Frequently Asked Questions

Security

What’s wrong with centralized exchanges?

The biggest issue with centralized exchanges is security. Most of the major exchanges, including Binance, OKEx, and Huobi, operate using a centralized model where a trusted middleman handles assets on behalf of senders and recipients. With centralized data, it only takes a single security breach, or malicious insider, for users to lose everything. And it’s happened on numerous occasions.

Essentially, centralized exchanges forfeit privacy and security for convenience.

Why did you build Resistance?

Cryptocurrencies are thriving, yet when it comes to cryptocurrency trading platforms, users currently face many hurdles, including complicated interfaces, slow transaction speeds, and a lack of privacy, security, and freedom.

Most cryptocurrency trading takes place in centralized exchanges that rely on trusted third parties, escrow services, or derivatives, making it almost impossible to trade privately and securely.

Due to the centralized nature of centralized platforms, it only takes one security breach to expose and jeopardize the assets of every user on an exchange.

Decentralized exchanges (DEX) have begun to challenge the dominance of centralized exchanges in the digital currency trading space. But first-generation DEXs are slow, indirect, only moderately secure, and offer inadequate support for users concerned about privacy.

Furthermore, the coins traded in these DEXs are subject to massive cryptocurrency mining operations utilizing expensive, specialized hardware. This makes it extremely difficult for the average person to compete for block rewards and transaction fees

This is why we created Resistance, a decentralized, democratic platform driven by the belief that blockchain technology should empower users with the freedom to mine, trade, and innovate, regardless of their access to resources or technical expertise.

 

How can I secure my private keys?

Losing the means to access your cryptocurrency wallet is very much like losing a physical wallet. That’s why we recommend that you backup your Resistance wallet after every transaction, or update, to ensure you never lose your private keys, and in turn, access to your funds.

Resistance makes this easy for users by facilitating the following four processes. With the click of a button, users can do the following:

Backup Wallet: Creates an encrypted backup of the wallet. [Settings > Backup Wallet]

Restore Wallet: Restores an encrypted backup of the wallet. [Settings > Restore Wallet], or during the Get Started process

Export Private Keys: Creates an unencrypted text file with all of your private keys in it. This is not recommended as a way to backup your private keys, instead, it allows users to transfer private keys into other wallets. [Own Addresses > + Add New Address dropdown > Export Private Keys]

Import Private Keys: Import private keys into the Resistance wallet. [Own Addresses > + Add New Address dropdown > Import Private Keys], or during the Get Started process

Note: Every time you create a new R-address or Z-address in the Resistance wallet we recommend that you create a new backup too, otherwise there is a danger that you could lose the funds associated with these new addresses.

Mining

What is a “51% attack”?

A 51% attack, also known as a majority attack, is a situation where a group of miners, or a single mining operation, controls more than 50% of a network’s mining hashrate, or computing power.

In this scenario, an attacker would have the power to both stop and reverse payments giving them the opportunity to double spend coins. Resistance is combating this by allowing regular users to compete for block rewards and minimizing the effectiveness of ASICs or FPGAs.

 

How does reward splitting on Resistance work?

Rewards on the Resistance platform, both block rewards, and transactions fees are split between multiple parties. Instead of all the rewards going to successful miners, as is the case on many other blockchains, Resistance splits rewards between Proof of Work, Proof of Research, masternodes, and project development.

Users can choose to mine Resistance coins with our CPU-optimized miner, contribute computing power to our whitelisted BOINC projects, or run a masternode to help with stability and the smooth running of the Resistance network. A small proportion of Resistance rewards are also funneled back into the platform for future developments.

In the Mainet, reward splitting will look like this:

  • Proof of Work – 30%
  • Proof of Research – 30%
  • Masternodes – 30%
  • Project Development – 10%

On the testnet, rewards are split 50/50 between Proof of Work and Proof of Research.

What is the difference between Bitcoin and Resistance?

Bitcoin is solely a cryptocurrency while Resistance is both a currency and a decentralized exchange.

Both Bitcoin and Resistance use a Proof of Work algorithm to facilitate mining on their respective blockchains, however, the Bitcoin hash algorithm SHA-256 has been exploited by massive mining operations that have made it impossible for regular users to enter the mining space.

Resistance uses yespower, a CPU-friendly hash algorithm that favors commodity CPUs over GPUs and ASICs, making it easy for regular users to mine for RES, the Resistance coin.

Furthermore, Bitcoin wasn’t designed with privacy in mind. It affords users pseudonymity, but all transactions take place on a public, open blockchain, where anyone can view them.

