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Cloak Protocol is a new privacy-focused cryptocurrency platform that offers a decentralized ecosystem. Cloak Protocol utilizes zero-knowledge proof protocols to protect users’ data and identity while completing transactions and deploys smart contracts on the Ethereum blockchain.
Users can purchase $CLOAK, the native token, through the ongoing presale. By doing so, token holders can access Cloak Protocol’s governance mechanism to access decision-making power and earn passive income.
However, before investing in this new project, let’s look at the features and use cases Cloak Protocol offers.
What is Cloak Protocol?
In 2009, Bitcoin (BTC) was launched as a replacement for traditional and centralized means of payment. Over 14 years later, while thousands of new cryptos have been introduced, many platforms still struggle to offer complete decentralization.
Cloak Protocol is a new cryptocurrency that aims to solve this issue by giving more anonymity, security, and privacy to the user. A DeFi (decentralized finance) platform, Cloak Protocol, has been designed to secure the identity of users when conducting transactions.
To ensure the security of users, the platform has been built on the Ethereum blockchain. While the Ethereum network can lead to higher transaction costs for users, it also uses a huge amount of computing power to ensure that each and every transaction is secure.
On the blockchain, the Cloak Protocol also deploys smart contracts to ensure that transactions are recorded between two parties. While many platforms use smart contracts, Cloak Protocol stands out by allowing users to access partial deposits and withdrawals on the ecosystem.
According to the Cloak Protocol whitepaper, the platform states that it avoids third parties from tracking the asset’s movement by using a large number of small denominations. Notably, Cloak Protocol does not charge additional fees on deposits but does charge a 0.5% withdrawal fee from users on its ecosystem.
Cloak Protocol offers Privacy by Using Zero-Knowledge Protocols
To offer secure and private transactions to users, Cloak Protocol uses zero-knowledge proofs technology. This is a technology that proves the validity of a particular transaction without revealing what the exact transaction is.
On Cloak Protocol, a user can simply enter the transaction amount, after which the platform will generate a random hash confirming the transaction amount. The zero-knowledge protocol will allow users to share a proof of knowledge on the ecosystem without revealing any further details.
Thus, the platform manages to offer the highest level of privacy and security to all users.
Join the Governance DAO and Access Staking Benefits with Cloak Protocol
Along with the high level of security offered, Cloak Protocol aims to build a community where members can have a big say in the future of the platform. Therefore, $CLOAK, the governance token, will give one the ability to access voting power in the ecosystem.
This ERC-20 token can be staked on the Cloak Protocol ecosystem to join the DAO (Decentralized Autonomous Organization). Notably, users are required to stake the token to get access to the DAO. The platform ensures that the voting power is distributed to long-term token holders to avoid any opportunistic token holders from making hasty decisions.
The members of the DAO can make decisions related to platform enhancements and future developments. To reward the voters who have staked their coins, Cloak Protocol will also offer staking rewards on the ecosystem.
The revenue generated from the platform fees will be shared with those that have staked $CLOAK on the ecosystem. Therefore, this cryptocurrency will offer passive income in exchange for contributing towards the platform’s maintenance and security.
Members of the Cloak Protocol will earn passive income in proportion to the number of tokens they have staked on the ecosystem.
Join the $CLOAK Presale Before the Token Lists on Top Crypto Exchanges
To be a part of this community, users can buy $CLOAK through the ongoing presale. Currently, the token is priced at only $0.0387 per token. However, the exchange launch price is set at $0.0971 per token, a 150% price jump.
Furthermore, the platform’s initial exchange offering will take place on Uniswap – one of the largest decentralized exchanges in the space.
Since Cloak Protocol offers a governance platform, staking rewards, and privacy to all users, the $CLOAK token has the potential to become the next cryptos to explode.
You can keep updated with this cryptocurrency project by joining the Cloak Protocol Telegram channel.
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