What is Dero Coin?
DERO first hit the scene on Bitcointalk on December 5th 2017 https://bitcointalk.org/index.php?topic=2525508.0 by somebody by the name of CaptDero or Captain as we now know him as. Now this was a big claim to be saying “First blockchain to have: DeroDag + Cryptonote + Bulletproofs + Complete SSL + POW with a block time of 12 seconds and a confirmation time of 2 minutes”. Also advertised were the key features of DERO:
- DERO is a completely new and unique CryptoNote blockchain written in Golang
- DERO is the first blockchain to have complete SSL in the P2P layer
- DERO will be the first CryptoNote blockchain to have 75 transactions per second on its native blockchain without any lightning networks, validators or off-blockchain solutions
- DERO will be first CryptoNote blockchain to have smart contracts on its native chain without any extra layers or secondary blockchains
- CryptoNote privacy
- Smart contracts
- Atomic swaps
- Mobile and offline wallets
- Lightweight wallets
- Shadow address
- Escrow services on the blockchain
- Address signing and certifying
- Voting on a private blockchain
Pretty impressive if you ask me!
Now we know there are 3 developers working on the project and we know they are working full time on DERO which is a breath of fresh air in this day and age due to the abundance of coins where the development team do this in their own spare time.
Now for the technical specs of the coin:
- Proof-of-work (PoW) algorithm: CryptoNight
- Max supply: 18.4 million for the first 8 years followed by an infinite emission rate after year 8 of ~157,000 DERO/year
- Block reward: Smoothly varying
- Block time: 12 seconds
- Difficulty: Retargets at every block
- Ticker: DERO
There was also important information about the coin:
Premine total: 2 million Dero( ~10% of total supply)
Dero has no ICO, or community funding of any kind. A premine was deemed to be necessary for the long term development and success of the project.
Premine coins are not locked atm as DERO Atlantis network runs 10 times faster than original network. DERO Atlantis network has 12 seconds block-time compared to 2 mins original.
Original Plan to lock premine was based on structure mentioned in https://github.com/deroproject/documentation/blob/master/WhitePaper.md But due to numerous innovations in DERO blockchain expect minor changes in premine structure for the betterment and further advancement of DERO Project.
Exact locking structure will be published in third quarter 2018. Premine will remain intact till further updates. All concerned keep watch for an updated release before taking any decisions.
Now it is clear to see why DERO gained so much interest. On May 21st 2018 the coin peaked at just under $5 a coin which was an outstanding achievement for the coin to grow this quick in 6 months but was also due a massive correction to which it has done. There was also a lot of issues which helped the price correct around ASIC mining & Community Managers but feel free to research that deeply but take everything you read with a pinch of salt!
The DERO Name and its Origin
This has to be one of the biggest questions I see at least 3 times a week and one that has been rattling my brain, What does DERO mean? Well there has been much speculation about the name. The first being a military link to “Date Expected Return from Overseas”, the second being link the Greek Mythology. DERO was the name of a Sea Nymph which they and their sisters would assist sailors across the seas (possibly linking to the name Captain and DERO Atlantis) Then on Sunday 26th August 2018 Captain said in Discord when asked about the meaning of DERO he/she replied “There is too much attached to the name DERO, its more like an experience/feeling. Bet all of you in some part of your life will/already have it”
As you may or may not know the current development team on DERO remain anonymous and I am sure each and everyone one of you will at some point have a theory who is behind this project. All we know is that DERO is not the first project Captain has worked on and he has been in the crypto scene for over 10 years.
The DERO dev team decided to use CryptoNote cryptography as their privacy option. CryptoNote allows cryptocurrencies to be more private and anonymous than the standard. This was not enough for DERO so the DERO development team completely re wrote CryptoNote into Golang. By doing this it allowed DERO’s CryptoNote to run 8 times faster than its original core implementation.
Adding to this, DERO pulls off yet another milestone in the area of privacy by being the very first cryptocurrency to have Transport Layer Security, or TLS (formerly known as Secure Sockets Layer, or SSL) on its P2P layer. TLS uses asymmetric encryption to generate a shared secret key. The secret key is then used for symmetric encryption of messages. This allows the speed of symmetric encryption with the secrecy of asymmetric encryption. Choosing an elliptic curve digital signature algorithm, or ECDSA, for key creation also allows more handshakes per second without any cost of privacy.
As if all of that was not enough, Dero is deciding to take privacy even further by implementing bulletproof technology. Bulletproofs minimize computational excess, decrease transaction fees for confidential transactions, and improve privacy greatly. As you would expect, normal bulletproofs would not be good enough, so Dero took it one step further. Coined Rocket Bulletproofs, Dero’s implementation of bulletproofs run ten times faster than its original inception, only taking 1.5 milliseconds whereas normal bulletproofs take 15 milliseconds. They accomplish this optimizing the double-base double-scalar multiplication used by zero knowledge range proofs. Math can be confusing at times, so, to put it simply, Dero Atlantis converts this multiplication into doubling and additions, and this greatly speeds up the efficiency of bulletproofs.
