Incognito pDEX is a privacy-focused permissionless decentralized exchange founded by the company from Vietnam. This is a non-custodial platform that offers anonymous cryptocurrency transactions to its users. It guarantees confidentiality to them as the exchange keeps no records of their transactions. The members of the community don’t have to pass verification, KYC procedure and can remain secure preserving their identity. The customers of Incognito don’t face a third-party risk and have full control of their assets.
Incognito pDEX presents a community-driven and entirely self-funded open source network. The team has self-funded the project with 1 million USD. Being powered by completely anonymous Incognito, the company has established the service entirely on-chain. The company assures that it is the top privacy project by developers’ activity. At the time of writing, more than 1,700 validators are powering the Incognito network. Over 2.4 million lines of code have been written.
The founder of the platform Duy Huynh was inspired to create this project after he faced problems with stablecoins processing. He used stablecoins to pay the employees at his previous work and though the company saved time and money using this payment method, the salaries of his staff were publicly exposed on the Ethereum blockchain. So, he launched this project with the words that people are against the exposure of their bank statements to the world. The company assures that people should claim their right to privacy and Incognito can give it to them.
Incognito pDEX is designed to give users access to cryptocurrencies and privacy coins. Using cryptocurrencies, they can use these assets confidentially when they need it. Though similar attempts were made already by developers of such privacy-focused projects as Monero, Zcash, and Grin, Incognito applied a different approach to the problem.
Incognito pDEX technologies
This is a proof-of-stake sidechain that works via the implementation of sharding. The platform has chosen a practical approach when it designed and implemented its consensus mechanism relying on research conducted by Bitcoin, OmniLedger, Ethereum 2.0, Zillinqa, and their current engineering solutions.
Incognito cryptocurrency network delivers privacy to other cryptocurrency networks as well. The team implemented a decentralized group of trustless custodians for shielding of cryptocurrencies. The company has developed a secure shielding mechanism for the creation of a trustless bridge between Incognito and Ethereum in 2018. However, it helped the team to understand that it requires a more scalable solution for the connection of Incognito with any number of cryptocurrency networks and to provide security of bidirectional transfers of cryptocurrencies. Such an approach works well for the development of interoperability with cryptocurrency networks not supporting smart contracts such as BTC and Binance Chain.
The platform implements an energy-efficient Proof-of-Stake mechanism instead of Proof-of-Work. Any member of the community can become a validator candidate after staking the native coin of the platform PRV. At the time of writing, the amount of stake should be at least 1,750 PRV. The validators for each shard are assigned randomly by the beacon chain. The validator gets one vote, and the block becomes valid after collecting more than 2/3 valid signatures from the validator committee.
Apart from the PoS technology, the consensus mechanism used for the generation of new blocks also employs such technologies as pBFT (Practical Byzantine Fault Tolerance) and BLS-multisignature. The company applies sharding on privacy transactions to scale blockchain privacy.
The developers of the coin provide such features as inclusive and accessible privacy. In this way, Incognito becomes a privacy hub that is interoperable with other cryptocurrency networks utilizing shielding and unshielding processes enabling such cryptocurrencies as Bitcoin or Ethereum go incognito and then become public coins again. Shielding helps to get the privacy coin of the same value, so when 1 BTC turns into 1 pBTC, it’s always possible to redeem 1 BTC for it. With shielding of crypto coins, all transactions performed with them are untraceable and confidential. The combination of value and security makes the Incognito network popular. A privacy sidechain can be attached to any blockchain for the conduction of confidential asset transfer.
Users should submit a shielding request to get privacy coins. Bond smart contract and Merkle tree mechanisms are employed for the procedure. The reverse process is required for unshielding. When an unshielded transaction is initiated, the holder of digital assets decides what privacy coins to unshield and the amount required. After the transaction is verified by incognito validators, the privacy coins are burnt issuing a burn proof.
Incognito pDEX products
Network Explorer provides an in-depth view of all on-chain activity and is very convenient to use. Incognito app is used for private storage, sending, buying, and selling any cryptocurrency. At the time of writing, the amount that was processed confidentially has exceeded 6 million USD already. There are mobile apps for Android and iOS devices.
The company offers hardware as well. Incognito Node is a plug-and-play device powering the Incognito network. When private transactions are performed, the holders of the nodes can get rewards in the currency transacted. Incognito Node also mines a native coin PRV (privacy) for every block created. The hardware comes with in-house software, a mobile app that helps to manage the node anywhere.
The hardware distributed by the platform helps to expand the base of validators. The decentralized platform requires many users for hosting nodes as it makes the exchange truly decentralized. The affordability of a validator’s role contributes to decentralization. The owners of nodes get their privacy tokens preloaded into the hardware. The network plans to run 25,600 nodes on a full scale.
Incognito pDEX team
The founder of Incognito is Duy Huynh who launched the project in May 2018 and continues to work actively over it. Previously, he founded Autonomous Inc. (2016) that designs and manufactures Smart Office products sold to 300,000 customers globally. He is also the founder of Constant, which is an alternative financial services platform launched in 2019. It was developed to strip out the inefficiencies of the traditional banking system and provide assistance to people who want to use their money most efficiently. Duy Huynh gathered scientists from different industries, designers, economists, and engineers to form a good team. They pursue the goal to develop simple and elegant financial tools.