What is Zcoin?
Zcoin (XZC) is a privacy focused cryptocurrency which utilizes zero knowledge proofs via the Sigma Protocol (formerly Zerocoin protocol) to make transactions anonymous. While many privacy coins exist with various privacy solutions, Zcoin differs from the rest in that it doesn’t obfuscate payment trails but rather destroys it.
In simple terms, Zcoin allows holders to “mint” fresh coins with no transaction history by destroying an equivalent amount of coins they previously held.
This, along with Zcoin’s many other technologies, allows for better transaction privacy.
What are Zcoin’s feature?
1. Sigma Protocol - Zcoin’s cryptographic anonymity approach is relatively less resource intensive and time consuming whilst eliminating a “Trusted Setup”.
2. Dandelion - Unlike non-Privacy coins, the Zcoin network conceals your IP address when making a transaction on the network.
2. Merkle Tree Proof (MTP) - Zcoin’s mining algorithm is designed to be ASIC and botnet resistant while still maintaining a low entry barrier for miners.
How does Zcoin compare to other Privacy Coins?
1. Zcoin’s anonymity set no longer requires a “Trusted Setup”, which refers to a parameter generation event much like the Zcash Ceremony.
2. Potentially higher anonymity set with an upcoming upgrade (Lelantus Protocol)
3. With MTP, Zcoin’s mining is ASIC resistant and botnet resistant, whilst still fairly affordable to mine for mining enthusiasts.
Zcoin was an implementation of the Zerocoin protocol, which was conceived in a 2014 paper that was initially intended for the Bitcoin Protocol. The development team went on to continue improving Zcoin by creating the Sigma protocol to replace the Zerocoin protocol, with the aim to finally transition Zcoin to the Lelantus Protocol, which offers much greater anonymity and privacy for the network.