Zcoin, also known spil XZC or Zerocoin, is a cryptocurrency that aims to facilitate private financial transactions. Find out how it works today te our Zcoin review.
What Is Zcoin?
Zcoin is an implementation of the ZeroCoin Protocol, designed to be the world’s most private cryptocurrency protocol. One of the key innovations of the ZeroCoin Protocol is its use of Zero Skill Proofs, which assure finish financial privacy anonymity.
Many people believe bitcoin is an anonymous digital currency. However, bitcoin is one of the least private digital currencies available online today. The transactions are broadcasted on a public ledger. Anyone can see your bitcoin address, your transaction history, and the value of your wallet. All it takes is one connection inbetween your bitcoin address and your individual information, and anyone can use the public ledger to spy on your funds.
That’s where Zcoin, released ter October 2016, sees an chance for improvement. Zcoin improves the privacy of bitcoin’s protocol.
With that te mind, let’s take a closer look at how Zcoin works.
How Does Zcoin Work?
Zcoin improves the privacy of bitcoin’s protocol te the following core ways:
Minting: Zcoin uses ZeroCoin technology that permits users to “mint” a coin found on the public ledger into a private coin.
Spending: When you need to spend your minted coin, you don’t need to expose your identity. The possessor of a minted Zcoin does not need to be exposed to finish a transaction.
Repeat: The process of minting and spending a coin can be finished spil many times spil you want, ensuring accomplish privacy.
The foundation of Zcoin relies on Zero Skill Proofs. Zero Skill Proof is a method te which a person can prove to another person that a given statement is true without conveying any information bijzonder from the fact that the statement is true. Obviously, that sounds contradictory. However, the ZeroCoin Protocol is based on this concept.
Basically, Zcoin uses zero skill proofs by making a zero skill cryptographic statement. When someone receives a Zerocoin digital token, that person only knows that “X” amount of money wasgoed sent to their wallet. There’s no other information linked to the transaction. So unlike bitcoin, there’s no wallet address or other information exchanged inbetween the sender and receiver, or even any linked transaction history. With Zerocoin, transactional history is totally liquidated.
Another key technological feature behind Zcoin is the Merkle Tree Proof of Work (MTP). MTP is a mining algorithm that emphasizes high spectacle, high security, and egalitarian computing. MTP wasgoed introduced te 2016 to create a more privacy-centric cryptocurrency ecosystem. Some of the benefits of MTP include a diminished capability for botnets to mine, and an enlargened capability for legitimate CPUs to perform proof of work.
You know how the bitcoin community is frequently accused of being run by a few major mining pools? MTP is often proposed spil a way to overeenkomst with that problem. It permits a memory hard proof of work to be used while remaining very lightweight and quick for knots and miners to verify.
Zcoin wasgoed the very first cryptocurrency to implement MTP, something they achieved te 2017.
Zerocoin also uses features like Znodes (incentivized knots for Zerocoin processing) and the Sigma Protocol (which permits for trustless setup). The developers expect to develop Sigma Protocol overheen 2017, albeit it could be shoved te 2018. By 2018, they also hope to create a decentralized marketplace where users can trade items or Zcoin without the need for a centralized marketplace or exchange.
About Zcoin Tokens
There will be a total supply of 21 million Zcoins. The tokens will go after the same halving cycle spil bitcoin (every Four years), with 10% of the total Zcoin supply being distributed to the Founders Prize spil time passes. The Founders Prize is given to early investors, developers, and Zcoin community members.
It’s significant to note that Zcoin is not a fork of Zcash. ZeroCoin is the technology, and Zcoin is the coin – similar to how Zerocash is the technology and Zcash is the coin.
There is, however, a connection inbetween the two currencies: Zerocash wasgoed built on Zerocoin’s concept, albeit it wasn’t a fork of the Zerocoin blockchain. Zerocash wasgoed built to address the perceived shortcomings te Zerocoin.
Who’s Behind ZeroCoin?
Zcoin wasgoed proposed by Johns Hopkins University professor Matthew D. Green, along with graduate students Ian Miers and Christina Garman. The team proposed Zcoin spil an extension to the bitcoin protocol, adding true cryptographic anonymity to bitcoin transactions.
The team originally proposed ZeroCoin spil a mixing service built on the bitcoin blockchain. Today, however, it’s a separate blockchain with its own currency. The team eventually launched Zcoin on September 28, 2016 to demonstrate the power of their ZeroCoin Protocol.
Zcoin, or XZC or ZeroCoin, is a cryptocurrency introduced to solve problems with the bitcoin blockchain. The currency has a number of unique features that distinguish it from bitcoin – including anonymity services and zero skill proofs. The currency wasgoed designed to showcase the power of the ZeroCoin Protocol.