Citadel Platform – An Ambitious Hybrid Between Ethereum’s Functionality and Monero’s Privacy


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There is a relatively new coin on the crypto market called Citadel, which intends to create a scalable, private smart contracts platform, with commercially-oriented applications and use cases.

This article will cover 3 major obstacles that have seriously inhibited the growth of cryptocurrencies as an ecosystem, and explain how Citadel’s approach can effectively eliminate them and build something of value.

What truly stands out in this equation is this – Citadel itself is a very low supply, low inflation coin with a total market cap of only $300,000. This means that it could jump up by 100x to a market cap of $30 million and still be very undervalued relative to what it offers. At these prices it would be similar to buying Ethereum at under $1 or Monero below 50 cents – this is precisely what it means to be an early investor and get in before the rest of the market does.

Few key aspects of this project should illustrate what the team behind it are trying to achieve, why it has the potential to become a very big deal in the crypto space and why it is overall extremely undervalued relative to its existing developments, value proposition, and future potential.

Citadel has several layers built into it. Citadel Network is a peer-to-peer, decentralized cryptographic network where users can transact by sending economic value to one another. Citadel is a completely anonymous transaction platform as it implements a CryptoNote protocol with a cryptonight V7+ Proof-of-Work (PoW) algorithm, making it one of the most centralization-resistant coins out there, alongside Monero (XMR) and its peers.

The second and more interesting layer is the platform itself, on which private smart contracts will be created and executed. It is where future decentralized applications will be built and published, and where a new network, called Sentinel Network will be launched, made up of thousands of nodes worldwide that will make it scalable and accessible to everyone without sacrificing performance. To make it even more attractive, running a node on Citadel also means you gain passive income.

There are several major problems that the crypto world faces today. First, while many crypto projects make decent stores of value, very few of them can be used in the same way you’d use cash or a credit card: to quickly and conveniently make purchases, and even then you have a very limited selection of merchants that accept them.

Second, there is the issue of scalability. Take a look at Bitcoin for example. Who hasn’t had the terrible experience of having to sit through very long confirmation times? How does someone expect Bitcoin or another non-scalable network to serve as payable currencies?

Third, crypto is lacking in regulatory and institutional legitimacy, mainly due to its non-compliance with KYC (Know Your Customer) legislation. Global law requires customer information to be presented and verified to prevent money laundering and financing terrorism, and KYC-compliance isn’t exactly built into any of the leading cryptos out there. There are of course many more, but these are some of the problems that are holding back crypto from reaching mass adoption, and while there are some interesting solutions to these issues, there is not one single project that is trying to solve all of them at the same time. Solving all these abovementioned issues is a holy grail of crypto.

Citadel is a CryptoNote-based coin that has privacy-by-default setting, unlike optional privacy coins that have anonymity as a feature which nobody uses. Problem with investing in CryptoNote-based coins is that most of them are exact copies of one another with pretty bad economics. This is not the case with Citadel. Citadel offers a very low inflation rate of 12% in the first year, 8% in the second year and 6% thereafter, reaching tail emission after a supply of only 18.5m is reached, and there’s so much more to it than just a low inflation privacy coin.

Here is how Citadel addresses and potentially solve the problems which are outlined above:

Mass adoption:

The first problem cryptocurrencies face in reaching mass adoption is lack of PoS presence (no, not Proof-of-Stake, but Point of Sale). PoS presence means that when you try to order something online or buy something in-store, the currency of your choice must be supported by and integrated into the billing system used by the merchant. Without it, you’ll be forced to use another means of payment and your coins won’t have much value. Unfortunately for most coins out there, PoS presence is severely lacking, mostly due to the little attention being given to this common everyday use case.

This is exactly where CTL-Pay comes into play. CTL-Pay (First version of CTL-Pay was released a few days ago) is a series of products that are aimed at universal integration into any PoS system, with its first version being a wordpress plugin for merchant API integration and Point-of-Sale purchases. Using CTL-Pay, merchants can already upgrade their sites to support CTL, and existing crypto payment network will have an easy integration vector to accept CTL.

Where Citadel really shines, however, is with a future product called DarkBazaar. It’s a completely decentralized and anonymous marketplace. Quote from their site:

“DarkBazaar: World’s first implementation of a truly private, decentralized, p2p marketplace for exchanging goods and services anonymously. DarkBazaar will be a takedown-resistant, free participation marketplace where consumers can purchase goods safely and anonymously, make use of BitKYC for ID-backed fulfillment, and create smart contracts to ensure delivery and merchant compliance.”

Imagine having an entire marketplace accessible via your wallet, where you can buy and sell anything you want, and invite others via listing URLs that are easily shareable via e-mail, texts, and social media. What makes Darkbazaar truly successful is its decentralized and private nature, meaning that no one can follow you around and see what you’re buying and selling. Anything illegal can also be voted out by the network itself if reports are made about it by users. This is a pretty big deal for Citadel as DarkBazaar will be using CTL as the base currency, creating demand pressure on CTL as adoption increases.

Now, you would think DarkBazaar is big enough for the team to solely focus on, but they still manage to have a wide variety of unique and competitive roadmap features.

KYC (Know Your Customer) compliance:

Another major roadblock for cryptocurrency is legislation. Global KYC legislation forces financial and commercial institutions to collect information about each customer and the origin of their funds. This effectively places a barrier to growth as customers must keep track of each crypto transaction and combine it with real-world documentation. This creates real-world complications and service inefficiencies and also poses risks of identity theft of information if mismanaged.