Resistance was developed with privacy in mind, so users can choose to make completely shielded transactions whilst operating on the Resistance blockchain.

How is Resistance becoming practically ASIC-resistant?

Manufacturing specialized hardware can reduce power usage, costs, and increase hashing power. Even CPUs, GPUs, and FPGAs can all be considered ASICs as they are developed for a specialized task.  

The yespower algorithm, which combines computationally expensive hashing (bcrypt) and memory-hard hashing (scrypt), is optimized for standard CPUs where there is little opportunity for ASIC-specialization. This algorithm slows down GPUs, and offers little benefit to FPGA/ASICs.

If someone did decide to build an ASIC for Resistance, the gains in efficiency would be orders of magnitude smaller than an ASIC built for coins that are not CPU optimized.

We believe that everyone should be able to participate in fair and competitive mining, where specialized GPUs, FPGAs, and ASICs don’t have an unfair advantage over standard CPUs. It is important that mining isn’t dominated by a single entity in control of a large portion of the computing power. For example, Bitcoin’s top four mining farms account for over 50% of all the Bitcoins mined in the world today.

With our CPU miner, all you need is a computer with Linux, macOS, or Windows to start mining right away – and this makes the mining process fairer.

Wallets

Will I be able to store more than one coin in my wallet on ResDEX?

Yes, ResDEX allows you to deposit, store, and withdraw any supported coin. Simply navigate to your ResDEX > Assets tab and click Deposit or Withdraw to perform these operations.

How do I install the Resistance wallet?

Installing the Resistance wallet is easy.

Simply download the correct package for your system from our Get Started page, and run it like any other application. You will be walked through a bootstrapping process that will help you get setup.

How does Resistance work?

Users can mine, send, and receive Resistance coins, RES. These coins are stored in a wallet. The mechanism that verifies the validity of each transaction is called the blockchain. Every transaction made with Resistance coins is recorded on the blockchain.

ResDEX is a decentralized, privacy-focused exchange where users can trade Resistance coins and other cryptocurrencies. RES can be used as an intermediary on ResDEX to enable the platform’s optional privacy features.  

The Resistance Desktop Application includes a wallet/miner and ResDEX integration giving users access to the entire Resistance ecosystem from one place.

Decentralization

Do ResDEX users have to download the entire blockchains of the currencies they wish to trade?

No. And this is what makes ResDEX so user-friendly. Users can choose between Electrum mode which doesn’t require them to download the blockchain, or Native mode which allows the user to connect to a locally running blockchain.

When a user wants to trade on ResDEX, they simply open up the ResDEX interface in the Resistance Desktop Application and enable coins they are interested in trading.

The user then deposits coins into a special exchange address that is derived from their exchange secret seed phrase that only they know. This address is specific to the coin they are trading and each coin has its own derived address.

Once an order is placed and a matching trade is found, both parties in the trade perform the necessary steps of an atomic swap before broadcasting their sides of the trade to the underlying blockchains of the cryptocurrencies being traded. The user can choose to broadcast these transactions via two methods, Electrum mode or Native mode.

Electrum mode is easier to setup because it doesn’t require the user to download the entire blockchain of the cryptocurrencies they are using. Instead, they can connect to a remote Electrum node that already has the blockchain downloaded and running. While this is easier to setup, it is less private and less secure.

Native mode requires the user to download and run the entire blockchain of the cryptocurrencies they are using. While this is more difficult to setup, it allows the user to broadcast transactions to their own locally running node, which is more secure, and gives them the opportunity to enable Tor for that cryptocurrency, if it’s supported.

What is an atomic swap?

An atomic swap is a way to facilitate direct, secure, peer-to-peer transfers of funds on a decentralized exchange, eliminating the need for a third-party escrow service. Atomic in this context simply means that a transaction either happens completely or not at all.

Atomic swaps rely on cryptographically powered smart contract technology to ensure that each party delivers the agreed upon currency within an allotted period of time. If one party fails to deliver their end of the swap, the transaction is canceled.

This removes the risk of one party failing to uphold their end of a trade because at every stage of the swap there are incentives in place that encourage both parties to continue. If these criteria aren’t met, the trade is canceled.

Who governs Resistance?

As an open-source platform, Resistance will be controlled by the community who uses it. However, for a short period of time early on, the Resistance team still retains control over a number of areas including, but not limited to, the ongoing development of the platform, security, and public communications. This is to ensure the platform achieves its stated goals and has the best start it can possibly have.

