Beldex is a privacy cryptocurrency that was introduced in 2018 with the goal of creating the first privacy-based crypto ecosystem.
Beldex was created with the requirement for anonymity and untraceability in the cryptocurrency realm. On December 10, Beldex will incorporate Bucephalus Hard Fork.
Validating blocks in the Beldex PoS chain is done by masternodes. The change in PoS consensus will increase block rewards, decrease block time, and speed up transactions per second (TPS). Beldex masternodes are well-known for staking and collecting passive income in the form of BDX block rewards.
Blockchain transparency
Blockchains are digital ledgers and thus they are transparent. They hold the copy of transactions made from one peer to another. Blockchain will store the entire copy of transactions that are made through the network.
Blockchain improves the trustability, security, and transparency of transactions. However, transparency leads to traceability since companies like Chainalysis can perform temporal blockchain analysis to trace and detect patterns in transactions which provides information about the real-world identities of the transactors.
As blockchains increase in size, they take up more space on the hard drive, and with adoption leading to congestion, it becomes redundant. Massive storage is required, and the larger the blockchain, the more energy is needed for the nodes to process transactions, thereby affecting its scalability.
PoW
Several blockchain networks utilize Proof of Work, although it hasn’t been very efficient. As the network expands, more miners join the mining process, and the mining or validating a block becomes difficult accordingly. As a result, miners will compete inside the network with other miners to validate blocks before others. Furthermore, the hardware needs and power consumption of PoW networks are so large that they have become a source of concern for the environment.
So, how to overcome all these problems? We need a perfect system that can scale while retaining security and decentralization.
Beldex: addressing traceability and scalability
By using the Cryptonote protocol as well as shifting from PoW to PoS consensus, Beldex addresses traceability, and scalability.
How Beldex prevents traceability
Beldex is a privacy cryptocurrency developing the first private dApp ecosystem Beldex transactions enhance the privacy of users by limiting transparency while maintaining security, using the Cryptonote protocol. Transactions are private, mask the sender and receiver identity, and the transacted amount. Special nodes called masternodes verify transactions by equating the mixed inputs to the total outputs.
Ring signatures
It is used to conceal the sender by combining the sender’s input with the inputs of several other inputs. As a result, the sender’s identity is obscured and almost impossible to deanonymize.
RingCT
It allows the inputs and outputs of a ring transaction to be verified without the information about the actual amount. As a result, the amount sent by the sender is unintelligible and well hidden.
Stealth addresses
It safeguards the receiver’s identity. The stealth address is an incorporated address that can be shared with the receiver. Since the stealth address is a one-time address, it cannot be used in temporal and blockchain analysis. Therefore, the sender’s anonymity is protected. Any funds sent to the stealth address will reflect at the primary address.
Scaling with Adoption
Beldex chain currently works on the POW consensus, where miners build the blocks and masternodes validate them. The current POW block rewards are 2 BDX, which are shared by both miners and masternodes. Though Beldex uses the Cryptonight heavy hashing algorithm that makes it difficult for ASIC and GPU miners to monopolize the network, POW introduces other complexities in terms of scalability. The network size would increase with adoption, and so transactions would take longer to be confirmed on-chain. To solve this,
Bucephalus hard fork
Beldex will transition from Proof-of-Work to Proof-of-Stake on December 10, 2021. It will be a significant event in which the POW chain will no longer be functional, thus removing the need for miners. The network will be secured by Masternodes, which will create and validate blocks.
At the height of 742421, the PoS consensus mechanism will become operational. Proof of Stake scales the Beldex chain by reducing the transaction size, reducing block generation time, and thereby increasing TPS. The transition also aids in enhancing blockchain security through decentralization. The barrier to network participation is significantly reduced as anyone with a minimum stake in the network can become validator.
- Block time is reduced from 120 seconds to 30 seconds, thus the new chain creates blocks 4X faster.
- The block rewards will increase to 10 BDX from 2 BDX.
- The masternode operators will receive 6.25 BDX or 62.5% of the new block rewards, with the remaining 37.5% allocated to governance. Thus, masternode passive rewards will increase by 212.5%
- Flash second layer instant transactions to be rolled out.
Building Privacy dApps
Beldex is building the first privacy-based crypto ecosystem with DApps such as:
BChat:
BChat is a decentralized, encrypted, private messenger that sends messages securely through the Beldex network. Messages sent using BChat are routed over via Masternodes. BChat doesn’t collect or store metadata. Because masternodes serve as storage servers in BChat, a data breach is virtually impossible. Your private communications will strictly remain private.
BelNet:
The Beldex blockchain powers BelNet, a decentralized peer-to-peer VPN service. It is a blockchain-based VPN that is both secure and resistant to censorship. BelNet app will use Masternodes to route traffic and anonymize your browsing activity.
Beldex browser:
The Beldex private web browser is a decentralized application built on the Beldex network. It is an ad-free browser that doesn’t track or store information about the websites you visit.
Masternode staking: earn passive income by Staking BDX
Beldex Masternodes are well-known for staking and collecting passive revenue in the form of BDX rewards, while also functioning as a storage server in BChat and a router in BelNet.
To become a Beldex masternode validator, you can simply set up a masternode using this guide. The minimum required collateral is 10000 BDX.
Users can also stake through masternode pools and remotely host your masternodes. Essentially, this makes it simpler to stake BDX through shared staking, where you can stake a lesser amount and receive rewards proportional to your stake. Masternode pools allow you to stake without having to meet the minimum staking criteria. Users can also stake through masternode pools and remotely host your masternodes. Essentially, this makes it simpler to stake BDX through shared staking, where you can stake a lesser amount and receive rewards proportional to your stake. Masternode pools allow you to stake without having to meet the minimum staking criteria.
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