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PIVx Is The Next Generation of Fungible And Privacy-Centric Digital Currencies

by on January 4, 2017
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Privacy has proven difficult to come by in the world of cryptocurrency. Many people mistakenly believe Bitcoin and Ethereum offer privacy, while they only provide pseudonymity. But other alternative cryptocurrencies can provide privacy-centric features to its users. PIVx, formerly known as Darknet, is a currency that borrows some traits from DASH. Its set of features makes it quite appealing to cryptocurrency enthusiasts who are looking for a more privacy-centric experience.

PIVx Wants To Make A Big Impact

Given the vast majority of cryptocurrencies already in existence, the PIVx developers have their work cut out for them. Making this altcoin stand out from other privacy-oriented currencies will not be an easy task. Rebranding from Darknet to PIVx is one step in the right direction, though, as the Darknet name has a negative ring to it.

Under the hood, PIVx will provide its users with swift transactions. The developers have been focusing on this aspect to facilitate future point-of-sale integration. Locked-in payments are completed within one second, yet are safe from double-spend attacks. Other cryptocurrencies, including Bitcoin, are still susceptible to double-spend attacks to this very day.

PIVx also combines the best of the Quark algorithm with features found in the current version of Bitcoin Core. But it also improves on both technologies, by providing instantly locked, private, and fungible digital currency ecosystem. Plus, all of the source code can be found on GitHub.

Taking a page out of DASH’s book, the PIVx network relies on Masternodes. Every Masternode owner will provide critical services to the rest of the network. Similarly to DASH, PIVx Masternode owners are only eligible to run this service if they lock 10,000 coins in a wallet. At the time of publication, setting up such a Masternode equals to 0.07 Bitcoin worth of coins, or US$76. A minor investment to provide optimal network availability to the rest of the community.

PIVx users running a Masternode will also be involved in the governance model of this cryptocurrency. A Budget System has been set up, and every Masternode represents one vote. This creates a distributed governance model for PIVx, incentivizing users to provide services to the network while giving them an opportunity to determine the future direction of the ecosystem.

As one would expect, Masternode owners are rewarded for their support. This compensation mechanism is based on a SeeSaw. To be more precise, the rewards are equal for people providing a Masternode, as well as those who stake coins in their PIVx wallet. The current plan is to have one-third of all coins in circulation held in Masternodes, and another one-third is kept for staking purposes. All of the remaining coins will flow freely across all exchanges that support PIVx trading.

Coins are eligible for staking rewards once their input is older than one hour, and has received 101 confirmations or more. Unlike most other cryptocurrencies, there is no time-based staking input. Additionally, it’s impossible to stake coins without having the wallet open and connected to the network.

Last but not least, PIVx will offer private transactions. The technology is based on CoinJoin but modified in such a way it starts mixing ahead of the transaction. As a result, fungibility is offered to all users, one of the main features currently lacking in Bitcoin.  More importantly, the history of every PIVx transaction is erased before it is sent during this process, which removes the problem of dealing with tainted funds.   

Make sure to keep an eye on Twitter for the latest PVIX news!

Header image courtesy of Shutterstock

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