- 51% Hashrate Attack Immune
- Fully Encrypted Blockchain
- Technology Leader
- SSL/TLS P2P Network
- No Orphan Blocks
- Fully Auditable Supply
- Bulletproofs NIZK
Technical Analysis by Kong Trading - 12/12/2019
What we see here on the 1D is a broken downrange. DERO broke below the range support and has re-tested it locally in a bearish manner. This alone is nowhere a reasonable bullish set-up. Nevertheless, there are some signs and possibilities we will discuss in the following, turning the local bearish scenario into a possibly bullish one.
To read the full Technical Analysis from Kong Trading click here.
Dero is written from scratch (coded in Golang) unique blockchain, which is based on DAG and CryptoNote protocol with security & privacy focus.
Unlike some other projects, Dero’s privacy comes as default. Anonymity is a must for specific people, and Dero understands this and provides full anonymous balances with double-spend immunity and 51% attack resistance. No one can see your balances and transactions except you on DERO blockchain. A brief explanation of these features is provided in the “Technology” section.
Since one of their goals is to provide secure, fast & anonymous transactions with the capability of smart contracts execution, DERO already started testing smart contracts on DERO test net.
In a sense, we can say that Dero is a combination of Monero and Ethereum. Private-Anonymous Smart Contracts. The team saw the flaws and shortcomings of these projects and focused on solving these.
Dero is the first cryptocurrency to combine proof of work blockchain with a directed acyclic graph (DAG) block structure that offers anonymous transactions.
While traditional blockchains like that of Bitcoin and Ethereum process blocks (with a list of transactions within) one by one and need to reach consensus on each of them gradually, Dero processes transactions one by one, rejecting only those that represent duplicate or double-spend transactions.
In July 2018, Dero deployed its current network architecture, entitled Atlantis, which has a 12 second block time with a 2 minute block confirmation time. Due to its DAG structure, Dero’s network cannot undergo a soft-fork and is resistant to 51% hashrate attacks. Whenever the network finds two blocks at the same height, it will include both of them, solely excluding illicit transactions, like double-spends.
Dero has, by default, privacy features built into its network thanks to the CryptoNote protocol. The open-source protocol enables untraceable transactions with ring signatures, and as a result, it hinders blockchain analysis software in undertaking any forensics. At the same time, Dero’s supply remains fully auditable, according to the developer team. The network has an indefinite total supply, with an emission rate of 157,000 Dero per year after year 8 when the supply will reach 18.4 million.
To augment its privacy features, the developer team introduced an improved variant of Bulletproofs – the Rocket Bulletproofs. The zero-knowledge range proofs implemented by Dero allow for much smaller proof sizes, reducing the blockchain size and have a processing speed ten times higher than regular Bulletproofs.
Taking it a step further, Dero also aims to provide smart contracts on its native chain without the need for any extra layers or secondary blockchains. This is achieved by deploying the Dero Virtual Machine (DVM), which is a Turing complete 256-bit virtual machine runtime environment, similar to the Ethereum Virtual Machine.
DVM supports a new language DVM-BASIC, which is a contract-oriented, high-level language for implementing smart contracts. It is influenced by GW-BASIC, Visual Basic, and C.
The target customers for the DERO Foundation are developers and businesses who want to deploy decentralized applications (dApps) that will increase user privacy and security, but also reduce overhead costs of storing fungible assets. Specifically, they specialize in consulting and instruction of industry leaders and educational institutions on the development of privacy-focused systems, tools, and infrastructure. To capitalize on opportunities as they start and grow their business, the DERO Foundation will specifically target executives within companies in the blockchain, healthcare, and financial industries. This will allow Dero to take advantage of the foundation’s innovative technology platform to help developers and businesses bring real use cases to the market.
Dero Virtual Machine is capable of running both public and private smart contracts. Anyone can generally call public smart contracts. To attract businesses, the Dero Virtual Machine is being designed to support private smart contracts as well, where data, contract details, and information pertaining to parties involved stay private. At the same time, participants will be able to share information with authorities, e.g. for tax purposes, by sharing a view key at their discretion.
