Darkcoin is designed to ensure financial privacy by making it virtually impossible to trace a transaction back to its source. This is accomplished with a key piece of technology called Darksend, which works by mixing up the digital fingerprints of the user’s coins. Darksend’s technology is based on the Masternode Network, currently 900+ decentralized servers spread around the world and maintained by Darkcoin supporters.
Darksend was developed as a closed-source technology while the kinks were worked out and bugs were squashed. Following last Monday’s release of the newest version of Darkcoin, called RC5, the developers of Darkcoin are confident that their software is ready to meet the rigors of mainstream use and has opened the Darksend source code. Darkcoin is now the first fully open-source cryptocurrency with financial privacy built directly into the software.
Open-sourcing of a financial software such as Darkcoin is vitally important. It allows people to be confident that their financial privacy is protected and leads to increased confidence in the quality and performance of the software. Furthermore, anyone can now go through the code and build upon it, as it has been done over the years with Bitcoin.
The core developer of Darkcoin, Evan Duffield has also announced that the privacy functionality of Darkcoin has moved out of the beta stages of development ending the “release candidate” label. Darkcoin is now ready for mainstream, real-world use.
Future updates to Darkcoin are expected every few months, and will include such things as encrypted multipath communication technology, which is already in the works, this will add another layer of privacy to the system as it will allow users to communicate with the network securely without exposing their IPs and will also hide the identity of the Darksend mixing nodes making it extremely difficult, if not impossible, for third parties to spy on users information. It uses multi-path routing so users can send more than one encrypted message using different routes on the mesh network for redundancy.
But perhaps the most anticipated new feature is the Instant Transaction confirmation system, described here: [Transaction Locking and Masternode Consensus: A Mechanism for Mitigating Double Spending Attacks], which will allow Darkcoin to compete with credit cards in terms of transaction speed. The release of Instant Transaction technology will also make Darkcoin the fastest-confirming cryptocurrency in the industry.