All of the privacy Dero provides is kept on-chain, and there is a very good reason for this. For cryptocurrencies where privacy is not the main issue, they have no problem using off-chain solutions to help improve features. However, when dealing with privacy, it is important to have as little steps as possible. Think about when you receive a package in the mail. In this example, imagine local delivery is on-chain and international delivery is off-chain. When you order a package for local delivery, it comes from the person or company you ordered it from, gets processed in the main, and gets delivered to your house. The odds of your package being lost or damaged are very small due to how little time and processing was required. However, if you order a package from overseas, the person or company sends it to their local mail carrier, it gets sent to an airport, it gets flown overseas to another airport, then driven to a mail carrier, then transported to the mail carrier closest to you, and finally delivered to you. You can buy insurance to make sure your package arrives safely, but there is no such insurance for the cryptocurrency world. No matter how secure a network may be, the more steps required to complete a transaction, the higher the chance of an attacker finding a way to get into it. This is why keeping everything on-chain in a privacy network is of the highest priority.
DERO Smart Contracts and DERO Virtual Machine
DERO is the very first CryptoNote currency to implement Private Smart Contracts onto its native chain using its own DERO Virtual Machine or DVM.
What are Smart Contracts you may ask, “A smart contract is a computer protocol intended to digitally facilitate, verify, or enforce the negotiation or performance of a contract. Smart contracts allow the performance of credible transactions without third parties. These transactions are trackable and irreversible. Smart contracts were first proposed by Nick Szabo, who coined the term, in 1994”
As of now smart contracts have only been used for a few DApps and a few other things. As with all cryptocurrency it has been difficult to implement these into the real world due to cost, speed and privacy. DERO addresses these issues by including all features written so far to maintain speed, keeping fees low and maximizing privacy. With DERO’s Private Smart Contracts that cost very little to run, you can run a smart contract in the real world without the worry of having to disclose your details to the rest of the world.
DERO’s BlockDAG can run private smart contracts quickly and efficiently with all of these features on the blockchain. All of this information is verifiable by looking at the DERO source code, of course this is not something your average person would be able to understand but if there is any advanced cryptographers that would be able to decipher and review here is the source code link: https://www.github.com/deroproject/derosuite
The second re write of the entire blockchain was code named Atlantis. Atlantis was a revolutionary upgrade of existing current generation blockchain tech with the following features.
- Block time of ~12 seconds.
- 75 TPS +(Transactions Per Second).
- No orphan blocks.
- Faster settlements and confirmation times of less than 120 seconds.
- Optional Extremely light weight, mobile and offline wallets.
- New Dero address specifications to allocate wallets to everyone. Wallets will be lightweight, private, secure, with support of shadow addresses(infinite). Family-members, Cars, IOTs etc. can have shadow addresses. Shadow addresses are linked to primary wallet and can be used independently just like primary wallet. Example: Refrigerator can have shadow address for independent transactions and records.
- Primary address can view/control shadow address balances etc. but not vice-versa.
- Native blockchain without any lightning networks, validators or off-blockchain solutions
To read more on the features of Atlantis please read the DERO Whitepaper https://github.com/deroproject/documentation/blob/master/WhitePaper.md
What is next for DERO?
The DERO roadmap can change at any point so please check the official DERO.IO website to keep up to date.
What we know so far is the next steps for DERO is getting smart contracts into testing and on to the main net. This is due by Q4 2018.
We also know that exchanges are a work in progress and will be continually looked at to bring new ones on board.
We also know that the DERO Foundation is being set up. Captain has advised that this is still work in progress due to laws in his/her chosen countries that have not been passed yet but as soon as they have I am sure the Foundation will be set up. Along with the Foundation could well be a developer reveal. The aim of the Foundation is. “Plan to incorporate a company which will market, develop, maintain, and expand DERO. The company would hire more developers, expand the marketing team, add advisors, and would be representing DERO to the world”.
We have already received the GUI wallet alpha so this will be developed along with the implementation of new features. Also if you have not tried the GUI wallet it is a must try, the sync speed is almost instant from a fresh install.
Atomic Swaps are planned for development but or a similar product to Atomic Swaps. At the moment until Smart Contracts are implemented into the main net this area will be a work in progress.
Partnerships will be an area that DERO will be looking into 2019.
Areas the DERO team will strive to refine constantly in the future;
- Reducing energy consumption of the network
- Reducing block times
- Increasing transactions per second
- Reducing blockchain sync times and resource utilization
- Reducing blockchain size
- Increasing reliability and security of the network
- Secure hardware wallet with biometrics.
- Regular audits and updates of the core cryptography to negate the benefits of quantum computations.
Great Investment Opportunity
As of today DERO current price is 0.34USD per coin. With a circulating supply of just over 3.5 million (2 million premine) and a max supply of 18.4 million DERO has the potential to be a real game changer in the crypto world and in the real world. There are not many coins on the market now where you can look at and think this can be used in your every day life. For me personally I see this coin to be a top 20 coin at least once the tech has been finished and marketing is started. Don’t miss an opportunity to buy a diamond in the rough!
Where to Buy?
DERO is currently available on 3 exchnages, I will list these in my preffered choice of exchnages;
South Exchange -https://www.southxchange.com/Market/Book/DERO/BTC
POOL LIST: https://forum.dero.io/t/dero-mining-pool-list/147
OFFICIAL POOL: http://pool.dero.live/
DERO for me is one of the most interesting coins I have purchased. The technology it offers I do not think we will see from other coins for a few years yet and its clear to see that other coins in the top 20 on CMC are striving to move forward since the DERO source code was released. People who know me in real life will know DERO is all I talk about! I truly believe this coin will end up being one of the greatest coins in the market in years to come. Do not miss this opportunity.
Thanks for reading.
Thanks to Keyhole from Discord for providing the technical information regarding Smart Contracts & Privacy