Diacoin provides users with a completely anonymous payment scheme. Diacoin implements the ring signature technology which allows you to sign a message on behalf of a group. The signature only proves the message was created by someone from the group, but all the possible signers are indistinguishable from each other.

Privacy is our priority. Even if outgoing transactions are untraceable, everyone may still be able to see the payments you have received and thus determine your income.  After funds are sent to certain addresses they can only be redeemed by the receiver; and it would be impossible to cross-link these payments.

Nobody is able to spend the same money twice — even if all his signatures are anonymous. Every signature contains a key image — a kind of fingerprint of the secret key. It is based on a one-way cryptographic function; this implies that given only the key image it is impossible to restore the corresponding secret key. These key images are used to prevent double-spending. Safety is our priority

A decentralized payment system must not depend on a single person’s decisions, even if this person is a developer. Diacoin has no hard-coded constants; magic numbers in the code are designed to be re-calculated based on the previous state of the network. Thus, they always change adaptively and independently, allowing the network to develop on its own. The general idea of our algorithm is to sum all the work that nodes have performed during the last 720 blocks and divide it by the time they have spent to accomplish it. The measure of the work is the corresponding difficulty value for each of the blocks. The time is calculated as follows: sort all the 720 timestamps and cut-off 20% of the outliers. The range of the rest 600 values is the time which was spent for 80% of the corresponding blocks.