contracts and customization on the network, according to Charles Hoskinson, Cardano’s founder.
Encoins aims to make its mark as the first privacy protocol on Cardano by integrating zero-knowledge proofs. With its upcoming launch, Encoins hopes to pave the way for secure and private transactions on the network.
Cardano is experiencing rapid growth, establishing itself as a formidable player in the blockchain space and a top alternative to Ethereum. Currently, there are over 1200 projects being developed on Cardano, ranging from solutions for social media, decentralized finance, NFTs, and cross-border fund transfers.
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