User:Lunokhod/sandbox

Lunokhod/sandbox

Anoncoin Logo
Demographics
Date of introduction	June 2, 2013
User(s)	International
Issuance
Central bank	None

Anoncoin (unofficial code: ANC) is a peer-to-peer cryptocurrency whose major focus is on providing a means of anonymous digital currency transactions. Anonymity is guaranteed by the Anoncoin client's support of the i2p network, as well as by the option of converting anoncoins into zerocoins that can not be tracked to their owner. The creation of new coins is by the reward to miners for processing transactions into blocks, where mining is performed by proof of work using the scrypt hashing function. A total of 4.2 million coins can be mined into existence, which is 5 times less than the maximum supply of Bitcoin, and transactions are processed, on average, every 3.42 minutes. Anoncoin is currently the 33rd-largest cryptocurrency by market capitalization, which is $ 609,998 USD as of April 3, 2014.

Coin summary

Anoncoin is a cryptocurrency that is based on a fork of the Litecoin source code.

Anoncoins are created and given to miners for processing anoncoin transactions into blocks that are added to the public blockchain. With the creation of each block, a specific amount of Anoncoin is rewarded, by the creation out of thin air, to the block generator. As originally implemented, there can be only 4.2 million coins created, which is 5 times less than Bitcoin. For the first 42,000 blocks, the reward was set to 4.2 ANC. The reward was increased to 7 ANC for blocks up to 77,777, at which point the reward was reduced to 5 ANC. For each subsequent 306,600 blocks (which occurs approximately every two years), the reward is reduced by a factor of 2. The difficulty of the proof-of-work algorithm is adjusted to ensure that a block is created, on average, every 3.42 minutes.

The first 1000 blocks were premined by the developers, but these were all redistributed to the community by the use of a faucet

Implementation of I2P

The Anoncoin client allows for all communication to be sent via the I2P (the Invisible Internet Project) network. By use of I2P, it becomes impossible for anyone, including an Internet service provider, to determine where the Anoncoin client is being run. Though Anoncoin transactions can still be tracked by the public blockchain ledger, the location at which a coin was spent is inherently untrackable.

Implementation of Zerocoin

Like Bitcoin and other cryptocurrencies, Anoncoin transactions are stored in a public ledger that allows any outside party to track the history of any payment. By data-mining the blockchain, it can be possible in some cases to assign an individual user to a series of Anoncoin public addresses. By use of other information outside of the blockchain, such as digital currency transactions with real-world companies and financial institutions, the identity and full transaction history of the user can be compromised.

Anoncoin rectifies the problem of tracing transactions to the originating Anoncoin public address by the possibility of converting Anoncoins into Zerocoins. Once a Zerocoin is redeemed for Anoncoin to a new public address, it is provably impossible to link this public address to the address used in converting the Anoncoins to Zerocoins. This process is achieved by using cryptographic accumulators and digital commitments with zero-knowledge proofs to eliminate trackable linkage in a the blockchain.

External links

• Official website