PIVX, an abbreviation for Private Instant Verified Transaction was founded in February 2016 as a fork of Dash under the name of Darknet (DNET), presenting anonymity as its main offer. In its beginnings, it used the Proof-of-Work (PoW) consensus algorithm, a phase that lasted until August 2016, when it changed to Proof-of-Stake (PoS). And although this was a substantial change, the adjustments that came later gave it its new status as one of the most advanced blockchain protocols.
For starters, it changed its name, and since then it hasn’t stopped its releases. The network is called PIVX and its native cryptocurrency, PIV. Some of the most important changes, however, have been its website and its own wallet protected with BIP38 encryption, which protects the private key with a password. Likewise, it was declared the first cryptocurrency to use the improvements brought by the Bitcoin Core 0.10.x protocol and to combine them with the characteristic Dash masternodes.
One of the most important reasons why PIVX is such an interesting project to invest in is because it is one of the most innovative networks focused on privacy. It offers its users a choice of whether to send and receive its native token PIV anonymously or transparently. To obtain it, you can trade it for another cryptocurrency like Bitcoin, and they are available for buying on crypto exchanges.
Main Characteristics of PIVX
The best way to decide whether a cryptocurrency is worth your time or not, is to learn about its vision, and to understand it, here are its main characteristics.
Masternodes
Masternodes is a system inherited from Dash. These are the “incentivized nodes” that receive the highest rewards in exchange for always being available to maintain and provide services to the network in a decentralized and reliable manner. To run a masternode, you must have at least 10 thousand PIV, and the user, in addition to the rewards, will be able to vote on the most important proposals of the platform. The current reward is calculated at 3 PIV per day.
Staking
Staking is sometimes compared with mining. However, instead of the power of the hardware to earn more PIV, you use the PIV you already own. The more they are held in the personal wallet, the greater the interest in earnings. Staking rewards right now is 2 PIV per block.
Privacy
To achieve the privacy and anonymity it seeks, PIVX used a system called obfuscation. It consisted of bringing all the transactions carried out to a single unit, where they are mixed and make it impossible to identify their origin. Later, their privacy efforts evolved into a much more advanced approach which overcame the drawbacks and its limited privacy capability.
In 2017, PIVX implemented a zero-knowledge proof privacy protocol—the Zerocoin protocol. Like the name suggests it’s basically proof that the verifier correctly executed a certain computation but without revealing any secrets. Later on, PIVX implemented a Zerocoin Light Node Protocol, which enabled users with less powerful mobile devices, and minimized the data required for a calculation to be done. To reduce the communication costs of Zerocoin, PIVX designed a new signature of knowledge (SoK), known as bulletproof, which doesn’t require a trusted setup.
Speed
Another great thing about PIVX is that it offers incredibly fast, almost instantaneous transactions, as its full name—Private Instant Verified Transaction—suggests. Theoretically, this network can perform over 170 transactions per second.
Governance
In this blockchain, the community is prioritized, and it achieves a type of governance that allows it to get involved at all levels, with the development of the PIV cryptocurrency. For this, its users can send proposals and the masternode owners can vote, having a real say in any changes done to the project.
In Closing
By having a PoS consensus instead of PoW, it’s no longer possible to mine PIV, the native token of PIVX, although it was possible during its time as Darknet. The equivalent of mining in this case is staking, which is basically “saving” to earn interest while keeping the network in possession of those coins.
After looking at all of its characteristics, it’s not a surprise that among traders PIVX is often considered an interesting cryptocurrency investment option. While there are many projects that share similar missions, PIVX is unique because of its innovative Proof-of-Stake algorithm, and decentralized, community-guided governance model.
