Lokinet (LOKI): Freedom and Privacy Via Lokinet
LOKI QUICK STATS
|CREATION DATE:||February, 2018|
|DEVELOPMENT STAGE:||Full Release|
|BLOCK TARGET:||2 minutes|
Lokinet is a decentralized, privacy-focused network of Service Nodes providing traffic and message routing, transaction processing and anonymous access to the internet. Loki is the cryptocurrency that rewards the Service Nodes for their work. The creators envision greater digital privacy to counter the rise of the data economy, where big businesses can trade your data for profit at your expense. In doing so, it has led to unprecedented breaches of personal information that leak to the wider world and become a liability for those whose data was leaked. With a privacy focused platform like Lokinet, where data is not harvested for marketing or revenue generating purposes, users can be assured that their information will remain safe through private and anonymous connections to the internet. CoinPayments is proud to support this endeavor by providing Loki payment processing for merchants looking to support Lokinet.
How Does it Work?
Lokinet is a hybrid proof of work/proof of service system based on the Monero source code that offers a unique way to financially incentivize the Service Nodes that power the network. By leveraging these nodes, Loki creates a secondary private routing layer which is enforced and monitored by a method known as swarm flagging.
Loki uses the Monero source code because of the high level of privacy it offers to transactions. The Loki team have used many of the features from Monero, such as ring signatures, ring confidential transactions, and stealth addresses. However there are inherent issues with the Monero platform, mainly the transaction data size is much larger than broadcasting a Bitcoin transaction, resulting in higher costs to run the nodes and leading to a potential lack of support for the network due to underwhelming reward systems. Loki has introduced a node reward system to provide economic incentives to operators by paying them a portion of the block reward for their services.
The distribution of block rewards is done through proof-of-work, with the miner who constructed the block receiving 45% of the reward for their efforts. 50% of the block reward is distributed to a Service Node to provide the network functionality, privacy and scalability, and the remaining 5% is used in governance operations.
Loki encourages the active suppression of the circulating supply of their coin to protect against Sybil attacks, a method of attack in which the attacker accumulates coin until they have a large enough stake to affect the second-layer privacy services on Lokinet.
Why Choose Loki?
Loki is not only a resilient medium of private exchange but also a platform for decentralized and anonymous internet services which protect your privacy and digital identity. For crypto enthusiasts who value a high degree of privacy in their digital lives and want to support a network with more to offer than just a cryptocurrency, Loki is a great option and it’s time to accept Loki payments in your business today!