LuxCoin was built to help the Businesses, the governments and the users by allowing the end-user to select the level of security needed for each transaction. This is accomplished via their Phi1612 algorithm, Parallel Masternode Networks and LuxGate technologies. LuxCoin creates a decentralized global currency for all parties. (1)
LuxCoin claims they have additional improvements to offer to the following areas:
– Speed of transactions , because many crypto currencies have a slow transaction time.
– Incentives to support the network , because many crypto currencies use PoW protocol only. Because of this the needed network nodes are created only by people mining, making transactions or exchanges trading the currency
– Level of Security/Privacy , LUXcoin lets you choose the level of each you need for every transaction.
LuxCoin utilizes a GPU Phi1612 algorithm built from Skein (2), JH (3), Cubehash (4), Fugue (5), Streebog (6) and Echo. PHI1612 presents the ‘’most efficient’’ ASIC resistant GPU mining algorithm, with faster hash rates and reduction of power by 10%. (7)
LuxCoin is built with LUX transaction protocol for near-instant transactions.
There are 3 ways to be rewarded with LuxCoin, Proof-of-Work, Proof-of-Stake and Masternodes.
PoS 2.0 system
This system rewards a static 1 LUX to all individuals staking, regardless of the amount of coins held in the wallet. Those that hold more coins are rewarded more often. This allows for all individuals staking to be rewarded, without long waiting times due to large weight of others. The PoS reward is set to 50% of the block reward, which is 10 LUX per Block. For the first 100,000 blocks the reward is set for 100% of the block reward, so 2 LUX. The minimum stake age is 36 hours in an online unlocked wallet.
A masternode is a fulltime dedicated server connected to the blockchain network which adds an additional layer of stability and two additional levels of functionality to the network. The additional functions are Near-instant transactions and LuxSend, a form of coin-mixing that provides an additional layer of privacy.
Any computer mining LUX or staking LUX is considered a node. To run a masternode, a user is required to have 16,120 LUX in a wallet. Masternode owners earn Proof-of-Service rewards for supporting the network and providing additional services. Proof-of-Service payment comes from 40% of the proof of stake and are randomly paid to the masternode owners.
Within the wallet there is an additional Security and Privacy option called Stealth Address. A receiver can create a Stealth Address with the click of a button in the wallet. The wallet generates an untraceable link to the receiver’s wallet, therefore blocking the sender, or a third party from seeing the balance in the wallet.
Security and Privacy
One of the foundational concepts of LuxCoin is the ability for users to choose their own level of security and privacy, known as Threat Levels. There are 4 Threat Levels:
– Level 1
Regular blockchain transaction between trusted or known individuals where both of the wallet addresses are visible on the blockchain.
– Level 2
Regular blockchain transaction where the sending address is visible, but the receiving wallet is hidden via Stealth.
– Level 3
Regular blockchain transaction where the sending address is hidden via LuxSend and the receiving wallet is visible on the blockchain.
– Level 4
Regular blockchain transaction where both addresses are hidden via LuxSend and Stealth.
Parallel Masternode Network
This is a second network running on the LuxCoin blockchain. It uses the SAM Protocol and i2pd Technology to enhance its encryption. The masternodes on the parallel network will be reserved for verified insitutions like banks, businesses and governments. One of the key security features of the i2pd parallel network is that all ip addresses connected to the network will be encrypted and the network will auto change the ip address similar to a Virtual Private Network (VPN). The LuxGate allows the user to switch back and forth between networks as needed with the click of a button.
They claim that LuxCoin is suited to become a leading cryptocurrency as well as a Software as a Service (SaaS) company to serve institutions and governments. The whitepaper consists of easy language so everybody can understand.
There is no technical whitepaper that can proof how they achieve everything they claim with substantiated information.
There is no data whatsoever on the team. They claim that they will reveal themselves soon. On the other hand there is some activity on Github, (8) Discord (9) and Twitter. (10) On Reddit someone mentioned the reason why the team hasn’t revealed themselves yet, is because the team is spread across continents, this is not a reliable source though. (11) When joining their Discord there will be a bunch of supervisors. There is 1 front-end dev in the discordapp, Gorkem Ercan. (12) Gorkem Ercan is a Principal Software Engineer at Red Hat. Gorkem has experience with working with a diverse range of technologies ranging from enterprise applications to building actual mobile phones. (13) There is no mention or retweet of LuxCoin on his twitter page.
There are some other possible developers, linked by the community to a twitter account. These are: Ars0nic, (14) lupanar86, (15) ryuspb, (16) altminer_net, (17) tpruvot (18) and wallermadev. (19) The last one has almost 70k followers.
They are not officially announced developers, they’re in the Discord.
We found a roadmap that’s probably outdated now. On their website there is no roadmap showed. Their main goal for Q1 2018 is the activation of the stealth address. The other target is the parallel masternode trough LuxGate.
For Q2 2018 they were planning on a ‘’LUX SaaS commercial’’ and they want to begin their bank integration. And eventually in Q3 2018 they will finish the Luxcore Payment gateway. This is the latest roadmap we’ve seen. (20)