Haven Protocol [XHV] | POW | Untraceable payments meets offshore banking.
Haven is an untraceable cryptocurrency that proposes a mix of standard market pricing and stable fiat value storage without an unsustainable peg or asset backing. It will achieve this by using a built in on-chain smart contract that controls the minting and burning of coins to facilitate value for users that choose to send their coins to offshore storage contracts while allowing everyone else to be exposed to the natural price movements of the currency. Haven is a fork of Monero so inherits the stealth and anonymity that it’s famous for. Haven also has the benefit of starting the blockchain from scratch with RingCT for extra privacy. Further, Haven’s offshore storage smart contract allows privacy conscious individuals that want to keep their money in an untraceable currency without being subject to market fluctuations, a means to do so. With Haven, the built in native smart contract allows value storage in terms of fiat currency without having to convert out of Haven. Colloquially, this is akin to having a Swiss bank account in your backpocket. This contract is referred to as Offshore Storage.
What is Offshore Storage?
Haven is sent from your wallet to a native smart contract which will hold the balance in terms of the
fiat value at the time of the transaction. This balance never leaves the Haven blockchain and as
such remains completely untraceable and unlinkable to the user.
Digital currency is a useful way to keep your money out of the traditional banking system only as
long as you can store it without a constantly fluctuating price and the threat of losing significant
value. With Offshore Storage, you get all the privacy of cutting edge digital currency with a
guarantee on the fiat value. This makes Offshore Storage ideal for storing large amounts of money
out of the traditional system that you don’t want exposed to digital currency volatility.
Haven uses a system called ’mint and burn’ to maintain fiat value relationship. In practice this
works as follows.
Bob decides he wants to put 200 of his Haven into offshore storage.
The offshore smart contract determines the current market value of that Haven (in USD for now)
based on a weighted average of volume across supported exchanges.
If the current value is $1 USD then the contract will record a value of $200 USD worth of Haven at
Bob’s request. The 200 Haven that was sent is then burned and the total money supply decreases.
If the price of Haven then moves to $2 USD and Bob decides to access his Offshore Storage, he
will be returned 100 Haven (100 * $2 = $200 USD as per original value).
If the opposite occurs and the price of Haven halves to $0.50 then 400 coins will be minted and
sent to Bob.
At first, minting new coins may make you think the value of the coin would decrease as the total
money supply has increased. In practice, this operates a little different.
This ’mint and burn’ method draws on the quantity theory of money described in monetary
economics in order to avoid inflation and changes in currency valuation based on the movements
in the total supply.
The theory states that MV = PT where:
M = Money supply
V = Velocity of money
P = Average price level
T = Volume of transactions
An increase in the money supply should, with a constant velocity and volume of transactions
(assumptions of the economic model), cause an increase in the price level (inflation). The problem
with this is that the money supply of Haven will always be unknown. Although there are 18.4 million
coins (before tail emission) that will be mined, the ’mint and burn’ lets the money supply fluctuate
freely. Velocity of money is also cryptographically unfeasible to determine as the Haven blockchain
does not reveal the amount of Haven transferred nor the wallet addresses they are transferred to.
For this reason, the currency is unable to be valued based on total supply.
The cryptographic mechanisms that allow this information to remain hidden are what makes Haven
a true spectre to the traditional system. For an in-depth breakdown of ring signatures, ring
confidential transactions and stealth addresses that power this untraceability and unlinkability it is
suggested to read the papers from the Monero Research Lab (linked at the bottom of this paper)
from which the Haven Protocol inherits.
Offshore Storage contracts will be implemented once the network reaches a mature stage with
enough exchange support to allow redundancy and accuracy of prices. The current focus is on
growth, stability, privacy and usability for everyday transactions with an easy to use mobile wallet
app that anyone can use without prior knowledge of crypto.
Offshore Storage Use Cases
• Point of sales systems where goods can be bought with Haven and shop keepers can
immediately lock the fiat value in to protect from price fluctuations. This has the added benefit of
keeping the shopkeepers business and income completely hidden on the blockchain as neither
his wallet address or amounts are revealed.
• Storing large amount of money outside of the traditional banking system. Privacy focused cryptos
are perfect for this but without a reliable way to maintain value through fluctuations the process of
holding could be costly. Sending Haven offshore quite literally, makes money disappear until you
want it back at which point the value remains intact.
Supply & Emission
Total supply: 18,400,000 coins before tail emission and offshore storage.
