Yes, I'm going to talk about a privacy-related currency again! I know you have many different privacy coins. But I wanted to bring Zcoin to the spotlight because this project is snowed under by the rest and other types of projects.
It's not that I like one coin better than the other. But this is about looking at what Zcoin has to offer. And I like to talk about cyber security and privacy.
How Zcoin works
Many cryptocurrency projects offer little to no privacy to their users. This can ensure that certain characteristics of your data may become visible. This is because every currency has an unchanging history. View Bitcoin's ledger here, you can find all the transactions that have ever been done. And you can also see which address they went to and more.
Now, for example, it is also the case that the newly mined Bitcoins do not yet have a transaction history. Therefore, these Bitcoin were often sold more expensive. I don't know if this is still the case. This was because the buyer did not have to worry about his privacy or the history of this Bitcoin.
Because of this, Zcoin has devised a certain way so that you no longer have to worry about your privacy. Zcoin allows you to destroy your coins and retrieve them later without these new coins having a previous transaction history, just like the freshly mined Bitcoin. What happens while destroying these Zcoins, you ask yourself? Well, I'll tell you, the so-called brand and exchange process destroys the bond between the coin and transaction history. Furthermore, the coins are destroyed so that they no longer exist with their history. You can no longer find out where or by whom these coins were received or sent.
Switching back Zcoin is done via a certain certificate that actually says that you as a person have destroyed a certain number of coins. This way you can get back your number of coins that you have destroyed without a transaction history. You can repeat this process every time so that your privacy is guaranteed.
zero knowledge proof
Zero-knowledge proof is a cryptographic method that Zcoin uses. In this way you can say that something is true without having to tell what the details are.
To give an example here, for example, take $ 10 million. Now you can demonstrate through this Zero-knowledge proof method that you own $ 10 million without having to prove that it really is yours and you don't have to reveal the history of the transactions.
As a result, this way of cryptography fits in with the safe use of the blockchain. On a public. blokchain can see everyone from where, how and how many transactions have been made. In other words you can see the whole history of this.
zero knowledge proof ensures that you as a person can simply demonstrate that you have completed a certain transaction without the need to provide more information. On a public blockchain, everyone needs to be able to verify the authenticity of transactions, which is why every transaction is posted so that everyone can see its full history. This keeps the privacy high, but also the coordination of the transactions.
As mentioned earlier, these zero-knowledge proofs enable us to burn coins in order to be able to create new coins afterwards without any transaction history.
Can Zcoin be misused for the bad as a privacy coin?
I'll be honest with you, all privacy coins are used for the bad, but this doesn't mean we have to give up and forget these privacy coins. I believe in a world in which the privacy of its citizens must be protected. But now every nation cannot guarantee that. No matter how strict the laws or how well they are observed. So you should always have a choice to protect your own privacy to the best of your ability. And if that requires a privacy coin, it is.
What does Zcoin have to say about this:
As with any other technology, Zcoin can be used for both good and evil. However, we firmly believe that the net good for Zcoin is much greater than the bad. Throughout history, freedom of trade has been shown to prevent wars, promote prosperity and promote exchange between cultures.
Zcoin was created to help people who have legitimate intentions. These people often also know that such a crypto ledger is a threat to your privacy. And there are already enough ways in this world to be able to do transactions in a way that affects your privacy. So it was once in a while when this could also be done with more privacy.
What is the difference between Zcoin and Zcash?
I can tell you right away that there is no relationship between the two projects. Although some say yes, but this is absolutely false.
They also say that Zcoin is a fork of Zcash, but this is also not true. Read the Zerocoin paper on which Zcoin is based on this to further investigate this. And if you want to do even more research, you can also read the Zerocash paper on which Zcash is based.
Now it is nice to first inform you that both papers have an author who co-wrote both papers. But that is also the only purchase point between these two coins.
How does blockchain tracking software work approximately?
You should see Bitcoin as a social network of transactions. Certain ways to break privacy in social networks are topology analyzed. Similarly, Bitcoin's network could be broken.
For example, by taking a social network like Facebook as an example, it would be possible to use a certain algorithm via the Bitcoin ledger and Facebook to find out who and who carries out certain transactions on the Bitcoin network.
What does the Zcoin website say about this:
There is a relevant research paper that attempted to identify Twitter users using data from Flickr. They took the Twitter data and removed all identifying information about the user, such as name or username. By then looking at the social network topology of the anonymized Twitter data and comparing it to the Flickr data, they discovered that they could identify a third of the Twitter users even though the Twitter data was anonymized. This research also applies to Bitcoin.
- Token ticker: XZC
- The circulating supply: 10,458,042 XZC
- The total number of coins: 21,400,000 XZC
- Utility: Privacy coin
Privacy is a human right but the internet is not and in my opinion thats wrong. Everyone should have free access to the internet from the base.
You can see from this that I am in favor of more privacy than is currently the case. no one needs to know that you are purchasing certain items that can be sensitive to privacy. This could be anything.
But because it is now necessary to make transactions through the bank, people can easily follow these transactions if they want. They can see where and from whom you bought what. And you can often guess what has been bought.
therefore Zcoin also finds a good solution to hide various privacy sensitive information. And this is by destroying your transaction history. It is certainly not enough to meet all the privacy concerns, but it is certainly a start.