When it comes to privacy in the vast realm of digital currencies, non-traceable software is a big deal. On September 28, ZCoin will launch the first cryptocurrency that utilizes the Zerocoin protocol, which promises full anonymity on the blockchain.
Also read: OpenBazaar 2.0 Now Running on Tor Network
A Cryptocurrency Using Zero-Knowledge Cryptographic Proofs Is Coming Soon
The popularity of anonymous cryptocurrencies is on the rise. The necessity of privacy has become more evident with the advent of multiple blockchain tracking software startups. ZCoin, created by Poramin Insom and Gary Le, claim to enable complete privacy across its distributed ledger. The blockchain amplifies anonymity by using Zero-Knowledge cryptographic proofs.
Unlike Bitcoin, ZCoin reportedly obfuscates all data related to both senders and recipients. When the protocol launches, users will be able to run their wallets on the ZCoin network. The creators say anyone will be able to mine ZCoins, both securing the network and earning cryptocurrency. At the moment, developers say it will be a lot simpler compiling over Linux distribution.
Gary Le spoke with Bitcoin.com and gave us a glimpse at this upcoming release. Le explains how the Zerocoin Protocol is different from all previous approaches, offering a level of privacy not found in any other cryptocurrency.
There has been a lot of anticipation in the Bitcoin community for a Zero-Knowledge cryptocurrency, since the invention of the Zerocoin Protocol in 2013. We are glad to finally bring this exciting innovation into the real world.
ZCoin Protocol Offers a Level of Privacy Unseen Today
Many cryptocurrencies that claim to provide anonymity, but most of them are no more than tumbling methods. Other concepts rely on heuristic approximations of the threat model. However, when it comes down to true anonymity, blockchain crawlers and third parties can still track transaction history.
With ZCoin, Le says, all the data tethered to the sender or recipient is entirely unattainable. The Zerocoin protocol’s threat model does not need to rely on significant assumptions. The developer explains, “anyone is able to send private financial transactions with ease, without worrying about a more complicated threat model.”
ZCoin operates on the Bitcoin codebase, but modifies the protocol. Le details how the change adds private transactions through powerful cryptography. This “Zero-Knowledge proofs” protocol has received praise from developers worldwide because it conceals sensitive information.
While discussing the software with Bitcoin.com the ZCoin developers state:
An often used example demonstrating the power of Zero-Knowledge proofs is Yao’s millionaire problem. The problem discusses two millionaires, Alice and Bob, who are interested in knowing which of them is richer without revealing their actual wealth. With Zero-Knowledge proofs, one can in fact create a protocol that solves this problem.
Developers Focused on Bringing True Anonymity to Cryptocurrency
Gary Le and Poramin Insom have participated in the cryptocurrency community for quite some time. Le currently has a fellowship with the Thiel Foundation, a student fellowship program funded by Facebook investor and billionaire Peter Thiel. Additionally, Le invented a p2p atomic cross-chain protocol for Bitcoin-denominated altcoin options. The team has secured funding from Theil Fellowship grants, the Startup Chile, and investors such as Bitcoin.com owner Roger Ver.
Back in December the team created a testnet for ZCoin and allowed participants to try the network and give feedback. The developers are currently inviting cryptocurrency supporters to participate in their Slack. The team says they will be there for questions, support, and hope to provide the blockChain community a truly private digital asset.
What do you think about the ZCoin launch? Let us know in the comments below.
Editor’s Note 9/19/16: For further clarification, Zcoin is not the same project as Zcash. Both aim to implement the Zero protocol. Zcoin is a rebrand of the Moneta Project.
Source: Press Release
Images via Shutterstock, Johns Hopkins University, ZCoin Website
Disclaimer: Bitcoin.com owner Roger Ver is invested in ZCoin.
Purchase Bitcoin without visiting a cryptocurrency exchange. Buy BTC and BCH here.