With all of the focus being on the BlockNet ITO, and all of the drama surrounding it, you would almost forget that there are actually coins involved in the BlockNet project. UtilityCoin is one of those coins, and their developer posted an interesting update a few days ago. Let’s see what he has been working on and what the future of UTIL will hold.
UTIL as part of the BlockNet project
As most of you should know by now, UtilityCoin is one of the handful of coins being part of the BlockNet project. UTIL’s anonymity system, which is something entirely new in the world of digital currency and altcoins, is complete and in the process of being released to the public.
Do keep in mind that the anonymity system being rolled out is only a fraction of the entire UtilityCoin anonymity feature still in development. New relationships are still being formed thanks to UTIL’s participation in the BlockNet project.
As a result of these relationships , we will see the following features integrated into UTIL in the future : decentralized open source exchange, open source ATM software for low cost DIY ATMs and convenient merchant services integration.
UtilityCoin’s Anonymity Feature
UtilityCoin’s new anonymity feature is expected to be released at some point over the next few days, as the team is currently doing some final testing. A whitepaper with some more details about UTIL’s anonymity feature has been posted as well, which you can find here.
The use of masternodes is nothing new in the world of altcoins, as several other coins have adopted this mechanism as well over the past few months. These series of masternodes will be connected to a proxy cluster.
In order to run a UtilityCoin masternode, users need to have at least 2,500 UTIL in their wallet, which serves as an “investment”. Every masternode “owner” will earn additional revenue on a per-transaction basis.
All masternodes combined will populate a “basin” fund , which is a collection of end-user transactions , to be used to randomly fulfill requests to send coins. Multiple masternodes will receive instructions over the proxy cluster in the form of encrypted keys.
Once transactions are sent out, there will be a quick accounting phase to make sure all masternodes are reimbursed , which will happen in random fashion, just like when they are processing transactions themselves. Masternodes will partially fulfill bigger orders to look like other smaller transactions, thwarting any trace back attempts.
Currently, the UTIL team is discussing options to mix coins with other BlockNet mixing services, which in turn is a further development of the decentralization. A new layer would have to be running on top of all the BlockNet coins in order to make this a reality.
Besides the anonymous transactions, other features are nearing completion as well (40% completed roughly).UtilityCoin’s HTTP/VPN proxy feature will be far superior compared to current Tor integration. More details will be unveiled in the upcoming whitepaper and infographics.