What is PIVX?
PIVX is a cryptocurrency which focuses on making transactions private and anonymous. PIVX is a
derivation of Private Instant Verified Transaction.
PIVX was the result of a fork from DASH which occurred in February 2016, having the initial name of
Darknet (DNET). The name was changed in January 2017 to PIVX.
PIVX has inherited most of its features from DASH, but it has also added a few other technologies.
The coin uses a proof of stake protocol with an improved mechanism in addition to a privacy protocol
called zk-SNARKs which is also implemented by other top privacy coins.
Like ZCoin, the coin also makes use of a custom version of the Zerocoin protocol. Users are able to
send private coins as well as fractional amounts directly to any wallet. PIVX is claimed to be the only
Proof of Stake cryptocurrency (PoS) that has employed all the requirements stipulated in the Zerocoin whitepaper.
The Zerocoin Whitepaper
Zerocoin is a privacy protocol for cryptocurrencies which was proposed in a paper by professor
Matthew D. Green and two graduate students in 2013. It was intended to serve as an extension of
the Bitcoin protocol which would add true anonymity to its transactions.
PIVX Technologies
PIVX Masternode
A PIVX Masternode requires 10 000 PIVX which have to be locked in a server wallet as collateral. Masternodes operators are rewarded for performing various tasks or services on the PIVX network. These rewards are higher compared to the rewards of wallet holder that stake their PIVX. The rewards vary, as a see-saw algorithm is used to determine their value.
See-saw algorithm
This custom algorithm was developed to solve conflicts which are derived from governance. It
verified how many masternodes are compared to the number of PIVX staked at the same moment. If
there are too many masternodes, then the algorithm corrects the rewards given to masternode
operators, which means they will receive less rewards.
This algorithm is applied in order to incentivize masternode owners to stake coins and relinquish
their voting rights.
SwiftTX
SwiftTX enables almost instant transaction times where transactions confirmations are realised in a
matter of seconds. This is done through the use of a network of masternodes and transactions which
do not require multiple confirmations.
PIVX Coin Supply
Unlike most cryptocurrencies which have a limited total supply, PIVX is unlimited. As the supply will
keep on increasing, an inflation mechanism will be applied, which is known as quantitative easing.
The PIVX supply will have an incremental annual rate of 5%. This is to stimulate PIVX transactions,
not hold it.
What is a Deterministic PIVX Wallet?
A deterministic wallet features a backup mechanism which easily lest the users restore the wallet
while using a seed phrase. No private key is required for wallet restoration. Users do not have to
keep backups each time they create new private PIVX coins. All backups of any private PIVX issued
are included.
How to Buy PIVX?
For the time being, there are no options which allow you to purchase PIVX with fiat currency, which
means that you will first have to buy another cryptocurrency and then trade it for PIVX on an
exchange which supports the pair. The most popular supported pairs are against Bitcoin or Ethereum.
PIVX trading is supported on 16 exchanges including: Binance, Bittrex, UpBit, Cryptopia, CoinRoom,
YoBit, LiveCoin, CoinExchange, BiteBTC, Bisq, CryptoBridge, IDAX, and a few others.
The exchanges that have the most volume on a daily basis is Binance, with nearly 38%, followed by
Bithumb with 27.54%.
PIVX Market Cap
At the time of writing this article, there are 56,781,166 PIVX available in circulation, and one PIVX
coin is traded at a value of $0.775290 USD.
As a result, the current market capitalization of PIVX is $44,021,892 USD. Because of this, the coin is
currently holding the 128th rank in terms of cryptocurrencies with the largest market cap.
Where can I store PIVX?
There are not many wallet alternatives for PIVX storage, but there are several options:
- Hardware Wallet: Ledger Nano S
- Desktop Wallet: Light Wallet
- Mobile Wallet: PIVX mobile wallet, Coinomi
- Paper Wallet: PIVX paper wallet
Verdict
PIVX is a new privacy cryptocurrency which features a unique combination of protocols and
algorithms. It remains to be seen if it will surpass its parent coin DASH.
Featured image: pivx.org