Coin symbol: XHV
1 picohaven/havtoshi = 0.000000000001 XHV (10^-12 -smallest unit)
1 nanohaven = 0.000000001 XHV (10^-9)
1 microhaven = 0.000001 XHV (10^-6)
1 millihaven = 0.001 XHV (10^-3)
Hash algorithm: CryptoNight (Proof-Of-Work)
Block time: 120 seconds
Windows CLI + GUI (64-bit):
Mac OSX GUI (64bit):
Linux CLI (64-bit):
Live Network Release
Haven Protocol network is launched and available to public.
IOS + Android Wallets
IOS and Android mobile wallets available for download with a focus on usability for first time users of cryptocurrency.
I2P integration to further anonymize the network by removing IP addresses associated with transactions.
Haven Offshore Storage Smart Contract
Implementation of the Haven Protocol Offshore Storage smart contract that allows users to store their coins in terms of USD value to avoid volatility and keep money out of the traditional banking system without risk of loss.
Our Vision for Offshore Storage.
I teased this article on twitter a little while ago. It’s time to deliver:
Offshore Storage — A recap
Some info is now outdated (this is just a recap), see below for our update!
For those who don’t yet know what Offshore Storage is all about, Offshore Storage is the basis of Haven Protocol. Haven’s Offshore Storage Protocol overcomes the biggest issue facing cryptocurrencies; market instability. Offshore Storage allows users to preserve the value of their coins, using Haven’s own ‘Mint and Burn’ concept, without the issues that plague current stable coins.
Users will be able to ‘burn’ an amount of Haven coins in return for a ‘native contract’ of the value of the burn in $USD terms at the time of the transaction. This keeps the value of your coins locked and stable — hence the name Offshore Storage. At a later date, the native contract can be exchanged back into Haven by minting the necessary coins with respect to the new trading price.
Later, if you want to exchange your $200 USD back into Haven, the number of coins minted are dependent on the Haven value at that time:
- If the price of Haven at the time of minting has moved to $2 USD, you will be returned 100 coins (100 [XHV] * $2 each = $200 USD).
- If the opposite occurs and the price halves to $0.50 then 400 coins will be minted and sent to you (400 [XHV] * $0.50 each = $200 USD).
More information on the history here:
Our Vision for Offshore Storage
“Our vision and plan for Offshore Storage is far grander than anyone knows or has completely realised.”
Time to forget about native contracts. Start thinking about two coins on the Haven Protocol blockchain. Haven [XHV] and USD Haven [XHVD]. Our vision is a decentralised, crypto-backed version of Tether.
When you burn [XHV] you are converting [XHV] coins to [XHVD] coins, which represents ‘$USD worth of Haven’. Minting is converting these coins back into [XHV]. Just like Haven, [XHVD] coins are divisible and transferable. They inherit Haven’s privacy aspect with the added benefit of having a stable value.
Since the value of [XHVD] is guaranteed with Offshore Storage, there isn’t a difference between sending $10 [XHVD] ($10 USD worth of Haven) and sending $10 fiat. Other than the added privacy, that is.
Having [XHVD] in your Haven Wallet is akin to having USD in your Paypal/Venmo account with all the benefits of Haven Protocol — completely decentralised, low fees and private.
To expand on the [XHVD] Wallet concept, it gives the world access to a decentralised and free USD based ‘bank account’, away from prying eyes and centralised corporations. We envision Haven Wallets solely with a [XHVD] base, where the backing from Haven Protocol is obscured from the end user.
As adoption of cryptocurrencies increase, the market will favour a stable, private coin that does not expose the finances of corporate or private interests.
The problem with non-privacy coins is that they expose everyone’s account balances. Bank balances aren’t public information for a reason. No one really wants to expose their bank balance, regardless of how much or little they have.
I’ve personally talked to New Zealand based retailers about accepting Cryptocurrencies. Price stability and privacy are the only hurdles to their adoption — and Haven solves both.
Thinking about the minting process, why mint back coins? With widespread adoption, you would never need to. Prior to that it would be in order to get the $USD value i.e [XHVD] -> [XHV] -> [BTC] -> stablecoin -> $USD. Although it is essential that this process works, if exchanges started using [XHVD] as a base pair for $USD fiat, you have a work around to minting coins in the first place, i.e. [XHVD] -> $USD. I suspect that with [XHVD]/$USD trading adoption, the amount of coins minted back into Haven reduces significantly and thus lowers the supply.
For those who don’t know, an oracle is how a blockchain interacts with the wider internet i.e. an API. We will need to call an API in order to retrieve the current price of Haven. The current plan is that we are going to build this into the protocol itself. We will have strict rules in place to ensure that any tampering must be a cost of breaking said rules and thus everyone’s daemons will reject the invalid result.
We are planning to release technical information about how the Offshore and oracle processes will work. This will be in combination with the Q3 release of the Offshore test net.
Contact us on twitter:
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