WHAT IS PIVX?
PIVX is a decentralized, open-source cryptocurrency created to enhance privacy, anonymity, quicker transaction and security compared to other crypto platforms. PIVX is the shortened form of Private Instant Verified Transaction and it was derived from DASH, another cryptocurrency platform.
Before it was called PIVX, it used to be referred to as Darknet but was changed to its current name for the sake of its functionality i.e. it was named PIVX because of the perks it offers.
PIVX makes use of a private protocol known as zerocoin or zero-knowledge protocol to achieve its purpose. The Zero knowledge protocol would ensure users to provide proof of their transaction without having to display any detail of the transaction to the public like it is done on other cryptocurrency networks.
Before, the PIVX operated using the proof of work before implementing the proof of stake or better still, the zero proof of stake.
PIVX is built of the Blackcoin Proof of Stake 2.0 and its functionality is dependent on a system of masternodes for a public, decentralized administration and a highly classified privacy on transactions.
PIVX was created with the goal to provide its users with very fast transactions, total anonymity and an administration that would maintain the platform for all to benefit from. On the platform, the administration is done by the masternodes.
Although they play a major role, they do not get to earn all of the incentives the platform provides. Since it operates a Proof of Stake protocol, wallet holders and master node owners share these incentives almost equally through the see-saw algorithm
WHAT IS THE PROBLEM PIVX SOLVES?
The major problem which PIV is designed to solve is the issue of privacy. Though, privacy is a key feature of the blockchain technology but how private is the privacy they provide?
A lot of cryptocurrencies including Bitcoin claim to provide anonymity in the sense that real identities do not link up to addresses attached to the platform, however, every transaction is broadcasted for everyone to see on the public ledger. This defeats the idea of privacy as with the right resources and skills, the real address could be traced from the transaction details.
Also, the issue of transaction time is the focus of the PIVX platform. Transaction time in other cryptocurrency platform is about two minutes which is just enough time to allow for double spending.
This is due to the fact that most of these platforms operate a proof of work protocol which demands that a work is done before transactions can be completed.
Others who operate a Proof of Stake protocol depend on the consensus of people to confirm transactions.
The PIVX was developed to solve the problem of the slow transaction and by doing so, preventing the possibility of double spending.
HOW DOES PIVS SOLVE THE PROBLEM?
PIVX’s goal and objective is to achieve instant private transaction and that is made possible through the use of the Zero knowledge protocol and the SwifTX technology. Below are how they function
- Zero-Knowledge Protocol
To solve the problem of anonymity and to provide complete privacy, the PIVX makes use of the zerocoin protocol.
The Zerocoin solution prevents the possibility of any form of tracking. The PIVX has adopted the protocol and named it zPIV. This protocol achieves its goal of total privacy through coin mixing. This is done by providing no proof of transaction between the sender and receiver.
This implies that any exchange that takes place with the use of this zero protocol is completely fungible since there is no historical record of such exchanged attached. This way, no government can hold you responsible for an illegal transaction neither can you be a victim of hack or theft.
With the implementation of the zPIV, the transaction is verified and confirmed faster, wallet balance is private, and transaction records are kept secret.
Anonymity is achieved by the user converting his PIV to zPIV and sends the zPIV in the form of PIV to a PIVX address. All the zPIV coin that has been changed would be combined in a pool (no a central place but that the ledger identifies it). a zero-knowledge evidence is sent to the blockchain which then converts the zPIV coin into the normal PIV which is then sent to the target audience.
Note that immediately the zero proof is provided, every link associated with the address is destroyed.
- SwifTX Technology
This technology is employed to provide very instant transaction. Confirmation and verification of these transactions are done in seconds, and it is ensured through the masternodes.
The masternodes eliminate the need to wait for confirmations from different nodes yet, validity is still guaranteed. These masternodes are users who have a deposit balance of 10k PIV locked away as collateral. They are responsible for the governance and administration of the platform.
Despite their role, they have no possibility of taking over the platform because of the see-saw algorithm implemented by the platform.
WHAT MAKES PIVX BETTER THAN ITS COMPETITORS?
PIVX has a lot of competitors as it is not the only private coin in the world. For the fact that it was forked from Dash makes it very synonymous. However, PIVX still has an edge over it.
- One major reason why PIVX is better than its competitors is the fact that it allows for a very short transaction time. It has a block time of less than 60 seconds as compared to other cryptocurrencies with about 2 minutes and above. It makes use of the SwifTX technology to attain instant transaction and of course preventing double spending.
- Another advantage of the PIVX over its competitors is the use of the zero knowledge protocol to provide a zero knowledge on transaction making it impossible to trace the history or addresses involved in the transaction. PIV is said to be the first coin to implement the use of the zerocoin. Using this algorithm with the proof of stake provides the efficient privacy that is not present in other platforms.
