CUTcoin has introduced a CNT-1 token standard, otherwise known as CryptoNote tokens, according to a press release from the group.
This standard is “conceptually similar to the ERC20 tokens in the Ethereum network, but also has characteristics of blockchain networks built on the CryptoNote protocol — for example, privacy, security, fungibility,” the release notes.
The vision has come from watching the various “privacy-oriented protocols and the market as a whole” in development.
“In addition to the RingCT protocol, which is needed to hide transaction amounts, CNT-1 also uses Bulletproofs, which verify that the inputs and outputs amounts match and avoid double spending. Thanks to this, the sender and recipient of tokens are anonymous, and all transactions and user balances remain confidential,” the release also notes.
To make these tokens, users on the platform need to build a token genesis transaction, “as well as pay at a time for 100 CUT.”
Overall, the project is in place to respond to the extra demand in the DeFi space for privacy tokens. The release describes:
“The new CNT-1 standard was developed in response to the growing demand for privacy in DeFi protocols: since the vast majority of projects are based on the ERC20 standard, users are often deprived of the opportunity to maintain the confidentiality of their investments and income, in contrast to how it is arranged in traditional finance. The development of CNT-1 is a step towards introducing sensitive transactions into DeFi lending, insurance, and more.”