Guides to Blockchain Related Apps
pEOS Privacy Token Platform
pEOS is an open-source privacy cryptocurrency token that utilizes the EOS technology together with smart contracts and hence can run on top of EOSIO software. It combines the EOS blockchain with the privacy design of existing Monero cryptocurrency and aims to allow the EOS community to make untraceable and private transactions with its pEOS cryptocurrency token. The difference with pEOS and Monero is that Monero uses its own blockchain while pEOS builds on the existing EOSIO blockchain.
On its whitepaper, the pEOS team explained that building a blockchain from scratch for a complex solution is the way to go but will bring the following new problems to them:
Implementing a secure and fair blockchain.
The new blockchain needs a community that provides security continuously.
A developing blockchain will have limitations like long block times, finality times or low throughput.
As a result of blockchain interoperability problems, privacy coins with their own blockchain like ZCash and Monero faced difficulties in getting atomic swaps supported by other blockchains. They argued that this cause decentralized exchanges’ support to be improbable.
The pEOS team avoided the above issues by building onto EOSIO, a blockchain supported natively by decentralized exchanges and is fast with low finality times, hence allowing the team to focus on developing the privacy solution.
Why Does the Community needs pEOS?
Since there are existing privacy cryptocurrencies like Monero and zCash on the market, why will another pEOS privacy token be useful to the community? The pEOS team argued that existing privacy cryptocurrencies are in danger of being banned and classified as illegal by regulatory bodies due to their untraceable transactions. Centralized cryptocurrency exchanges and organized markets will be forced to de-list them and it will be hard for those tokens to remain operational.
On the other hand, the pEOS whitepaper stated that completed decentralized exchanges are independent, cannot be brought down and can avoid regulation enforcement. Hence, the team believed that there will be a market for pEOS among the community.
How It Works?
Similar to any cryptocurrency tokens on the EOS blockchain, pEOS coins can be transferred to EOS native accounts and to private addresses. A user with a pEOS contract has a public address (not related to any EOS blockchain public keys or accounts) that can be distributed to other users to send money to that address.
The sender will generate a one-time random unique address using a Diffie-Hellman exchange and proceed to send the tokens through that address. Only the receiver can verify that the transaction is for him/her with the view key and can further spend the tokens by using his/her one-time private spend key. Hence, transactions to the original public address will not be visible to others and will be kept private between the sender and receiver.
Comparison with Bitcoin
Both pEOS and Bitcoin transactions contain multiple inputs and outputs, although the difference is that receiver and sender addresses are transparent and trackable in a bitcoin transaction, but not publicly visible in pEOS transactions. pEOS tokens are transferred to a new one-time address that is uniquely generated from sender’s random data and receiver’s address, hence there will be no visible information of the sender and receiver recorded on the transaction.
Ring Signature Technology
pEOS uses combination of public keys and private keys to mix and merge transaction inputs of different senders into one ring signature making it tremendously more difficult or perhaps even impossible to confirm who is the real sender for a specific transaction.
pEOS token can be traded and transacted just like any other cryptocurrencies on the ecosystem. This privacy cryptocurrency can be supported by regular wallets that provide balance and transfer functions. However, native wallet application for OSX, Windows and Linux with special functionality of the pEOS smart contract is required to utilize the pEOS functions and execute transfer of tokens from regular EOS accounts to anonymous addresses, from anonymous addresses to anonymous addresses, or from anonymous addresses to normal EOS accounts.
The wallet connects with Scatter desktop to transmit untraceable pEOS transactions and safekeeps user’s keys to the anonymous address but does not store any tokens. To start sending tokens, the user can choose the one time addresses that only he/she owns and knows. The wallet will then select a list of foreign addresses, and authorize the transaction with a ring signature that contains all those foreign addresses. Users will need to purchase RAM to execute transaction on the EOSIO ecosystem. More RAM will be required if more foreign addresses are chosen. Users can consider RAM purchased for pEOS transactions to be transaction fees.
There is a fixed supply of 1,250,000,000 PEOS tokens, no more new PEOS will be created beyond that fixed supply.
PEOS tokens was distributed at 1:1 ratio to all EOS token holders and snapshot was taken on 15th Feb 2019. The whitepaper stated that 50,000,000 PEOS tokens will be reserved for marketing and operations and 200,000,000 tokens will be allocated to the development team and founders.
CryptoGuide is not related to the pEOS team and product. The above guide is subject to change depending on the progress and possible modification of the pEOS app.