Hey guys, It’s being a while since I don’t make an analysis about some Privacy coins that we might find in the cryptocurrency world. Today is the turn to one really interesting project, PIVX. So without further ado, let’s get to it.
If we check in CoinMarketCap, we can see that PIVX is right now in the 38th position on the list with a market cap of 154.6 million dollars and a price of 2.83 dollars. It’s quite far from the top 10 where it belongs Dash or Monero, so let’s analize then what makes this project special and which ones are their pros and cons.
PIVX is a transactional security and privacy-focused decentralized open source cryptocurrency. It was launched on Feb 1st, 2016 under the name of Darknet (DNET), after developments and increased community involvement, it was decided to professionally rebrand and officially change the name to PIVX, an acronym for Private Instant Verified Transaction(X).
The main goal of PIVX is to achieve near instant private transactions and a governance that helps sustain the network for the benefit of all of the users involved.
Privacy and Anonimity – PIVX is using a coin mixing protocol similar to Dash, Coinjoin protocol. but apart from it, for improving the anonimity and untraceability of each coin, the community has developed a protocol-level coin mixing service using zero knowledge proofs to sever the link between the sender and the receiver, this service is called Zerocoin. This means that each coin that gets sent using zPIV is now 100% fungible as it has no determinable history attached to them.
PIVX is the first proof of stake cryptocurrency based on the version 0.10.x Bitcoin codebase. This mean that instead of getting rewarded for validating transactions with computer power (Proof of Work), the reward is received for holding (staking) PIVX coins.
PoS structure utilized does away with coin age, meaning in order to get the most out of your staking you must keep your wallet open at all times, resulting in more constantly available nodes, strengthening the network. No more users opening their wallet once or twice a month for a few minutes and getting rewarded equally with those that have 24/7 up-time with their wallet.
Ledger Nano S have recently added it to their supported cryptocurrencies. Improving considerably the security of PIVX holders. Check here for more info.
PIVX’s anonymity is not perfect – Like it happens with Dash, PIVX is using Masternodes for securing the nextwork, so is still possible for an attacker to break through by buying many masternodes (there would be no way to know if this occurred), and if the transaction passed through a route where all of the masternodes were owned by the attacker, then the transaction could be traced. Given the relatively low cost of masternodes (10000 PIV), the possibility that coins can be traced is real.
Another issue to have in mind is that not all PIVX nodes are equal. Masternodes’ owners have more influence over the system than regular node operators. This makes PIVX semi-centralized instead of the ideal 100% decentralized system.
IMPORTANT: Never invest money you can’t afford to lose. Always do your own research and due diligence before placing a trade.
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