(not be confused with a separate project called SPECTRE)
Spectre launched its cryptocurrency in 2016. Segmented in to two different tokens: spectre and xspec. It has remained unnoticed (but never unsuccessful), its tokens ranks 500s according to CoinMarketCap. Not the biggest market share according to many crypto standards but nonetheless, it holds a total market capitalization of $5.7 million.
It recently claimed to know the solution to maintaining privacy of coin owners by a blockchain technology similar to staking, only a lot more anonymous and complex. It has been working on it since the announcement has bought Spectre a great deal of publicity.
Staking and the problem with it
Staking allows users to earn cryptocurrency gains by holding an amount of money for a period of time and then selling it after making a basic interest on it. The duration whereby the currency is held can be however long the user can wait for, the gains also vary accordingly. The ‘proof of stake’ (POS) allows miners to mine more currency respectively. This means that the more currency any cryptocurrency owner is willing to hold, the more powerful they will get in terms of their play and stronger their gamble will be. Mandica the pseudonym owner of Spectre told a CoinDesk:
All the UTXOs [unspent transaction outputs] spent to generate staking transactions are traceable on the blockchain and all the staking transactions can be linked and your balances are visible to anyone who knows how to analyze the blockchain.
Majority of currencies do not pay attention to the privacy matter, that in reality is a threat to the owners of the coins or tokens. Public exhibit of their earnings and ownership and the exact sums and time stamps make them vulnerable. Various alternative POS systems have tried to deal with the problem variously in the past.
Even though several digital currencies (EOS, Tezos, Neo, Tron), have tried to incorporate similar technologies into their systems to uphold privacy of the currency owners better, not many have gained dramatic attention. These alternative proof of stake systems can offer some form of improved privacy but not in entirety.
Bitcoin, on the other hand, requires Proof of Work (PoW). This proves that some kind of work occurred between the currency circulatory and the buyer.
According to the tweet quoting the owner of Spectre, Mondica said:
The best way to understand #Spectrecoin today is to think of Bitcoin + Proof-of-Stake.v3 + anonymous transactions (using similar technology to Monero) + Tor to hide your IP. These are very strong features to build on. #xspec #proofofstake #privacycoin #btc #monero pic.twitter.com/P8seAl5BGD
— Spectrecoin XSPEC (Official) (@XspecRising) June 24, 2018
Spectre has been able to do this by using a technology based on Monero’s called the ring signature technology. This unique technology slash algorithm has allowed its website to explain it as: ‘Untraceable and Fungible service – The Most Secure Wallet’.
The spectre wallet will now offer anonymous coins sold to anonymous owners as a remedy to the POS downside. Ring signatures allow anyone within a particular selection or group to sign in a transaction, making it impossible to determine exactly which participants’ keys signed the transaction. The groups are sometimes shuffled and kept even more private by never revealing who was put in which group and when.
This allows another protection layer. Owners sell their previously bought coin after a period of time like before, only this time the coin never really ‘belong’ to the owner. While the owners have buying, selling and profit rights over it, the currency is not labelled or branded with the name of the owner.
This still allows the blockchain system to remain accessible to public and mining as easy as before but the transaction reports can be kept private. This is a much more complex working that happens in the back end and customers on the foreground really see no difference than of jargon and perhaps of the interface.
Despite falling short on the promise once before, as pointed out in a paper that critiqued the ledger’s issues; Spectre is ready to ride bulls with renewed spirits. Spectre said:
This is a unique proposition, and no other cryptocurrency, as far as I know, has a system to stake anonymous coins and generate fresh anonymous coins.