Altcoins

PIVX Becomes the World’s First Anonymous Proof-of-Stake Cryptocurrency

JP Buntinx | May 8, 2018 | 10:30 am
pivx
Altcoins

PIVX Becomes the World’s First Anonymous Proof-of-Stake Cryptocurrency

JP Buntinx | May 8, 2018 | 10:30 am

Privacy plays an ever-growing role of importance in the world of cryptocurrency. Very few coins can effectively offer this important trait at this stage. PIVX, an altcoin with a small following, is evolving in an interesting direction. It has now become the world’s first anonymous proof-of-stake cryptocurrency.

Why Does Proof-of-stake Matter?

Cryptocurrency enthusiasts are familiar with the difference between proof-of-work and proof-of-stake. The rest of the world may not aware of the subtle differences between the two. Unlike Bitcoin with its proof-of-work mining algorithm, a proof-of-stake currency does not require a mining process at all. It still allows users to generate additional currencies on the network by keeping a number of coins in their wallet at all times.

In most cases, a proof-of-stake currency requires on wallet users to be online at all times. The more wallets online at any given moment, the better the network is protected from outside attacks. There have been many different iterations of proof-of-stake in the past few years, and it seems the PIVX team is embracing the new standard. Combining this feature with the native privacy and anonymity provided by PIVX will have some interesting consequences.

It is important to mention this altcoin has been using proof-of-stake technology for some time now. It was the first private PoS currency in October 2017 through the introduction of zPIV coins. This “secondary” currency is the privacy-oriented version of the standard PIV currency. Both forms of money can be interchanged at any given time. There is also a trade-off, as users can either be anonymous or earn staking rewards, but not both at the same time.

Taking Things to the Next Level

Over the past few months, the PIVX developers have expanded upon this functionality. The zPoS staking system is a network-wide upgrade which allows for anonymity while staking coins. It combines the best of the two features users have enjoyed for so long. This new feature will roll out either today or in the next few days. PIVX Community leader Bryan Doreian adds:

“zPoS is a major step forward for decentralized cryptocurrency technology at large because it allows for the freedom to maintain one’s own private crypto balances (with zPIV), and to earn rewards privately and securely. It’s akin to having your own personal growth account, outside the prying eyes of hackers, scammers, and other entities that would otherwise spy on your data and use it for their purposes.”

Other benefits of zPoS include voting elements to earn interest from staking. This is also a first in the world of anonymous cryptocurrencies. Whether or not this is a viable plan, will be decided upon by the community. This approach confirms PIVX wants to remain a community-oriented altcoin with a strong focus on anonymous decentralization. Such an achievement is another major milestone for the cryptocurrency industry as a whole.

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  • Hallvard Viken

    Isn’t cloakcoin an anonymous POS cryptocurrency?

    • gets

      they have some privacy features for spending, not for staking… big difference.

  • JoeyRocket

    Ever heard of TokenPay…..?

  • Crypto Queen

    Cloakcoin is a POS cryptocurrency since 2015!

    • Red Pill

      PART as well.

      This headline is misleading.

      • gets

        Yes, they are both PoS coins with privacy features, they DO NOT HAVE PRIVATE STAKING.

  • Christopher Ko

    I see I’m not the first one to notice that Cloak is an anonymous POS coin. I might be wrong but I don’t recall PIVX having a third party security audit by a nasdaq listed cyber security company. So if we talk about “taking things to a new level” we should face the fact that this has already been done… by Cloakcoin…

    • gets

      PIVX is the first coin to have PRIVATE STAKING. Not privacy features in a PoS coin…

    • gets

      Also u might remember that the security audit showed how fully incompetent the cloak dev team was

  • Red Pill

    Headline is false.
    PART and the Particl Project as well as Cloak have long since mastered proof of stake

    • gets

      They have privacy features for spending, not for staking…

      • Hallvard Viken

        What does private PoS mean?

        • gets

          It means that you can privately provide network consensus and get rewarded privately for it.

          • Hallvard Viken

            So with Cloack, people can see that I’m staking, with this coin they can’t?

          • gets

            Yes, also I wouldn’t use cloak after that disastrous peer review. They basically never provided any privacy, hard to trust them after that.

          • Hallvard Viken

            Do you have a link to that review? I heard Cloak were reviewed by some Nasdaq listed security company, and that went quite well.

          • gets

            not sure if I can send links here, it’s on the cloakcoin website, anyways a quote from their findings:

            Due to implementation flaws it was possible to conclude on the amount of transferred cloaks and subse- quently on the input and output addresses of sender and cloakers of transactions using a low number of cloakers.
            Even though wallet encryption is enabled by a user, the transactions are stored unencrypted and, as a consequence, might get extracted, which has an impact on the anonymity of the owner.
            An old version of the Bitcoin and the Tor code was identified as underlying base version of the Cloak source code. Therefore, Cloak inherits some of the vulnerabilities Bitcoin and Tor had since this version.
            Some functions, like a random number generator in use, did not perform as intended and therefore de- creased the level of anonymity of Enigma transactions.
            The static source code analysis showed multiple instances of methods that are deprecated and banned as they are unsafe and might have an impact on the security of the application.

  • Irene Gates

    Nice development and it says a lot about the worldwide acceptance cryptocurrency and the blockchain technology is getting. With all that said, I have to do my bit and tell you about how I’ve been getting 200% Interest and more cryptos just by investing 0.1 BTC or 0.5 BTC to yield 0.3 BTC and 1.5 BTC respectively in 24 hours on coin-mine pot dot-org for a few weeks now. They pay directly to your preferred wallet which you have to specify during registration. Get on it today!

  • Siegfried de Ruiter

    PIVX is a real Privacy Coin not only privacy features. Cloak isnt a privacy coin

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