Bitcoin may be the crypto standard but there is no denying that it is met with skepticism in the mainstream due to its glaring issues. Meet this secure Proof-of-Stake blockchain that fixes the power consumption, entry barriers, and insufficient user data protection of Proof-of-Work cryptocurrencies modeled after Bitcoin. Dive right into our new guide to PIVX!
- The PIVX network with its native cryptocurrency PIV (also often referred to as PIVX) is an open-source volunteer-run Proof-of-Stake blockchain that focuses on user data protection;
- By protecting financial data with zero-knowledge cryptography, PIVX gives its holders an opportunity to use a digital currency with all properties of money, including fungibility. At the same time, its community governance regulates things like monetary policy, staking rewards distribution, and the course of development of the PIVX network;
- The PIVX coin can be used as a medium of exchange, staked by node or masternode operators, and finds some use in community governance. Unlike a typical Proof-of-Stake blockchain, PIVX supports cold staking to provide staking rewards to the operators that keep PIVX in cold storage.
What is PIVX Network and How Does It Work?
PIVX, which stands for Private Instant Verified Transaction, is a privacy-focused cryptocurrency project that aims to create a secure and decentralized digital currency. PIVX was initially built on the technology of the Zerocoin protocol, which allows users to make private transactions using digital currencies by obfuscating the sender, recipient, and transaction amount. This ensures that personal data that can be derived from financial transactions remains confidential. By now, the Zerocoin protocol has been scrapped in favor of a custom one to better suit the goals of PIVX.
The unique privacy protocol SHIELD optionally hides the addresses of both sender and receiver, as well as the amount transacted. It inherits zero-knowledge proofs — zk-SNARKs in particular — from zerocoin but optimizes them for near-instant finality and low latency.
Unlike most privacy coins, PIVX uses a Proof-of-Stake (PoS) consensus algorithm, which means that users can earn rewards by holding and staking their PIVX coins. This eliminates the need for expensive mining equipment and reduces the environmental impact associated with Proof-of-Work (PoW) cryptocurrencies. To preserve privacy-protecting features of the protocol, PIVX customized Proof-of-Stake so that additional features are or will be available. For example, in one of the upcoming releases, shielded coins will become eligible for staking.
Another modification of the PoS algorithm made by the PIVX team enabled cold staking. Ordinarily, the private keys to staked coins have to be stored in a hot node that has to be online at all times. By enabling a special type of transaction to delegate staking rights to a hot node, PIVX lets users store private keys separately in cold storage. Cold staking is non-custodial, since only the owner of the coins retains the right to spend PIVX.
PIVX implements a network of Masternodes (MN), servers that provide additional services to the network. For example, they facilitate instant transactions, participate in the governance system, and enhance the privacy features of the network.
PIVX has a decentralized governance system called the PIVX DAO (Decentralized Autonomous Organization). Any PIVX holder can participate in the decision-making process by submitting and voting on proposals related to the development and direction of the project.
Last but not least, PIVX has a self-funded treasury system called the Treasury Fund, which allocates a portion of block rewards to finance project development, marketing, and other initiatives. This ensures the long-term sustainability and growth of the project.
History and Team behind PIVX
The first public mention of the PIVX project dates back to November 2015. Back then, it was known as Darknet (DNET) but since 2017, it has been going by its current name. The first block of PIVX was mined on January 30, 2016 by a group of anonymous developers under the pseudonyms s3v3nh4cks, Coin-Server, and Stakebox. The real identities of the creator(s) of PIVX remains unknown.
The PIVX project is an open-source community-driven initiative, and it has since grown to include a diverse team of contributors from around the world. The team consists of developers, marketers, designers, community managers, and other individuals passionate about the project.
While the specific identities of the team members are not always public, the PIVX community values transparency and accountability. The project has an active community and governance system that ensures decisions are made collectively and transparently.
What is PIVX crypto?
To provide secure and anonymous transactions, as well as secure the network, PIVX uses a native coin called PIV. The Proof-of-Stake (PoS) consensus algorithm allows PIVX holders to take part in maintaining the network’s security and earn rewards by staking their coins.
At launch, the PIVX team conducted a fair launch without any pre-mining or ICO. The initial coins were distributed through a first Proof-of-Work (PoW) phase, during which users could mine PIVX using their computing power. After the PoW phase that ended on May 21, 2016, PIVX transitioned to a PoS consensus algorithm, and users can now stake their coins to earn rewards.
As for its distribution and supply schedule, PIVX had an initial coin supply of 55 million coins at launch. Unlike many other cryptocurrencies that have a fixed supply, PIVX has a dynamic supply model. In addition to fixed block rewards, there is tail emission as well: it combines a predictable release schedule with flexible inflation to support network growth.
For each newly added block every 60 seconds, 10 PIV gets added to the circulating supply: as block rewards, 4 goes to stakers and 6 to Masternodes. Up to an extra 10 PIV is allocated to Superblocks: a special kind of block that funds the proposals that have passed. They are created every 30 days and release all the allocated PIV necessary for the funding into the circulating supply. The network fees incurred by transferring PIV get burned, creating a slight deflationary pressure.
How to Use the PIVX Coin?
At this point in our guide, it is clear that PIVX can be staked for a return. There are two roles that allow for this: Masternode operator and Staker. We have already discussed that Masternodes get higher rewards for blocks than stakers, so why won’t everyone just run an MN? For one, it requires 10,000 PIV upfront and to secure rewards consistently, an MN has to be online at all times, not to mention staying at the top of the ranking. So, it is simply easier to stake than to run a Masternode. Higher rewards for MN operators are balanced out by the complexity of running them, and the economic forces balance the roles out. Should this equilibrium stop producing fair rewards, the community can always propose and vote to have it adjusted.
