ZCoin (XZC) is one of the main cryptocurrencies based on complete transaction privacy. The ZCoin cryptocurrency is a decentralized blockchain with a unique way of providing anonymous transactions, which scales well. ZCoin allows its users to conduct transactions on the blockchain in such a way that the transaction history is not stored and it is impossible to track the movement of funds on the network, while on the Bitcoin network addresses are made transparent to combat the problem of double-spending of coins.
Initially the ZeroCoin protocol was developed as an extension of the Bitcoin cryptocurrency, but when this extension was rejected by the community, it was released as its own cryptocurrency and blockchain. Since ZCoin was originally developed as an improvement of Bitcoin, the process of conducting transactions in ZCoins on the user's side works exactly the same as for the Bitcoin cryptocurrency, and transactions are likewise recorded in the public ledger. However, the ZeroCoin protocol uses a special algorithm to make these transactions anonymous. With each transaction, the required number of XZC coins is debited from the user's account and destroyed, and exactly the same number of new coins is created, after which they are sent to the specified address.
However, this algorithm also has its drawbacks. To eliminate the possibility of tracking transactions by the number of destroyed / issued XZC coins – the coins are issued in blocks of 1, 10, 25, 50 and 100 coins, which in turn can delay the transaction time up to 70 minutes. Also, each transaction on the ZCoin blockchain has a fee of 0.01 ZCoins.
