To understand CloudCoin, you need to understand RAIDA.
CloudCoin remains the native currency of the RAIDA network.
RAIDA or the Redundant Array of Independent Detection Agents, is a new authentication protocol using post-blockchain technology.
Just like Bitcoin, and the large number of cryptocurrencies using blockchain, CloudCoin has an underlying technology that makes it work.
RAIDA is that underlying technology.
Following is an article explaining RAIDA, from its Founder and Inventor, Sean Worthington.
Sean Worthington, Founder and Inventor of RAIDA and CloudCoin
RAIDA is a patented digital authentication and counterfeit detection solution with an immensely wide variety of potential applications. The technology, developed by inventor Sean Worthington, can confirm the authenticity and ownership of any digital file. RAIDA is a post-blockchain process that solves the physical integrity problem and prevents double spending. RAIDA can easily identify digital forgeries.
Sean discuses CloudCoin in an interview with Michael Yorba on ‘CEO Money’.
In short, RAIDA is a ‘decentralized’ cloud-based technology consisting of 25 separate clouds. The clouds store and process CloudCoin files.
Each CloudCoin note consists of a small data file with codes on it. Like dollar bills (Federal Reserve Notes) CloudCoin notes come in different denominations.
To make CloudCoins secure, and impossible to hack, each of the CloudCoin notes containing the coded data files is shredded into 26 different packets of information and then each packet is sent to one of the 25 separate clouds scattered around the world in secret locations.
This sounds complicated but it’s quite easy to understand. A heck of a lot easier to understand than the cryptography that is used with Bitcoin and the blockchain.
To illustrate this, I’m going to use the analogy of a paper shredder.
To begin with, here’s a copy of what a complete CloudCoin file might look like.
CloudCoins consist of 1, 5, 25, 100, and 250 note denominations, as you might recognize with a familiar paper currency.
Now, picture in your mind that this file is being put through a paper shredder and cut ‘horizontally’ in-between each of the lines.
Each of these shredded lines of text code are then sent out to 25 different clouds called “Sentinels.”
Then each line can be broken down (shredded further, or ‘vertically’) into segments that are processed by nodes at the “Detection Agent” level.
Here’s a way to picture the RAIDA.
As can be seen by the illustration above, the RAIDA consists of 25 independent clouds of servers. These Clouds are hidden in different countries around the planet.
Each of these clouds ‘houses’…
One Sentinel & 32 Detection Agents
These clouds (consisting of Sentinels and Detection Agents) are hidden in different countries around the planet: Australia, Macedonia, Philippines, Serbia, Switzerland, South Korea, Japan, UK, India, Germany, USA, Taiwan, Russia, France, Singapore, Argentina and Canada.
Each of the 25 clouds receives 1/25th of the CloudCoin file, yet any single shredded line is not worth anything without the rest of them.
Then a consensus must be reached between the twenty-five clouds to authenticate a CloudCoin note.
As will be explained later, this makes it impossible to hack.
It’s totally decentralized, and the code exists in the note itself.
Why is this important to you?
Let’s say you had your life savings, or your business funds stored in a cryptocurrency or a digital currency like CloudCoin.
It would only take you a few minutes to do a search on Google to learn of the millions and billions of dollars of Bitcoins that have been lost or stolen. Can you Imagine what it would be like to have a fortune just disappear?
It might feel like having worked on a document for a long while when the computer crashes, but you’ve forgotten to save it. Magnify that a few thousand or million times and you get the idea. Ouch!
Then realize that it’s already happened all too often to people using Bitcoin.
Cyber currency is different than money in a bank.
The money in your account at a bank doesn’t consist of actual paper money or coins, and it’s not even a digital currency.
It’s simply a notation in a computer system of a debt. It’s a notation that they owe you the money. It’s not the money itself. And banks only keep a minimal amount of cash on hand for people who might want to make a withdrawal.
If you went in and told them you wanted to withdraw ten or twenty thousand in cash, you would likely be told you would need to three to five days or so for them to get it for you.
On the other hand, with a digital currency like CloudCoin, it is the actual money which is being stored. Not a notation on a ledger.
When you have CloudCoins, you possess actual money just as if you were holding cash.
A key difference between Bitcoin and CloudCoin™ is that all the coding is contained within the CloudCoin™ itself.
There is no coded ledger. There is no ledger.
There’s no grouping of transactions into a block, and no public key.
A public key, like the one used in the Bitcoin blockchain, provides a route for the unlikely, but not impossible, hacking of Bitcoin.
This is especially true for several supercomputers working in tandem, and even more so for one of the new quantum computers.
It is widely agreed that a powerful enough quantum computer could break blockchain codes in minutes. In fact, Honeywell recently announced it would have one in the next two years that could break Bitcoin codes in two to three minutes.
CloudCoin cannot be hacked by any quantum computer. The shredding makes that impossible.
