CloudCoin has announced the launch of its cloud-based digital currency.
Launched on July 15. with no blockchain, public ledger, accounts or encryption, CloudCoin claims to be the most private digital currency ever created.
Based on the technology adapted from the internet’s Domain Name Service, or DNS, it enables secure email-to-email or email-to-wallet transactions.
The technology eliminates the systemic risk of theft by not requiring private keys which can be stolen. Meanwhile, the lost CloudCoins can even be recovered.
However, CloudCoin set out to address some of the issues that comes with blockchain-based digital currencies.
President of the CloudCoin Consortium, Sean Worthington, explains:
“Cryptocurrencies built on blockchains come with a host of challenges, making it difficult to do simple things like buy a cup of coffee. Transactions take too long, fees are too high and it is still too difficult to scale. We developed CloudCoin to overcome these challenges and pave the way for mass adoption.”
The global Domain Name System services billions of users. It is scalable too and has not been brought down since it went live in 1985.
CloudCoin’s Redundant Array of Independent Detection Agents, or RAIDA, is based on this same technology and is currently distributed across 25 national jurisdictions.
The cloud-based network uses very little power that these transactions can be made with zero gas fees.
Moreover, even if governments or hackers try to take the RAIDA down, the currency supposedly can’t be double-spent, hacked or even spied upon.
RAIDA simply knows nothing on the owner of the coins as its purpose is simply to authenticate. All of the information on the coins is held directly in the coins themselves.
Each CloudCoin is actually a file, consisting of a serial number and the authentication data.
The authentication data is shredded, rather than encrypted, and distributed across the RAIDA, making it to be quantum-secure.
Similarly to cash, the owner of the file has the authentication data and can control the coin. When ownership is transferred, the new owner changes this same data to ensure exclusive ongoing access.
Transfer speeds depend on the number of coins that need to be authenticated. However, RAIDA can routinely secure transactions of 100,000 CloudCoins in under 3.5 seconds.
Because CloudCoins are file-based, they can be transferred via the free encrypted email service, ProtonMail, or with a Sky Wallet.
However, being file-based, CloudCoin can’t be subdivided or split, and comes in set denominations of one, five, 25, 100 and 250 CloudCoin units.
The currency is not inflationary and the total number of coins in the cloud never changes from 16,777,216, which is fixed by the length of the serial number in bytes.
CloudCoin has also patented its:
“Method of Authenticating and Exchanging Virtual Currencies”
This makes it to be as claimed to be the world’s first patented currency.