Estimated reading time: 2 minutes, 27 seconds
This episode of Blockchain Token – What is it? covers PIVX!
PIVX is a privacy focused cryptocurrency and it’s purpose is right there in its name. PIVX is actually an acronym for Private – Instant – Verified – Transaction.
If those objectives seem familiar it may be because it is a fork off of the DASH network.
PIVX is was launched on January 31, 2016, by two DASH community members. The founders admired the DASH technology but wanted to see some changes. They moved to a completely Proof-of-Stake system as opposed to DASH’s Proof-of-Work system and implemented what they saw as a fairer reward system that used a see-saw mechanism to auto-balance reward payouts (this is gone into more detail in the staking section below).
To increase accessibility, PIVX has created their own easy to use wallet. It comes equipped with standard security measures. The PIVX goal is essential to have users wallets to be your bank so they can assist you in managing your funds to make buying and sending a breeze while maintaining complete security.
The PIVX network allows for 2.6 million PIVX tokens to be minted per year forever, with 90% of the minted coins going to staking wallets and Masternodes and 10% going to fund budget proposals voted on by the Masternodes and stakers.
This lack of a maximum coin supply makes PIVX function similar to a traditional currency, as inflation is introduced to the system to encourage daily usage and avoid hoarding. The inflation is around 4% per year, but instead of simply devaluing your currency like the Fed does when it prints Dollars, all those minted coins are going directly to holders of PIVX, offsetting the effect of inflation by spreading the profits.
While the coin supply will grow indefinitely, there is a “soft cap” that throttles the rate of inflation imposed by burning transaction fees based on the traffic level of the network. Once the number of transactions reaches a certain threshold, transaction fees are “burned,” meaning that a number of coins equal to the transaction fees are permanently removed from circulation.
PIVX employs a custom version of the popular Zerocoin protocol to anonymize transactions by obfuscating the addresses associated with coins. It’s based on the libzerocoin technology that many other privacy coins employ, but the much of the PIVX code is custom-built. As opposed to Dash and Zcash, PIVX can be completely anonymous, preventing blockchain analysis from revealing recipients and senders.
To learn more about Dash, visit our resource page!
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