As the DVM is Turing complete, it provides a runtime environment for developers to create flexible contracts for any use case, from games to markets, voting systems, or registry databases.
Dero is inherently privacy-focused as it uses the CryptoNote protocol, providing privacy features for all network participants, and keeping coins fungible. On top of that, Dero utilizes Rocket Bulletproofs, which enables privacy features for its smart-contracts.
Dero is also the first blockchain to have complete SSL/TSL encryption at the peer-to-peer layer. This encrypts all of the network traffic, which reduces the attack surface and prevents ISPs or other third parties from tracking traffic on the network.
With the unique combination of a proof of work consensus algorithm and a DAG, Dero boasts a more scalable and secure network than other traditional proof-of-work based networks.
The DAG implementation guarantees no orphan blocks and is resilient to 51% attacks. As the main chain is being validated, any side blocks are also accounted for, including all transactions except for duplicate or double spends. Because Dero processes transactions and not blocks, its side blocks henceforth contribute to the chain’s security, and traditional 51% attacks are not possible.
With the Dero Virtual Machine, the network is capable of moving value across the globe and can represent ownership rights of assets without divulging sensitive information.
One of the use cases targeted by the Dero development team is voting systems, wherein the voting process is transparent while the identities of voters remain anonymous. A primitive architecture of a voting smart contract would contain a list of voters, whose wallets are certified by the organizing authority. With this, the voter will be able to cast their votes and verify it. Thanks to the privacy-centered features of the network, it will not be possible to match voters with their votes.
Another use case highlighted by Dero is asset management on its blockchain. Assets can be recorded, stored, and transacted on the network. This can be done without revealing the identity and details of the parties. However, it will still be possible to conduct audits and verify ownership rights. Traditional registry domains for land, property, or car registration can be implemented on the Dero blockchain.
The network’s currency is DERO, which is used to power all of the transactions and features of the network.
The Dero project unveiled its new blockchain technology in June 2018, codenamed “Atlantis.” It combines the Cryptonote protocol with directed acyclic graph and Bulletproofs. However, these are not just any Bulletproofs, but what has been coined Rocket Bulletproofs, leading to block times of only a few seconds. In a controlled environment, the Atlantis network can achieve block times as low as three seconds, processing a thousand transactions per second. A worldwide testnet was launched with a nine-second block time, which allowed for extensive tests of the new technology.
July 2018 saw the successful migration of the Dero network to the new Atlantis codebase with a twelve-second block time and two minute confirmation time. This is by far the fastest CryptoNote based blockchain ever deployed, with up to 75 transactions per second. A relatively longer twelve second block time was chosen so that people in locations with sub-optimal network connectivity could still participate in the network. The Dero team plans to reduce the block time further in the coming years, as network infrastructure improves around the world.
January 2019 DERO launched Stargate – Private Smart Contract testnet which is due to be live on mainnet net by the end of the year
The Roadmap can be found here: https://dero.io/
December 2017 with 3 full-time developers
2 Million Premine
June 27th, 2018 migration to Dero Atlantis network (Cryptonote protocol with directed acyclic graph and Bulletproofs)
Total 2 million coins premine:
1 million of 2 million coins locked for development and will unlock over 4 years.
1 million of 2 million unlocked for the community, foundation, marketing, exchanges & bounties.
You can use the wallet viewkeys on Dero Web Wallet and see the details.
Select “Recover View Only Wallet (128 hex char)” option.
Type in a random name
Copy and paste viewkey
Type in a random password
Click on “Recover Wallet”
Wait for wallet to sync (Blockchain Height)
Last Update 12/12/2019
Dero's social presence is relatively below average with over 1.5K members in the Telegram channel, The admins are responsive and there is an active discussion. Their 4K followers on Twitter have a good engagement rate and Dero's tweets get average 40-80 likes. Their official Discord has 2.8K members. Their Reddit presence is a weak with only 817 members. Dero's official ANN post on BitcoinTalk has over 220 pages of discussion and read 97K times.