• The Cardano ecosystem is set to take a massive leap forward with the launch of a privacy-preserving token protocol that is set to debut before the month ends.
• Known as Encoins, it is attempting to revolutionize secure and private transactions on the Cardano network in a move that will rival other popular networks.

In the crypto world, privacy is supreme and Cardano is set to become one of the most private networks with the launch of a new privacy-enhancing token protocol later this month.

Known as Encoins, the new token protocol will “empower individuals and create a secure haven for digital interaction.”

Encoins will utilize zero knowledge (zk) proofs to enable the transfer of encrypted coins on the network. To access, users will deposit an amount of ADA into the protocol and mint NFTs, which the team calls ENCOINS. Each NFT will hold a constant redeemable value.

The NFT holders can then burn the NFTs and reclaim their corresponding value in ADA, but only if they have the minting key, making it secure.

The new protocol will rely on decentralized relayers who will sign and facilitate all the transactions. It will also be powered by the ENCS token. The token’s holders will stake it with the relayers to secure the network and, in turn, they will receive a share of the fees that the protocol generates. Transaction fees will be divided between the relayers and the DAO in an 80-20 ratio.

To qualify as a relayer, one must stake at least 100,000 ENCS tokens. They must also have a system with at least a 2 GHz processor and 200 GB of disk space.

ENCS has a maximum supply of 15 million tokens, and already, 13.48 million (or 90%) of the tokens are in circulation. Most of this went to the Encoins community in the token’s Initial Stake Pool Offering.

Encoins Revolutionizes Privacy on Cardano

Encoins launches in a week’s time on November 30, marking the beginning of a new era of zk-enabled privacy on the Cardano blockchain ecosystem. Next year, the team will launch Encoins V2 to expand the protocol’s capabilities and its integrations.

According to the blog post announcing the launch of the new protocol, the developers are looking to build the protocol on Midnight, Cardano’s sidechain solution that Charles Hoskinson says will revolutionize smart contracts and customizability on the network.

The team added:

Encoins, looking to make its mark as the first privacy protocol on Cardano, distinguishes itself further by being the initial protocol on the platform to integrate zero-knowledge proofs. With its upcoming launch on November 30th, 2023, Encoins hopes to pave the way for a new era of secure and private transactions.

Cardano continues to see rapid growth as its low-cost and fast blockchain network establishes itself as a formidable player in the space and one of the best Ethereum alternatives. As Hoskinson’s IOG revealed recently, Cardano is now home to more than 1200 projects building solutions for social media, decentralized finance, NFTs, cross-border funds transfers and more.

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