The Cardano ecosystem pushes on toward innovation, with a new privacy-enhancing token protocol set to launch later this month.
The Cardano ecosystem is set to welcome its first privacy-focused protocol as the demand for confidential blockchain transactions becomes prominent. ENCOINS revealed Monday that its new token-based protocol would launch on the Cardano mainnet on November 30.
Are you ready?
“Encoins is on the verge of an exciting chapter, poised to launch on November 30th, 2023, and attempting to revolutionize secure private transactions on the Cardano blockchain. This launch is not just about technology; it’s about empowering individuals and… pic.twitter.com/ntpngFf4pf
— ENCOINS (@ENCOINS1) November 17, 2023
Dubbed the ENCOINS Protocol, the new solution will ensure transaction confidentiality using zero-knowledge proof (ZKP) cryptography. On the user-facing end, the project will enable users to lock ADA coins to mint ENCOINS (ENCS). The team calls the ENCOINS a “bundle of NFTs.”
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Since each NFT records the encrypted value of the locked assets, users can move the NFT privately with on-chain data, not revealing the amount in ADA being transferred.
Meanwhile, using the protocol, users can redeem the locked ADA anytime by burning their ENCOINS allocation. Encoins notes that only the user with the minting key can redeem ENCOINS locked in the protocol.
Meanwhile, the Encoins Protocol will use decentralized relayer networks to sign and approve transactions. This creates a utility for the project’s ENCS token, which validators will stake for a chance to confirm and earn fees in ADA. Additionally, end users can stake to validators to receive a portion of staking yields and fees.
Looking beyond its imminent launch, Encoins also disclosed plans to release a second version of its protocol in 2024. The team is further exploring the potential of building on Cardano’s privacy-focused Midnight protocol.
More dApps Building on Cardano
It is noteworthy that ENCOINS is just one of the many new decentralized applications that has emerged on Cardano in recent times. According to a recent developer update, there are now over 1280 projects being built on Cardano.
The increase in the number of protocols has also attracted more investors to Cardano, with the total value of assets locked on the blockchain recently hitting new highs. Cardano has surpassed Bitcoin’s TVL and remains firmly poised for growth as new protocols go live on the mainnet.