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How X-Cash Is Developing Both Privacy and Transparency for Web 3.0

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The X-Cash protocol appears well-positioned to continue developing the decentralized Web 3.0 while promoting both privacy and transparency.

Every day, users of the internet lose more and more of their privacy as large technology companies encroach further and further on users’ right to freedom. However, blockchain technology and the development of Web 3.0 will likely change this, forever.

The X-Cash protocol is a privacy-centric and open-source technology that aims to power the next stage of Web 3.0 – also known as the decentralized Web. Built using privacy-focused blockchain technology from Monero, the protocol acts as a bridge between users looking to interact with Web 3.0 in a private fashion, while still also providing the option for transparency.

Technology to Power Web 3.0 Privacy

X-Cash was created in 2018. However, unlike many of its peers from the same time period, it did not undergo an initial coin offering, or ICO, to raise funds. Instead, it has been independently developed by a growing community of contributors over the past three years.

The protocol’s foremost mission is to build a technological framework for privacy when interacting with Web 3.0, while still allowing users to take advantage of the transparency that distributed public ledgers offer. As such, X-Cash offers hybrid transactions that allow for the same transactional transparency as Bitcoin but with the obfuscation capabilities of Monero, a leading privacy coin. This technology offers a privacy-switch of sorts for use when staking XCASH with a delegate, a Byzantine Fault Tolerant algorithm, and verifiable random functions when selecting a block producer.

The X-Cash protocol will also support development on the second layer, which will support greater scalability and increase the number of use cases while staying up-to-date with the world of non-fungible tokens (NFTs) and decentralized finance (DeFi).

Reinventing Delegated Proof of Stake for Privacy

X-Cash is, like many blockchain-based networks, public – meaning anyone may access it and see the distributed public ledger. However, users have the option to obfuscate their transaction data in order to remain private.

The network reaches consensus through a delegated proof of stake model, often referred to as DPoS. However, unlike other DPoS blockchains, X-Cash’s unique consensus model was designed on top of the famous privacy coin Monero’s technology – creating a novel type of DPoS called delegated proof of private stake, or DPoPS.

Being a form of delegated proof-of-stake, X-Cash’s network is secured by a selection of democratically elected delegates – 50, to be exact. Anyone may operate a node and attempt to garner enough votes to become a delegator, and any existing delegator may be removed from the top 50 at any time. Because delegators receive block rewards, they are incentivized to act honestly and in the best interest of the network. Delegates will also have the ability to host sidechains and execute smart-contracts – potentially increasing their profitability while securing the X-Cash protocol.

Despite being run by 50 delegates, anyone may stake their XCASH to a delegate, thereby endorsing said delegate. The minimum stake is two million XCASH – worth approximately $500, as of the time of this writing – and stakeholders receive a fraction of the block reward from the delegate they are staking with.

At the same time, where a user decides to stake their XCASH may remain entirely private. Also, staking one’s XCASH with a delegate does not give said delegate control over the user’s XCASH. Rather, users remain in control of their XCASH at all times, and the coins never leave the user’s wallet.

Though some delegated proof of stake networks have been accused of collusion in the past, the X-Cash network uses a DBFT communication system that guarantees a 67% consensus alongside a verifiable and randomized selection of block producers. This eliminates targeted attacks from or on delegates, and keeps the network highly secure.

Fair and Transparent Distribution

A project is nothing without a transparent allocation of its coins or tokens. Because the X-Cash protocol is focused on both privacy and transparency, the entire XCASH allocation may be verified at any time using reserve proofs – meaning that private transactions do not prevent the ability to track the project’s public spending.

The XCASH breakdown is as follows:

  • 60% of the total supply is allocated to minting for block rewards.
  • 14.2% was already distributed through a two-year-long airdrop program that started in 2018.
  • 10% of the total supply is locked by the company and may only be used for X-Cash development.
  • 5% of the total supply was allocated to private investors.
  • 5% of the total supply is locked away as rewards for the development team, and has yet to be unlocked due to the project not yet reaching its market-capitalization goals.
  • The final 5.8% of the total supply is used to fund contributions to the project and is managed by the X-Cash Foundation.

This clear and transparent allocation means that there is no change of getting “rug pulled,” as is the case with so many projects today.

Developing for the Future

Despite being developed without ICO funding since 2018, the X-Cash protocol has many exciting developments in the pipeline.

In the immediate future, the X-Cash protocol plans to offer sidechain payments not dissimilar to Bitcoin’s Lightning Network. These sidechain payments will enable near-instant payment processing, while other sidechains are being developed that will serve a dynamic variety of users’ needs. Complete programs that run entirely on the decentralized web will soon also be able to run smart contracts on the X-Cash blockchain. Additionally, non-fungible tokens, or NFTs, will be hosted on unique sidechains on the X-Cash network – enabling the creation of digital collections powered by X-Cash.

Meanwhile, wrapped XCASH – an Ethereum bridge for X-Cash – is already being developed, and will enable the integration of X-Cash into the vast and incredibly successful Ethereum ecosystem. The platform will be highly secured within the X-Bank (a secured XCASH online custody solution developed by the X-Cash Foundation) and support swaps between XCASH and wXCASH on the Ethereum blockchain. This will replicate mainnet staking components and incentivize liquidity.

These in-the-works developments follow the completion of Flexprivacy – the aforementioned ability to enable both public and private transactions on the same network, and on a per-transaction basis. Only public transactions are viewable on the X-Cash block explorer, and appear similar to how Bitcoin transactions appear on a Bitcoin block explorer.

As it stands, the X-Cash protocol appears well-positioned to continue developing the decentralized Web 3.0, while promoting both privacy and transparency.

