Learn more about ZCoin.
UPDATE 1 February 2021 : This coin now goes under the name Firo Coin. Please go to our page for Firo Coin instead.
When investing in virtual currency, you need to do your research. We provide you with reviews of each world top cryptocurrency out there, so that you can find the best crypto coins to invest in for you. This review of ZCoin consists of three chapters: origin, technology and pros & cons.
The initial release date of Zcoin (also known as Zerocoin) is October 28, 2016. Just like the Bitcoin, Zerocoin is a cryptocurrency that has a decentralized blockchain and allows anonymity and security to the transactions of its users. The technology of ZCoin is very similar to that of the Bitcoin. For instance, the open-source feature of the two is almost the same.
However, the Zerocoin project aims to solve a weakness in Bitcoin, i.e., the lack of privacy assurances. The zerocoin project has the goal of building a cryptocurrency that won’t allow your enemies, friends, or neighbors to see what you buy and for how much you buy that. So if that is something you want, the zerocoin project is likely something for you.
The ZCoin provides anonymity in direct payments between different parties. All of the users can convert Bitcoins into ZCoins and then send these ZCoins to other users. The ZCoins a user owns can be split or merged in any way that conserves the total value. The option of converting ZCoins back into Bitcoins is also there. Moreover, the secure cryptographic techniques used by the Zerocash protocol make sure that the Bitcoins are impossible to trace. This is helpful.
- The ZCoin operates in the Bitcoin network and is implemented as a sequence of extensions to the existing Bitcoin protocol. This refers to the fact that zerocoin can be transferred without taking the help of a central coin issuer or bank.
- The cash systems mostly rely on distributing the work of removing the details of the users amongst a set of parties. The approach works fine as long as all the parties are totally available. In case there are a few of the nodes offline, the “denial of service” issue may arise. When it comes to Zerocoin, the distribution is among all the Bitcoin peers that makes sure that the system remains available even if some of the nodes are compromised.
- Users also have the benefit of making direct payments to each other with an efficient cryptographic protocol that not only hides the origin but also the amount of the payment.
- We have not identified any clear cons with ZCoin.
The developers of the Zerocash Protocol have a plan of making a new altcoin that provides users with the financial privacy like that provided by the credit cards, debit cards, and cash. Therefore, investing in Zercoin can potentially turn out to be very successful for you.