What is MaidSafeCoin? | Beginner’s Guide

What is MaidSafeCoin?

MaidSafeCoin serves as a token for Safecoin, a decentralized currency for a decentralized network. Safecoin will serve as the currency for the SAFE network, a network made up of the extra hard disk space, processing power, and data connectivity of its users. Think of it as the sharing economy but for your digital resources. MaidSafe is the company developing the SAFE network to save the world from the perils of centralized data storage. In the current paradigm, the best case is corporations use your data to better target you to their advertisers. The worst case is they leak your private data to the public, as Yahoo, Equifax, Target, and many other companies have already done.

Decentralized Networks

Standing on the shoulders of giants, the SAFE network hopes to combine the features of history’s famous decentralized networks. Inspired by Napster, Freenet, BitTorrent, and Bitcoin, MaidSafe aims to provide the following features:

• Fully encrypted data storage and file sharing
• Ability to use the network anonymously
• Censorship resistant communication
• Serverless data
• Scalable cryptocurrency free from transaction fees

MaidSafe might seem like a strange name at first. But it actually stands for Massive Array of Internet Disks, Secure Access for Everyone. In this guide, we’ll look at exactly how they hope to achieve the goal of the SAFE network and the role Safecoins will play.

How does the SAFE Network work?

The SAFE network ultimately wants to “create a secure, autonomous, data-centric, peer-to-peer network as an alternative to the current server-centric model.” There will be two main users of the network: clients and farmers. The client accesses the various features of the network, such as browsing, storing data, or transferring money. The farmers store and look after your data until it’s needed, at which point they might receive a reward for their efforts.

The SAFE network is an “encrypted layer that sits on top of the current internet, allowing for autonomous data storage and networking by replacing three” of the OSI networking layers.

Encrypted Data

Let’s take a look at moving data onto the SAFE network. When you upload a file to the network, such as a photo, it will be broken into pieces, hashed, and encrypted. The data is then randomly distributed across the network. Redundant copies of the data are created as well so that if someone storing your file turns off their computer, you will still have access to your data. And don’t worry, even with pieces of your data on other people’s computers, they won’t be able to read them.

The network automatically creates more copies of data in high demand, so more popular websites would be allocated more copies of their data and actually speed up, rather than slow down under the current system.

The hash function is able to map any piece of data to a 256-bit string of characters (meaning it can be represented by 256 0’s or 1’s in binary). The network will perform the XOR operation on the hash value to randomly create a unique distance to any other piece of data. Don’t think of this as a physical distance, but more the mathematical distance between two numbers. XOR is simply converting two hashes into binary and comparing the bits. If the bits match, the output is 0. If the bits don’t match, the output is 1. Here’s an example:

The XOR distance between data and the ability to randomly assign data to a certain location will be relevant to the Close Group Consensus, the innovation used by MaidSafe in place of a blockchain.

Vaults and Farmers

We’ve discussed how data is hashed, encrypted, and distributed across the network. But if Maidsafe is vehemently opposed to centralized storage, where exactly does the data go? This is where the vaults come in. The vault software connects you to the SAFE network and saves the distributed pieces of data on your computer. The people running the vault software are referred to as farmers.

To become a farmer, you let the SAFE network know you want to join and you’ll be sent a Proof of Resource request to see if you have enough bandwidth and CPU power. If you’re accepted, you’ll be assigned pieces of data close to each other in XOR space to store in your vault. Your extra storage space on your hard disk and computing power will be used to help run the network.

Earning Safecoins

When someone wants to access a piece of data on the SAFE network, such as a website or a file, the farmers will compete to find the relevant pieces of data and deliver them to the client. If you are the first farmer to deliver the goods, you will have a chance to earn some Safecoin. When you complete your proof of resource, you’ll generate the name of a random Safecoin on the network. If that coin is already owned by someone, you simply receive no reward. However, if you generate the name of a coin with no owner, it’s yours.

Since the Safecoins will be required to upload data to the SAFE network and use applications, Maidsafe hopes the coins will have value and thus incentivize miners to provide their extra resources to the network. The SAFE network will also allow for the free and instant exchange of the Safecoins as currency.

Becoming an Elder Vault

As a farmer, your vault starts at level 1 and looks after data in a random group. As you move from group to group, you’ll keep increasing in level, also known as node age. Proof of Resource also tests you by storing random pieces of data on your computer. If you cannot store them properly, your level will be reduced.

The network will start to gain trust in an older vault. Eventually, you’ll reach a certain level and start making decisions in the assigned groups.

The Vault turned into Elder Vault! On the SAFE network, data is stored in different groups and the Elder Vaults are able to vote on what the groups do with the data.

