An Analysis of Haven Protocol
Haven Protocol Purpose and Aspects
Haven Protocol is an untraceable cryptocurrency that utilizes standard market pricing and stable fiat value storage without an unsustainable peg or asset backing. It achieves this with a built in on-chain smart contract that controls the ‘minting and burning’ of coins. The Haven network has a cryptographically unknown supplyto facilitate value for users that choose to send their coins to offshore storage contracts while others continue to be exposed to the natural price movements of the currency. Offshore Storage is Haven’s built in smart contract/protocol that powers the stable value storage. In short, sending Haven to offshore storage (burning) records a reference on the blockchain to the current fiat value which can be restored at a future date back into Haven by minting new coins to the tune of the current fiat value. Decentralized Haven uses ring signatures, ring confidential transactions and stealth addresses meaning payments cannot be tracked or linked back to any user.
Haven Protocol is easily mined and can be very lucrative when used with the Fracking Miner, a hardware platform developed by Distributed Ledger, Inc. It is based upon the Cryptonight Heavy protocol which is not a friend of the ASIC community and lends itself readily to a number of mining methods, including the Xeon Phi, the Intel coprocessor which is at the heart of the Big Fracking Miner.
Haven Pricing History
Haven Protocol (HVN) has been trading on crypto markets since April 23rd, 2018 at an original price of $4.49 and drifted lower through the summer and reached a low of $0.40 in late September. It has recovered to a price of around $3.20 as of today. This is after reaching a post summer high of over $3.57.
Haven Protocol categories
Basic Haven Stats
Haven is considered a “Privacy Coin” and evolved from the original open source code on which Monero was based and uses the Cryptonight Heavy algorithm. Monero was a fork of the father of all privacy coins, Bytecoin which was created in 2012. Another popular Privacy Coin is Dash which was originally named Darkcoin and was created in 2014. Since then the anonymity sector in cryptos has never stopped to develop as cryptos such as ZenCash appear which offers a private messaging network and a dapp platform and several others with varied purposes.
We think that what the Haven Protocol developers have done is to create a purpose and privacy methodology that supports some very strong use cases. For this reason, we think Haven has a great chance to reach wide adoption when it is fully developed.
The Secret, Secret Sauce
So, what is so unique about Haven Protocol? The process of “Offshore Storage” is accomplished without pegging the asset to a particular fiat currency or stablecoin. Instead, their process of ‘Mint and Burn” accomplishes the control of fluctuations by utilizing a Dual Blockchain that creates “mints” and destroys “burns” Haven for an equivalent number of XHVD, also known as Haven Dollars. When you want to transfer the Haven dollars back to the core asset the process is reversed leaving absolutely no record of either transaction. A critical characteristic of this process is that it is done on separate but linked Blockchains which are never exposed to a traditional open source blockchain. This preserves total and complete anonymity of every transaction.
*For a more detailed and in-depth study of how the underlying anonymity technology is implemented please refer to the links at the end of this document. Haven, being a fork of Monero, inherits all whitepapers and academic studies from the that blockchain.
Let’s look at some use cases.
1. One of the first adopters of Bitcoin as a payment method in retail was Overstock.com. In an online transactional environment like Overstock, one can easily see that there is significant risk due to the volatile nature of the asset used, thus it is highly desirable to preserve the value of the purchasing asset. This is what the Haven Protocol accomplishes. Additionally, the vendors business and income remain anonymous since the transactions that occur are hidden and the amounts and wallets are never shown.
2. Many think that maintaining untraceable accounts is quite prudent and are attracted to the idea of keeping sizable amounts of money outside of traditional third party banking systems. Using the Haven Offshore Storage process allows both a private way to store wealth and also protection against the fluctuations of typical crypto assets.
It is our opinion the Haven Protocol is one of the most interesting projects to emerge in 2018. They have a very strong team, they communicate well to their community, and their clearly defined purpose and the very unique way they are accomplishing that purpose makes it a very attractive asset to own and even more so to mine. Our company has invested heavily in the project and we have built a sizable mining pool that can be shared with novice and professional crypto investors. We think this indicates our commitment to the project as a long-term player in the privacy blockchain space.
Director, Market Strategy
Distributed Ledger, Inc
References courtesy of the Haven White Paper and Monero Specifications
Research Lab which can be found here:
MRL-0001: A Note on Chain Reactions in Traceability in CryptoNote 2.0
MRL-0002: Counterfeiting via Merkle Tree Exploits within Virtual Currencies Employing the
MRL-0003: Monero is Not That Mysterious
MRL-0004: Improving Obfuscation in the CryptoNote Protocol
MRL-0005: Ring Signature Confidential Transactions