What is ZCoin (XZC)?
Future of XZC Cryptocurrency and know how to buy XZC

#1 - What is Zcoin?

When we talk about cryptocurrencies in general, there's one thing that is often described as a key characteristic: their ability to facilitate anonymous transactions. However, this is a misconception because not even cryptocurrencies like Bitcoin and Ethereum can provide full anonymity of transactions. Zcoin is a cryptocurrency that intends to add more anonymity and privacy in transactions while retaining all the other advantages of cryptocurrencies like Bitcoin. In Zcoin network, users’ coins cannot be used to trace their transaction history, which is not possible with most cryptocurrencies.

Zcoin (XZC): The Basics

  1. Zcoin is a decentralized, digital currency that primarily focuses on the “privacy” and “anonymity” aspects of cryptocurrency transactions. It is the first cryptocurrency that fully implemented Zerocoin protocol.
  2. Zcoin intends to address the privacy risks that are present in Bitcoin transactions by masking the users identities through its innovative technologies. Zcoin can be identified by its ticker “XZC”.

Zcoin Development

  1. In 2013, Matthew D. Green (professor at Johns Hopkins University) and his graduate students, Ian Miers and Christina Garman proposed a cryptographic protocol that would work as Bitcoin’s extension in order to make transactions fully anonymous. In 2016, The protocol was implemented into a fully functional cryptocurrency – Zcoin.
  2. Zcoin was founded by Poramin Insom who also serves as a core developer of the project. Zcoin initially started under a different name, Moneta and first surfaced with the public release of its testnet software on December 18, 2015. The project officially went live on September 28, 2016.

 

#2 - What are the benefits of Zcoin?

Zcoin Technology & Features

Image source: Zcoin blog

  1. Since Zcoin is a Zerocoin based cryptocurrency, it enforces zero-knowledge proof that means users can send and receive coins without disclosing which specific coins belong to them. Under the Zerocoin protocol, every coin goes through a cycle of burning and minting. This cycle ensures that any past history of the coin is erased; thus eliminating any chance of identifying and linking a coin to previous transactions, when spending the coins.
  2. Minting: To anonymise their coins, users are required to burn their Zcoins in order to get Zerocoins for a fee of 0.01 XZC per transaction. These Zerocoins can later be redeemed at the time of spending. So far, users can mint Zerocoins only in predetermined denominations of 1, 10, 25, 50 and 100 because the mined coins numbers--whether random or unique--can easily be used to trace users. Zcoin team has plans for adding 1000 as a denomination.
  3. Spending: When users want to spend their coins, their Zerocoins are converted back to Zcoins after verification by zero-knowledge proofs. The newly minted Zcoins have no previous transaction record linked to them, and users have the liberty to spend the new coins in any denomination.
  4. Mining Algorithm: As of August 2018, Zcoin is using the Lyra2 mining algorithm, which would later be replaced with Merkle Tree Proof (MTP) algorithm. Zcoin claims to be the first cryptocurrency to be implementing MTP as a proof-of-work algorithm. MTP was created by Alex Biryukov and Dmitry Khovratovich as a means to prevent cheater from taking advantage of botnets, GPU, FPGA and ASICS from mounting cheaper attacks. In simple terms, MTP levies a same fee for a single computation on all the computing devices in order to remove disparity between ordinary users and attackers.
  5. Cryptographic Scheme: Zcoin uses the RSA 2048 parameter for its setup, which was generated from the RSA Factoring Challenge 25 years ago. RSA-2048 is the largest among all RSA numbers. The number still remains unsolved and it has been established that RSA-2048 may not be solved for many decades to come. By then, Zcoin is likely to be shifted to another cryptographic system.
  6. Znodes: As any other cryptocurrency, Zcoin also relies on several computers and servers called Znodes, to support the network by verifying transactions. Znodes are entitled for 30% of block rewards. Any user who wishes to be a Znode will need to deposit a collateral of 1000 XZC coins. This is to ensure that Znodes work honestly and efficiently since they have a stake in the coins.

 

#3 - How to buy and store Zcoin (XZC)?

How to Buy Zcoin?

As discussed earlier, Zcoin is a mineable cryptocurrency. Users can obtain XZC coins via Zcoin mining. It can also be acquired by trading on a cryptocurrency exchange.

  1. Zcoin is available for trading on numerous cryptocurrencies exchanges, such as Binance, Upbit, Koinex, Bittrex, CryptoBridge, TDAX, etc.
  2. Bitcoin is the post popular pairing option for Zcoin exchange. Nevertheless, Zcoin can also be obtained by exchanging with other cryptocurrencies and even fiat currencies like USD, INR, and EUR.
  3. If buying Zcoins, users can take advantage of the largest cryptocurrency exchange platform – CoinSwitch. It allows users to trade more than 350 cryptocurrencies with over 45000 possible trading pairs. Users also have access to live price and performance charts of cryptocurrencies. Users can compare Zcoin rates and trade across all available exchanges and all of this is possible without leaving the CoinSwitch.

