Dec 2017, when bitcoin was at its all time high, users experienced different issues regarding the network, as transactions were taking longer than the average time to be confirmed,this alone sent users of the rather congested network into a state of confusion as people were surprised as to why the next “payment system” was taking an unreasonably amount of time for transactions to go through,
Well this is what happened, the number of transactions on the bitcoin network at that very moment was so high (due to the new influx of users), that the miners on the network began to prioritize, you can't expect a transaction with 7$ as transaction fee, get confirmed before a transaction with 50$ as transaction fee, hence the delay in confirmation of transaction,
Another reason why this was so was because of the consensus mechanism used , the consensus mechanism used by bitcoin is the POW consensus mechanism, meaning miners have to confirm transactions on the network, but the main problem that lead to transactions taking longer to be confirmed was the problem of scalability, the bitcoin network lacked scalability which is why we experienced what happened back then ,
So in order to solve these problems, another project was borne, this project is not going through the paths bitcoin created, rather it is creating its own path and is dubbed to be the king of privacy coins, i wouldn't waste your time on what privacy coins are, as I'm sure you already know what they are, how they work, their unique usefulness in the cryptocurrency space.
Although bitcoin is not a private coin,the team went extra mile to adopt privacy as the world is moving towards privacy with an exponential increase on the usage of vpn.
Veil project
Veil a project borne in August 2018 and in jan 2019 already launched its mainet, it is set to disrupt the privacy sphere of the cryptocurrency Market, upon thorough research, first I'll be letting you all in on the technologies behind the most secure, scalable and efficient privacy token,see the pics below for it's specifications
Dandelion protocol- developed in 2017 by giulia fanti alongside researchers at Carnegie Mellon, MIT and University of illinois, in a nutshell dandelion protocol helps make the ip address of the sender of a transaction untraceable, as Veil is project that is focusing on privacy, it only makes sense for the developers to adopt this protocol, in order to achieve this, Dandelion sends the transaction on a random path through a variable number of nodes before the transaction is diffused across the whole network. The random pathway is known as the stem phase of the protocol, as transactions relayed in the stage are shared only between one another, transmitting from one node to the next. The diffusion phase is known as the “fluff phase,” as the transaction is broadcasted to multiple nodes to be spread across the network (visually and in effect, both of these processes replicate a Dandelion’s anatomy, hence the terminology).
Zerocoin protocol - The Zerocoin protocol works by countering the ability of the Bitcoin blockchain to remember every transaction that has ever occurred. The Zerocoin protocol uses zero-knowledge proofs, which means that no data from your past transactions is linked to the coins. The only two people who ever know about the trade are the sender and receiver.
Privacy is almost impossible to achieve in the absence of this protocol. All transactions occur on the public blockchain, and all users have access to the data.
Users who want to keep their transactions anonymous can convert their non-anonymous Bitcoin into Zerocoin. This operation is called “minting”, which means burning out one or more digital coins together with all their history. This includes transactions and previous owners.
After you mint a coin, you receive mathematical proof of that coin, but without any details that specify which currency you’ve burnt out. This means you have a new, history-free coin that you can use to make purchases.
It’s the same cryptocurrency. Its value doesn’t change and any transaction you make with the Zerocoin occurs on the same blockchain. But the new coin has the additional characteristic that allows it to remain hidden through this series of mathematical tricks.
Ring confidential technology - this protocol is used by monero to offer privacy to its users, A ring signature is a type of digital signature in which a group of possible signers are merged together to produce a distinctive signature that can authorize a transaction.A Monero ring signature is composed of the actual signer, who is then combined with non-signers to form a ring. The actual signer and non-signers in this ring are all considered to be equal and valid. The actual signer is a one-time spend key that corresponds with an output being sent from the sender’s wallet. The non-signers are past transaction outputs that are drawn from the Monero blockchain. These past transaction outputs function as decoys in the ring signature transaction, by forming part of the inputs of a transaction. From the perspective of an outside party, all of the inputs appear equally likely to be the output being spent in a transaction.
The purpose of this technology is to help mask the origin of transaction by ensuring that all inputs are indistinguishable from one each other
From the content above I'm sure you are elated to see a project incorporate this many protocol into its technology, you can refer to them as the backbone behind veil's privacy.
Veil project runs a hybrid consensus protocol, hybrid in the sense that it runs two types of consensus algorithm side by side without anyone making the other one less efficient, veil runs Proof of stake (POS) as well as the proof of work (POW) consensus protocol.
Due to these protocols and recent advancements in the blockchain technology, I'll be taking you all on a few number of steps in which you can earn passive income with veil
Since its Mainnet in January, a vast variety of users have been enjoying the privileges that comes with just holding veil, VEIL has given its users the ability to earn extra income with little or no work done physically, the only thing a person needs to do is to get a worthy pc, electricity and you are good to go
These are the major ways in which veil users can earn passive income
1 Staking - From the name proof of stake, users are paid for just holding a certain amount of tokens, (interesting i know right?), Well all a person needs to do is to keep a certain amount of coin for a certain length of time and they will earn newly minted coins, which in respect to veil is known as zerocoin veil
Simple steps to earn via staking with veil
a - first you need to download the Veil Wallet for your operating system. And the wallet is now available for Windows, Linux here
b - complete the installation phase according to your operating system by following the necessary steps highlighted on the github page, and make sure you keep your seed phrase safe
c - You can learn your receiving address by clicking "Receive Money" section of your wallet and send here some Veil. You should transfer the Veil coins you have on the exchanges.
d - Then you activate the staking process by activating the "Staking" tab in your wallet and permanently leaving your wallet open.
2 Mining - this is a method adopted by coins using the proof of work consensus protocol, it helps keep the network more secure, and in order to do this miners are paid for solving problems all done with their PC,
I'm sure you are pretty excited about this, well you will need to visit Veil's website for more information.
As you can see veil project is set to be the foremost privacy token in the cryptocurrency industry, peculiarly different from other privacy coins out there, the number of transactions on the veil network has increased exponentially for a project that is less than 2 years since its inception. At this point after writing exhaustively , i have taken it upon my very self to assist you in case you might need more information concerning the veil project, feel free to visit any of the links below
Official website
Discord group
Bitcointalk Ann thread
Author's veil address -
bv1qym2hj0rdyhw0jaapj6jjf2q4vjcspxv43gqh7c
Congratulations @clektai! You have completed the following achievement on the Steem blockchain and have been rewarded with new badge(s) :
You can view your badges on your Steem Board and compare to others on the Steem Ranking
If you no longer want to receive notifications, reply to this comment with the word
STOPVote for @Steemitboard as a witness to get one more award and increased upvotes!