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What Is DigitalNote?

There is no shortage of cryptocurrency projects in the marketplace right now, even though most altcoins have no clear use cases or purposes. DigitalNote is an exception in this regard, as it focuses on providing untraceable encrypted messages, ASIC-resistant mining, and blockchain deposits with interest. Although some of these concepts can be found in other cryptocurrencies as well, it is evident DigitalNote may become rather valuable in the future.

What is DigitalNote Exactly?

DigitalNote, known as XDN across cryptocurrency trading platforms, wants to be an open currency that everyone benefits from. With its strong focus on privacy, encryption, and interest-bearing blockchain deposits, there is a lot more to this altcoin than most people realize. It is also worth noting that DigitalNote was formerly known as DarkNote and DuckNote, although rebranding is nothing new in the world of cryptocurrency. Instant worldwide privacy-protected transactions are certainly of great appeal to a lot of people.

How Does it Work?

While any cryptocurrency developer can say their coin offers privacy and a degree of anonymity, doing so is something else entirely. In the case of DigitalNote, it makes use of the CryptoNote algorithm. This protocol focuses on anonymous technology, so the foundation for DigitalNote is rather solid. The developers also introduced some unique untraceable encrypted messaging solutions to ensure users get the best of both worlds. Privacy and anonymity are not the same by any means, even though they are closely entwined in this day and age of mass surveillance.

Furthermore, DigitalNote is one of the few remaining cryptocurrencies which prides itself on being ASIC-resistant. As we have seen with Bitcoin and most altcoins, ASIC hardware makes the mining process more efficient but also leads to even more centralization. It is a trade-off which the DigitalNote developers simply didn’t want to make, for obvious reasons. As such, they’ve kept the proof-of-work aspect of XDN fair for everyone, or at least as fair as humanly possible in the mining world.

Moreover, DigitalNote is all about instant worldwide privacy-protected transactions and untraceable encrypted messaging transfers. With low to no fees involved, this decentralized peer-to-peer network certainly packs a punch. There is also the blockchain deposits feature, which allows XDN users to earn 0.5-1% annual interest by locking their coins in a deposit account. Last but not least, DigitalNote claims to be blockchain analysis resistant, which is another major selling point for currencies focusing on privacy and anonymity.

Where can one Spend XDN?

At the time of writing, it was a bit unclear if any merchants accepted DigitalNote as a form of payment. Although this is not uncommon in the world of altcoins, it does highlight the fierce competition in the privacy and anonymity arena. It is very difficult for currencies to make a meaningful impact as of right now. For now, it seems the primary purpose of XDN is to be traded on exchanges and appreciate in value due to speculation first and foremost. This situation will hopefully change in the future, though. XDN is part of the CoinPayments platform, yet it is unclear how many merchants have enabled this feature.

The DigitalNote Roadmap

It is evident there is still a lot of work to be done behind the scenes. For now, the focus is on cooperation with the Freewallet team, ensuring the mobile wallets are production-ready, and database blockchain storage for memory efficiency and scalability. Although all of these features have been in development for some time now, it seems there is still some work to be done. Later this year, we should also see a new Proof-of-Activity layer of security added to XDN.

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Factom Seems Keen to Enter the Stablecoin Market

It is safe to say the cryptocurrency industry has seen its fair share of stablecoins already. This market is open to competitors, although nearly 10 different offerings exist already. Even so, the Factom team is confident they can add at least one more competitor to the mix. Their unique stablecoin implementation will be presented later this month. Factom has Bold Plans Every venture pertaining to blockchain and cryptocurrency is worth paying attention to these days. Although things may be a bit different in the world of stablecoins, the new venture by Factom will still get quite a bit of attention. The team claims they have built a new implementation which might help shape the future of stablecoins altogether. Not too much is known about Factom’s exact plans. The team alluded to such a project in a recent blog post, although no real specifications were provided at this time. Instead, they only touch upon what makes stablecoins so peculiar, and why there is a need for more competition in this department. It is certainly true that more of these coins can bring more people to cryptocurrency over the years. In the normal world, a stablecoin is pegged to a physical asset. This can be fiat currency, as well as precious metals, natural resources, and so forth. To date, most stablecoins in the cryptocurrency world have been tied to the US Dollar. The only notable exception in this regard is Venezuela’s Petro, though that currency faces a lot of backlash for entirely different reasons. The lack of transparency associated with that venture is one of the key concerns right now. Based on the current modeling and research conducted by Factom, the team is confident their approach can be successful. However, no one should expect Factom-based stablecoin to come to market in the near future. Additional research and testing are needed prior to effectively commercializing such a technology. An initial demonstration of the concept will be presented during the Texas Bitcoin Conference in late October. The bigger question is what Factom will try to achieve exactly. With major companies such as Gemini and Circle issuing their own dollar-pegged currencies as of late, the stablecoin market seems to be on the brink of oversaturation. Factom’s venture will primarily focus on on-chain auditability, which is something most other projects and offerings do not provide at this time. Some positive competition in this regard can be quite beneficial to everyone. For the time being, it remains to be seen how the cryptocurrency community will respond to this new offering. While one can understand any company wants to get in on the stablecoin action right now, it is not a market which requires an abundance of competition either. Cryptocurrency needs more fiat currency onramps, rather than adding more intermediaries to the ecosystem. It will be interesting to see what Factom plans to do exactly, as this announcement leaves a lot of room for speculation. The post Factom Seems Keen to Enter the Stablecoin Market appeared first on NullTX.

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