What is Zcoin?
Zcoin (XZC) is an open source, decentralized privacy coin that focuses on achieving privacy and anonymity on the blockchain. It pioneered the use of the Zerocoin protocol that utilizes zero-knowledge proofs to provide transaction privacy. It also focuses on fair distribution and decentralized security. The team developed the use of Merkle Tree proofs to limit the gap between specialized miners and widely available CPUs/GPUs. To prevent transactions from being tied to an IP address, Zcoin was also the first project to implement Dandelion++ routing on its mainnet. In November 2018, the world’s first large scale political blockchain election was held on Zcoin’s blockchain to elect the Thai Democrat Party’s leader; with over 127,000 votes cast.
How does it work?
To achieve privacy and anonymity on the blockchain, Zcoin uses zero-knowledge proofs via the Zerocoin protocol. Unlike other privacy protocols, such as Cryptonote or Mimblewimble which hide transactions with decoys, in Zcoin, zero-knowledge proofs are used to completely break the connections between transactions while at the same time keeping the integrity of the ledger. Dandelion++ bounces your transaction secretly over several nodes before broadcasting it to the public, protecting the origin of your transaction.
What does it aim to solve?
Privacy is the right to choose what to reveal to the world and financial information is one of the most intimate details of an individual. Despite this, blockchains by default record all transactions transparently to the public and are permanently available for anyone to analyze. This erodes fungibility, an essential property of free commerce and sound money. Zcoin uses zero-knowledge proofs via the Zerocoin protocol to change that.
What are the features of Zcoin?
Private transactions via Zerocoin that breaks the relationships of transactions on the blockchain. MTP, an ASIC resistant mining algorithm to promote fair distribution. Dandelion++ that protects your IP address from being tied to a transaction Znodes. Incentivized infrastructure to maintain a robust and high performance network.