As PIV holders are entitled to take part in voting on governance proposals, the PIVX coin has a governance token function as well. Submitting a proposal incurs a fee of 50 PIVX, which is burned. The 10,000 PIVX to set up a Masternode can also be considered a requirement to be granted an MN vote.
Another, and arguably the most important, use case for PIVX is a privacy-preserving medium of value exchange. In simpler words, you can send and receive money in PIVX, and rest assured that your private financial data, is sufficiently protected. This use case is appealing even to crypto users who are not yet a part of the PIVX community.
The Cryptwerk repository for businesses that accept crypto payments lists 200 shops where PIVX tokens can be spent and 6 gateway services that facilitate payments in PIVX.
Comparison with Similar Projects
As a privacy-preserving cryptocurrency, PIVX has a lot of competitors. Some use a similar layered architecture, some employ similar cryptography to protect financial data.
While not exactly a privacy coin, Dash shares more similarities with PIVX than meets the eye. It has a similar masternode network for extra functionality — one of the most prominent examples of which is PrivateSend. It acts as a shielded transaction that obfuscates the amounts and addresses of the transaction. Dash is an even older project, started in 2014, and curiously, at one point also had a name that alluded to the darknet (Darkcoin).
Like PIVX, Monero was started by an anonymous developer(s) and is supported by a team of volunteers. It employs a different cryptographic technique to hide transaction details — ring signatures — and has it enabled by default. While not intentional, both projects share a similar approach to the native cryptocurrency’s release schedule: static block rewards plus tail emissions.
Finally, Zcash and PIVX both offer privacy features through the use of Zero-Knowledge Proofs. Both projects aim to provide users with privacy and the coins with fungibility. However, even though both coins started out as implementations of the Zerocoin protocol, by now they have modified it for their own goals and mission.
PIVX Ecosystem, Partners, and Future Plans
The official PIVX roadmap features a detailed list of features in development, testing, or research. PIVX users can look forward to more features for masternodes, including vote delegation, a new type of MNs, and better UI/UX. These features are already in testing. Shielded staking and pooled staking are coming in the updates in a more distant future.
On a non-technical level, the community is working on exchange listings and recruiting PIVX ambassadors. Some already in their ranks include basketball, triathlon, MMA, rock climbing, and surfing athletes from all over the world. Partnerships and alliances are also a work in progress with more gradually joining the ecosystem.
Which Crypto Wallet to Use for PIVX?
To use PIVX, you will need to download and install a PIVX wallet on your computer or mobile device. The official PIVX wallet is available for Windows, Mac, and Linux. A more user-friendly alternative to a full node is MyPIVXWallet, developed by PIVX Labs. Once you have set up a wallet, you can send and receive PIVX coins, participate in staking, and interact with other features of the PIVX ecosystem.
For even more secure storage, you can opt for a cold hardware wallet. One of the popular options is Ledger — it supports cold staking of PIVX. If you don’t plan to stake and just need secure storage for PIVX, Trezor also supports it.
Where to Buy PIVX?
This is a tricky question when it comes to any privacy coin, not just PIVX. A lot of centralized crypto exchanges refuse to list these digital currencies for regulatory concerns. Luckily, ChangeHero’s liquidity providers give you an option to buy PIVX. We will find the best rate across ten liquidity providers in real time, and you can start right away with no need to sign up or go through KYC.
- Choose the currencies on the home page, amounts, and the type of exchange. Provide your PIVX wallet address in the next step and check the details;
- Send the cryptocurrency for the swap in a single transaction. In a Fixed Rate transaction, you have 15 minutes before it expires;
- Sit back and relax. Now we are doing all the work: checking the incoming transaction and making the exchange as soon as it arrives;
- As soon as the exchange has been processed, your PIVX is on its way to your wallet. And so, the transaction is finished!
The flow is simple enough but if you struggle with something, don’t worry. Our support team is available 24/7 to help you in the chat or through the email: [email protected].
In the crypto world that departs from its origins with each passing year, PIVX is an intriguing experiment in building a perfect form of secure digital money. They set out to fix the issues Bitcoin had with fungibility and user data protection, and in our humble opinion, managed to do it.
If you found this guide useful, make sure to check out our blog for coverage of other crypto projects. Subscribe to our social media for updates: Telegram, X (Twitter), Facebook, and Reddit.
Frequently Asked Questions
What is PIVX coin?
PIVX is a privacy-focused Proof-of-Stake cryptocurrency that stands for Private Instant Verified Transaction. It is based on a decentralized blockchain, offering fast and secure transactions while prioritizing privacy through features like zk-SNARKs technology. PIVX aims to provide users with a private and decentralized digital currency experience.
What is the supply of PIVX coins?
After the initial supply of 55,000,000 coins, PIVX has a continuous annual inflation rate of 0–9%. This is referred to as the tail emission, which means that new coins will be minted and added to the supply every year.
Where can I trade PIVX?
PIVX can be traded on several cryptocurrency exchanges. Some popular exchanges where you can buy PIVX include Binance, Bittrex, LBank, Bittrex, WhiteBit, and CoinEx. A more easy way to get PIVX without the hassle of registration and identity verification is by swapping crypto on ChangeHero!
Is PIVX safe?
PIVX aims to provide enhanced privacy and security features through its use of the Zerocoin protocol. However, as with any cryptocurrency, it’s important to exercise caution and employ good security practices when using and storing PIVX funds to ensure its safety.