Throughout its history, PIVX has marked many firsts in the crypto market. These include being the first PoS project to use zk-SNARKs, masternodes, blockchain governance, deflationary mechanisms, and private staking. With a strong value proposition and many accomplishments to its credit, PIVX uses innovative technology to create a privacy driven paradigm in the cryptocurrency space.

Blockchain intelligence and data mining

Known as correlation de-anonymization, blockchain intelligence is used to track transactions and connect them to their owners. By using smart algorithms that scour blockchain transactions, chain analysis companies can easily keep tabs on cryptocurrency addresses of interest.

Arguments in favor of crypto tracking include deterring cyber attacks, combating money launderers, and stopping illegal activities. However, most cryptocurrency enthusiasts are aware that chain analysis companies tend to dig deeper, often in people’s private but legal affairs. It’s no different from tracking cookies on the Internet, but financial information is where most people draw the line.

If cryptocurrencies are to disrupt the current financial status quo, then enthusiasts must face the problem that transactions are indeed public – not for the sake of criminals, but rather for the sake of protecting the fundamental right of the people. to privacy. Banks today protect privacy to some extent by at least making transactions invisible to third parties – and for blockchain to achieve its true purpose, this principle must be reflected.

Transparency versus confidentiality – A sacrifice?

Tracking cryptocurrency transactions is made possible by the transparency inherent in blockchain, which is both a blessing and a curse. Without transparency, blockchains could potentially lose part of their value proposition, as transaction tracking brings many benefits such as voting, elections, shipping and payment tracking for orders, and more.

This is because most cryptocurrencies offer a medium degree of anonymity, in the sense that it is not the name or location that is tracked, but rather their addresses and the funds held. However, blockchain intelligence succeeds by linking addresses and coins to real-world identities by taking other factors into account. These include the link to KYC-ed exchange accounts, well-known addresses and common contacts. With these aspects in mind, is there any hope of achieving the perfect system, suitable for national and international needs, housed in a waterproof blockchain?

Yes there is, and privacy pieces like PIVX lead the way.

PIVX – A deep story

Like a self-labeled document “Protection of financial data”, PIVX is far from being a newly launched project. PIVX was first announced in 2015 and then launched in 2016. Often referred to as one of the pioneers of privacy coins and the “first protected DeFi blockchain project”, PIVX uses proof of stake (PoS) and SHIELD based on ZK protocol to facilitate fast transactions that protect user data.

PIVX was launched as a decentralized autonomous organization (DAO) self-financed by its treasury. Released in response to the emergence of blockchain tracking software that invades user privacy, PIVX quickly became one of the top 10 cryptocurrencies on the market by market capitalization. While keen to protect data, PIVX also supports transparent transactions, while providing support users with lucrative incentives.

Throughout its history, PIVX has marked many firsts in the crypto market. These include being the first PoS project to use zk-SNARKs, masternodes, blockchain governance, deflationary mechanisms, and private staking. With a strong value proposition and many accomplishments to its credit, PIVX uses innovative technology to create a privacy driven paradigm in the cryptocurrency space.

Transparency and Privacy – The best of both worlds with PIVX

PIVX is very adaptable to market requirements, so that it can facilitate transparent and anonymous transactions. This is possible thanks to its SHIELD protocol, a deployment of zk-SNARKs fully customized and compatible with the Proof of Stake consensus protocol.

Put simply, zk-SNARKs enable the processing of encrypted transactions on the blockchain with extreme efficiency – and PIVX has taken this functionality from Zcash and implemented it on top of a PoS (proof of stake) consensus protocol. . From a top-down perspective, PIVX selected the best privacy features available and implemented them on a PoS blockchain, eliminating Scaling difficulties, high power consumption and 51% risk of attacks associated with PoW. In short, it is the SHIELD protocol.

The introduction of a PoS-enabled zk-SNARK marks a crucial turning point in blockchain history – no other project has successfully incorporated these features before PIVX. Even Ethereum co-founder Vitalik Buterin is also bullish on zk-SNARKs as highlighted in a recent tweet. In fact, when switching to PoS, Ethereum 2.0 will also implement this innovative protocol.

Chain analysis efforts also become futile when attempting to analyze private PIVX transactions. The deployment of SHIELD allows the blockchain to verify the authenticity of transactions without revealing financial data to the public. As blockchain intelligence efforts rely solely on on-chain transparent data analysis, PIVX transactions remain hidden on demand.

Inflation vs deflation on PIVX

In 2020, the US Federal Reserve was put in the spotlight as it hit 3 trillion US dollars, apparently out of nowhere. Experts around the world have argued that this will inflate the dollar, leading to a rapid loss of its purchasing power. This monetary policy may have further fueled bitcoin investment as US citizens began to lose faith in the value of the dollar. Unlike USD, bitcoin’s supply limit is capped at 21 million BTC, while the coinage is reduced by half every four years.

Unlike the USD and BTC, PIVX has opted for a dynamic parts supply model. This helps ensure a long-term balance between inflation and deflation. The mechanism works by hitting 5 PIVs on every 1 minute block and burning off any transaction fees. Given a small volume of transactions, PIVX encourages spending and becomes slightly inflationary. When there is a higher volume of transactions, the transaction fees increase, burning more coins. This leads to deflation while encouraging savings through gambling rather than spending. In doing so, the The PIVX price can avoid sudden declines while continuing a steady growth trend.

The total coin supply is not capped, but PIVX uses a restricted dynamic supply model that limits the maximum number of coins that can be redeemed per day, month and year. Supply is therefore under control and inflation is kept to a minimum.

Secure revenue streams through masternodes and cold staking

Users worldwide are encouraged to support PIVX through masternodes and cold staking contracts. Masternode operators help secure the network while establishing an optimal degree of decentralization, and at the time of publication there are somewhere in the region of 1,700 active masternodes around the world, with the distributed nature ensuring a high level of decentralization. . Operators receive approximately 9% PIV rewards on an annual basis, as well as 1 vote for each masternode they run.

Cold Staking generates another source of income. By joining the contract, users can wager PIV coins directly from an eligible wallet, be it a core, third-party lighting, hardware device, or even a wallet of desktop or mobile. The staking mechanism, which is already working well, is quite similar to what Ethereum predicts, with rewards estimated at 8-9% per year. Considering the future prediction of PIV prices, staking today has the potential to unlock huge value in the future.

Decentralize governance

Opting for horizontal vote-based leadership in the form of a DAO, PIVX puts governance rights in the hands of masternode operators. The community can therefore decide on cash allocations and other important decisions regarding the future of PIVX.

Now that the project has viablely solved all of the technical challenges, the world is set to witness the renaissance of privacy-conscious cryptocurrencies. PIVX holds the upper hand in this race, as it meets all the next-gen criteria for disruptive projects, unlike other privacy pieces that fail to maintain adaptability, true anonymity, or lucrative incentives.

As a DAO that uses PoS and the innovative SHIELD protocol, a bullish sentiment is actively setting in. The value of PIV will be further fueled by upcoming deterministic masternodes, SHIELD staking, SHIELD masternodes, and support for staking pool operators.

To learn more about PIVX, visit website, connect to Twitter or GitHub or join the PIVX community to participate in the next generation of blockchain privacy.

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