How To Use Zerocoin Classic
There is little contention about the fact that Zcoin Classic using the Zerocoin Protocol offers one of the best anonymity solutions for Bitcoin Core based coins. This mechanism in effect cuts the link between the old coin and the new coin cleanly and the anonymity sets of more than 1,000 coins is more than what many of the privacy coins out there currently offers.
An easy way to understand how Zerocoin works is to think of the normal Zcoin Classic as cash and the Zerocoin Protocol as the vending machine. This is not a normal vending machine that sells Coke, rather, this vending machine would exchange an old coin for a new coin. We can also safely assume that all the old coins will never be put back in to circulation and that the machine only spits out new coins. It has another restrictions as well, it can only give you back the coin of the same denomination when you choose to redeem it. This is a fantastic service for those who are allergic to dirty coins and want a new shiny one to use.
This is how Zerocoin works at the most basic explanation level
1. The base coin level where it is as what a normal Bitcoin would look like and represented as an UTXO or Unspent Transaction Output in a particular wallet address. This is complete visible to anyone utilising a Blockchain Explorer and similar to revealing all your bank account transfer history and balance to the public internet.
2. The second layer where the zerocoin is used to describe the state of the coin when it is inserted into the vending machine. It can be imagined as denomination in an account which the vending machine keeps. It still belongs to you but you cannot use it until you redeem a new coin from the machine.
3. Now for the final step, when you choose to finally redeem your new shiny coin from the magic vending machine, a brand new baby coin without any history is born and the machine notes that it has been redeemed. You have the option to send this to a random address controlled by yourself or you can choose to send it to an existing address where either you or someone you choose as recipient can redeem the coin.
The magic of Zerocoin has been performed and you can decide what to do with the brand new coin with the confidence that it will not be traced back to yourself. The caveat here is of course, if you choose to send the coins to an address that is known to be linked to you, then the anonymity is compromised.
Below are the steps
1. Download ZCC wallet and buy some or mine some ZCC
2. In the wallet, on the top bar find the Zerocoin tab in your wallet and clickon Mint and while selecting the
Denomination of Zerocoins you want to Mint. A standard fee of 0.01 ZCC per mint
3. Choose your denominations of 1, 10, 25, 50 and 100 ZCC. You will need about an hour before your can redeem your coins.
4. Redeem or Spend transaction to convert back to usable ZCC. Remember to choose the same denomination as those you have before hitting the spend button. If you mint 50 and try to spend 1, it doesn’t work. You must mint 50 and spend 50. Think of it as physical coins of different denominations.
The Best Way To Use
As the base coin ZCC is same as Bitcoin and your wallet address is visible to public. We recommend that our users make full use of ZCC Zerocoin capability and that means we encourage our users to keep their coins in Zerocoin or in the vending machine. This offers our users full protection from the prying eyes of the public.
You can mint as you need and always remember to change addresses. ZCC has HD or Highly Deterministic wallets enabled so that means it will create new wallet addresses for you. You will still have control of the private key.
Always enable TOR in the little check box at the bottom of your ZCC Qt wallet. This will give you IP anonymity as well which increases your overall level of protection from prying eyes or listening nodes.
Remember that ZCC Zerocoin code is a hardened and reliable version of the original Zcoin so be confident and know your ZCC is safe. Privacy is more than just technology, develop good habits and backup your wallet!