Zcoin (XZC) is an open-source privacy-focused cryptocurrency token that launched in Sep 2016. Zcoin originally pioneered the use of Zerocoin to enable privacy but has since transitioned to a scheme called Sigma which is based on a paper by Jens Groth and Markulf Kohlweiss that reportedly allows greater scalability and removes the need for trusted setup in Zerocoin. With Zcoin’s Sigma feature, only the sender and receiver would be able to ascertain the exchange of funds in a given transaction, as no transaction histories are linked to the actual coins. Zcoin is also the creator of the Lelantus privacy protocol which improves Sigma’s privacy and functionality.
What is Zcoin?
Zcoin utilizes the Zerocoin protocol to provide anonymous transactions in a unique scalable way. The protocol, originally intended to be an extension of Bitcoin, allows you to send coins with no transaction history. Bitcoin records the history of every transaction on a public ledger for anyone to see. Wallet addresses are only pseudo-anonymous with the potential for people to link your identity to an address. However, with Zcoin, you can preserve the fungibility and privacy of your spending.
How do I buy cryptocurrency?
While some cryptocurrencies, including bitcoin, are available for purchase with U.S. dollars, others require that you pay with bitcoin or another cryptocurrency.
To buy cryptocurrencies, you’ll need a “wallet,” an online app that can hold your currency. Generally, you create an account on an exchange, and then you can transfer real money to buy cryptocurrencies such as bitcoin or ethereum.
Coinbase is one popular cryptocurrency trading exchange where you can create both a wallet and buy and sell bitcoin and other cryptocurrencies.