What is Nav Coin?
Nav Coin is a cryptocurrency being developed since 2014. Nav Coin focuses on financial privacy and fast global transactions. There are two different kind of possible transactions with Nav Coin, a “normal transaction” and an anonymous transaction.
A cryptocurrency is a digital or virtual currency that uses cryptography for security. A cryptocurrency is difficult to counterfeit because of this security feature. A defining feature of a cryptocurrency, and arguably its most endearing allure, is its organic nature; it is not issued by any central authority, rendering it theoretically immune to government interference or manipulation. Investopedia
Nav Coin has a 30 second block time. This means that a Nav Coin block on the Nav Coin Blockchain is mined every 30 seconds. A Blockchain works fairly simple. Transactions are made and the transaction data is put into a block. A block is just a collection of transactions and data. Miners verify a block and after the block gets added to the chain.
Normal Nav Coin transactions are very similar to Bitcoin transactions. This means the transactions are recorded on the Nav Coin Blockchain and verified by miners. Those transactions have a very low fee and fast transaction time. Within 30 seconds the transactions are confirmed but generally the coins will show up faster in the Receiver’s wallet.
Nav Coin users have the option to make anonymous transactions. The connection between the Sender and Receiver is broken by using a secondary Blockchain, the Subchain. By using a secondary Blockchain Nav stays transparent and has all the benefits of Blockchain technology. Nav Coin is decentralized, meaning there is no central point of operations controlling everything and being a weak point to take Nav offline.
The Nav Coin anonymous transaction system is called “Navtech”. Navtech makes use of two Blockchains to disconnect Sender and Receiver. The connection between the Sender and Receiver is broken by using the secondary Blockchain, the Subchain. It is a little more complicated than that but with a short explanation, together with the Infographic below, it should be possible to understand the basics. First it goes to know that anonymous transactions are handled by Navtech Server cluster consisting of incoming and outgoing servers. Those server clusters can be setup by everyone and the software is open source.
Only the Navtech clusters selected by the Sender are used for anonymous transactions. A Sender can also decide to not make use of any third party server cluster and setup an own server cluster. This will make anonymous transactions cheaper, because no transaction fees for using the Navtech server cluster have to be paid. Another benefit is being in total control of the server cluster and not depending on any other server operator.
So, the anonymous transaction… Note that everything is automated after the Sender confirms to send an anonymous transaction. Everything beyond this point is done automated and outside of view from the Sender and Receiver.
The Sender requests an anonymous transaction. An incoming server from the added Navtech server clusters is randomly selected and contacted. The incoming server will verify if the transaction can be processed (transaction size, maximum number of transactions that can be handled by the server cluster, etc.). The incoming server selects a random outgoing server in the Navtech server cluster. See the image below. First randomly a pre-selected Navtech server cluster is selected. After that a random incoming server from the server cluster is selected and finally an outgoing server is randomly selected.
The Nav Coin is send from the Sender to the incoming server. The incoming server puts the Nav Coin in a temporarily holding wallet. The incoming server collects the data of the transaction, Receiver’s address and the number of Nav Coin meant for the Receiver. So now the data and Nav Coin have been separated by the incoming server. The incoming and outgoing server communicate over the secondary Blockchain, the Subchain. To send the data from the incoming server to the outgoing server, the data is connected to SUB. SUB is a coin that travels over the Subchain. The incoming server sends the data and SUB over the Subchain to the outgoing server. The outgoing server now knows who to pay and how much to pay.
The outgoing server is loaded with Nav Coin in a pool, the Navpool. The outgoing server pays Receivers out of the Navpool. So, with the data and Nav Coin the outgoing server is able to make the payment. The Nav Coin is send to the Receiver. The payment is not done in one time. Imagine the Sender sending 100 Nav Coin and the Receiver receiving 100 Nav Coin 2 minutes later, this will make the system vulnerable to meta-analysis. For this reason the Nav Coin is send to the Receiver in a random amount of transactions of arbitrary size.
Now the Nav Coin from the Sender is still in the holding wallet of the incoming server. The Navpool of the outgoing server is in the minus because of sending the Nav Coin to the Receiver out of the Navpool.
