If you prefer to keep all financial matters you do private, that is difficult with blockchain technology, because everything is publicly nailed to it. However, there are also a few projects that offer you the opportunity to keep your assets private, even if you use blockchain technology. Harbor protocol gives you this opportunity and is actually the first digital option to store your financial ins and outs in an offshore way. Everything is hidden from the eye of an outsider. That sounds interesting, doesn’t it? In this article we explain more about what Haven Protocol is and how you could use it yourself. Maybe you want to hide your money too!
- 1 What is Haven Protocol?
- 2 How does Haven work?
- 3 The Coins of Haven Protocol.
- 4 How does the Haven web vault work?
- 5 How is your privacy guaranteed at Haven Protocol?
- 6 What can you use Haven Protocol for?
- 7 The team behind Haven Protocol
- 8 Where can I buy XHV tokens?
- 9 Haven Protocol (XHV) Chart
- 10 How can you store the XHV tokens?
- 11 Conclusion
What is Haven Protocol?
Haven Protocol can be compared to an offshore bank. So you probably immediately start imagining sunny beaches like in the Bahamas and the Seychelles. At Haven , however, this is all done online and unfortunately no beach is involved. However, it also means that it is accessible to everyone and not just to those who have enough money to ‘really’ park the money offshore.
Haven is built on the Monero blockchain . This project is also known for its private-friendly options. All addresses of participants in transactions, as well as the details and total value of each transaction are anonymous with Monero. Haven has all the benefits of Monero and a few of its own on top.
The Haven Protocol is a fork of Monero and they offer you stablecoins and volatile coins. We will explain the importance of this in a moment. The first stablecoin to be offered by Haven is xUSD, but more stablecoins are coming and there are also xAU (Gold), xAG (Silver) and xEur (Euro), which you can mint yourself, using xUSD. These coins are also known as xAssets.
The Haven Protocol emphasizes that you should not use the idea for illegal practices and purposes. It is therefore not intended to hide your black money!
Please note: keep in mind that the text below about the Haven protocol (XHV) currency as well as the explanation thereof should in no way be taken as advice. The choice for whether and in what way you want to trade (crypto) and which choices you make in terms of investment is up to you and you alone. We are not financial advisors.
This video gives you a short, but good explanation about Haven Protocol.
How does Haven work?
Haven is actually more of a clone of Monero than a fork. They have the same transaction speed and the same fees they charge, which are very cheap (less than 1 cent). They both use the same proof-of-work mining algorithm and have the same block time of 2 minutes.
The difference lies in the option of colored coins or colored coins that Haven offers. This is actually something that was conceived and designed for Bitcoin way back in 2013 , so that you can assign a certain attribute to a Bitcoin or part of it, a Satoshi. In this way, it becomes possible for a Bitcoin to represent predetermined stocks (such as Apple or Philips), but also a US dollar.
To achieve this also on the Monero blockchain seemed impossible at first. Yet the Haven team has accomplished this, but the way is now too complicated to explain briefly.
Now if you want to save money through Haven, there are two things you need. A wallet and a non-volatile currency, so if you want to withdraw your money after a number of years, you do not want it to be worth less because the price has just plummeted when you want to collect it. That is why it is important that Haven can use these colored coins.
To store your coins, you can only use the specially designed Haven wallet, also known as the Haven vault or Haven web vault. You can think of this as a private account that only you have control over. No government or other person can see how much you keep in this wallet and how much you pay with it.
The Coins of Haven Protocol.
The Haven Protocol’s native currency is the XHV token and it is an ERC20 token. This XHV token actually acts as a kind of collateral for all other xAssets (other x-coins that can be created) and the network connected to them.
There are currently around 13.5 million XHV tokens in circulation. This number fluctuates, because tokens are constantly burned, but also new ones are added by minting them.
What is very special is that the project has not had an ICO but they have nevertheless found a way to fund the project in the future. The teams generally work on the project for free, but the developers do get XHV as compensation. They receive 5% of all board fees and stock exchange transactions.
The other currency that Haven currently uses is the xUSD, which is a synthetic stablecoin. This means that it is actually not supported by anything. However, it reflects the price of the asset it is supposed to represent. In this case, that is the same value as the US dollar. That we have this stablecoin or colored coin is important, because now we can see how storing your financial resources works.
So even though a coin is supported by ‘nothing’, the value of the XHV remains stable, which is due to the minting and burning of the coins. This will be explained a few lines further.
Other xAssets planned include xAU (gold), xAG (silver), xEur and xCNY (Chinese Yuan).
To make the whole plan work, the Haven Protocol has also made a promise, which is that one xUSD will always be exchangeable for $1.00 to XHV.
How does the Haven web vault work?
We are now going to explain in a simple way how you can hide your money from everyone’s eyes. You can store it in your safe for a few years and when you take it out again, you have exactly as much as you started with. So you are not dependent on exchange rate fluctuations. Ideal for someone who has to go to prison for a few years because of his black money.
Suppose Johan buys 100 XHV, at a rate of $5 for each XHV. So a total of $500. Now to ensure that this $500 does not go up or down due to price changes, Johan will store it as xUSD.
