ZenCoin, high privacy, and security for every transaction!

6 min readJun 12, 2018

<ZENCOIN MISSION>

#The PROBLEM with the crypto currency is slow transaction process, expensive transaction fees, and no privacy within transactions. Moreover, there is unecho friendly mining using high electricty hardwares and mining hardwares are too expensive. The coin is not effective in long terms of usability and the profitability.

#The ZenCoin Developers came up with ideas to solve these problems. ZenCoin provides high privacy and security for every transaction using ZeroCoin protocol — a lightning fast transaction with low transaction fees that are less than 0.001$ worldwide. It uses proof of stake scrypt algorithm to secure the blockchain network and earn 30% APR of coin while holding. It is also called Proof of Stake Mining, payment gateways for online businesses, multiplatform wallets for local merchants. It creates highly demanded cryptocurrency platforms where you can use the ZenCoin.

#ZenCoin was released on May 22, 2018 which is the bitcoin pizza day without ICO or presale, announced with 22 blocks that are mined to secure the premine coin which is 150,000,000M 0.47% of the total supply, the last block for proof of work at 10,000 blocks and now it’s Pure Proof of Stake. ZenCoin is also open source and decentralized, meaning no one can control.

<SPECIFICATION>

Coin Supply: 21,000,000,000 *Billion Premine amount: 150,000,000 M (0.7143%) *Proof of Stake APR: 30% *Minimum stake age: 8 Hrs. *Maximum stake age: Unlimited *Coinbase maturity: 20 Blocks *Target spacing: 60 Sec *Confirmations: 6 Blocks *RPC port: 38804 *P2P port: 38803 *Proof of Work: Blocks 10,000 Block Reward 1,000

<ZEROCOIN PROTOCOL>

#The Zerocoin protocol was originally proposed by John Hopkins University professor Matthew D. Green and graduate students Ian Miers and Christina Garman as an extension to the bitcoin protocol that would add true cryptographic anonymity to bitcoin transactions. This is achieved by the introduction of a separate mixing service stored within the blockchain. Though originally proposed for use with the bitcoin network, Zerocoin can be integrated into any cryptocurrency.

#Traditional cryptocurrencies provide privacy through pseudonymity, meaning that addresses are not connected to any personal details. Unfortunately, this still allows for the possibility that sets of transactions, or public addresses, can be linked to a specific individual. If that individual’s identity can be found, they lose their anonymity. Depending on the application in use, the ability to link multiple transactions or addresses to one individual alone can cause issues for that person.

#With Zerocoin, user’s coins are pooled into a mixing set and redeemed as needed using a zero-knowledge proof. The zero-knowledge proof enables a user to prove to another user that a transaction is true without publicly providing any information aside from the fact that the ‘money’ was sent and received.

#This allows for transactions to be verified as valid and take place without providing the other party with other information such as wallet balance, other transactions from the user etc.

#Zerocoin grants users’ total privacy and renders every end-to-end transaction entirely untraceable. This means that nobody can know the details of your personal transactions or your total wallet balance. It is not possible to trace the history of any given transaction, so nobody can data mine and recover any information to identify patterns and users in the transactions. Allowing users to hide their wallet balance prevents them from being targeted by those with bad intentions.

<A PROOF OF STAKE>

#The proof of stake was created as an alternative to the proof of work (PoW), to tackle inherent issues in the latter. When a transaction is initiated, the transaction data is fitted into a block with a maximum capacity of 1 megabyte, and then duplicated across multiple computers or nodes on the network. The nodes are the administrative body of the blockchain and verify the legitimacy of the transactions in each block. To carry out the verification step, the nodes or miners would need to solve a computational puzzle, known as the proof of work problem. The first miner to decrypt each block transaction problem gets rewarded with coin. Once a block of transactions has been verified, it is added to the blockchain, a public transparent ledger.

#Mining requires a great deal of computing power to run different cryptographic calculations to unlock the computational challenges. The computing power translates into a high amount of electricity and power needed for the proof of work. In 2015, it was estimated that one Bitcoin transaction required the amount of electricity needed to power up 1.57 American households per day. To foot the electricity bill, miners would usually sell their awarded coins for fiat money, which would lead to a downward movement in the price of the cryptocurrency.

#The proof of stake (PoS) seeks to address this issue by attributing mining power to the proportion of coins held by a miner. This way, instead of utilizing energy to answer PoW puzzles, a PoS miner is limited to mining a percentage of transactions that is reflective of his or her ownership stake. For instance, a miner who owns 3% of the Bitcoin available can theoretically mine only 3% of the blocks.

#Bitcoin uses a PoW system and as such is susceptible to a potential Tragedy of Commons. The tragedy of Commons refers to a future point in time when there will be fewer bitcoin miners available due to little to no block reward from mining. The only fees that will be earned will come from transaction fees which will also diminish over time as users opt to pay lower fees for their transactions. With fewer miners than required mining for coins, the network becomes more vulnerable to a 51% attack. A 51% attack is when a miner or mining pool controls 51% of the computati onal power of the network and creates fraudulent blocks of transactions for himself, while invalidating the transactions of others in the network.

#In addition to Bitcoin, Litecoin (LTC) also uses the PoW method. Nxt (NXT) is an example of a cryptocoin that uses the PoS method. Some coins like Peercoin (PPC) use a mixed system where both methods are incorporated. As of May 2017, Ethereum (ETH) is in the process of completely switching from a PoW to a PoS system.

<PREMINE COIN DISTRIBUTION>

<THE ROADMAP>

*Announcement; *Social Media; *Website; *Windows/Linux Wallet; *Mining Pool *Block Explorer; *Airdrop and Bounties; *Community Building; *Whitepaper; *RasPi and Mac Wallet; *More Nodes; *Faucet; *Stake Address or Stake Pool; *Video Tutorials; *Marketing Push; *Exchange Listing.