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Having obtained a diploma in Intercultural Communication, Julia continued her studies taking a Master’s degree in Economics and Management. Becoming captured by innovative technologies, Julia turned passionate about exploring emerging techs believing in their ability to transform all spheres of our life.



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Not sure if the bulls are back? Here’s how the golden cross spots trend reversals

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The most important aspect in trading is to correctly identify the long-term trend. Once this is done, the rest of the steps are not very difficult because all a trader needs to do is look for buying opportunities in an uptrend and selling opportunities in a downtrend. 

In reality, many traders complicate the process by waiting for lower levels to buy in a bull market and missing a large portion of the rally. Then, when the trend reverses and the price starts falling, the same traders start buying, which usually results in losses.

To avoid this pitfall, traders can incorporate the use of key moving average convergence patterns in order to have a better gauge of market momentum and the direction of the trend. In last week’s article, we reviewed the Death Cross, and this week we will look at the golden cross pattern. This setup can help keep traders at bay in a downtrend and give them a green signal to start buying when the trend turns bullish.

Let’s investigate this pattern and learn how to use it when trading.

What is a golden cross and how does it form?

A golden cross is a setup that signals a possible change in a bearish downtrend. It is formed when a faster period moving average, usually the 50-day simple moving average, crosses above the longer-term moving average, generally the 200-day SMA.

BTC/USD daily chart. Source: TradingView

In a downtrend, both the 50-day SMA and the 200-day SMA are sloping down. However, when the price reaches an attractive valuation, long-term investors start accumulating, which arrests the pace of the decline. As more investors start buying, the trend starts to turn up.

A sustained up-move results in the 50-day SMA changing its direction from down to up. However, the 200-day SMA is slower to respond, hence when it is either falling or has flattened out, the 50-day SMA rises above it, forming the golden cross.

When a golden cross forms, it is a sign that the downtrend has ended and a new uptrend could have begun.

However, like every setup, the golden cross is not foolproof. It gives false signals several times but with a few filters, traders may reduce the whipsaws.

Related: Here’s 5 ways investors can use the MACD indicator to make better trades

A profitable golden cross

BTC/USD daily chart. Source: TradingView

Bitcoin (BTC) bottomed out at $3,858 on March 13, 2020, and the most recent golden cross formed on May 21, 2020, when the price closed at $9,061.96. That means, the BTC/USD pair had already moved 134% from the lows by the time the golden cross confirmed a change in trend.

Inexperienced traders may have felt the price has run up too fast and would have waited for a deep correction to happen before buying. However, when a trend changes, it rarely gives an opportunity to buy at much lower levels as was the case here.

The rally never looked back and it hit an all-time high at $64,899 on April 14, 2021, a massive 616% gain from the level where the golden cross formed. This shows that the trader who just bought and held after the formation of the golden cross would have earned huge returns.

However, every golden cross does not provide such outsized returns and sometimes traders fall victim to whipsaws.

A failed golden cross

Bitcoin dropped from a local high at $13,868.44 on June 26, 2019, to a local low at $6,430 on Dec. 18, 2019. The golden cross formed on Feb. 18, 2020, when the pair closed at $10,188.04.

BTC/USD daily chart. Source: TradingView

However, traders who bought after the golden cross formed may have suffered quick losses as the pair plummeted to $3,858 just a few days later. This shows how traders may sometimes get caught on the wrong foot by just buying after the golden cross.

Related: Unsure about buying the dip? This key trading indicator makes it easier

Filters can when the golden cross throws a false signal

Traders could avoid buying if the golden cross forms when the 200-day SMA is still sloping down. They can wait for the 200-day SMA to flatten out or turn up before buying as that may reduce the whipsaws.

EOS/USDT daily chart. Source: TradingView

As an example, EOS formed a golden cross pattern on Feb. 8, 2020 when the price was at $4.76. This price cleared the filter as the 200-day SMA had flattened out. However, had traders taken the trade, it would have turned into a loss as the EOS/USDT pair topped out at $5.49 on Feb. 17, 2020, and then plunged sharply to $1.35 on March 13, 2020.

The second golden cross on Aug. 22, 2020, did not clear the filter as the 200-day SMA was sloping down when the pattern formed. This would have kept the bulls from getting sucked into this trade.

The third golden cross on Dec. 12, 2020, cleared the filter but it would have hit the stop-loss as it breached the strong support at $2.20 on Dec. 23, 2020. Finally, the fourth golden cross that formed on Feb. 08, 2021, turned out to be profitable.

The above example shows that when the price is stuck in a range, the golden cross does not act as the ideal indicator. Therefore, traders may add another filter to buy only after the price breaks out of the range. This may reduce the whipsaws further and help traders buy only in uptrends.

When a cryptocurrency is in a downtrend, traders may wait for the golden cross to occur before starting their purchases. This could keep traders out of trouble in a falling market.

After the golden cross sustains and a new uptrend is confirmed, traders may look for buying opportunities. Among the many possibilities, one that was highlighted in an earlier article to buy on dips to the 20-day EMA or the 50-day SMA could come in handy.

Key takeaways

A golden cross can confirm that a downtrend has ended and a new uptrend could have begun. Until a golden cross forms, long-term investors may avoid cherry-picking as that may result in losses in a downtrend.

However, like every other pattern, the golden cross is not perfect. It may result in whipsaws if the coin enters a consolidation during the bottoming formation. Therefore, traders must take precautions to avoid being sucked into bull traps.

Once the uptrend is established after the golden cross, traders may look for buying opportunities and stay with the trend till a reversal is signaled.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.