April 28, 2018
PIVX stands for Private instant verified transaction Fast, Cheap and anonymous transactions. PIVX is focused on becoming the best privacy-centric cryptocurrency out there. Bitcoin is a Pseudo Anonymous, the transactions are visible but the owners are unknown. Today there are many blockchain analytics companies which perform forensic accounting on blockchains and can identify the owners of address. PIVX is a fully anonymous, meaning it is much more difficult to identify the owners even with forensic analysis.
PIVX passive income
- One can earn PIVX rewards by helping to secure the network. The network is secure when the transactions are valid. i.e not double spent or censored.
- A blockchains is a chain of blocks. To create a block, there is work to be done. in PIVX two parties do this work, masternodes and stakers. The reward for this work if five Piv per block.
- A balance algorithm allows the network to shift incentives between masternodes and proof of stakers to balance their numbers across the network.
- This block reward is indefinite, meaning there is no cap on how many PIVX coins will ever exist. Transaction fees are burned, they are not paid to masternodes or stakers.
- PIVX wallets need to be open at all times for staking. Third party services offer a wallet always on function, but the private keys need to be handed over to the third party, this also makes the network less secure.
- zPoS is a new unique system of staking zPiv rather than PIVX.
- 10,000 Piv and a server are needed to run a masternode.
- Third party services are available to host master nodes.
- The private keys remain with the owner
- The ROI of both staking and masternodes need to be calculated at both today’s price of Piv and that in the future to determine long-term ROI
- Masternodes will have the options to support zDex and earn fees.
- Fast rate of development and wallet releases. PIVX has 2 PhD students working on improving the privacy of the coins, One being the author of the paper on BulletProofs . PIVX has a team of developers paid by the treasury. Most of the team members are anonymous which reduced the attack vector surface. Can observe the ongoing work with Trello
- PIVX has a treasury system similar to that of DASH. A treasury is a pool of money, paid for through block rewards. This pool is used to fund the projects which the masternode owners vote for. Anyone can submit a project.
- PIVX is inflationary (4.5% p.a.), which makes it suitable for a day to day current rather than a store of value, in addition the treasury will also be supplied with funds indefinitely.
- PIVX uses the latest Proof fo Stake 3.0 protocol. Proof of stake is different than proof of work. In PoS there is no energy-intensive mining needed to process transactions, which means less energy to run the nodes. However with PoS the rich get richer. Learn more PoS vs PoW . Proof of stake could also be classified as a security as the tokens will create other tokens. A secondary effect of PoS is creating a bigger community with a stronger vested interest in PIVX. Staking is much easier than mining.
- PIVX Can be stored in a hardware wallet: Ledger Nano S
- zDex: In 2018 PIVX wallet will have an integrated decentralised crypto to crypto exchange.
- PIVX Privacy:
- ZeroCoin protocol: public Piv into private zPIV. protocol level coin mixing service
- See also: Do we need privacy coins?
- Open source. GitHub
- Active Community, Excellent communication with a weekly update from “Snappy”, A network of PIVX ambassadors from around the world.
- SwiftTX – Spendable and guaranteed within seconds (similar to instant send in Dash). The block time is only 60 seconds.
- Very Low transaction fees
Cons / Risks
- Regulators are not in the mood to hug privacy coins, however, this could work in their favour as their users neede them more than ever.
- Some exchanges are delisting privacy coins.
- The zSnarks system is not the most user-friendly system as users need to mint zPiv and then move them back.
- Focused more on technical development rather than business development when compared to Dash. This can change if the price of PIVX increases and so do the treasury funds. More money, more resources to sponsor and build those bridges to businesses.
- Competition from other crypto projects: Zcash, Monero, Dash, Verge – but only Dash has the opportunity for passive income through its masternode system or masternode shares.
- In time Bitcoin will also have privacy features implemented Dandelion, Mimble Wimble and Grin. For example as services on top of the lightning network.
- Some claim that masternodes are the weak link in PIVX privacy system because owning a lot of them could allow you to trace the flow between one address and another.
- A larger supply of PIVX coins is locked up in masternodes, which brings stabilisation in normal times, but massive downfalls in an extreme crisis.
- In an Orwellian future, this open source technology being developed by PIVX could be used for other means other than to protect life, liberty and property.
PIVX is working in a niche which is very controversial and the world does not know where the regulatory wind will blow in the near future, this is probably the greatest headwind for PIVX. Competition is another threat, but PIVX seems to be working full steam ahead n terms of improving their privacy features, they are faster than other privacy-centric cryptos. There needs to be more high profile business development for the coins to gain further momentum.
Not investment advice. Not financial advice. Consult your financial advisor. Not a recommendation to buy, sell or hold. The staff of this site may own this digital asset/s mentioned on this page. Investing is risky and you may lose all your capital. See full disclaimer.
Also published on Medium.