ZCoin (XZC) make effective use of the Zerocoin Protocol, it is an open source decentralized cryptocurrency that aims on allowing complete privacy and anonymity for its users while completing transactions.
Our Joke Name
ZCoin = Blocked By Bitcoin
Link to the main website
Link to price/market cap
Exchange Ticker (XZC)
Circulating Supply (4.7 Million)
Total Supply (21 Million)
Block time (10 Minutes)
Market Cap Ranking
ZCoin (XZC) make effective use of the Zerocoin Protocol, it is an open source decentralized cryptocurrency that aims on allowing complete privacy and anonymity for its users while completing transactions. The protocol was originally supposed to be an extension of the Bitcoin Network, which allows you to send coins with no transaction history but instead now is used with ZCoin and Zerocoin Protocol. The white paper can be viewed at https://bit.ly/1ivT9Uq (15 Pages)
- How Does It Work?
- Zero Knowledge Proofs
How Does It Work?
ZCoin improves the privacy of Bitcoins Protocol by Minting, Spending, and Repeat. ZCoin uses ZeroCoin Protocol technology that allows users to “mint” a coin found on public ledger into a private coin with ease. When a user needs to spend their “Minted ZCoin” you don’t need to reveal your identity to complete the transaction however, you can only mint in denominations of 1, 10, 25, 50 and 100. The process of being able to “Mint” and “Spend” a coin can be completed continuously allowing complete privacy which means you can send ZCoin as a form of payment to anyone with not transaction history. Zcoin is the first full execution of the Zerocoin Protocol, which authorizes users to have absolute privacy.
Zero Knowledge Proofs
To understand how Zerocoin allows complete anonymity, you first need to understand zero-knowledge proofs. An example of a zero-knowledge proof would be proving you know your Facebook password to a friend without telling it to them, by simply logging in. Basically, for Zcoin, you need to show proof that you can send Zerocoin without sending information that it was your Zcoins that were burned for them. Zerocoin uses zero-knowledge proof in order to maintain a high level of anonymity that it is known for.
ZCoin currently uses the Lyra2z algorithm for proof of work. They plan in the near future to change to the Tree proof of work algorithm. The Tree Proof of Work has a memory algorithm hard that prevents centralized mining fields and botnets from infecting computers which is a major problem we currently face in this industry. The goal is basically to allow for CPU mining however, memory algorithms usually require a lot of memory in order to verify nodes that will confirm transactions which can be expensive to the users and makes them more common to a Denial of Service attack (DDOS) which means multiple clients are sent to flood the person’s IP address causing the network to stress in short no internet connection.
Znodes are nodes on the Zcoin network that are able to run a full copy of the blockchain and to process Zerocoin transactions. The nodes earn a share of 30% of the newly mined Coins allowing users to make a small passive income on the side. However, running a Znode will require staking 1,000 Zcoins this shows that you are highly invested in Zcoin. If you are highly invested, you’ll be able to keep the network running honestly and with consistent uptime.
An area where ZCoin lacks is there aren’t many options available to store your ZCoin. However, they do have their own Desktop GUI wallet for Windows, LINUX, and MACOS, but they don’t have any web or mobile wallets.
Overall ZCoin and Zerocoin Protocol are quite useful in this industry however, there is already anonymous coins such as Monero which is quite popular amongst the community. This doesn’t mean the coin is useless it could be used to help improve the Bitcoin Network which was its original purpose. Even though Bitcoin rejected Zerocoin protocol, if ZCoin is able to thrive off this we may see it come to the Bitcoin Network in the future, which also could mean ZCoin to gain attention and possibly rise but who knows ZCoin is still in early progress guess time will tell if this is worth the risk.
- Other similar coins
- No backing (asset, profits, commodity)