You might already have heard about Zcoin. This privacy-entric cryptocurrency is developed from the Zerocoin protocol. Its primary purpose is to enhance the user’s protection when carrying out transactions. The encryption helps in concealing the details of the transaction, thus providing a larger anonymity set.
Mixers or Tumblers provide privacy by intermingling the link between transactions. These processes are known as coin joining or coin shuffling since they are gathered from different sources to be mixed. The process creates obfuscation which is similar to the concept of shuffling a deck of cards.
The shuffled coins from different transactions will provide anonymity, but the same amount of coins will be returned that is equivalent to the number of coins they put in. Mixers require to be online to carry out its shuffling purpose successfully.
Zcoin doesn’t need any mixer or ring signatures to provide privacy to the transactions. The Zerocoin protocol makes it possible to bypass the above operations.
Unlimited Anonymity Set
The process of minting and spending individual burns up a different batch of coins categorized in specific denominations to mint coins. You can use these Zerocoins in a spend transaction so you can convert it back to a base coin. These coins record no transaction history like brand new coins. The entire process makes the coins anonymous.
Other cryptocurrencies have limited anonymity set since it depends on the number of people you mix. Zcoin depends on an increasing amount that can reach even thousands. This level of the protocol makes Zcoin as an excellent privacy coin in its line.
Auditability of Supply
The good thing about Zcoin is that it has an auditable supply which is tested over time. This feature allows forged coins to be detected. Remember, forging coins can only occur if the setup is broken or there will be a flaw in the process of cryptography. The experimental setup in Zcash creates the most controversy with this coin.
Use of a Trusted Encryption Process
When it comes to a trusted set up, nothing beats Zcoin since it has initial parameters from the RSA Factoring Challenge. It ensures that the parameters will be destroyed with the utmost care. Zcoin’s implementation of Sigma protocol eliminates the trusted set up.
Are you still having second thoughts on whether you should use Zcoin or not? Well, this coin is using the most advanced technologies in providing privacy disallowing leakage of information. Networks will surely benefit from Zcoins ensured security and preserved privacy.