Zcoin Storage

  1. Zcoin team officially supports two wallets – Zcoin wallet & Electrum Light Wallet. Both wallets are available for Windows, MacOS, and Linux. Zcoin also provide support for a paper wallet.
  2. The team is also working on an Android version wallet called Zed Wallet, which is a fork of the BRD - bitcoin wallet or breadwallet.
  3. Apart from its official wallets, Zcoins can be stored on mobile wallets, such as Coinomi and Edge Wallet.
  4. Zcoin has also added support for hardware wallets like Ledger Nano S and Trezor.

 

#4 - What is the future of Zcoin?

Trend So Far

  1. As of August 2018, Zcoin’s market cap is over $70 million that makes it the 94th largest cryptocurrency in the global cryptocurrency market based on market capitalisation. The maximum supply of XZC coins is set to 21,400,000 coins and as of August 08, 2018, about 5,370,297 XZC coins are circulating in the market.
  2. On October 06, 2016, the Zcoin cryptocurrency began trading on the market for an initial price of $0.367782. Immediately after its launch, Zcoin price increased by nearly 250%. During October 2018, The price reached as high as $8 mark, followed by a decline, which returned the Zcoin near its launch price.
  3. From January 2017, Zcoin price started to recover and this growth trend continued till December with occasional fluctuations. In December 2018, the price received an exponential boost causing it reach its all-time high of $144.96. Since the all-time high, Zcoin has been shedding its price and as of August, 2018, It is floating near $13 price point.

Also Read: Complete Analysis of ZCoin | Live ZCoin (XZC) Price Charts And Predictions

Price Table in USD

Date

Open

High

Low

Close

Volume

Market Cap

Aug 07, 2018

13.67

15.36

13.52

13.86

958,703

73,206,419

May 01, 2018

43.22

44.01

41.08

43.08

1,902,990

201,024,832

Jan 01, 2018

112.68

132.80

109.67

125.44

16,843,000

426,327,488

Sep 01, 2017

14.08

14.52

12.96

14.33

1,409,350

40,761,064

Jun 01, 2017

8.09

8.42

7.02

7.56

1,563,280

17,982,200

Feb 01, 2017

1.73

1.79

1.71

1.72

35,314

1,643,820

Oct 06, 2016

0.367782

0.901188

0.352676

0.901141

1,290

-

Future Trends

1-Year Forecast

3-Year Forecast

5-Year Forecast

$30.774

$82.98

$124.282

In Past, Zcoin has witnessed a rapid price growth and expected to continue the growing in the future. Based on its past and present trends, market analysts forecast it to be a profitable investment for a long-term. By 2023, the price is expected to rise by nearly 833.% over its August 2018 price, which means Zcoin could be standing somewhere near at $124 in five years.

 

#5 - How is Zcoin different from other cryptocurrencies?

  1. Since Zcoin was created to specifically solve the privacy issues that lie in the Bitcoin protocol, it is fairly obvious that both cryptocurrencies will have some differences. Fundamentally, Zcoin’s transaction mechanism does not allow transaction history to be traced through coins, which is considered a major feature lacking with Bitcoin.
  2. Both Zcoin and Bitcoin use proof-of-work (PoW) consensus; however, both cryptocurrencies rely on different algorithms. Bitcoin’s PoW is powered by SHA-256 mining algorithm while in Zcoin, the consensus is reached by using Lyra2 algorithm. Zcoin will soon be replacing Lyra2 algorithm with MTP (Merkle Tree Proof) algorithm, which is in testnet, as of August 2018.
  3. People often identify or confuse Zcoin as a fork of ZCash but in reality, both cryptocurrencies are based on two different protocols. Zcoin is an implementation of the Zerocoin protocol, which was created as an extension to the Bitcoin protocol, whereas ZCash is derived from the Zerocash protocol, which itself is a fork of the Zerocoin protocol.

 

#6 - Should you invest in Zcoin?

Zcoin 2018 Roadmap, Image source: Zcoin.io

  1. In a world with continuously growing privacy concerns, Zcoin seems like a viable solution for achieving privacy and anonymity in cryptocurrency transactions. However, Zcoin also faces challenges from malicious entities that aim to bypass the security deployed by cryptocurrencies.
  2. Another point to note, is that Zcoin is not the only cryptocurrencies that promises anonymous transactions. There are other cryptocurrencies that pose a tough competition for Zcoin, such as Monero, Zcash, PIVX, Komodo, etc. Some of these cryptocurrencies are actually performing better than Zcoin in the market.
  3. Every cryptocurrencies has its own strength and weaknesses, and so does Zcoin. It benefits from a skilled team and a loyal community. The development team has been improving Zcoin and adding features in a timely manner. A detailed look at the roadmap indicates that many innovative and promising features are coming in the future.
  4. Despite a considerable competition, Zcoin has been able to maintain its position among the top 100 cryptocurrencies by market capitalisation in the market. In past, it has allowed some high return on investment and some analysts are hopeful towards its ability to return profit in a long-term investment.
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