Anoncoin is a decentralized network that provides robust security to the users by making it difficult to determine their IP address. Anon aims to focus on the anonymity and privacy of users. As per its website, Anoncoin was created to provide a cryptocurrency that could withstand an eventual crackdown from central banks and hostile governments.
The website of the Anoncoin network states that specific cryptocurrencies only seek to enrich the developers financially, whereas Anoncoin is based on transparency and fair initial coin distribution to maintain the proper liquidity of the token. In other cryptocurrencies, transactions are stored in the public ledger, which results in tracking the history of any payment by third parties. The identity and full transaction history of a user can be compromised by using information outside of the blockchain, such as digital currency transactions with real-world firms and financial institutions, or the broadcasting of public addresses on websites. Thus, Anoncoin has been developed with in-built support for the I2P darknet that helps protect users' identities. I2P is an Invisible Internet Project that aims to protect communication from surveillance and monitoring by third parties.
Anoncoin network is managed by decentralized miners who process transactions into blocks. Such blocks are then added to the public blockchain, and with the creation of each block, a certain amount of Anoncoin (ANC) is created that is rewarded to the miner.
Anoncoin network aims to provide exchanges for the users to buy or sell Anoncoin for other coins of traditional currencies. The creation of new Anoncoin (ANC) rewards the miners for processing transactions into blocks. The mining is conducted through Proof-of-Work (PoW) using the scrypt hashing function. Scrypt is a password-based key derivation algorithm developed to prevent large-scale custom hardware attacks by making the process costly.
As per its website, Anoncoin plans to take a transition from PoW to Anoncash. Anoncash are private digital funds developed by the team of Anoncoin. It is a hard-forked version of Anoncoin, developed to fix a technical bug in the previous version of the Anoncoin network. The team aims to cease the existence of Anoncoin after the release of Anoncash.
