Review on Zcoin by Fanuel PORPORTY
Zcoin, Anonymous digital currency
ZCoin (XZC) is a cryptocurrency based on the consensus of Proof-of-Work and focused on privacy. It was founded by Poranim Insom who is also the main developer of the project. ZCoin is based on the ZeroCoin protocol which guarantees the anonymity of financial exchanges thanks to ZK-Snarks technology. The objective of this crypto is to overcome the security flaws and shortcomings of Bitcoin on the anonymization of transactions by improving data encryption.
At present, most of the existing cryptocurrencies, including Bitcoin, are not really anonymous since all transactions are recorded in the blockchain and available publicly. The identity of the owner can therefore easily be found, however, the anonymity of exchanges between users is one of the founding pillars of electronic and cryptographic currencies. ZCoin therefore proposes to correct these problems by using advanced encryption techniques which prevent payments from being traced by anyone. The token XZC is based on a protocol called Zero-Knowledge proof allowing anonymous transactions and tokens exchanged. The token history is deleted at the time of the transaction, making it untraceable. The user proves that he has an XZC token at the time of the transaction, this token is then burned and gives way to a new token with a blank history which will be used during the transaction. There is no link between the burned token and the newly struck token, so it is impossible to link a token to a user.
Pros
- Expenses: When users want to spend their tokens, their Zerocoins are converted into Zcoins after verification by proofs of zero-knowledge. Newly created Zcoins have no previous transaction records linked to them, and users are free to spend the new tokens in any denomination.
- Zcoin intends to tackle the privacy risks of Bitcoin transactions by masking the identity of users with its innovative technologies. Zcoin can be identified by its ticker “XZC”.
- Under the Zerocoin protocol, each token goes through a burn and creation cycle. This cycle allows you to erase any history of the token, eliminating any possibility of identifying and linking a token to previous transactions, during transfers.
- Znodes: Like any other cryptocurrency, Zcoin also relies on several computers and servers called Znodes, to support the network by verifying transactions. Znodes are entitled to 30% of the rewards per block. Any user who wishes to be a Znode must deposit a guarantee of 1000 XZC parts. This is to make sure the Znodes work honestly and efficiently since they have an interest in the parts.
Cons
- Another point to note is that Zcoin is not the only cryptocurrency that promises anonymous transactions. There are other cryptocurrencies that are stiff competition for Zcoin, such as Monero, Zcash, PIVX, Komodo, etc. Some of these cryptocurrencies are actually outperforming Zcoin on the market.
- In a world where privacy concerns continue to grow, Zcoin seems to be a viable solution for ensuring privacy and anonymity in crypto transactions.
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Comments (1)
January 21, 2020
If there is a privacy scheme that relies on someone else to protect your privacy, this is usually a poor privacy scheme.