The transactions happen in cycles of 2 minutes. Every 2 minutes a Navtech Server Cluster accepts transactions and processes them. The Nav Coin from the holding wallet has to go to the Navpool to refill it. This happens in the following transaction cycles. So the Nav Coin send by the Sender is moved from the holding wallet to the Navpool.
Frequently asked questions
Navtech is the name of the anonymous transaction processing service of Nav Coin. It makes use of double Blockchain technology to disconnect sender and receiver.
Some might suggest anonymous transactions are only for those who are involved with bad things. I, and many with me, disagree. Financial privacy is a core right. What might be good today can become illegal in the future. Did you buy sugar? Perhaps in the future insurance companies will connect this to negative effects and raise your monthly payments. Even small things like this are a reason for financial privacy. Financial privacy is even more important for those living in oppressed countries where freedom of speech is limited. Think about the journalists in those countries, they have to fear for their jobs and perhaps even their life just because they write about certain things.
Sending an anonymous transaction is easy. Inside your Nav Coin wallet you just check the box for anonymous sending.
Your Nav Coin is send to a randomly selected incoming server. This server takes the Nav Coin and puts them for the time being into a holding wallet. The data, receiver and amount, is split from the Nav Coin. The Nav Coin transaction is recorded on the Nav Coin Blockchain, just like any other transaction.
The data, containing receiver address and amount information, is send over the Subchain. The data is encrypted and connected to a random amount of Sub Coin, SUB. This SUB with the data is send to a randomly selected outgoing server. The outgoing server is loaded with a pool of Nav Coin, the Navpool. The outgoing server is working in a trusted cluster with the incoming server and uses the data to send the correct amount of Nav Coin from the Navpool to the receiver.
So at the end of the transaction cycles, the Navpool is holding less Nav Coin and the holding wallet on the incoming server is holding the Nav Coin sent by the sender. In the next cycle this difference is settled. The holding wallet sends the Nav Coin to the Navpool.
No. The amount of transactions is limited to the server settings. The Navpool limits the total amount of Nav Coin that can be handled in one transaction cycles. The maximum transaction size is set by the server owner.
By processing Nav Coin anonymous transaction with a server cluster, the owner generates income from transaction fees. The amount depends on the number of transactions and the fee. Currently most servers have a transaction fee of 0.5%. In the future this could change when volume, price or competition increases/decreases.
The Nav Coin Team, Prole in particular, is developing a service called Navtech Polymorph. Navtech Polymorph is part of the idea of “Blockchain as a service”, providing financial privacy for everyone. In a partnership with www.Changelly.com, Navtech Polymorph will enable everyone to send anonymous transactions with all cryptocurrencies supported by Changelly. For example:
“George wants to send 10 Bitcoin to Harry anonymously. He uses Changelly with the Navtech Polymorph service for the transaction. George puts in 10 Bitcoin, it is converted into Nav Coin, an anonymous transaction is made through the Navtech system, and Nav Coin is converted into Bitcoin (or any other coin) and send to Harry.”
Increased use of Nav Coin because of Navtech Polymorph will likely increase demand. Nav Coin is needed for the Navpools on the outgoing servers. With the current low market cap there is a lot of Nav Coin needed to support an active Navtech Polymorph usage. Profitable servers will attract more people to setup their own and create demand for Nav Coin.
Not really. However, one thing should be noted. The use of Navtech servers comes with some kind of trust. The Nav Coin software is open source and should be ran on the Navtech servers like it is published on Github. A malicious server operator can run modified software to keep logs of transactions and thus jeopardizing financial privacy.
Servers return a Hash of the software they are running on request to proof it has not been changed. This is not yet waterproof though and should be handled as an indication rather than proof. Selecting only the server clusters you trust for your anonymous transactions is a good start. www.Navtechservers.com will do anything we can to help you by selecting the best servers.
You can setup your own Navtech Server cluster. This will enable you to make anonymous transactions without paying any transaction fee and without depending on any other server operator. Everything you need can be found on Github: https://github.com/navcoindev/