Dero

Dero represents the pioneering effort to merge a proof-of-work blockchain with a Directed Acyclic Graph (DAG) structure, facilitating completely private transactions. The project aspires to substantially enhance the capabilities of current privacy-focused cryptocurrencies like Monero (XMR) and Z-Cash (ZEC) by integrating the strengths of both consensus frameworks.

Dero's architecture includes a main chain constructed from a DAG network of blocks, composed of main blocks and side blocks. The side blocks bolster the security of the proof-of-work mechanism, effectively safeguarding against traditional 51% attacks. Unlike conventional blockchains, Dero treats transactions as the fundamental unit of computation, instead of the block. This allows blocks within Dero to hold duplicate or double-spend transactions, which are then filtered and disregarded by the client protocol and network.

In simpler terms, Dero aims to fuse the security and decentralization inherent in proof-of-work systems with the scalability and speed benefits offered by DAG technology. The goal is to establish a blockchain platform that caters to both businesses and individuals globally, enabling secure, rapid, and private transactions alongside smart contract capabilities.

Dero made its debut in December 2017, launched by a trio of dedicated developers whose identities remain undisclosed. These developers claim to possess over ten years of cryptography expertise each, as well as extensive experience in blockchain development. Given the complexity and accomplishments of the project—particularly the creation of a unique consensus mechanism using Golang, known for its robustness against security issues—it is reasonable to infer that the team comprises highly skilled professionals in cryptography.

Dero was built from the ground up to accommodate millions of users, prioritizing advanced reliability, privacy, security, and user-friendliness. The team adopted a "build it and they will come" philosophy, emphasizing the development of functional technology before turning to promotion.

A standout feature is the use of the CryptoNote protocol, which obscures the identities of both the sender and the receiver in transactions, thus safeguarding the privacy of involved parties. Additionally, Dero is the inaugural blockchain to implement full SSL encryption in its peer-to-peer communications, hiding all network traffic from scrutiny by internet service providers.

Moreover, Dero sets itself apart as the first CryptoNote blockchain capable of processing 75 transactions per second on its core network, without relying on external scaling solutions like lightning networks. This figure is notably higher than Bitcoin’s approximately five transactions per second. Furthermore, its Bulletproofs are ten times faster than average, employing cryptographic techniques that minimize space requirements for zero-knowledge range proofs.

Dero could thus cater to privacy-centric use cases such as voting systems, escrow services, and address verification or certification. Given the team's achievements to date, including establishing a minimum viable product by August 2018, and with plans to launch smart contracts on the mainnet by Q3 2021, Dero positions itself as a leading contender among privacy coins in the cryptocurrency market.

The total supply of Dero is capped at 18.4 million coins. Upon launching the network, an initial pre-mine of two million DERO was conducted; however, this amount is not included in the circulating supply and is reserved for development and marketing purposes. Dero's issuance rate stands at 157,000 DERO per year, with a gradually adjusting block reward. The block time is set at 27 seconds, which is considerably faster than many other proof-of-work blockchains, with a confirmation time of 4.5 minutes.

Dero has developed a distinctive and robust security framework. Alongside its other features, Dero introduced a novel mining algorithm known as AstroBWT. This open-source proof-of-work consensus mechanism is based on the principle of one-CPU-one-vote, which reduces the performance edge held by specialized mining hardware. This helps prevent the formation of a miner monopoly similar to what Bitcoin faces, with ASICs dominating Bitcoin mining. As a result, mining rewards are more evenly distributed, with the network's CPU power of nodes facilitating consensus through majority decision.

By integrating the CryptoNote protocol with DAG technology, Dero is resilient against hash rate attacks and soft forks without experiencing downtime. It is also recognized as the fastest CryptoNote-based blockchain currently operational.

DERO can be purchased on exchanges such as KuCoin, TradeOgre, CoinEx, and ViteX. For those interested in learning more about cryptocurrencies and how to begin investing, our education portal, Alexandria, provides further resources and information.