He burns the 100 XHV in his web vault and gets 500 xUSD in return. Johan only removes the coins from his web vault two years later. In the meantime, however, the price of XHV has fallen by 50%, so each XHV is not worth $10, but only $5.
Johan now burns his 500 xUSD and gets 100 XHV instead, and the value has remained the same, which is still $500.
A great idea, made possible by the colored coins or colored coins.
How is your privacy guaranteed at Haven Protocol?
Your privacy with Haven Protocol is guaranteed in the same way as with Monero. This is done by the following three ways:
This is nothing but that the identity of a wallet that sends a transaction remains hidden. If you now have a group of wallets to which this wallet belongs, with a ring signature transaction, any wallet can approve the outgoing transaction. It is now impossible to determine in which wallet this transaction took place.
Ring Confidential Transactions (RingCT)
This hides any amount or number of coins you send.
Now the address of the wallet receiving the transaction is hidden. A one-time address is created, making it impossible to link the recipient to this address. Only the sender and receiver know if a transaction has taken place, because they are the only ones who know the one-time address.
This way you see that every transaction plus the amount of money you have in your web vault are always private within the Haven Protocol. The privacy within this protocol is a given for the sender, the recipient, but also for the amount. The system watches over it and prevents you from accidentally making a transparent transaction.
As mentioned before, according to Haven it is not the intention that you use this way of privacy for illegal matters. But why would you need this, other than a load of dirty money? It is always possible that you have sensitive information that you would rather not disclose or share.
When it comes to your own finances, someone with malicious intent who has information to your account could get away with the contents. With the Haven web vault that is made a lot more difficult, because you already start with that no one knows exactly what is stored in your vault.
What can you use Haven Protocol for?
You can use the Haven Protocol for various applications, such as storage, asset exchange, and payments.
If you have something of value and you want to store or keep it without using a classic banking system, but still don’t want to give up your privacy and independence. You are the only person who has access to your digital assets and you are also the only one who decides what to do with them.
xUSD is the first asset that Haven uses. However, several other xAssets will be added, such as xAU, xAG, xEUR and xCNY.
You can exchange these supported assets without limit in your own web vault. There is no one to ask for permission, there is no limit on the amount of assets in your vault and there is no KYC procedure.
If you prefer to handle non-urgent payments privately, you can do this via Haven. You can transfer assets directly between the various Haven web vaults, but there are also e-commerce options that enable payment via Haven in their store via a plug-in.
The team behind Haven Protocol
The team behind Haven Protocol started small in 2018, with two people setting up a first version of Haven. However, a few vulnerabilities have surfaced in the first testnet, which is why the project has been discontinued.
In 2019, the project was taken over by a team of members of the Haven community, mainly consisting of developers and donors.
In the meantime, it has grown into a large group of volunteers. Two names are known and the rest of the team uses pseudonyms. David Bandtock is Dweab, who leads and directs the project and Neil Coggins is Neac who is the lead developer. Together they have extensive knowledge in full-stack software architecture and development, mathematics and cryptography, dating back more than 20 years.
Marty, a front-end developer and Pierre Lafitte, who takes care of the UIs (User Interface, with which you can communicate with a device), are pseudonyms for example.
Where can I buy XHV tokens?
If you are now also slowly starting to get interested in setting up your own offshore banking system, you will have to start buying XHV. Another way is to start mining XHV . It is, after all, a Proof-of-work consensus.
At the moment there are not too many exchanges where you can buy XHV, but this is expected to change in the long term and more exchanges will be added.
The exchanges offering XHV tokens are Bittrex, TradeOgre, KuCoin, Bkex, Polarity, Whitebit, Intaswap, Abra, Citex, and CoinEx. A nice mix of more well-known and less well-known exchanges, but unfortunately not yet available at Bitvavo.
Haven Protocol (XHV) Chart
How can you store the XHV tokens?
You can only store your XHV tokens in a special wallet from Haven, also known as a web vault. However, there is also a mobile and a desktop version.
This is the simplest form and solution for your computer, tablet or mobile phone if you don’t want to use your own node.
This is a simple interface and useful if you want to use a desktop version of your vault. It also gives the possibility to run your own node.
CL I Vault
This is if you have a little more technical baggage at home.
Work is ongoing to develop a Haven Ledger app for a Ledger hardware wallet . Mobile safes will also be offered soon.
With any form of these Haven vaults it is important not to lose your private key. At Haven you get a recovery code of 25 random words. It is best to make several copies and keep them in a safe place.
If you lose your safe, you can still get to your coins with this word sequence. Unfortunately, without this word sequence you will no longer have access to your coins if you lose the safe.
You have now extensively acquainted yourself with the most interesting project of Haven Protocol. So now you know how to store all your digital financial assets as if you had an offshore bank account.
Your assets and all your actions are nicely shielded and protected via the Haven vaults. We also saw how Haven managed to use the indispensable colored coins in their protocol. These ensure that if you save $500, you can pick up $500 again after a longer period of time. Independent of exchange rate fluctuations.
Thanh Lanh Tran(1989) is Chief Editor from BitcoinUSD.com