- Another good thing about the PIVX is that it does not have a maximum supply of coins as seen in others. This is so because the platforms sees its token more as a currency than an asset. They are of the opinion that currency supply should increase and bound by inflation. This way, it has more possibility to last longer than other cryptocurrencies. The supply of the PIV would be 5% increase yearly making holding the coin a difficult one. this means people would have to transact with it
- The use of the see-saw algorithm is sharing of reward is another benefit the PIVX has over its competitors. The see-saw algorithm is a protocol that maintains the authority level of the masternodes. Masternodes, if not monitored, can monopolize the whole system as the more the powerful. See saw maintains the balance between the number of masternodes and number of staking per wallet. Once there is a huge variation, the algorithm calculates the rewards sent to the master nodes. This means they would earn lesser. This way, masternodes users are encouraged to stake their coins and forgo governance.
HOW CAN PIVX BE CATEGORIZED?
- Digital Currency
Rather than being just a digital asset, the PIVX is more of a digital currency. It can be used as a means of exchange between buyers and sellers. PIV has more similarities with fiat money than other cryptos in the sense that it depends on inflation.
Since PIV does not have a maximum supply of coin, more coins are said to be released into its ecosystem yearly by a 5% increase. This would implore its users to make use of the coin for the transaction rather than holding it as an asset. However, rather than the need for a central authority, newly produced coins goes back to wallet holders and masternodes via the proof of Stake reward system
- Privacy
The major reason for developing the PIVX platform is to enhance privacy. Through the use of the blockchain, privacy is ensured however not totally. The additional usage of the zero knowledge protocol keeps everything a user does secret and untraceable. This keeps the system safe from external peeping, hacking or theft leaving everything on the platform truly private. The public ledger on the blockchain does not display any transaction detail whatsoever as the confirmation is done through the proof of stake protocol
- Anonymity
Everyone on the platform is truly anonymous. Nobody knows anyone as addresses are not visible to anyone. This way, a user cannot be monitored since you cannot identify anyone in the first place.
WHAT IS PIVX’S VISION OF SECURITY?
One notable feature of every cryptocurrency is security. PIVX vision on security is to make everything private and make everyone anonymous.
The platform makes use of the zerocoin to achieve the desired security. With the use of Zerocoin, transaction details are not visible and if they are not visible, there are no addresses to trace or hack from.
Records are completely private. Through coin mixing, the zerocoin does not provide any source of information or record of the transaction between a buyer and seller, leaving it totally anonymous and untraceable.
The Zerocoin protocol is also implemented to prevent spying eyes from viewing user’s balance. This way, there is nothing to view to attract thieves or hackers to your account.
Also, through the proof of stake protocol, every transaction is validated twice by a random user who has staked and also masternodes. The transaction is then confirmed and verified one hundred and one times by contributors picked randomly.
This way, for a double spending to occur, the attacker has to have more than 70% of the coin staked. The proof of stake demands that wallets be online at all times to prevent the possibility of a hack i.e. the more the wallets online, the safer the platform.
With the see-saw algorithm, there is no possibility of total dominance by a selected few- masternodes. The algorithm ensures that the reward system is proportional to the increase or decrease in masternode.
This implies that whenever there is an increase in masternode users, the reward they get becomes smaller.
Using the SwifTX technology to proffer instant transaction eliminated the possibility of double spending. The time taken to confirm a transaction is barely 60 seconds which is too short a time to fool the network. Everyone participates in the confirmation of transaction as long as you have the token in your wallet. To beat this network is to possess most of the token which is not possible.
EXAMPLES OF PIVX USE CASES
The Private Instant Verified Transaction blockchain can be implemented in several other applications today. Its features, when incorporated by other applications, make a sophisticated use case. The following are some of the practical examples of how PIVX platform has been applied:
- A medium of exchange: PIV is a digital currency which means it is spendable. It can be used for transactions just like every other form of money. Since features more as a fiat currency than an asset, there is more possibility that it is going to last longer and be used more in different sectors as a medium of exchange.
- It is a digital asset that can be stored for a particular period of time to yield profit. Just like other cryptocurrencies, PIV can be used as a means of investment, and also for trading. Without the token, one cannot be a partaker of the benefit of the platform. Since its launch, there as been so much positivity attrbuted to it which means that it is more likely to increase in demand.
- The PIVX can be implemented into systems that engage in a lot of transactions. With the protocol, transactions can be completed faster and more efficiently. It performs the function of carrying out transactions swiftly in no time. Instant transactions are guaranteed as the speed of operation is very high, coupled with an improved level of privacy and security. This feature is best suited and applied by financial institutes in the transfer of funds and also in performing trades.
- In voting, the masternodes concept can be employed. Using the see-saw algorithm, there would be no possibility of total dominance by a particular group of persons. It would maintain balance. This can be employed by a board of trustees or executives etc.