CloakCoin (CLOAK) is a decentralized cryptocurrency which can process a payment with entire anonymity, and it is based on Proof of Stake (POS). With POS, every coin holder receives a 6% annual interest on the total sum of his coins. Through staking CLOAK transactions are confirmed on the network and simultaneously saved in the cloak network.
The POS is different from Proof of Work (POW) which requires enormous mining computing power, which makes CLOAK an Eco-friendly coin. With CLOAK, there will be a significant quantity of energy that will be saved as opposed to POW.
How CLOAK works?
CloakCoin is a cryptocurrency with enigma, which helps in providing a safe, secure, private, decentralized, and untraceable system. It allows you to send, store, and receive payments safely. Enigma works together with Cloak Shield to additionally protect the Cloak network. Cloak Shield is a new security infrastructure responsible for securing the CLOAK network.
Cloakcoin video explanation
How does Cloak Shield work?
The Cloak Shield uses ECDH (Elliptical Curve Diffie Hellman)- it is an anonymous key agreement protocol that allows two parties each having an elliptic curve public/private key pair to establish a shared secret over an insecure channel and open session keys to ensure communications on the Cloak network are private and secure.
There will be a wallet that is required before you can start receiving, storing, and sending CloakCoins to different people around the globe. For instance, Lucy wants to send coins anonymously to Ricky with the use of enigma. The Cloak system allows every coin holder to connect their wallet with the network (where participants are helping Lucy to cloak her transaction to Ricky). The enigma feature has been carefully designed to protect the identity of every member.