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Preliminary Note:
I have to disclose that I am not unbiased when it comes to my view/my evaluation of the
DERO project and so the DERO coin - I am working as an Online Marketing expert together
with the DERO team to build sustainable awareness for the project. This said, I am holding
DERO as well.
1. Coin Details
Key Figures:
URL’s:
Website: https://dero.io
Web Wallet: https://derowallet.io
GitHub: https://github.com/deroproject/dero
Discord: https://discord.gg/H95TJDp
Bitcointalk Announcement: https://bitcointalk.org/index.php?topic=2525508.0
Twitter: https://twitter.com/deroproject
2. Project Overview
The DERO project was launched in December 2017 with a team of three full-time
developers. Each of the core devs have enormous experience in the fields of cryptography
and blockchain development. Over the next months the development of this new blockchain
technology never stopped for a single day as the team is still dedicated and working hard to
achieve the goals.
As the first cryptocurrency project which combines a PoW (Proof-of-Work) blockchain with a
DAG (Directed Acyclic Graph) block structure, DERO is setting their own goals very high. At
the end it will be possible to send wholly anonymous transactions through the network.
Transactions are processed within 12 seconds in average and the distributed ledger is
secured against majority hashrate attacks.
This said, DERO is more than just another privacy coin. Besides the fact it is written from
scratch in “Golang”, using newest technology like “Bulletproofs”, and much more, one key
component of DERO is the so called “DERO Virtual Machine”.
On this virtual machine the private smart contracts will be deployed; the important word
being “private” as it’s one of the problems of Ethereum e.g. that all transactions are not
anonymous; this excludes a lot of companies/use cases where privacy is really needed.
- Slow Transactions: DERO aims for creating and maintaining a privacy focused
cryptocurrency with transactions which are as fast as possible
- Non-private smart contracts: When smart contracts hit the tech scene it built up a
hype over the years; but still there are issues, e.g. when certain companies want to
use a smart contract network but not reveal every transaction on the blockchain.
DERO plans to solve this issue through private smart contracts on the DERO Virtual
Machine
- Escrow Services: Those services would have a big advantage to build their stuff on
top of the DERO blockchain as a trusted third party; any currency, any other asset,
everything could be safe on DERO blockchain
3. Technology
A directed acyclic graph (DAG) is more than just a new buzzword. It is a data structure with
topological ordering, this means the sequence can only go in one direction (earlier → later).
With this structure it is possible to solve problems in the area of data processing,
compression or simply to find the best navigational route for a data set:
Concept of a DAG:
1
DAG Structure Graphic, https://en.wikipedia.org/wiki/Directed_acyclic_graph
When it comes to DERO, it is practically a hybrid of PoW blockchain and a DAG. The
DERO-DAG is mineable, PoW based and fully linear with same level of security as a usual
blockchain; no orphans, the scalability limits are defined by resources (compute, network,
storage, etc.)
“Traditional Blockchains process blocks as single unit of computation (if a double-spend tx occurs
within the block, entire block is rejected). However DERO network accepts such blocks since DERO
blockchain considers transaction as a single unit of computation. DERO blocks may
contain duplicate or double-spend transactions which are filtered by client protocol and ignored by the
network. DERO DAG processes transactions atomically one transaction at a time.” 2
3.2. CryptoNote
A problem with e.g. Bitcoin is that transactions are recorded and the fact that everyone with
access to the Bitcoin blockchain data can trace back transactions to a certain wallet.
CryptoNote uses an open-source ledger too. But it is not possible to trace any transaction
back to a wallet where it came from/went to. Only thing one could see is the amount of
transferred funds but nothing else. Another feature is the protection against double
spending.
CryptoNote is in many eyes essential to create a true privacy coin.
The DERO project was the first one which released a complete re-write of the CryptoNote
protocol in “Golang”. Golang is an open source programming language which is pretty
simple to learn, reliable and very efficient. A lot of people compare it to a mix of C++ (when it
comes to performance and security benefits) and Python (speed) with a syntax that is easy
to learn.
With Golang you can easily create web/network server applications, for command line
scripting, robotic, IoT and even front-end development.
Golang has been around since 2009, it just started a few years ago, and continues to grow
bigger interest in the tech and development community:
2
http://dero.io/Whitepaper.pdf
3
3
Data from kwfinder.com
4
https://www.gov.uk/government/publications/email-security-standards/transport-layer-security-tls
SSL is the precursor of TLS, originally developed by Netscape. The first version of the
protocol was released 1995. TLS is established since 1999 and is based on a newer SSL
version, SSL 3.0. Technically, the differences are not that big at all. But big enough that TLS
1.0 and SSL 3.0 are not working together.
