With the rise of privacy-centric cryptocurrencies such as DASH and monero, another cryptocurrency to keep an eye is ShadowCash (SDC).
The project aims to not only be the best anonymous payment mechanism, but also to create an all-in-one software platform for a completely private, decentralized, and free economy.
Today, as the 1 millionth block of the blockchain was forged, the Shadowcash Project announced Umbra, a privacy platform incorporating their wallet for SDC and Shadowchat, the decentralized, encrypted messaging network powered by SDC.
While both DASH and monero are based on Proof of Work, Shadowcash is secured by the Proof of Stake protocol. This brings two major advantages; firstly, relative to Proof of Work cryptocurrencies, Shadowcash may not be as susceptible to selling pressure, as users can stake their coins and earn interest, up to 2 percent annually. This should incentivize users to hold, instead of sell, their SDC.
Secondly, the security of the network is improved. For example, the recent attack on Krypton highlights the risk of a Proof of Work protocol if the network’s hashrate is relatively low. Under Proof of Stake, the cost of mounting an attack on the network is much higher; the potential attacker needs to control a near majority of Shadowcash and even then would not mount an attack as there would be nothing to gain.
Umbra will also be compatible with Tor and I2P soon, to hide user’s presence on the Shadow network. Also, with the Umbra client, the Shadow Project has introduced another new feature whereby users hold both a private and public balance. The public balance is used to stake and offer the same anonymity as Bitcoin. However, the private balance will be protected by ‘ShadowSend’, concealing the user’s identity.
Furthermore, the new version offers the ‘most advanced cryptocurrency GUI’, whereby complex cryptographic tools are seamlessly integrated with a user-friendly interface.
The Shadow Project is currently working on a decentralized marketplace wherein which people can sell and buy whatever they want, with no outside entities able to snoop on users or shut the market down. This part of Umbra is around 80 percent completed and will have a beta release soon.
A huge increase in buying interest has beset Shadowcash recently with the largest ever volume on the Poloniex exchange last week. The value of SDC to bitcoin on the weekly timeframe is shown below and displays the explosion in volume that saw SDC-BTC surge as high as 0.003750.
This week has seen higher highs and higher lows so far compared to last week, indicating that the immediate trend is upward. Also, notice that the market has broken above the thick Ichimoku cloud, which was previously providing resistance.
Therefore, given that the market manages to close above the Ichimoku cloud this week, that is above 0.0030, then this will signal a long-term bullish phase has just started for Shadowcash. Given SDC-BTC closes above 0.0030 at the end of this week, we should see a test of the all-time high at 0.0060. Bullish momentum is indicated by the conversion (blue) line which is above the base (red) line, as well as the Awesome Oscillator which is trending higher.
The daily price action for SDC-BTC is displayed below and the key thing to notice is the rising volume over the past three days. This suggests that the price appreciation will continue over the course of this week. A fractal resistance has formed at 0.003750 and a daily close above this level will give further bullish confirmation.
The conversion line and Ichimoku cloud are both starting to trend higher suggesting that bullish momentum is picking up, with the market getting ready to establish new highs. However, while the reward is large for buying SDC-BTC, so is the risk. With an approximate 20 percent gain so far today, those looking to get into SDC should be prepared for wild swings in volatility.
Therefore, it may be best to wait until Sunday’s close at the end of the week for more clues on the future path of SDC-BTC, as a close above 0.03000 will confirm a long-term bullish outlook. Nevertheless, given the soon to be complete integration of private messaging and a decentralized marketplace into Umbra, Shadowcash’s fundamentals are certainly looking strong.