Nowadays, living conditions are leaving people less and less the opportunity to maintain anonymity, especially concerning financial issues. Financial institutions and government agencies spend billions of dollars annually on technologies that make it possible to recognize a person’s identity.
Therefore, people wishing to maintain confidentiality have attended to the issue of creating and improving a tool that allows them to remain invisible to regulatory institutions. One of these technologies is DigitalNote cryptocurrency. The philosophy of this digital coin is based on the idea of making it possible to conduct anonymous transactions with minimal fees. Therefore, it is worth getting to know this project better.
A bit of history
DigitalNote (XDN) coin was created in 2014. This project was originally called duckNote. In September 2014, the project underwent a rebranding, which was marked by its renaming into DarkNote. Since June 2015, the coin has been given its current name DigitalNote. The priority direction for the creators of this cryptocurrency platform has become the development of advanced software tools to ensure the anonymity of users during financial transactions.
For the first time, the concept of confidential money was developed by the creators of Bitcoin. Even though BTC is the progenitor of all cryptocurrencies, this payment instrument has several negative features that do not allow it to provide complete anonymity of transactions.
For this reason, a need arose within the cryptocurrency community for a new, more advanced digital coin. Coin DigitalNote is based on technology like CryptoNote. This technological solution uses a software algorithm that works according to the principle of ring signature and the impossibility of identifying users. At the same time, temporary addresses are used that make financial transactions unrelated to each other, which does not allow determining the identity of the sender and recipient of the money.
The creators of the DigitalNote coin provided users with the opportunity to use a special chat, where all messages are encrypted, which ensures the anonymity of communication. This technology guarantees the anonymity of users and saves their funds.
Advantages of DigitalNote
Cryptocoin DigitalNote has some advantages that allow this project to remain popular among miners and investors. The advantages of this coin include:
- the digital coin uses the time-tested Proof-of-Work software algorithm, which expands the possibilities of confirming a transaction. This technical solution allowed the currency to successfully repel most of the attacks from hackers. Individual nodes of the cryptosystem have their complexity, which can be changed taking into account the generation of blocks. The process of forming new blocks almost does not load the processor, which allows even owners of simple medium-level PCs to successfully mine these digital coins;
- the crypto network, thanks to its peer-to-peer structure, can maintain its independence and anonymity;
- the coin is distinguished by its high level of security. It is almost impossible to steal this asset;
- complete confidentiality of transactions. When making a payment, users do not have to provide any personal information. At the same time, other participants in the crypto network can see the time of the transaction, as well as its size;
- the size of the commission is minimal.
The listed advantages of XDN allow this coin to continue to evolve, building up a user audience around it, which should ensure this project will continue to flourish.
Disadvantages of DigitalNote
This cryptocurrency coin, like any other similar project, has some drawbacks. To understand how promising this project is, it is important to take a closer look at the minuses of the coin.
The negative sides of the XDN currency include:
- the disadvantage of this coin is the way it is mined. Even though this coin does not need powerful specific equipment capable of generating many blocks, its mining is not able to bring significant profit due to the low cost of the coin. It is possible that with the development of the project and its popularization among investors and miners, there will be a jump in the exchange rate of the coin, which will positively affect the financial benefits of XDN mining;
- Despite the efforts of the creators, this currency is still not insured against possible attacks from hackers who want to take users’ funds from their accounts. Also, we must not forget that if a person forgets the password for his wallet, he will lose access to it, which will mean a loss of money;
- Cryptocurrencies, unlike fiat money, are not backed by gold or other assets. For this reason, all-digital coins are characterized by high exchange rate volatility, which makes it difficult to predict the direction of the currency’s development;
- ongoing transactions cannot be revoked. For this reason, you need to be especially careful when filling in the details, as an error automatically means money is going nowhere;
- despite the development of the crypto market, no one can guarantee the safety of the invested funds, because digital assets are subject to sharp exchange rate fluctuations and the influence of external economic and political factors.
Of course, the fact that there are shortcomings can negatively affect the speed of development and popularization of the crypto asset. Therefore, the creators of the cryptocurrency should make efforts to completely or at least partially eliminate the existing problems. It is the only way to increase the loyalty of users to this currency, which will subsequently lead to its subsequent growth.
