- Cardano is set to introduce its first privacy token protocol, ENCOINS, using zero-knowledge proof cryptography for confidential transactions.
- This innovative protocol enables ADA locking and minting of ENCOINS, a bundle of NFTs, bolstering Cardano’s growing ecosystem of over 1280 projects.
Innovative Privacy Token Protocol Arriving on Cardano
Cardano’s blockchain ecosystem, known for its emphasis on technological innovation and rigorous academic research, is about to take a significant leap forward with the launch of its first privacy token protocol. Scheduled to go live on November 30, this protocol marks a new era in confidential blockchain transactions.
ENCOINS Protocol: A Leap in Blockchain Privacy
ENCOINS, the protocol set to debut on the Cardano mainnet, represents a novel approach to transaction privacy. Utilizing zero-knowledge proof (ZKP) cryptography, ENCOINS ensures that transaction details remain confidential while maintaining the integrity and security of the blockchain.
Users of this protocol will be able to lock their ADA coins and mint ENCOINS, described by the development team as a “bundle of NFTs.” Each NFT within this bundle records the encrypted value of the locked assets, enabling private movement of funds with on-chain data that doesn’t disclose the amount of ADA transferred.
Redeeming and Staking in the ENCOINS Ecosystem
A unique aspect of the ENCOINS Protocol is its redemption feature. Users can redeem their locked ADA at any time by burning their ENCOINS allocation. However, only the user possessing the minting key can perform this action, adding an additional layer of security and control.
The protocol also incorporates a decentralized relayer network responsible for signing and approving transactions. This network creates a functional role for the ENCS token, which validators can stake to confirm transactions and earn fees in ADA. End users also have the opportunity to stake their tokens with validators to receive a share of the staking yields and fees.
Future Plans and Growing Ecosystem
Looking ahead, ENCOINS has announced plans for a second version of its protocol in 2024, with potential integration with Cardano‘s privacy-focused Midnight protocol.
The introduction of ENCOINS adds to the burgeoning number of decentralized applications on Cardano, which now boasts over 1280 projects. This growth, coupled with the increasing total value of assets locked on the blockchain, positions Cardano as a formidable player in the blockchain space, challenging even Bitcoin in terms of total value locked (TVL). As new protocols continue to launch on Cardano‘s mainnet, the platform cements its status as a leading hub for innovation and development in the cryptocurrency world.
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