Privacy through the Zerocoin Protocol of Zcoin

2018/12/05

Are you aiming for the full privacy of your transactions? If yes, then you must be looking for Zcoin.

Over the previous years, the adoption of Bitcoin has been steadily improving. Many of the users are now utilizing cryptocurrency as a form of payment or as an investment tool. It’s true that Bitcoin is still dominating the market, however, it is presently experiencing some key flaws. One of those flaws is privacy. The transactions made by the users are publicly announced in the public ledger. Another issue are the leakage of data about purchases made by the merchants themselves.

Due to this problem of privacy, many users are becoming interested in platforms that are allowing secured and concealed transactions. Zcoin is one of those promising projects. Zcoin is the first cryptocurrency to implement the Zerocoin Protocol which is used to privatize transactions.

The Zcoin Platforms

Different projects perform different methods in implementing private transactions. Some projects like Dash uses the mixing of coins method to achieve privacy. The individual would not be revealed in a particular group.

What makes Zcoin special among these projects? It’s X-factor is the zero-knowledge proofs. How does it work? The original coins are burnt in order to send the transactions. This process results in a newly minted coin that is not part of any previous transactions. Blockchain analysis would not work on it since it is impossible to know the original owner of the coin. What a great way to reinforce privacy!

The PoW algorithm is currently being utilized by Zcoin. A percentage of the rewards would go to the development team of Zcoin whenever they find a new block. In order to incentivize the development of Znodes, the % of rewards has been decreased. These nodes are the key in fulfilling theZerocoin transactions and it would need 1,000 Zcoins in order to run a specific node. This alone costs around thousands of dollars. The payout that users will receive is around 30% of the block rewards.

Zcoin follows a very interesting roadmap. One of the most anticipated milestones is the rollout of the news Sigma Protocol. The Zerocoin protocol needs a secured trusted setup where the initial parameters are set by the developers. However, it has been found out that it can be a loophole for illegal activities since developers can print new coins if the old coins are not burned properly.

The initial parameters of Zcoin were developed way back in 1991. What makes the Sigma Protocol works by removing the trusted setup. Aside from this, the size of the proofs will also be reduced which will be beneficial to scaling in the future.

Founder’s Rewards

The Founder’s Reward is created to fund the community and to reward the developers who are behind the successful system. Airbounties are also readily available in different aspects of the Zcoin project.

Final Thoughts

The premier minds behind Zcoin is targeting a privacy-crypto space. More and better innovations are eyed to roll out in the future. Zcoin creates a value for privacy and it is currently being adopted in the commercial setting.

Investing in Zcoin is beneficial due to the high demand for private cryptocurrencies and its low supply. Investing in this coin will also open an opportunity to produce an income-generating master node.

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