Bootstrapping The Revival Of Privacy Coins Is PIVX 

Find all that you need about PIVX here. How does is it leverage blockchain technology? How effective is it here in the crypto world? 

Bootstrapping The Revival Of Privacy Coins Is PIVX 

What Is PIVX? 

PIVX has marked many firsts on the crypto market throughout its history. Being the first PoS project to use zk-SNARKs, masternodes, blockchain governance, deflationary mechanisms, and private staking are included here. PIVX makes use of innovative technology to create privacy-oriented paradigm with the cryptocurrency space with a solid value proposition and numerous achievements under its belt. 

Blockchain Intelligence Along With Data Mining

Blockchain intelligence serves the purpose of tracking transactions and connecting them to their owners famously referred to as de-anonymization through correlation. Chainalysis companies can easily keep tabs on cryptocurrency addresses of interest by making use of smart algorithms that crawl through blockchain transactions. 

Including deterring cyber-attacks, dealing with money launderers, and stopping illegal activity are arguments in favour of crypto tracking.

Oftentimes in people’s private but legal affairs, however, most cryptocurrency enthusiasts are aware that Chainalysis companies have the tendency of digging deeper. Financial information is where most people draw the line as this is no different when compared to cookie tracking over the internet. 

Enthusiasts must face the issue that transactions are indeed public not for the sake of criminals but rather for the sake of protecting people’s fundamental human right to privacy if cryptocurrencies are thereby disrupting what is considered as the financial status quo currently. By at least making transactions invisible to third parties, the banks of today protect privacy to some degree. This principle must be mirrored for blockchain to thereby realise its true calling. 

Transparency vs. Privacy – A Sacrifice?

In the sense that it's not one’s name or location that’s being tracked but rather their addresses and the funds held as indeed most cryptocurrencies provide a medium degree of anonymity. We have now taken other factors into consideration as to how blockchain intelligence thereby succeeds by linking addresses as well as coins to those real-world identities. Linkage to KYC-ed exchange accounts, well-known addresses, and common contact is included here. Is there any hope for attaining the perfect system fit for national and international needs, housed within one impermeable blockchain with these aspects in mind? 

The answer is yes as leading the way are privacy coins like PIVX

PIVX – A Deep History

That is self-funded through its treasury, PIVX was launched as a decentralised autonomous organisation. PIVX quickly became one of the market’s top 10 cryptocurrencies by market cap released in response to the appearance of blockchain tracking software that invades user privacy. PIVX also supports transparent transactions whilst providing supportive users with lucrative incentives albeit keen on protecting data. 

The Best Of Both Worlds With PIVX Comes As Transparency & Privacy 

So that it can facilitate both transparent and anonymous transactions, PIVX is very adaptable to the market’s demands. That’s compatible with the proof-of-stake consensus protocol, this is possible thanks to its SHIELD protocol a world-first fully customised zk-SNARKs sapling deployment. 

No other project has managed to successfully integrate these features before PIVX as the introduction of a PoS enabled zk-SNARK marks a crucial turning point in blockchain’s history. Bullish on zk-SNARKs as highlighted in a recent tweet, is even Ethereum’s co-founder Vitalik Buterin. Ethereum 2.0 will also implement this innovative protocol in fact upon switching to PoS. 

When attempting to analyse private PIVX transactions, chainalysis efforts also become futile. Without revealing financial data to the public, the SHIELD deployment allows the blockchain to verify transaction authenticity. PIVX transactions remain concealed on-demand as blockchain intelligence efforts rely solely on analysing transparent on-chain data. 

Inflation vs. Deflation on PIVX

PIVX has opted for a dynamic coin supply model, unlike the USD and BTC. Between inflation and deflation, this helps ensure a long-term balance. By minting 5 PIV on each 1-minute block and burning all transaction fees, the mechanism works. PIVX incentivises spending and becomes slightly inflationary given a small trading volume. Transaction fees increase by burning more coins when there’s a higher trading volume. Rather than spending, this leads to deflation while encouraging saving through staking. While pursuing a steady growth trend, in doing so, the PIVX price can avoid sudden drops. 

PIVX uses a restricted dynamic supply model that limits the maximum number of coins mintable per day, month, and year as the coin’s total supply is not capped. As inflation is kept at a minimum, supply is therefore controlled. 

Via Masternodes And Cold Staking Secure Income Streams

Through masternodes and cold staking contracts, users worldwide are incentivised to support PIVX. At the time of publishing, there are somewhere in the region of 1700 active masternodes globally, the distributed nature guaranteeing a high level of decentralisation as masternode operators help secure the network while establishing an optimal degree of decentralisation. Approximately 9% in PIV rewards on a yearly basis as well as 1 vote for each masternode they run is what operators receive. 

Bringing about yet another revenue stream is cold staking. Users can stake PIV coins directly from an eligible wallet be it a core third-party light, hardware device, or even a desktop or mobile wallet by joining the contract. With rewards estimated at 8-9% per year, the staking mechanism which is already running smoothly is quite similar to what Ethereum is planning. Staking today can potentially unlock huge value in the future considering the future PIV price prediction. 

Decentralizing Governance

PIVX puts governance rights in the hands of masternode operators opting for horizontal vote-based leadership in the form of a DAO. Other important decisions concerning PIVX’s future, the community can therefore decide on treasury allocations.

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