Intro to Zcoin
Method: Proof of Work
Algorithm: Merkle Tree Proofs (MTP)
Avg. Block Time:5 minutes (288 blocks/day)
Where to get Zcoin?
You can get Zcoin (XZC) on the following exchanges:
Where to store Zcoin?
The official wallet is available for download from our Github Releases page.
What is MTP?
MTP promotes fair and democratic mining by making ASIC development expensive. MTP’s advancement means that hard memory intensive proof of works can be verified quickly with low resources. The main idea behind MTP is to level the playing field between people with lots of computing power (i.e., large-scale mining farms) and those with little power (i.e., home miners).
How to mine Zcoin with MTP
Zcoin is both CPU and GPU mineable.
What is a Znode?
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.
In the future, it is intended that Znodes serve as a building block for other services to be built on top of it including the delegation of Zerocoin transaction processing.
How do I setup a Znode?
What sort of reward can I expect from Znode?
A fixed amount (30%) of the block reward (7.5XZC with current block reward) is paid to Znodes. Znodes are put in a queue and take turns to receive this block reward in return for hosting a Znode that hosts a complete copy of the blockchain and helps store and propagate blocks to the network.
Once they are in the top 10% of the queue, there is a degree of randomness in being selected as it uses the block hash entropy to pick the winner deterministically.
The frequency of the block payout depend on how many active Znodes there are. The more Znodes there are, the longer it takes to receive the Znode block reward.
To get a more in-depth understanding of the process, please read our article Understanding Znode Payments.
What if I don’t have 1000 Zcoins?
In the event people want to pool together their funds to make a Znode, please take note that you have to trust the person holding the funds for everyone.
This is because the 1000 XZC needs to be sent to a new address in one transaction and the custody is with one person. We ideally do not recommend such arrangements unless you really trust the person holding the funds on behalf of you. There is nothing to prevent the person holding the Znode funds from running away with your share.
This is not a problem if you have 1000 XZC as you can still keep those funds on your own local wallet. A Znode provider in such cases only requires your Znode private key (not the same as your funds private key) and the transaction ID of your 1000 XZC deposit.
There are also exchanges/wallets that will pay you a share of a Znode if you hold your Zcoin in them. Please do your research before trusting a 3rd party with your Zcoins.
There isn’t a single Zcoin white paper per se, but there are a few whitepapers for the technologies that Zcoin developed or integrated.
- MTP (our Proof-of-Work algorithm)
- Zerocoin whitepaper (Zerocoin protocol can be seen as an inbuilt anonymizer where you don’t have to trust any third parties. You mint a coin by burning it up, and then at later time, redeem it for a new coin with no transaction history)
- Dandelion (Provides network privacy that further conceals the IP address of someone broadcasting a transaction.)
- Lelantus (Our upcoming privacy protocol.)
25xzc per block. Block Time:5 minutes (288 blocks/day)
7.5 XZC per block to the Znodes (30%)
14 XZC per block goes to the miners (56%)
0.5 XZC per block goes to Founders Reward (2%)
1.5 XZC per block goes to Seed Investors (6%)
1.5 XZC per block goes to Team and Bounty Wallet: (6%)
Reward halving: Every 4 years (next: September 2020)
Cessation of founders rewards in September 2020.