Cryptex Coin Case Study

Introduction

We were given the task of developing the Cryptex Coin cryptocurrency with its own blockchain within a certain time frame agreed with the client.

Immediately before starting the development of the cryptocurrency itself, our team conducted an extensive analysis of various options for solving this problem, taking into account the needs of the client and the purpose of the cryptocurrency itself.

We changed the brand name and blurred out any references in the screenshots so as not to violate the NDA for our client.

Peculiarities

• The coin must have a regulated and understandable mechanism for accruing rewards for mined blocks.
• The reward should be distributed according to the principle of ownership – that is, the more coins are located on a particular node, the more likely it is that the block will be mined by this node.
• The coin must have a JSON-RPC management interface to connect to the main platform of the project.

Development

Initially, we developed the concept of the project, in which we prepared information on choosing the initial coin for the fork. We also made a technical task, formed the characteristics of the future cryptocurrency, which were included in the technical task (more about the process of issuing cryptocurrencies and tokens can be found here) and made a logo.

After agreeing the information provided with the client, our team began to develop the Cryptex Coin cryptocurrency with its own blockchain.

PIVX core was taken as a basis. In the Cryptex Coin blockchain, it was decided to use the Proof-of-stake algorithm to verify transactions. Transactions on the network must have high speed and security, as well as anonymity.

In addition, for security purposes and to minimize the risk of network failure, we have proposed a system of several masternodes on various servers in several countries and hosting, since masternodes play one of the most important roles in the system – they support the network and allow for accelerated payment processing.

The first stage was the development of the blockchain and the introduction of the Cryptex Coin tokenomics logic into it, which was made by our company.

At the same time, other important structural issues were being prepared for the timely launch of the test environment in order to immediately start the testing and debugging stage by the end of the implementation of tokenomics.

The second step is to start testing:

1. stability of the cryptocurrency network;
2. correct calculation of block rewards;
3. correct work on the appearance of new blocks in the network;
4. masternode work;
5. the correctness of tokenomics;
6. and etc.

Separately, we note that in order to test the correct operation of the tokenomics embedded by us in the blockchain, we did quite hard and hard work to speed up the process of the network so that it was possible to track the correctness of its operation, various charges and conditions for several years in advance, while spending a fairly minimal number of days for this simulation.

The third stage was joint testing and familiarization with the client’s network.

At the fourth stage, we conducted Pentest, a set of measures aimed at simulating a real attack on the network, the purpose of which was to identify possible bottlenecks, analyze possible vulnerabilities that could provide attackers or ill-wishers with a way to disrupt the stable operation of the network.

We foresaw and protected the network from various attacks and hacking attempts, for example, such as 51% Attack (an attacker intercepts 51% of the mining power and inflicts malicious actions), DoS attacks, Sequels (filling the network with nodes controlled by an attacker) and various other methods and attempts hacking, destabilizing the stable operation of the network.

The fifth and final stage, after completing the network security testing, our team prepared and deployed the “combat” network, after which it re-tested the correct performance.

The completion of the release of a cryptocurrency with its own blockchain was the successful release of the Cryptex Coin cryptocurrency to the public, stable and uninterrupted network operation, and the absence of successful hacks and attacks to this day.