Since the blockchain is a public ledger, it also provides information on the value of what is being transmitted… to a thief this could look like an armored car transporting a large amount of money, making it a difficult, but tempting target.
Think of the hacker as a part of a well-funded crime syndicate.
With such a group, the target must be tempting enough to consider investing a considerable amount of their time, energy and resources. But it would be a mistake to think they wouldn’t find those resources if the target where attractive enough to engage.
Here’s a quote that was attributed to the infamous American bank robber, Willie Sutton, when asked why he robbed banks.
His reply was: “Because that’s where the money is.”
CloudCoin transmissions are INDIVIDUAL
In other words, with CloudCoin you do not have an “armored truck” carrying a large, accumulated load of money. Each transmission is separate.
Additionally, there are no value indicators to let anyone know whether only a few CloudCoins are being sent to a friend or millions are being transmitted in business.
Your CloudCoins are not batched together with a bunch of others in a big block like one that might be carrying millions of Bitcoins.
Each CloudCoin transaction is separate. They don’t need to be batched.
But what if there is some hacker who has access to a huge amount of computing power, isn’t very practical, and has a lot of time to waste? That’s not a very likely situation.
But for demonstration purposes, let’s say there was a team of hackers who are part of a crime syndicate, an unscrupulous banking organization, or some corrupt government trying to hack your CloudCoins…
Here are six things hackers would need to confront in any attempt to steal CloudCoins:
1. Each line of the authenticity code consists of a 16-byte password that is 100% random.
2. Presuming that a hacker could find one of the hidden detection agents and capture it, and then break its code, the hacker would only have 1/32 of 1/25th of the authentication data. So, even if a hacker could decrypt it, doing that would not provide ownership of any of the coins.
3. Most authentication protocols require one password to be given to one server that is checked against one database. The RAIDA uses many passwords against many different servers, each with a ‘no-share database’ which means they do not share information. Each has only one job to do and that is to authenticate the single shard of data that it receives.
4. To crack a CloudCoin, a hacker would need to simultaneously guess the Authenticity Numbers of most the different RAIDA located around the world.
5. The RAIDA also has a bottleneck of how many codes can be guessed at in any one second. This is similar to when you forget or mistype a passcode three times and you get locked out. Crucially, the public ledger does not have a bottleneck. With a public ledger, a hacker could make as many guesses as they have servers. If a hacker has a football field full of supercomputers (as certain government agencies, foreign or domestic, have now or will in the foreseeable future), then they could guess trillions of combinations per second. With quantum computers, a hacker could guess all combinations within two minutes and crack the blockchain.
6. With RAIDA, a hacker is limited to only guess 8 million guesses per second, per RAIDA. But there are 25 RAIDA sentinels with 32 detection agents each. If one were to take the time to run the math, it would clearly show that it would take more guesses than there is the time in the Universe to crack a CloudCoin. Therefore, unlike blockchain the RAIDA is also quantum safe.
What about the system itself? Can it be brought down? How is the system itself safe from attack?
The RAIDA is patterned after the DNS (Domain Name System) which handles all the world’s internet traffic. It’s been operating since 1985 and has never had its core servers brought down.
The DNS system has 14 core servers (think Sentinels), while the RAIDA network has 25.
(A) The clouds are scattered all around the world in secret locations; before they could be attacked, they first would need to be found.
(B) RAIDA servers do not require large computer facilities which are easy to spot.
(C) CloudCoin has a very small electrical footprint. This not only ensures its financial and ecological viability, but also eliminates the possibility of locating one of the RAIDA servers through the monitoring of electrical consumption. Bitcoin uses massive amounts of electricity and most, if not all, of their physical locations are known.
(D) Like the DNS system, RAIDA has data redundancy for instantaneous backup and is ‘self-healing’. If one of the detection agents gets knocked out, it is automatically replaced by a new one. It only takes a quorum (majority) of the 25 RAIDAs to authenticate a CloudCoin. The system has been built to be very robust and able to withstand any sort of natural or man-made catastrophe.
The detection agent computers are very small and inexpensive. They fit into a small briefcase and a basic unit can be purchased almost anywhere in the world for a few hundred dollars. This allows for easy expansion, even into ‘third world countries’ which are underserviced by the current financial system.
CONSTANT MONITORING: The status of the RAIDA network is always monitored and can be observed by anyone. Here’s an example showing a status report of 20 of the RAIDA over a one-day, seven-day and thirty-day period.
The RAIDA continually updates about every 30 seconds. Here is the kind of screen shot that users can check whenever they want.
The monitors show how many RAIDA are operational at any one time, what each of their individual up-time status is on a particular day and what the up-time average for that RAIDA has been.
For a CloudCoin to be authenticated, it needs to be certified by a quorum (majority) of the RAIDA clouds.
That’s how a CloudCoin transaction works and why it’s the fastest and most secure system on earth.
For more information on how you can make use of CloudCoin, click here.