Close Group Consensus

Hashing can result in 2 to the power of 256 different addresses. These addresses are split into sections and managed by different groups of vaults. The most trusted vaults in the group, the Elders, are required for forming a consensus on important decisions such as splitting up groups, merging with other groups, or handling Safecoin transactions. Vaults always share data with the vaults nearby in XOR space so that the network can be rebuilt. For example, if the computers in one group were all shut off, the vaults near that group could reconstruct the lost information. In juxtaposition to Bitcoin, where the ledger is broadcasted to all nodes, vaults on the SAFE network have information about the vaults nearby, but less and less information the further away a vault is in XOR space. This is to avoid a vault having a huge influence on the network.

Security

If a bad actor wants to attack data on the SAFE network, they would first have to deal with their vault being assigned to a random space on the network. Then they have to wait to become an elder while moving from group to group, providing proof of resource along the way. Once the attacker becomes an elder, they would need to make sure they are in a group with other attackers due to the need for consensus. However, with the XOR operation assigning vaults to random groups of data, it once again proves hard to coordinate any attack.

Double Spending

Unlike Bitcoin, which broadcasts a public ledger of how much Bitcoin each wallet owns, Safecoins are actual files on the network. Each Safecoin file contains information on its current owner, but not the entire history of the coin. To change the owner of a file, you’ll need the consensus from a majority of vaults handling that Safecoin file.

Let’s say there is an attempt to send 1 Safecoin to 2 different owners at the same time. Perhaps ¾ of the vaults will receive one instruction and the remaining ¼ receive a different instruction. The vaults would only be able to reach a consensus on one of the proposed transactions.

History of MaidSafeCoin

MaidSafe, a Scotland based company, started developing the SAFE network in 2006. The presale on April 22nd, 2014 sold 10% of all MaidSafeCoins. You could buy 17,000 MaidSafeCoins for 1 BTC at that time. The company allowed 30 days to try and reach their 8 million dollar fundraising goal, but they reached the target in just 5 hours. When the SAFE network is fully operational, you will be able to exchange the MaidSafeCoins for Safecoins. 

MaidSafeCoin Team and Progress

15% of the Safecoins are reserved for the development team, led by founder David Irvine. The team is currently in stage Alpha 2 on their roadmap.

Currently, you can access a browser, create and publish websites, and download an encrypted mail tutorial.  However, you’ll have to wait until MaidSafe moves out of the alpha stages before you can start using Safecoins.

Software bundled with the Peruse browser allows connection to Vaults while hiding the IP address of the user. If you want to browse a safe site or download any file that’s publicly posted, it costs you nothing. In the future, it’s only if you want to store data on the network that it will cost you some Safecoin.

Coin Supply and Sustainability

The Safecoin files are 32 bit in size and thus there are 2 to the power of 32, or 4.3 billion possible coins. If you own MaidSafeCoins, eventually you will be able to send them to an unspendable address and in return receive Safecoins.

The rate at which Safecoins are rewarded to Farmers is dependent on the supply and demand of the network. If there are many farmers and too much storage available, the network will reward coins at a lower rate. If there is a storage shortage, more coins will be rewarded to incentivize more farming. This design aims to avoid huge centralized farms opening up and controlling the network. With Bitcoin, spending money on ASICs will increase your hashing power and increase your block rewards. With the SAFE network, adding more storage to the network would lead to diminishing returns.

When people spend Safecoins to upload their data, those Safecoins recirculate to farmers through Proof of Resource rewards.

In terms of sustainability, Maidsafe plans to preserve all data indefinitely due to decreasing costs of CPUs, bandwidth, and storage.

Trading History

As Maidsafe moves along the roadmap and releases new features for the SAFE network, we see an overall increase in the value of the MaidSafeCoin. When the Safecoins become operational on the SAFE network, it’s possible you might see an increased demand for the MaidSafeCoin.  

Where can you buy MaidSafeCoin?

You can find the majority of MaidSafeCoin volume on Hit BTC, Poloniex, and Bittrex.

Where can you store MaidSafeCoin?

There is currently no dedicated wallet at this time. Leaving MaidSafeCoins, or any coin, on an exchange is not recommended. However, you can use the web wallet Omniwallet. It’s also possible to use Omnicore, an offline wallet, but it requires you to download the entire Bitcoin blockchain. 

Conclusion

The SAFE network is still in its infancy. But it is clear to see the possible benefits if they are successful in their mission. There would no doubt be a demand for decentralized data storage, anonymous browsing, and personal info management. We would no longer have our private data stored on corporate machines or governments spying on all communications. The SAFE network gives the power of the internet back to the people, paying for it not with personal data, but with Safecoin. 

Additional Resources

Twitter

Reddit

Github

Telegram

The post What is MaidSafeCoin? | Beginner’s Guide appeared first on CoinCentral.