An introduction to the Veil project
The Veil Project was conceived in early 2018 by James Burden, a recognized industry expert in crypto-privacy and holding a track record of founding and leading successful cryptocurrency projects like PIVX. The motivation for the project was the recognition of the need for a currency that provided full-time privacy without compromising the strength of anonymity.
The benefits of Veil’s POW mining/PoS staking hybrid accord for security and distribution
The Veil network depends on a hybrid proof-of-work (PoW)/proof-of-stake (PoS) twin accord set up to secure the network and distribute rewards. The POW accord depends on Veil’s X16RT formula tailored from Ravencoin’s X16R. The PoS accord works on Veil’s Zerocoin protocol, with denominations eligible to doubtless notice the following block. Let’s explore the reasoning and edges behind this twin accord to raised realize it.
Foremost in any blockchain accord model ought to be the safety of the network and blockchain. The accord model in situ must shield the network against threats like double spending—spending associate degree unexhausted dealing output (UTXO) quite once—and li % attacks—controlling a majority of mining hash to dominate the network. It conjointly must guarantee a spare variety of nodes stay on-line to safeguard the integrity of the network ought to an outsized node return underneath a denial of service or distributed denial of service attack (DOS attack/DDOS attack respectively) or somewhat be compromised.
In ancient POW networks, vulnerabilities exist within the hashing power accessible being sufficiently low that a nasty actor wish to hijack the network for a time might doubtless do, therefore. Such associate degree actor might attain this by dealings out ample hashing power at a coffee enough value to be possible. In such cases, the unhealthy actor has spare say over block validation—a li % dominant share—to guarantee solely those blocks containing transactions they want area unit accepted onto the chain. This hashing dominance downside is combined by the existence of Application Specific Integrated Circuits (ASICs)—specially designed hardware targeted on excelling at mining a specific formula.
Veil, with its XR16T POW mechanism, resists ASIC mining as every block and its issue shifts at random between sixteen completely different algorithms, sterilization the quality of the ASIC’s specialization. a lot of significantly, the chain incorporates a most reorganization depth, and demands a minimum of each sixth block be discovered not by mining, however by staking. this suggests the six confirmation demand normal should embrace a PoS block checking for nonlegal blockchain activity. during this manner, as long as veil area unit cosmopolitan across several nodes, no li % attack are often prosperous. within the event the aggressor controls a spare share of the provision to beat this PoS barrier, they’d effectively manage the network anyway, and Veil would have long ago did not retain use and worth.
The situation within which associate degree aggressor might attain management over the network isn’t any longer much attainable. the broader distribution of veil across several nodes, that PoS rewards active nodes with periodically, ensures not solely that those while not the flexibility to mine may earn rewards, however, that a decent portion of miners can hold onto their mined veil in hopes of earning PoS rewards. This incentive to carry a minimum of some of what’s mined protects against the bulk of mined coins landing on exchanges wherever anybody party might scoop all of them up.
As antecedently mentioned, a minimum of one-in-six blocks should be found by PoS. At the time of publication, the quantitative relation of POW to PoS rewards is around equal with some minor variation. With associate degree introduction of a lot of hashing power, this could at the most reach a 5:1 quantitative relation in favor of POW, however ne’er exceed it.
Lastly, as an extra incentive to market staking for security and distribution functions, Veil can reward users opting to run a full-node— the storing of the whole blockchain on their native machine—with fees increased since the last prosperous full-node stake. This feature can accompany billfold chain pruning within the not-too-distant future.
Hopefully, this exploration of Veil’s accord model helps you appreciate the care that went into guaranteeing the Veil network remains as secure and stable as attainable. we tend to take the responsibility of securing the finances of Veil users terribly seriously and can still adapt to safeguard against threats whenever necessary.
The State of the Veil network
In order to safeguard our users, the Veil project instantly free a billfold update. moreover, an indoor analysis failed to reveal any indication that the vulnerability was exploited on the Veil network before our billfold update.
The drawback of the billfold update is that it removes the obscurity feature of Zerocoin, in this Zerocoin spends can briefly be coupled from their original mints on the blockchain. Past Zerocoin transactions won’t be de-anonymized.
From a practical perspective, the usage of the billfold in terms of causing, receiving, and staking stay similar. The privacy characteristics of RingCT and CT area unit unaffected. Zerocoin minting, spending, and staking, however, are not any longer unlinkable.
(Why can we use the term “unlinkable” here, instead of “anonymous”? as a result of if you mint zerocoins from RingCT, spends and staking rewards to those zerocoins have the benefit of the pass-through privacy inherent in RingCT.)
This was the second such Zerocoin vulnerability discovered during a short amount of your time, and this second was way more serious than the primary. when an intensive internal review and discussion with the Zerocoin community, and within the context of our long mission, the Veil project has complete that we are able to now not deem Zerocoin because of the core of our protocol.
As such, we tend to area unit presently assessing a variety of other protocols that may satisfy our needs for Veil:
- Full-time privacy
- Only non-public transactions (one coin type)
- Private mining via the X16RT formula
- Private staking
- IP privacy (Dandelion)
- Fast-dealing validation
- Minimized dealing sizes
- No denominations
To repeat our message since the beginning—Veil isn’t seeking to easily replicate existing technology. Rather, we tend to area unit operating towards a whole resolution that addresses the collective trade-offs and shortcomings of all current privacy protocol implementations.
Implementing the privacy protocol that meets our desires, making a replacement billfold, and migrate coins over to the new network are complicated and can take time. however, we tend to area unit assured in our stellar development team and their ability to deliver the following generation in privacy technology. we tend to estimate that this can take a minimum of six months and that we can keep the community updated on the manner.
Where will that leave the project within the meantime?
Veil users will still earn staking rewards, non-anonymously, within the interim.
We will still push billfold updates as necessary.
The development bounty program can probably continue unaffected; but, the community bounty program might inbound areas be suspended.
What ought to potential acquirers of Veil take into account within the meantime?
Owning Veil currently permits you to earn staking rewards whereas the new network is underneath development, and would be of interest to people who trust and place confidence in within the team behind Veil.
Migrating far from our core technology could be a tough call, notably because it means that the loss of a decent portion of the project’s seed investment, and demand for added capital to fund the activity of developing a replacement protocol. we tend to start Veil with the mission to make associate degree anonymous cryptocurrency which will serve the privacy desires of its users for generations to come back. Our mission has not modified.
Privacy can solely increase in importance and necessity as we tend to move forward, so we tend to area unit assured the temporary black eye we tend to expertise these days are quite paid within the long by the advantages of a lot of reliable obscurity protocol at the core of our network.
As we tend to move forward, we’ll still keep you, the Veil community, up so far with frequent updates. And as perpetually, if you have got any queries, please don’t hesitate to succeed in the bent United States in Discord or wire.
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Announcement Thread: https://bitcointalk.org/index.php?topic=5065331.0