Privacy coin wants to offer fast, anonymous payments with minimal energy use

A self-funded, community-driven decentralized blockchain wants to create a privacy coin ecosystem that doesn’t consume large amounts of energy.

This platform, called BlackHat Coin, will use proof-of-stake (PoS) consensus mining in addition to implementing its privacy layer on the zk-SNARK sapling protocol to provide fast, anonymous, and untraceable payments.

“Today, it is not a secret to anyone that artificial intelligence-based systems for analyzing cryptocurrency transactions have been developed, terms of tokens use have been tightened, the interests of various centralized projects have been lobbied in every possible way,” the project said in its whitepaper.

According to them, despite the fact that regulators across the world approach the issue of deanonymization differently, the essence of their approach remains “full-fledged total control.”

BlackHat’s project team wants to address this “arbitrary interference” with privacy by creating a coin ecosystem with a strong infrastructure around it. The aim is to create a BlackHat wallet that will enable users to pay for goods and services as easily as they would using a traditional bank card.

To achieve this, they will build a set of services that will manage finances through PC mobile and web applications, all while using the greener, more cost-effective alternative to mining the coins.

Cold staking and masternodes

BlackHat’s proof-of-stake consensus mechanism will feature a combination of hot and cold staking. This means that users will be able to delegate their coins to be staked to a hot wallet, which operates 24/7, while their staking rewards will be paid out directly to their offline wallets.

They will also have the option of delegating coins from multiple offline wallets to a hot wallet that will stake coins on their behalf.

BlackHat Coin relies on both stakers and masternodes to decentralize, govern and secure its network. The block rewards will be divided between stakers and masternodes on a 40/60 basis.

Masternodes will add a second layer of security to the network while providing the staking community with a more lucrative source of passive income.

In order to set up a masternode, a user will have to delegate 5,000 BLKC — the network’s native token — as proof of loyalty to the blockchain. Masternode operators will also be eligible to participate in BlackHat’s decentralized governance votes.

The road to privacy

Over the course of the next few months, BlackHat Coin will introduce its mobile wallet. The mobile wallet will tie together most of the existing elements by enabling cold staking and laying the groundwork for an upcoming Merchant system.

“This is a kind of payment processing system which could be easily integrated on any website, store, Telegram channel and so on,” explained BlackHat in a blog post.

All wallets will be integrated in a manner that enables users to make purchases with BLKC with a few clicks, or even by just scanning a QR code from the wallet itself.

Most importantly, the emphasis on privacy and anonymity of transactions will be reinforced with untraceable transactions. The zk-SNARK or “zero-knowledge proof” protocol hides all external data aside from the time mark, guaranteeing anonymity to the sender and the recipient of a transaction.

“Compromising is impossible. The history of the coin origin cannot be traced,” stated the project.