Ukrainian Bitcoin. What is domestic cryptocurrency?

biz.nv.ua

5 min

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Already today, cryptocurrencies make up almost 1% of the entire global money supply, which is a little less than $300 billion – and this figure is growing every day. This spring, the Ukrainian cryptocurrency Karbo was in the spotlight of famous American crypto resources. Having appeared just two years ago, Karbo entered the world ranking of the TOP 10 cryptocurrencies with increased anonymity by capitalization.

The majority of cryptographers and crypto traders surveyed by NV believe that Karbo has a high chance of gaining a foothold in the global market for anonymous transfers, since technically today it is not inferior to industry leaders - Monero, Dash and Zcash. According to bolder assumptions, in the future Karbo could become the national cryptocurrency of Ukraine. The absence of a premine (part of the emission that the developer keeps for himself) and the latest initiatives of advanced states to legalize certain cryptocurrencies as legal means of payment on their territory confirm these assessments.

NV figured out how things really stand with the domestic cryptocurrency Karbo.

What is Karbo and where did it come from? The Ukrainian cryptocurrency Karbo was created by a group of Ukrainian programmers and mathematicians, about which almost nothing is known, due to their desire to remain anonymous. The coin appeared directly on the market in May 2016. In professional terms, Karbo is a decentralized peer-to-peer peer-to-peer network that operates on the CryptoNote protocol and provides confidentiality and anonymity without intermediaries and regulators. Until recently, it remained an internal tool of enthusiasts on cryptocurrency exchanges, but this winter, American specialized analysts found it on the list of coins for which the US National Security Agency cannot yet track transactions , which is why it requires additional funding to continue work on cracking the code .

Thus, the United States noted one of the highest indicators of anonymity and security of Ukrainian cryptocurrency - its owners cannot be tracked in principle.

What is the point of investing in Karbo? In two years, the cost of Karbo has increased 86 times – from 0.058 to 0.5 cents, which is already a good reason to buy this particular cryptocurrency. Its main advantage is a unique computer algorithm, which during the transfer process creates dozens of one-time wallets, into which parts of a randomly divided payment are received, and only then the algorithm sends their amount to the recipient. All coins are standardized and do not have any identifying symbols.

By comparison, with Bitcoin, each transaction is stored in clear form on the blockchain, which makes it relatively easy to find out the balance, transaction history and sources of replenishment of your wallet. In Karbo, it is simply impossible to find such information even about very large transactions. Thirdly, the algorithm specifies the maximum number of coins - 10 million (currently 5.7 million have already been issued), after the release of which the issue volume will grow by only 1% per year.

How safe is it to use Karbo? According to technical characteristics, due to increased anonymity, Karbo belongs to the Bitcoin 2.0 family of cryptocurrencies. There are not many such cryptocurrencies; their main feature is complex encryption, to which no intelligence agency can find the key. Ukrainian regulation in the field of cryptocurrencies is very far from ideal, but neither the American nor the Ukrainian police will ever collect evidence of transactions with currencies operating on the CryptoNote protocol, including Karbo.

From a technical point of view, Karbo provides users with a completely anonymous payment scheme. It is implemented using ring signature technology, when the operation is confirmed not by each specific miner, but by a group of unrelated individuals. Such a signature only indicates that the transaction was carried out by someone from the group, but all participants in it are indistinguishable from each other. At the same time, Karbo retains all the advantages of the blockchain in the form of the impossibility of making the same payment twice or conducting a transaction without the network’s acceptance.

Karbo's ring signature technology uses a modified Diffie-Hellman exchange protocol that maps unique addresses to a public key. Each transaction made makes his blockchain as a whole even more resistant to analysis. But at the same time, Karbo allows, if necessary, reporting using tracking keys, which make it possible to see incoming transactions, but not outgoing ones, and also confiscate funds. Additionally, tracking keys do not reveal the sender.

Where do they sell and buy Karbo? Buying Karbo is no more difficult than buying any other cryptocurrency. Now Karbo can be purchased in online cryptocurrency exchangers, which will take up to 10 minutes, or on cryptocurrency exchanges, which, depending on whether you buy it for Bitcoin or hryvnia, can be a little more complicated and require registration on the exchange.

Karbo is currently traded on seven exchanges: Livecoin.net, Cryptopia, Crex24, TradeOgre, Altex.exchange, BTC Trade UA and Kuna. On the first five, it is traded in pairs with Bitcoin, and on BTC Trade UA and Kuna - Karbo can be sold and bought for hryvnia. It is the last two exchanges that are most convenient for use by newcomers in this area - integration with accounts in Ukrainian banks allows you to buy cryptocurrency just like cinema tickets or food.

The daily trading volume for Karbo on these exchanges is $20-30 thousand, and the total capitalization of the cryptocurrency is currently close to $3 million.

Cryptocurrency traders believe that there is no need to wait for the right moment to buy, because it is already happening. Advanced countries, whose policies the rest of the world is trying to implement, have almost mastered and legalized cryptocurrency transactions. Most recently, Switzerland allowed maintaining bank accounts in cryptocurrency; before that, this option was available in the banking systems of Japan, Singapore and South Korea. Although in many countries, including Ukraine, regulations for regulating the crypto industry are still in the process of development and approval. According to forecasts, 2018 will be the year of legalization of transactions with tokens in most countries of the world, including Ukraine. Since the adoption of digital decrees in the EU and other first world countries, cryptocurrency prices will rapidly creep up.

New, honest cryptocurrencies will continue to appear with no preliminary issue for developers and low commissions, but just as Bitcoin remains the most popular cryptocurrency because it was the first, so Karbo in Ukraine has every chance of becoming a local “bitcoin” as a pioneer in this market segment.