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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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As reported here on May 24, the world’s biggest cryptocurrency brokerage and trading platform, Coinbase, acquired decentralized cryptocurrency exchange Paradex. Intent to Add Tokens In an official announcement, Coinbase CEO Brian Armstrong stated that the acquisition of Paradex was part of a larger Coinbase initiative to expand globally and serve customers outside of the US. “The move not only reinforces Coinbase’s commitment to investing in decentralized infrastructure and participating in the nascent world of wallet-to-wallet trading, but also our focus on the international crypto trader. After making some product enhancements, we’ll initially offer this experience to customers outside the U.S., and eventually to U.S. customers,” said Armstrong. Moreover, Armstrong emphasized that GDAX, short for Global Digital Asset Exchange, which has been Coinbase’s leading flagship cryptocurrency exchange, will rebrand to Coinbase Pro to offer professional trading tools and services for advanced traders. Armstrong added: “Switching to the name Coinbase Pro is a recognition that the individual active trader requires a product completely dedicated to their specific needs.” The announcements from Armstrong and President Asiff Hirji described Paradex as a relay platform, rather than a decentralized cryptocurrency exchange. Even the Paradex development team presented itself as a decentralized relayer in its official announcement, stating, “One year ago this month, we set out to build the best decentralized relayer that empowers users with self-custodianship.” The decision of Coinbase and Paradex to categorize the Paradex platform as a relayer was likely done to avoid scrutiny from the U.S. Securities and Exchange Commission (SEC), which previously emphasized that in order to list ERC20 tokens or initial coin offering (ICO) projects, US-based exchanges must first receive a license and approval from the SEC. According to Armstrong, the Paradex decentralized digital asset relayer will only be available to customers outside of the US in the short-term until local exchanges can reach consensus with the SEC on handling tokens. The acquisition and integration of Paradex into the main infrastructure of GDAX and rebranding the exchange to Coinbase Pro can be considered a shortcut which Coinbase took to list ERC20 tokens ahead of other trading platforms in the US. Legally, local exchanges are not allowed to list tokens that have conducted ICOs, because if the tokens turn out to be categorized as securities, the exchanges face conflict with the SEC and other financial authorities. On May 23, the Paradex development team stated that its relayer would not be available until the integration of the Paradex relayer into the Coinbase infrastructure is completed. If Paradex merges with Coinbase Pro, it is likely that existing Coinbase users outside of the US will be able to seamlessly trade tokens in a peer-to-peer manner. US Customers Will Have to Wait In an interview with CNBC, the Coinbase team stated that it will have to implement changes for compliance purposes before opening Paradex and decentralized token trading to US-based users. The acquisition of Paradex by Coinbase demonstrates the company’s confidence in its ability to circumvent legal barriers to eventually enable decentralized token trading in the US. Depending on the stance of the SEC, cryptocurrency exchanges in the US may not be able to support tokens in the conventional way of directly listing them as trading pairs on their centralized platforms. Coinbase’s decision to essentially acquire the development team behind Paradex and merge it with its professional cryptocurrency trading platform could be an unorthodox method of allowing users in the US to trade additional tokens.

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