Citadel’s solution to this giant mess is their own BitKYC protocol. Quote from their site:

“BitKYC Protocol- an identity registration, attribution and verification solution using encrypted ID-specific, blockchain-hosted key pairs. With bitKYC, users will be able to register their real-world identity into a cryptographically-unique digital footprint which they own and use it as Proof-of-Ownership for accessing digital and real-world services. The bitKYC digital ID cannot be modified, tampered with or stolen in any way, and will form the basis of combating the growing global trend of identity theft crime.”

The idea here is quite simple: not only does your wallet maintain a record of your transactions, but it will also be able to create a unique hash of your verified ID documents, and combine the two when needed. Instead of having to carry your ID on you, or give sensitive information to 3rd parties, your private key will contain proof of your identity that can’t be spoofed and without needing any additional data.

Think of it as your Apple ID and Apple Pay combined, except it’s stored on a public blockchain that’s completely immutable and invisible without having access to your private keys. This is something that no other project is attempting to do, with this degree of security and privacy.

What makes this so unique is that because there’s no data stored on the CTL blockchain, that anyone other than yourself can see and access, there is no direct evidence of its existence, which makes it one of the few GDPR-friendly crypto networks out there. Definitely a giant boost to future corporate adoption!

Network scalability:

Scalability is really tough to crack. The more users a network has the more transactions they make, the slower it becomes. Citadel’s response to this is their Sentinel Network. Sentinel allows anyone to set up a node anywhere in the world and be paid for it, much like Bitcoin’s miners are incentivized using block rewards. These nodes can not only help verify transactions but also provide processing power for executing smart contracts.

“Sentinel Network – a robust infrastructure enabling a programmable, scalable and distributed network of self-hosted applications known as Sentinel Apps. Sentinel Network will enable 3rd party apps to interact with Citadel’s core layer and enhanced functions and power flexible development and execution”

Which leads to:

“Scalability Proposal Alpha Citadel’s own approach to a modern scalable payment network, by increasing TPS performance and lowering confirmation times.”

Citadel is thinking ahead and is solving scalability on two different fronts: transaction throughout (TPS) and smart contract execution. These two factors are what is now crippling both Bitcoin and Ethereum and keeping them from scaling beyond their existing user base. It will be very interesting to see how this unfolds because any network that manages to solve these two issues is going to experience a meteoric rise and be able to offer its service directly to banks and corporations.

Private smart contracts:

On top of all the interesting solutions mentioned above, Citadel’s primary use case remains its ability to create and run private smart contracts.

What is a smart contract? A smart contract is a computer program intended to digitally facilitate, verify, and enforce the negotiation or performance of a contract. Now, we know that there are a lot of different types of contracts made between people in real life, but smart contracts take those and secure them on the blockchain, meaning they cannot be violated.

For example, suppose you rent an apartment. You can do this through the blockchain and set monthly terms of automatic payment in cryptocurrency. You get a receipt which is held in the virtual contract; landlord gives you the digital entry key which must arrive by a specified date. If the key doesn’t arrive in time, the blockchain releases a refund. If landlord sends the key before the payment date, the contract automatically releases both the rent to him and the key to you which you can use to enter the apartment. Using a smart contract, there is the certainty that landlord gets his rent and that you’ll get a place to stay. Now you can see how practical a smart contract like this would be both in the business world and for private individuals.

This amazing innovation allowed Ethereum to evolve from an unknown open-source project to a 140 billion dollar network. But what good does it do if your rent is visible to the entire world on the blockchain? If Apple’s commercial agreement with its suppliers is visible to its competitors? Smart contract alone aren’t enough; you also have to ensure the participants’ privacy. This is where Citadel comes in:

“Private Smart Contracts – programmable, self-executing contracts will add a metadata context layer to on-chain transaction, allowing participants to enforce transactional terms and ensure delivery and counterparty compliance. Citadel’s smart contracts will be private and untraceable to 3rd parties.”

Disregarding the prospect of future profits by investing in a coin so extremely undervalued, more exciting part is the real world uses that Citadel can unlock and how it can change the way we trade, communicate, view and use the global banking system.

Now, this really is a great vision and roadmap, but a lot of projects nowadays make big promises without backing them up. Is there any indication that the team behind Citadel can execute what they promise? To answer that, let’s review what the team has already released in just a few months since launch:

  • In-wallet IPFS file sharing service
  • Economic soft-fork, to reduce the overall level of inflation
  • A new and improved website
  • A paper wallet
  • CTL-Pay, a merchant integration and Point of Sale payment solution for CTL
  • Addition to portfolio tracking apps, such as BlockFolio and Delta
  • Listing on two additional exchanges
  • Listing on CoinMarketCap.com and other market intelligence sites

Aside from these items, they’ve already committed to several other items that will be released as shortly as the next few weeks. For practical reasons, this article can’t cover every single component of the roadmap, because that would make it unnecessarily long, but suffice it to say that its roadmap is very heavy and detailed, which is what you’d come to expect from an emerging platform that seeks to offer tangible value. Several of these have already been released (and on time), as you can see above, and are already quite useful.

Conclusion:

In conclusion, Citadel is on its way to making a deep impact in the emerging field of smart contracts and applications, armed with very strong privacy features that most platforms lack. Citadel is one of those projects with a very active development team that focuses on its product and building the basics before building up hype through senseless marketing.

With a rock-bottom valuation, a recovering market and a hunger for genuinely new use cases, Citadel is a no-brainer for a low-risk and high-reward investment.

You can check the project out by visiting its website at https://citadelplatform.io, where you’ll also be able to join its growing community. As always, stay safe and do your own research.

Source: https://www.ccn.com/citadel-platform-an-ambitious-hybrid-between-ethereums-functionality-and-moneros-privacy/

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