The Use Cases of Our Private Tokens

Cryptocurrencies have come a long way — yet, we are still just scratching the surface when it comes to one aspect in particular, which is: Privacy. The origins of cryptocurrencies lay in the Cypherpunk movement.

‘A cypherpunk is any individual advocating widespread use of strong cryptography and privacy-enhancing technologies as a route to social and political change. […] Cypherpunks have been engaged in an active movement since at least the late 1980s.’

Back then, the foundation for systems, like Bitcoin, that we use today was laid out. However, the central aspect of ‘privacy-enhancement’ got kind of lost over the years. Today, Bitcoin is not a means of private payments, as it is pseudonymous but not anonymous.

However, a big number of Bitcoin investors and users are not really aware of those problems. The same goes for other chains, like Ethereum, BSC, Avax, and others, which all share the same problem of being only pseudonymous.

We at Navcoin are focusing on delivering an innovative Private Finance Ecosystem in which you can maintain your financial privacy and use new solutions like our Private Tokens. Before we dive into, a bit background info about our ecosystem:

Navcoin Ecosystem & blsCT Protocol

Navcoin is a Private Finance (PriFi) Ecosystem that has been built over multiple years. It runs on the self-developed blsCT protocol and offers unique features, such as private tokens and private NFTs, to our users. All our work aims to create an ecosystem that can maintain and/or increase user privacy.

The blsCT protocol was developed by our very own Navcoin developers. This technology combines the advantages of BLS (Boneh-Lynn-Shacham) Signatures, originally introduced in 2001, plus CTs (Confidential Transactions). This way, the protocol is enabled to transact funds in full privacy, in a fast and scalable way.

‘Privacy is necessary for an open society in the electronic age. Privacy is not secrecy. A private matter is something one doesn’t want the whole world to know, but a secret matter is something one doesn’t want anybody to know.’

— Eric Hughes

Privacy is crucial and a fundamental human right. We believe that everyone around the globe should be able to make private transactions in order to protect their personal freedom, financial data, personal security, and business privacy, to name the most important areas.

One of the features Navcoin offers is the creation and trading of ‘private tokens’. This holds great potential, as interest in privacy solutions is likely to continue to grow while appropriate solutions are not being offered by most blockchains.

What are Private Tokens on Navcoin?

Private Tokens are a unique feature of the Navcoin ecosystem. They allow anyone to mint their own private tokens, which are created on top of our blsCT protocol. Transactions with those tokens are as private as regular xNAV transactions; nobody can see how many tokens you hold, how much you send or to whom, or where the funds were originally coming from.

Other blockchain-ecosystems, which are not anonymous but pseudonymous, such as Ethereum, Avalanche, etc., could profit from facilitating the Navcoin ecosystem to give their tokens a privacy-shield.

Use Cases for Private Tokens

Private tokens have various use cases, which will be presented in the following. Most important to note is that they can be both arbitrary tokens and a representation of an underlying asset. The latter ones are, of course, the most important, i.e.:

Stablecoins (USDT)

Tying a cryptocurrency to an asset is not a new idea. What if you could create a private version of USDT? While stablecoins already exist (USDT, USDC), and are mainly used as settlement currency in our industry, the bigger ones are all lacking one thing: Privacy. Transactions are only pseudonymous, as they happen mostly on the Ethereum blockchain. Navcoin private tokens enable you to maintain privacy.

Physical Assets

When it comes to tokenization of real world assets, we are still at a very early stage. There are a lot of currently ongoing experiments with non-private technologies aiming to tokenize even assets like real estate. In the future, this process could also be run on a private finance ecosystem such as Navcoin.

Digital Assets

NFTs, digital land, Metaverse, In-Game Ownership… the Web3/GameFi wave will probably slowly build up over the next few years. Developers could also use the private token technology from Navcoin in this arena in order to give their players the best possible privacy shield to protect their in-game assets from curious third eyes.

It will be interesting to see which applications will be the most popular. We will constantly evaluate and optimise our products and provide tools for better use, such as our own DEX for Navcoin private tokens.

How To Use It — The Whisper Wallet

Those features can soon be used with our brand new Whisper Wallet, which can already be tested in the beta phase. The key features, as presented before, are sending, receiving and staking coins, as well as swapping NAV to xNAV, and the private token and private NFT features.

A selection of Crypto Influencers & Privacy Advocates will soon participate in an official beta test, in order to ensure the best possible usability. Bugs and other issues with the user experience can always be reported in our Discord (#whisper-dev), via email (dev@whisperwallet.net), or by creating an issue via Github.

If you need help to get started, here is a detailed guide to set up your own Whisper Wallet.

Privacy For Everyone, Everywhere

Cryptocurrencies and tokens enable us to create new, digital economies. However, one can not ignore the dystopian feeling one gets when reading about certain events in the industry, such as the arrest of developers, the calls for broader regulation, and a general movement towards an even more surveilled society. One of the main tools for this purpose will be CBDCs (Central Bank issued Digital Currencies).

Meanwhile, only a few players in this industry are really recognizing the tremendous potential that a true private finance ecosystem could offer. Governed by no central entity but in a decentralised manner, with nobody being able to censor it or shut it down.

In order to profit from the advantages that cryptocurrencies and tokenization offer us, we have to make these new digital economies private; as privacy is a fundamental human right!

At Navcoin, we value human rights and are willing to fight for them. With our technological inventions, i.e., the blsCT protocol, we are able to offer a complete private finance (PriFi) ecosystem, thus enabling our users to use private cash. Transactions are fast and easy to do via our new Whisper Wallet.