Loki Network (LOK) Review
An independent review of Loki Network (LOK)
Decentralized and private applications built on Monero
Summary
Loki Network (Loki) is an open source project developed from the Monero source code to create a completely decentralized private network built upon a foundation of service nodes. SNApps can be created on top of these nodes to provide privacy and security. The first SNApp, a private messaging service called Loki Messenger will be created by the Loki team.
Company overview
Loki Network and its team is based in Australia. The project seeks to provide services and transactions that are decentralized, private and untraceable. With a core objective of privacy, Loki Network is a modified version of the Monero source code built upon a foundation of service nodes.
Commercial & Technical Strategy
Loki seeks to establish itself as a secure and private network, at the same time resolving several underlying issues of Monero.
Mixin Distribution – Altering the methodology of sample mixins spent by users to increase Loki’s resilience against attacks
Ring Size Signatures – Adopting the methodology of churning, Loki will enforce a fixed minimum ring size of 10 to prevent attack on ring signatures
Block Reward – A hybrid proof of work/proof of service system will be utilized through a block reward equilibrium algorithm. On average the split to miners, service nodes and governance pool will be 50%, 45% and 5% respectively.
Staking – Staked tokens will be dynamically adjusted based on block height and will decrease overtime as compared to a fixed amount (Figure 1).
Bulletproof Declaration – Loki uses a modified version of Monero’s range proofs called bulletproofs to verify service nodes, which revealing the actual amount of LOK that a service node operator holds.
Token Use
1)Currency – Similar to most currency tokens, LOK is used to facilitate transactions and act as an exchange medium for digital service or payments in anonymity. For example, LOK can be used as form of payment to another party in complete privacy. In addition, it could create value in the community through the services of future SNApps. More information on this to be released in the future.
2)Staking – Token holders can earn LOK by running a service node through staking. The amount of LOK required to run a node is dynamic and will decrease over time.