Zcoin Review: Introduction to XZC
What is Zcoin?
Zcoin (XZC) is a decentralized cryptocurrency based on open-source code, which makes use of zero-knowledge cryptographic proofs to allow its users to transact anonymously.
The Zerocoin protocol was originally intended to be an extension of Bitcoin, but it was later modified by Vertcoin (VTC) Founder Poramin Insom which resulted in the creation of Zcoin.
Zcoin transactions are recorded in a public ledger, just like with Bitcoin. But the difference here is that the Zerocoin protocol destroys the Zcoins you sent to mint a Zerocoin. Zerocoins are coins with no transaction history and, when you spend them, they are converted back into Zcoins. This system prevents anyone from tracking the Zerocoins, which in turn enables its users to remain anonymous.
Sending a private transaction with Zcoin involves selecting the number of coins you want to mint. This will trigger the cryptographic burn of your old coins, which means that no one else can ever use them again or have access to the history.
Zcoin’s decentralized network consists of a group of individual nodes, which are known as Znodes. A full copy of the Zcoin blockchain is run by each Znode that processes new transactions by using 30 percent out of all the mined XZC.
In order to be a Znode operator, you have to stake 1000 XZC. This stake system will give incentive to operators to run the network and keep it running due to the forced stake.
Zcoin switched from its Lyra2z algorithm to a Merkle Tree proof of work algorithm. The MTP algorithm, which has been implemented, requires more memory to process blocks, which means that ASIC rigs cannot solve the equations any faster than a home computer. The foundation is strictly against ASIC use, as it can centralize a network and lead to a 51 percent attack. However, even if you add more CPU cores, you can increase your GPU memory, but this is not a very good investment, as it is very expensive.
Zcoin relies heavily on RSA cryptography, although there are possible risks with this architecture when it’s used to keep user transactions secure.
SHA and AES are symmetric encryption, which means that they require only one key to be decrypted. RSA, on the contrary, is asymmetric, which means that its encryption uses a public key and its decryption requires a private key.
Quantum computing can theoretically crack the RSA method, but until that happens, Zcoin is safe.
Minting and Spending
In order to create new Zerocoins, you will have to select the number of coins you’d like to mint and pay a fee of 0.01 Zcoins (XZC).
You can increase your anonymity by opting to mine a predetermined amount of coins. You will then have to wait about 70 minutes before sending the Zerocoins, so it’s better if you mint in advance. After clicking on spend, your wallet should receive the new Zerocoins with no transaction history.
The total supply of Zcoins is set at 21,400,000 XZC. At the time of writing, there are 6,890,913 XZC in circulation.
The block creation time for Zcoin is set at 10 minutes, which will generate a reward consisting of 50 coins per block. This blocks will have, in time, like with BTC blocks. The coin is currently trading at a price of $5.32 USD, with a market cap of $36,650,269 USD, which gives it a rank of 95 on CoinMarketCap.
Where can you buy Zcoin?
XZC is supported on a number of cryptocurrency exchanges, including CHAOEX, Binance, Bittrex, Trade Satoshi, CoinEx, UPbit, Koinex, and Huobi Global. The daily trading volume for XZC is around $557,179 USD, and the most trading pairs are with BTC, but there are some which trade the coin against ETH, XRP, DOGE, USDT, and fiat currencies like USD, EUR, PLN, and INR.
Where can you keep XZC?
There is an official GUI desktop wallet for Zcoin storage, which features built-in mint and spending functionalities. The wallet can be used on Windows, macOS, Linux, iOS, and Android.
Coinomi is also a third-party wallet which can be used on mobile devices supporting a variety of cryptocurrencies. The only web wallet available at the moment is Electrum Light Wallet.
Zcoin is another privacy-focused coin which uses the Zerocoin protocol, but its adoption of the MTP algorithm makes it ASIC resistant, which does come with a set of advantages and disadvantages.
Featured image: coindiary.net