Stakenet Light Paper
By: Stakenet Team
Tags: Xsn Articles, Cryptocurrency, Blockchain, Xsn News, Bitcoin

Privacy and Security

Privacy is something we take seriously at Stakenet and we want to ensure that it is there when a user needs it. As such we have implemented an easy to use “1 click” TOR Privacy activation method into our multicurrency wallet. This gives users a level of privacy for all assets supported by the wallet.

Further to that we will be adding coin-mixing and Mimblewimble to enhance that level of privacy. Additionally we are looking at privacy solutions that are unique to Lightning Network so that overall Stakenet will offer the highest levels of privacy.

For security we use the X11 Algorithm which uses a chained combination of eleven hashing functions part of which is known as SHA-3. SHA-3 alone is considered to be quantum resistant as based on recent studies it is estimated that it would take 10³² (thats 10 with 32 zeros after it) years to break so it’s safe to assume that during our lifetime quantum computing will not pose a danger to Stakenet.

Mobile version of Stakenet Wallet

Core Products

Stakenet Wallet — The Stakenet Wallet is a non-custodial multicurrency light wallet and the main interface to interact with for the cryptocurrency world. It will be available in both desktop and mobile versions. As our Masternode Network holds the databases and full nodes for the blockchains the wallet doesn’t need too, this keeps it lightweight, fast and not just limited to basic functions like most multicurrency wallet solutions on the market. You can use it in combination with hardware devices to access things like Cold Staking, setting up Masternodes or managing Lightning Hubs for example. Additionally it has an in-house trading engine which will be connected to XSN Dex. Finally to ensure secure and private access to our interchain mesh it provides native TOR support which is managed by our Masternode layer.

XSN Coin — The XSN Coin itself is a state of the art cryptocurrency with many unique properties. XSN is open, permissionless, decentralized, trustless,

censorship-resistant, immutable, smart, interoperable, fungible, secure, and has a fixed emission rate. Each service that generates fees will be paid for in XSN either directly or in the background via a Lightning Swap. It is the gas that powers the entire ecosystem that everything runs on top of.

XSN Core — The XSN Core wallet is the open source component needed to run a full node within the Stakenet blockchain. It acts as the core interface for using the functions of the Stakenet Network and is required to operate a Staking node, Merchant node, Lightning node and Masternode. XSN Core is compatible with the most popular operating systems such as Linux, macOS and Windows. It can be accessed through the command line interface or GUI.

XSN Excalibur — Our open source private key management and storage system which is auditable by the public is called XSN Excalibur. It is based on Trezors reputable code and uses a seed to generate private keys within the Stakenet interchain economy. Thanks to XSN Excalibur, Stakenet users can backup and access all of their assets just by knowing one phrase.

XSN Dex — Our decentralised exchange (DEX) is called XSN Dex and is a true DEX with no centralized point of weakness. It is a dApp hosted on our Masternode Network and provides a means for users to trade crypto assets directly from their own Stakenet Wallet without having to hand over control of their assets to a third party. It utilises our Lightning Swap technology to make trades instantly. The assets never leave the users possession with XSN Dex unless the transaction is completed and as such users can benefit from the utilities, features and staking rewards of the coin.

Additionally users remain anonymous as they do not have to provide Know Your Customer (KYC) details to anyone providing complete anonymity and freedom to trade without fear or worry. All transactions are done on a Peer to Peer basis without the involvement of a centralised authority making transactions more secure and less expensive.

Another key point of the XSN Dex is it’s ability to aggregate other DEX solutions in it as long as the opposing DEX is truly decentralised. It is possible to add their validation nodes to the Stakenet mesh and bridge between different order books. In the end all Stakenet users can trade with any other compatible DEX through one interface.

XSN Viper — The XSN Viper is a specialised hardware wallet with integrated basic Lightning Network routing capabilities to provide the ability to run hubs for the Lightning Network and generate fees for Stakenet, Bitcoin and Litecoin. XSN Viper stores user assets safely in cold storage by using a separate microcontroller that holds private keys and remains offline and is powered by our open source firmware XSN Excalibur. This allows all Stakenet users to use all supported assets features from one hardware wallet.

XSN Cloud — XSN Cloud is a centralised application that offers blockchain services, designed to grant a better and easier experience for Stakenet users, thus helping with adoption. XSN Cloud has the following features:

Staking-as-a-Service: This offers the easiest way to start staking by simple depositing your assets into the multicurrency Cloud wallet. After a maturity period your assets will begin receiving staking rewards.

This offers the easiest way to start staking by simple depositing your assets into the multicurrency Cloud wallet. After a maturity period your assets will begin receiving staking rewards. Masternodes-as-a-Service: This is our Trustless Masternode hosting solution. It allows you to effortlessly setup and run your Masternode while keeping your collateral in your own local wallet so is risk free.

This is our Trustless Masternode hosting solution. It allows you to effortlessly setup and run your Masternode while keeping your collateral in your own local wallet so is risk free. Monitoring Services: A real-time monitoring service for Masternodes and Trustless Proof of Stake contracts. Customers will immediately receive e-mail alerts if anything goes wrong.

A real-time monitoring service for Masternodes and Trustless Proof of Stake contracts. Customers will immediately receive e-mail alerts if anything goes wrong. ROI Calculator: The relationship between Staking Nodes and Masternodes changes daily so the profitability of each does too. The ROI calculator is a tool to find the best choice for you.

XSN Cloud collects fees from the users for using some of these services. Fees are then sent to the XSN Cloud Treasury and used to cover costs and further development.

TPoS vs DPoS vs LPoS

Summary

Stakenet is a distributed network for incentivized stakeholders; providing a trustless interchain economy. It is based on an enhanced Proof of Stake blockchain with several second layer solutions, like the Lightning Network, Masternodes, and dApps. It has one second confirmation time and up to 240 on-chain transactions per second. Over the Lightning Network, where the majority of the transactions will take place, the Stakenet blockchain can infinitely scale with instant and practically free transactions. Its use case is to provide a cross-chain architecture for cryptocurrencies, where individuals can easily operate with any blockchain simply by using Stakenet’s native coin XSN, as the blockchains are connected to each other through the Lightning Network and other cross-chain technologies.

Stakenet provides one of the highest levels of security among any Proof of Stake blockchain. Stakenet Masternodes create a massive decentralized network of computers that generate incredible amounts of computational power. They provide high-end network services and run the dApps that are built upon the blockchain.

Stakenet is the first Proof of Stake blockchain with Masternodes to successfully execute Lightning Network compatibility and is among the first, besides Bitcoin and Litecoin, to ever perform atomic swaps over the Lightning Network (Lightning Swaps). Therefore, the Stakenet blockchain can interact with any Lightning Network compatible merchant, application, wallet, or upcoming crypto device. Thanks to Stakenet’s cross-chain capabilities users will be able to pay anyone that accepts Bitcoin, or any other Lightning Network compatible coin, seamlessly with their XSN, improving adoption on a massive scale as thousands of merchants already accept Bitcoin payments over Lightning Network.

Stakenet is building the safest, fastest, and cheapest interchain architecture for the blockchain economy by combining Lightning Network, different smart contract solutions, privacy and cold storage to trustlessly stake, exchange and pay.

Please check out the full White Paper which can be found here for more detailed information.