Privacy Coins: What is Navcoin?
A Closer Look Into The Navcoin Ecosystem
It has been more than 12 years since the cryptocurrency Bitcoin was born. It has gone from an obscurity known only to a small group of nerds to an internationally recognized asset that is now taken seriously by major banks and governments.
Previous efforts were made to create digital currencies but without major success. It is thanks to Satoshi Nakamoto, the unknown Bitcoin developer, that we now have a currency based on blockchain technology.
But Bitcoin was only the beginning. In this article, I will introduce Navcoin in detail and explain why Bitcoin is not conducive to maintaining your financial privacy. This is because what many people expected from Bitcoin, and in some cases still do, is nullified by the non-anonymous technology.
Bitcoin: Pseudonymous not Anonymous
In the early years of cryptocurrencies, since the emergence of Bitcoin, it is a common misconception that ‘Bitcoin is anonymous’. But is it really?
On the one hand, there are Bitcoin wallet addresses that are not directly linked to a clear name. On the other hand, all transactions in the Bitcoin network are transparent and traceable. But why? And how does that affect the supposed ‘anonymity’?
Quite simply, it is a pseudo-anonymity: anonymous in the sense that no wallet is directly linked to a clear name. But what about the traceable transactions? Through them, it is possible to view all Bitcoin balances/transactions and thus trace them. Specialized service providers like Chainalysis are able to trace Bitcoin transactions back to their ‘origin’; i.e., to the point where the BTC was bought on a centralized exchange. An exchange that knows the clear names of its customers/Bitcoin wallets. This inadequacy is something that needs to be addressed.
What Are Privacy Coins?
Privacy coins are cryptocurrencies that preserve the anonymity of users and disguise money flows through various techniques. They make it difficult to find out who sent what and how much to whom, which is exactly what is not possible with Bitcoin.
These techniques are similar to traditional cryptocurrencies, which run on a decentralized ledger and are managed by a network of nodes. Some of the most important technologies in this context are the following:
Confidential Transactions (CT): CTs were first described by Gregory Maxwell in 2015. Today, they are used in a variety of privacy coins in combination with other technologies. Confidential transactions ensure that the amounts sent are not known.
Stealth Addresses: Stealth/ECDH addresses are unique addresses that are set up again and again. They prevent the sender and recipient addresses from being published.
In this way, the problems of Bitcoin mentioned at the beginning are solved: No one can determine who has sent an amount of funds to whom. Currently, the largest privacy coins are Monero (XMR; Cryptonote Protocol) and Zcash (ZEC). The current global situation is alarming. Governments are seeking more control via implementation of CBDCs and sanctioning people who attend peaceful protests. Even state funds and properties are being seized — and there is no way to tell how far the tentacles of the state will grow further. So how can Navcoin serve your needs?
Navcoin Ecosystem: A Brief Overview
Financial privacy is critical to individual freedom, yet is still non-existent for most digital currencies. Without privacy, your entire net worth would be exposed for anyone to see after just one trip to the grocery store. Navcoin is a medium of exchange that doesn’t compromise your privacy and protects all transaction details by hiding the sender and receiver, as well as the amount of coins sent.
Navcoin, started without pre-mine or ICO, has been on its mission since 2014 and has been in development ever since. While competitors like Monero (XMR) and Zcash (ZEC) have a momentary advantage in terms of funding and adoption, we aim to catch up by focusing on users’ needs and delivering desired features.
The tech aspects are already in order. Here is a comparison of Navcoin’s specifications with those of its main competitors:
Moreover it is even more than just ‘private cash’, it is a complete ecosystem with a self-developed privacy protocol (blsCT) that offers its participants financial privacy and a number of different features at the same time. This is the reason we are working on ‘private tokens’, ‘private NFTs’, and other features.
Eco Friendly PoS-Consensus
The Navcoin network is secured by a Proof-of-Stake (PoS) consensus mechanism that allows anyone to use their NAV to validate transactions. PoS is the alternative to Proof-of-Work (PoW) that requires miners to solve mathematical riddles to process transactions and earn block rewards. To do this, one needs expensive hardware and the will to pay a lot for energy.
Our PoS mechanism is not that restrictive. Navcoin staking works with a 5V Raspberry Pi, the block time is 30 seconds and the block reward 2.5 NAV. 2 NAV go directly to the staker and 0.5 NAV are held in our decentralized treasury. With those treasury funds, the team finances different community initiatives, e.g. in terms of marketing.
All NAV holders can get involved when it comes to network governance. There is no central authority and no central decision-making. All the power lies in the hands of our users who participate in this decentralized autonomous organization and can vote about any important modification.
Besides the possibility to fund initiatives through the decentralized treasury, our governance system also allows for non-binding consultations about a specific topic to explore the sentiment, as well as binding consultations to automatically upgrade one or more consensus parameters of the protocol itself.
NAV / xNAV / wNAV
There are three currencies in the Navcoin ecosystem, NAV, xNAV and wNAV. All of them play an important role as they define what the network can achieve. NAV is a public currency designed for fast and low-cost payments and to maintain the Proof-of-Stake (PoS) consensus mechanism.
xNAV is a private currency built to protect sensitive information when sending and receiving funds. wNAV is a wrapped up representation of NAV and xNAV allowing users to interact with different dApps and other blockchains.
NAV as well as xNAV can be swapped 1:1 for wNAV. Read more about the wrapped Navcoin bridge that enables us to be interoperable with other blockchain ecosystems such as Ethereum.
Private tokens are one of our most important developments and will be introduced soon. Through private tokens in the Navcoin ecosystem, it is possible to mine your own private tokens that work on top of our blsCT protocol. All transactions made with these tokens are as secure and anonymous as regular (x)NAV transactions.
The possibilities are enormous. They can be arbitrary tokens, but also tokens whose value is linked to an underlying asset/currency, such as US dollars or gold. Even private tokenized assets for in-game items or real estate are conceivable.
Or other tokens that usually lack privacy and could gain a big advantage through facilitating the Navcoin ecosystem to give their non-anonymous tokens a fresh privacy-shield.
NFTs have been the biggest hype in the crypto sector over the past two years and the trend is unlikely to go away, at least for the foreseeable future. For us, it’s not about the hype — it’s simply about promoting the maintenance of financial privacy in the NFT sector as well.
The problem is that most NFTs are mined on public blockchains like Ethereum that offer no protections for anonymized mining or payments. Anyone can examine transactions, find wallets, view assets, and draw conclusions.
On the Navcoin blockchain, you will be able to mine private NFTs in the future. By using the blsCT privacy protocol, the transaction details (sender, receiver) will be obfuscated. The metadata of the NFT will still be public, but it will be impossible to tell who owns the NFT or from which person it was originally sent.
The launch of both Private Tokens and Private NFTs will take place this year.
Hypes in the cryptocurrency sector come and go. However, we strongly believe that financial privacy will finally become a fundamental need in dystopian times.
We would like to spearhead this with Navcoin: Our technology is constantly being improved, new products and features are being built, and marketing work is also picking up speed. Together we will achieve our common goal: living in a world with financial privacy!
If you are interested in working with us, feel free to reach out. Here is a list of links with all contact possibilities and further resources: