ZCoin is a digital currency with a high level of privacy. Its blockchain provides access to transactions – coins can be transferred both openly and anonymously, that is, there are both closed and open transactions.
The ideology underlying the crypt implies the non-interference of anyone in the process of using their savings. Virtual money according to the authors of the development.
Since the crypt is the quantitative composition of the coins here is the same – 21 million.
The presence of open and closed transactions in the blockchain allows each person to decide how to send money. If the open option is chosen, then the process is very similar to the movement of funds in the MTC. In the case of anonymous sending of coins, they are first recreated, hitting the recipient’s address, if it is possible to generate a crypt in the same volume. The electronic wallet supports the ability to work through TOR.
A bit of history
Most of us are used to thinking of the cue ball as a tool for carrying out anonymous financial transactions. But in reality, this is not entirely true. This currency is not able to ensure absolute confidentiality of money transfers and settlements. It already seemed that this problem was unsolvable in principle, but with the advent of Zerokoin technology, a timid hope for its solution appeared again.
Research in this direction has been carried out for a long time. A whole group of cryptographers (Johns Hopkins University) worked on solving the problem. And so, as a result of their long-term efforts, the world was initially a little-noticed startup.
The Zerocoin Electric Coin Company undertook to apply the unique technological solution in practice, as announced by its newly appointed CEO. The company outlined its goal as the development of a digital currency similar to Bitcoin, but with the highest degree of privacy and anonymity, as high as possible with the current development of mathematics.
The advantages of this technological innovation are obvious. If all transactions, without exception, are published in the bitcoin blockchain, and any error can make it possible to calculate the BTC address of the system participant and track the payments made from it, then the Zerocoin blockchain does not provide information about the sender, recipient, or the amount of the transfer. That is, in theory, complete anonymity is achieved.
On the other hand, the developers state that the same zero-knowledge proof can, if necessary, be used to confirm the conduct of monetary transactions (bypassing privacy). This is the so-called “selective disclosure” when data is revealed to the chosen party.
Even though from the very beginning it was clear what a serious competitor the new cryptocurrency would receive in the person of Bitcoin (after all, the audience of the first cryptocurrency at that time already numbered millions of its ardent fans), investment in Zerocoin surpassed all the most daring predictions. Moreover, the investors were very famous people in certain circles, for whom this was not the first investment project in the virtual space.
Development bugs
An unpleasant story happened with the ZCoin cryptocurrency, which was reported on the official blog. According to the authors of the project, a typo in the currency code (just 1 extra character) was the reason that the fraudsters had the opportunity to perform additional expenditure transactions for several weeks and thus stole about 350 thousand coins, which is equivalent to the current exchange rate was about half a million dollars.
The problem was allegedly eliminated, and the unfortunate incident did not in the least damage the anonymity of the cryptocurrency.
Further development
The decentralized mixing service is being developed by the ZCoin team for Ethereum. The goal of the development is to create a version of the Zerocoin protocol that would be compatible with Ethereum and would allow the participants of the system to convert nominally anonymous digital money into truly anonymous tokens.
If everything turns out as the authors declare, then any user will be able to send these tokens to another user, who will convert them back to the original currency and can use them at their discretion, while the data of the true owner will not be disclosed.
The team that developed the ZCoin cryptocurrency continues to work on improving its product and, as part of this process, intends to transfer it to the MTP algorithm. According to the authors, the result of such a step will be more productive mining and faster transactions. Besides, by strengthening the protection against computing on ASICs, it will be possible to create a decentralized distributed network.
