In 2020, The CEO of exchange platform Coinbase Brian Armstrong made two important predictions for the crypto industry. First, he predicted that privacy coins will gain more relevance in the coming years. Second, those regulations are cryptocurrencies’ greatest threat.
So far, his predictions seem to be right on track. Privacy coins are tools use by people to protect their identities, their capacity to transact without a third party’s vigilant eye; their freedom. However, sovereign nations have made it more difficult for the average person to access these tools.
Renowned privacy coins such as Monero, DASH, Zcash, Beam, Horizen, and others, are almost a synonym of illegal activities, money laundering, black market. Authorities around the world continuously repeat these words when referring to cryptocurrencies and privacy coins warning people about the “dangers” that they allegedly carry.
Many have reacted moving in the opposite direction. Thus, innovation in the crypto space has kept up, staying one step ahead of regulators to provide solutions to meet the demand for privacy coins and decentralized alternatives.
In April 2021, a community-driven project called BlackHat Coin emerged to fulfill these objectives. These privacy coins are based on the Proof-of-Stake consensus algorithm and based on the zk-SNARKs data protection protocol to provide its users with completely private transactions.
The zk-SNARKs Sapling protocol was developed by the Electric Coin Company and enables operations with Zero-Knowledge Proof. In other words, a user can prove that he has the funds to complete a transaction without the need to provide a second user with additional information.
BlackHat Coin, A Solution To The Privacy Coin Dilemma?
Edward Snowden, former Central Intelligence Agency (CIA) computer consultant, has been a fan of privacy coins and their potential. However, he also has criticized them due to their smaller size when compared to Bitcoin and their vulnerability to regulations.
BlackHat Coin (BLCK) provides a viable alternative to resolve this issue. Its PoS algorithm allows for everyone with a laptop or home computer equipment to participate and help secure the network. Top cryptocurrencies based on the Proof-of-Work (PoW) consensus algorithm often require expensive equipment and huge amounts of energy to maintain their security.
BlackHat Coin is cost-efficient both in terms of power consumption and transactions fees. To participate in the network a user is only required to run its own wallet and hold its funds without any possibility for them to be traced or flagged by on-chain analysis.
With these privacy coins, people can leverage a staking mechanism that allows obtaining further rewards by delegating their funds to other users while maintaining control over them. In addition, BlackHat Coin operates with a fully decentralized governance model.
Masternode operators can take part in voting processes to select proposals that will receive community support for their implementation. In that way, BLCK holders have complete power to choose the direction to be taken by the project.
Snowden himself has experienced the consequences of crossing a line that governments don’t want their citizens to step on. He questioned the status quo while personally experiencing what governments are capable of.
BlackHat Coin is part of the new tools that will keep authorities in check by returning power to those that have stayed vulnerable for too long. In one of his most famous speeches, Snowden said the following acknowledging the importance of privacy for everyone’s life:
Arguing that you don’t care about the right to privacy because you have nothing to hide is no different than saying you don’t care about free speech because you have nothing to say.
Image by 5598375 from Pixabay
This news is originally posted here