PIVX is a Proof of Stake cryptocurrency forked from DASH that focuses on privacy decentralization and real-world application while adding a some features. The main one being an added privacy protocol called zk-SNARKs or zero-knowledge proofs which is also used in Monero, DASH and zCash. It has an optional feature to send coins privately, fractional amounts or large amounts can be sent directly to a receiving wallet. It is said that PIVX is the only Proof of Stake cryptocurrency (PoS) that has correctly implemented the whole set of requirements set out in the Zerocoin whitepaper.
Launched on 1 Feb 2016, not called PIVX but originally named Darknet (DNET), a rebrand was was after a heavy increase of development and community involvement began to occur. Sitting currently at 101 ranking on coinmarketcap PIVX went from being valued at just a few cents each to a recent high of $15 each. PIVX is the abbreviation for Private Instant Verified Transaction (X).
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ROI (anual) – 7.14% / 5112 days
Masternode Worth – $11,235.33 / 1.74640 BTC
Staking required – 10,000 PIVX
Market cap – $63,795,527
Volume – $408,309.55
Active Masternodes – 1,867
Genesis block – 929d 23h 11m 33s ago / Jan 30 2016 04:10:07
Use case/Working product – Private Instant Verified Transactions
Community/Dev activity – Very high
The zerocoin protocol was designed by OIVX to enable users additional privacy features not offered by the bitcoin network. The PIVX implementation of Zerocoin protocol converts the publicly viewable PIV into anonymous PIV.
When a user want to privately transact with zPIV, it will appear in the receiver wallet like normal PIV without showing the history of the address the PIV originated from.
SwifTX transactions are confirmed and spendable almost instantly. Meaning you don’t need to wait for multiple confirmations to verify a transaction, as it is guaranteed by the network’s masternodes.
Code Base Pos 3.0 Bitcoin Core 0.10.X:
The proof of stake cryptocurrency, based on the 0.10 version or higher Bitcoin codebase. In order to get the most out of staking, users must keep their wallets open at all times, resulting in more consistency in the availability of nodes and a stronger network.
Masternodes earn rewards based on their availability and ability to provide network services. 10,000 PIV is required as collateral for the masternode. Owners of masternodes are able to vote on budget and development proposals. Masternodes are the key components in keeping a fully distributed, safe level of services on the PIVX network. They also give a slightly better level of reward compared to just normal staking.
As well as masternodes and staking normal PIVX coins, holders may stake zPIV coins too. In doing this they will be able to earn even higher rewards. A new block reward system is proposed in which zPIV holders earn 50% higher rewards than holding normal PIVX coins. To earn rewards, users must keep their wallets open 24/7. This was devised as an incentive to help increase the network of nodes that are instantly available.
zPIV for mobile is moving into testing this week, using the first-ever Zerocoin light protocol. With this, light nodes that don't store the entire blockchain can mint/spend zPIV.
PIVX Core developer Furszy (Mobile and Light Wallet) provided a demo of an in-app zPIV mint & spend. pic.twitter.com/Z1YgBtKt81
— PIVX (@_pivx) August 21, 2018
What is the purpose of PivX Masternodes?
PIVX was designed to run as Proof of Stake network being a modified copy of the bitcoin blockchain built to improve the currencies privacy features not included in the bitcoin network.
Masternodes are required for the Proof of Stake system PIVX network to function. They also provide a slightly higher level of rewards as compared to just staking incentivising the ownership of maternodes. The cheaper the masternodes are, the more people can afford them – the more masternodes there are, the safer and more stable the network is. Win-win.
What problems does Zerocoin look to solve?
With public open ledger blockchain networks like bitcoin and ethereum, transactions are easily visible and traceable using block-explorers. This is great for viewing a transaction and tracking its progress but it also means that the information or data of the previous address owner is also visible via your own address once the coins have been sent through the blockchain and arrived your address.
At a first glance it may seem like your address is an anonymous mix of randomised numbers, however when you make a transaction with an address created by an exchange, you generally are required to provide KYC information with identity cards and other verification information. In most cases, this type of transparency may not create any issues but it potentially could become a problem if your coins were once associated with an undesirable history or your address was targeted by thieves.
PIVX decided to address this issue by releasing V3.0.0 core wallet update on 7 October 2017, implementing the well-known protocol named as Zerocoin.
Why does PIVX have an unlimited supply of coins?
Subject to some controversy, PIVX decided to not place a cap on the creation of coins unlike bitcoin with a maximum supply of 21 million coins. The reasons for this is PIVX believe that as a digital currency the supply should increase and be subject to inflation. The banking world call this quantitative easing.
Is there any control over this quantitative easing?
5% per year is how much PIVX will increase the supply. The idea being that people don’t just hold it but instead are incentivised to transact and use it. This inherently will decrease the value slowly like a fiat currency however it takes the profit from that deflation from the hands of centralised institutions (banks) and gives it back to the masternode and wallet holders through POS rewards. This also benefits the community by keeping the price of masternodes from increasing to a point where only the super wealthy may own them.
The cheaper the masternodes are the more people can afford them – the more masternodes there are the safer and more stable the network is.
Are zPIV & PIVX two different coins?
No, zPIV and PIVX are the same currency. The zPIV protocol pools the private transactions on pIVX using zero-knowledge proofs. Basically you can switch your coins from PIVX to zPIV within the wallet as required without needing a second coin or token to run the system. zPIV units can only exist within the wallet they were minted in. When you send PIV units they arrive as regular PIV at the destination. The difference is the PIV units that arrive do not have any direct connection to the wallet they came from as zPIV.
So what is zPIV?
zPIV is where PIVX is considered as a unit of PIV and “z” is the prefix for the Zerocoin protocol being used on that unit. zPIV has a coin mixing service that uses zero knowledge proofs to provide the link between receiver and sender giving 100% untractability and privacy.
Every coin sent using zPIV is 100% fungible; there is no history attached to it and this brings a much higher level of security preventing your address from being targeted by potential thieves.
To encrypt the PIV – zPIV accumulators that negate the requirement for a developer trusted setup, RSA-2048 challenge generated keys are used so that no individual knows the factors. All going to plan everyone’s privacy is totally ensured with zPIV.
How do you swap PIVX to zPIV?
zPIV units are created through a minting process. Users opens their PIVX wallet, navigate to the zPIV minting tab, select the amount of PIVX units they wish to convert to zPIV and click the button. This costs a very small transaction fee.
Minting is competed in just a few moments. Once complete the wallet will show the amount of zPIV you minted. zPIV is different from PIVX in that it can only be created in specific quantities, like physical cash.
E.g. you can’t own or send 0.25 zPIV. You can only use 1, 2, 5, 10, 50, etc. This restriction is to ensure any potential attackers are not able to find the history of the address or origin of the coins, which hugely lowers the risk of being exploited by thieves.
Coin Supply/Block rewards
PIVX allows for 2.6 million PIVX tokens to be minted per year forever, 5 PIV are created every minute (minting).
These PIV are then divided into three parts. 10% (0.5 PIV) goes into a pool that is used to fund the growth of PIVX. The Masternodes can vote on which projects the 10% should be spent on and community members participated in the project claim the PIV.
The other 90% (4.5 PIV) is divided between the Masternodes and the Stakers.
The PIVX team have been doing a great job of using the allocated budget for the growth of the currency. Including but not limited too technical development, marketing, advertising, and other community outreach initiatives.
PIVX has many significant new features planned for this year and as a very well funded organisation, make sure you watch this space to see what the team has in store for us next.
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