ForexMinute.com – After riding high on tides for the previous days, the emerging cryptocurrency Darkcoin was met with a fall yesterday when it was found that its blockchain has been forked. This activity led to the disappearance of an unknown number of Darkcoins from the mining pools, further putting Darkcoin price escalation to rest.
The Inside Story
Almost everyone has seen the massive surge Darkcoin has been blessed with in recent days, with its value increasing over 50% in the aforementioned times. It had also once led its market cap to the prestigious 3rd position in the cryptocurrency market (see here). The reason why Darkcoin has met with such a larger raise is its promise of offering complete anonymity to its users. The coin actually implements masternodes which makes sure to mix the ongoing transactions in a way that they remain undetected from the outside world.
The owner of these masternodes gets a noteworthy 10% block reward. These masternodes can be purchased for around 1000 Darkcoin (almost $11,000 as per the current rates). Darkcoin has recently change its code in order to stay compatible with the existing masternodes, which is where the things went a little unplanned.
What exactly happened in the last 24 hours was somewhat similar to Dennis Nedry hacking the Jurassic Park’s systems. The many Dennis of this “Darkcoin Park” were apparently some really evil masternodes that caused the blockchain forks. It means any coin which was mined to the forked blockchain went simply into a black hole, i.e. disappeared.
The Darkcoin team later wrote, “Since launching masternode payments the network has kept randomly forking. We’re not exactly sure what is the cause? But to stop this and restore stability we are going to fork to remove masternode payments.”
Soon after the news became public, popular cryptocurrency exchanges like Cryptsy and Mintpal paused Darkcoin deposits/withdrawals, which obviously depleted the coin’s volume transaction. Meanwhile, the Darkcoin team has temporarily removed all the masternodes from its network and the blockchain currently looks like that of Bitcoin – detectable.
Eventually, we have a market in which Darkcoin has slipped back to the fourth wealthiest market cap position, while its prices went down to around $11 in the last 24 hours. Although, as this whole episode is a genuine accident that might have happened even to Bitcoin itself, we believe the coin will rise again. It although proved that even Darkcoin can have loopholes – a thing which most of its fans seemed to have rejected in recent days.
To contact the reporter of the story: Yashu Gola at firstname.lastname@example.org
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