In regards to ownership, the Resistance platform will be decentralized and handed over to the community at some point following the Resistance ICO. From this point onwards, no centralized authority will govern Resistance and 10% of the block reward along with a percentage of ResDEX fees will go to a community foundation so funds are in place for administration and development costs.  

What is Resistance?

Resistance is a privacy-focused decentralized exchange (ResDEX) and blockchain (RES coin). ResDEX can swap up to 95% of existing cryptocurrencies, and can utilize the RES privacy coin as an intermediary to add additional privacy to trades.

The platform has been developed with the key principles of usability and privacy at the forefront of its design, and as a result, offers even inexperienced users the opportunity to mine on the Resistance blockchain and trade on ResDEX.

Privacy

Is Resistance GDPR compliant?

Unlike most public blockchains, including Bitcoin and Ethereum, that store publicly visible personal data on an immutable and distributed ledger, Resistance gives users the option to shield their Personally Identifiable Information (PII) by using private transactions.

The right to privacy is a key principle of the GDPR and one that Resistance upholds by ensuring users are free to use private transactions on the Resistance blockchain if they choose to do so

Can any coin be traded privately on Resistance?

Users have the option to add privacy to almost any cryptocurrency, including bitcoin, even if that currency doesn’t support private transactions natively.

By harnessing the power of the Resistance privacy-oriented blockchain as an intermediary, users can enable this privacy feature with a click of a button. ResDEX will then automatically trade the coin of your choice to RES and send RES in place of the original currency, thereby adding privacy to the trade.

Users can also utilize the same trading mechanism to add privacy to a non-private cryptocurrency by automatically trading to RES and then trading back to the original cryptocurrency.

What are the benefits of ResDEX?

ResDEX is a revolutionary open-source platform that eliminates the privacy concerns and security risks of centralized exchanges. Users can trade almost any cryptocurrency privately, securely, and directly through a user-friendly, security-focused dashboard.

Users have the option to route transactions and trades through Tor — an open network that enables people to communicate privately over the public internet.

There is no registration process and users can trade as much as they want with no withdrawal limit and with no need for a third-party escrow service, so users always retain control of their funds without the intervention of a middleman.

Atomic swaps on ResDEX allow users to trade up to 95% of existing cryptocurrencies directly with one another, while users may harness the power of the RES as an intermediary to achieve private trades between almost any cryptocurrency.

Is Resistance a fork of Zcash?

Resistance is a fork of Zcash (which is itself a fork of Bitcoin) with a multitude of changes built in to both improve it and facilitate ResDEX.

We have changed the hashing algorithm to become practically ASIC resistant and implemented reward splitting over Proof of Work, Proof of Research, masternodes, and future development, but the main goal of the Resistance blockchain is to provide privacy on ResDEX.

With our blockchain we have created something better. To trade privately on our DEX, traders can choose to use RES, our privacy coin, as an intermediary and the privacy features built into our blockchain are market leading.

Is Resistance private?

The Resistance platform uses Tor to shield your identity. In addition, you have the option to trade on our decentralized exchange with complete privacy by using Resistance coins as an intermediary.

Tor, however, is not legal in all jurisdictions so it is up to each individual user to check the legality of using it during a trade before utilizing this functionality on the Resistance platform.

For this reason, transactions on the Resistance blockchain and ResDEX are not private by default. Instead, users can choose to engage this functionality with a simple on/off switch.

Misc

How do the fees on ResDEX compare to fees elsewhere?

Transaction fees on ResDEX are 0.0001 RES per transaction by default.

ResDEX market taker fees are 0.15% and, unlike many other exchanges, there are NO market maker fees.

Exchange Maker Fee Taker Fee
ResDEX 0% 0.15%
IDEX 0.1% 0.2%
Kraken 0.16% 0.26%
BTC-e 0.2% 0.2%
Bitstamp 0.25% 0.25%

What are the technical specifications of the Resistance Blockchain?

Consensus technology Proof of Work – yespower: CPU-optimized, GPU-unfriendly
Maximum block size 2MB (2,000,000 bytes)
Target block interval 1 minute (on average; actual block intervals will vary)
Proof of Work difficulty adjustment Every block, Digishield v3 (maximum 32% down, 16% up)
Coinbase maturity 100 blocks required before newly mined coins can be spent

Who was Resistance created by?

Resistance was created by a team of experienced developers with a background in cybersecurity.

The Resistance core team includes the founder and core developer behind the Linux operating system Whonix, as well as the founder of Openwall, who is also responsible for creating the hashing algorithm yescrypt, and the newly released yespower CPU-optimized hashing algorithm, which is used by Resistance.

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