When it comes to DERO there is complete implemented SSL in the P2P layer and complete
TSL across the network, so all traffic is fully encrypted. This reduces a.) the probability of
attacks against the networks and b.) nobody can analyze the DERO blockchain as it is
possible with the Bitcoin blockchain for example.
Those bulletproofs are a space efficient form of zero-knowledge proof. Bulletproofs have the
great advantage that they reduce the needed memory for a transaction on the blockchain
80% and even more, with keeping the same level of privacy. Using bulletproofs, it is
impossible for third-parties to know the amount of funds sent in a transaction through the
specific network.
When it comes to DERO there were at first bare bone bulletproofs implemented in early
2018. In the second step other implementations of bulletproofs around the decentralized
world were studied to improve their own solution; for example the Double-Base and
Double-Scalar multiplicator.
Historical:
Upcoming in Q4 2018 → DERO Smart Contracts first on test- then on mainnet; Partnerships,
Marketing and further enhancements
Everything for the past roadmap points were delivered on point and without any delays.
Personally I can say that I trust “Captain” in the way that I believe he and his colleagues
really having the skills to reach all their high ambitious goals. He is also responsive most
times when it comes to (technical) questions from the community.
Overall, the community is very dedicated, this is shown by the fact that there is the DCAB,
the Dero Community Advisory Board.
DCAB members have been a part of the Dero community for at least 6 months and
collectively have:
At first we will look at the current situation when it comes to the different social media
channels which are already used. For that I screened and observed every channel for the
last weeks. We will not just look at basic key-figures like the membercount.
It is more about the communication within the community; are there active
moderators/admins, is the team giving updates on a regular base, how are those presented,
how active are the community members, are questions from them answered, etc. Based on
this I can a give specific advice for improvements for each social media channel.
DERO Discord
Discord Key-Figures
Member Count: ~700
Avg Online: ~200
User Activity: High
Admin/Mod Activity: High
Channel Structure: Topic SubChannels, International Channels; relative slim
5
https://forum.dero.io/t/dero-community-advisory-board-dcab/757
Discord Details
The DERO Discord channel is the biggest/most active one we have. We not just have the
highest member count here but the community members are very dedicated to DERO and
interested in the fundamentals; other than in groups from other projects, where there is a lot
more price-talk from speculators/traders.
Thanks to Joshy the communication DERO ⇔ Community is very good. Nobody has to wait
for a long time to get an answer from him or even Captain himself. This should stay at this
level for the future to build up trust.
DERO Twitter
Twitter Key-Figures
Follower Count: 2678
Following Count: 68
Tweets: 129
Twitter Details
Twitter is in the crypto scene
one of the most important
channels when it comes to a.)
attract awareness for new
cryptocurrency/blockchain
related projects and products
and b.) to interact with the own
community. Through Twitter
you can use your reach for spreading the word; discussions with the crypto twitter and
DERO community, sharing of news, development updates, organisation of prize games etc.
● Very active in terms of you will find everything new related to DERO pretty quick
● Okish follower count with 2,700 followers, started in March this year
● Good interaction with users through Joshy
DERO Telegram
Telegram Key-Figures
Member Count: 779
Avg Online: n.a.
User Activity: High, but depending on market situation
Admin/Mod Activity: High
Telegram Details
The Telegram DERO channel is with 779 users as big as the Discord channel. The activity
level is quite the same, from both, community and DERO official side.
Telegram Crypto groups are kind of a first gathering place for (low cap) crypto traders and
speculators. Discussions are most times about the price and in most times there will be
established a “When Moon, when Lambo”-culture. For serious potential investors this can be
deterrent, but that is the same with mostly all other cryptocurrency projects as well.
DERO Bitcointalk
Bitcointalk Key-Figures:
Started in: December 2017
Thread Pages Count: 214
Dev/Mod Activity: Medium; on request
Bitcointalk Details/Improvements:
The Bitcointalk Thread of DERO has the potential to attract more investors when DERO
project is taking even more care of it. There were questions answered by Captain, this is
very, very good as it creates more trust in the project. But moreover there should be a more
regular activity. Even small updates would be a good move; as well as posting future
infographics, videos there (e.g. I did not find the latest YouTube Video.
For a lot of people who are doing their fundamental research Bitcointalk.org is one of the first
places where they look for information; Page 1, the announcement itself should always have
the updated data in it. If there is old data, most people will lose interest pretty quick.
7. Conclusion
I am into the DERO project long before they reached out to me to help them with marketing
purposes. They have everything a successful cryptocurrency project needs: a dedicated and
hard working team, ambitious goals and a very supportive community. It makes fun to watch
the steady progress and to think about the project reach when the long-term goals like the
DERO virtual machine are finally live.