Warning, the following information is based on whitepaper and speculation, please use responsibly
zCoin, zCoin, zCoin. My trading friends will absolutely not shut up about this.
Which is pretty crazy because these are friends with 500k-1m + cryptofolios.
So naturally, I set out to find out what the hell is zCoin and why should we care. I mean, hell! Altcoins are made every day. Even bitcoin has forked over into altcoins like bitcoincash. Why should we care about this.. zCoin?
After doing some research and asking around. I realized that zCoin is an altcoin that is actually very unique from every other cryptocurrency.
In fact. There may not be a safer more profitable coin out there at the time of writing this.
I'll be breaking this down.
What is zCoin?
Alright. Let's get into the nitty-gritty as to what this prospective investment actually is.
This is zCoin.
zCoin is a cryptocurrency that aims to be a completely anonymous currency.
Basically. Bitcoin has a big giant ledger with pretty much has a list of every single transaction ever made. They do this to prevent double spending, which makes sense.
I know what you're thinking, Bitcoin Addresses are anonymous, isn't that enough already? Well, the truth is, no. Bitcoin has 0 layers in consideration of being anonymous. The fact that anyone or group could look at a ledger with all those transactions, and actually find out who someone is by looking at their trading history. I can assure you, not only is it possible, but it is happening.
zCoin aims to fix that.
Here's zCoin's official explanation:
With Zcoin’s Zerocoin Technology, you can “mint” a coin found on the public ledger into a private coin
When it is time to spend your minted coin, the owner of the minted coin does not need to be revealed.
The process of minting and spending a coin can be completed as many times as you want, ensuring complete privacy
So, I'll admit, I didn't really understand what this really meant.
So, here's how I would explain it. Thank you @someguy123 for helping me understand.
Basically, you scramble your coins.
You take 1 zCoin and "Mint" it. Basically, it goes away, and in return you get 1 IOU for 1 zCoin. You can then go on any transaction on the network and pull 1 zCoin out of it.
This effectively complicates the transactions so much, that it makes it thousands of times harder to trace a transaction to it's origin.
Pretty cool!
Why would you want that?
Well, it's simple. Do you like privacy and security? It's already known that governments want to track and catalogue pretty much everything you do. The way that I look at it, governments are totally over reaching what they're meant to be doing by doing this. We can get into an entire debate as to why this is bad or good, but personally speaking, protecting my transactions from being logged is a good thing.
Of course, governments aren't the only ones that want your data. Hackers, identity thieves and malicious people want it too. It makes me uncomfortable that my transactions can be traced if they know where to look.
Also, the not so malicious but equally annoying corporations would love to see where your spending your money and how much you have.
There are just tons of reasons why you would want your cryptocurrency transactions to be hidden and private to you, and let's just face it, its your right.
The true potential in zCoin
Here's where the potential of zCoin comes in as a lucrative investment.
zNodes. Or Master Nodes.
zNodes are computers that host a full copy of Zcoin’s blockchain and help to verify the validity of transactions.
zNodes are responsible for verifying transactions and ensuring that zCoin does what it's intended to do.
Znodes are a special type of node that earn part of Zcoin’s block reward (currently at 30% of the block reward) in return for hosting a reliable and powerful node that helps to support the network. Znodes require a refundable collateral of 1000 XZC to ensure Znode holders have a stake in the coin and are incentivized to keep it working honestly, updated often and have a high uptime.
So. Having a zNode means that you get rewarded a % APR.
The higher the price of zCoin, the higher the APR is worth.
The less zNodes on the network, the shorter the amount of time in between reward payouts.
Now, here's something else that you have to know. In order to start a zNode, the minimum requirement is 1000 zCoins.
This is a pretty smart way to ensure that the value of this coin will only go up in value.
Payout time goes up with more zNodes on the network.
Let's say, someone has 2 zNodes. And they decide, meh, it's not working out, it's time to cash out. Let's sell.
Well, that's 2000 zCoins on the market, and 2 zNodes less. Obviously, the value of zCoins would go down, however, the time it takes to get a reward payout goes down as well.
People cashing out zNodes would be a dream come true, and a ticket straight to the moon. How?
Well, let's see. Let's say, and this is a very extreme example.. Let's say that every single zNode on the network cashed out and shut down their nodes except 1. Now while yes, the value of zCoin would dramatically go down. But that one zNode would receive 15 zCoin every 10 minutes. That may not sound promising, but this is where all the investment opportunities come in.
People would see that, oh hey, getting a zNode would only be 1000 dollars, and immediately we would see an increase of value in zCoin pricing because people would want to jump on that.
So now those 15 zCoin you're getting every 10 minutes are slowly starting to increase in value, even though the time it takes to get a payout increases. This makes it a very lucrative Masternode to invest into by its own.
How to calculate amount of time till a zNode is paid
Take the total amount of zNodes, Divide by blocks per day which is 144 (10 minutes per block in 1 day).
All about zNodes and how to set one up.
Projected Growth module
This is really great, what we're seeing here is effectively Dash, except the coins are actually useful to consumers and users. The Masternodes are more profitable and cheaper to setup than Dash Masternodes. You could take the amount that you would spend on a Dash Masternode, and buy many zNodes and get a higher return on it, faster.
Note: While I think Investing into a zNode is an excellent idea and it's relatively cheap compared to Dash with high returns, this article is infact referring into why zCoin is worth investing into.
Concluding
zCoins are built on a heavily rewarding system. The more zNodes running on the network, the more valuable zCoins become. It's all connected in a very ellaborate balance. What we could potentially see, is a coin that will never fall in value for long.
Additionally, researching the zCoin showed me that the developers are very active.
They have youtube channels which are active, discord servers, many social accounts which shows that the development team shows passion for what they are doing.
Which is very good, as we may see a very strong eco-system behind the coin.
Well guys, I hope this was a very interesting read. I a few days researching this, and spent all day writing it as well.
I know I will personally be investing more money into zCoin, and I hope one day I'd be lucky enough to own my own zNode. Those of you guys who can afford to get a zNode, I'm telling you. Buy it now!
Check out how much you'd be earning right now if you had a zNode.
Thank you guys for reading, and I hope you all have a fantastic new years!
Amazing i like
Thanks, appreciate it friend!
Excellent blog. I apriciate your analysis.
i liked in your post
may be i reasteam your post
Excellent post I appreciate your experience
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I liked the post... very informative and interesting post thanks for sharing it ..
Thank you for the exhausting and very detailed explanation.
It will took me some time to process all of it.
Will come for more.