Why does Bitcoin have a privacy problem?
In order to solve the “double spending problem”, all transactions on Bitcoin must be stored on a public ledger
Notable studies have shown that the same techniques used to analyze social network topology can be used to analyze Bitcoin’s network topology
Anyone can use the public ledger to break privacy, including powerful corporations and institutions such as the NSA
How does Zcoin improve privacy of the Bitcoin Protocol?
With Zcoin’s Zerocoin Technology, you can “mint” a coin found on the public ledger into a private coin
When it is time to spend your minted coin, the owner of the minted coin does not need to be revealed
The process of minting and spending a coin can be completed as many times as you want, ensuring complete privacy
“I really like [the] very creative idea...to have a pure-Zerocoin system”Hal FinneyRecipient of first Bitcoin transaction
“If you want cryptographic anonymity its better to look to Zerocoin.”Adam BackInventor of HashCash, referenced by Satoshi in the Bitcoin whitepaper
“It’s more than just a fascinating concept; a startup called Moneta [now ZCoin] has gone and implemented the Zerocoin protocol (along with other blockchain improvements.) Their “genesis block” — the launch of their blockchain — is scheduled for the next few months.”TechCrunch
“Zcoin is the first implementation of the Zerocoin protocol into a fully functional cryptocurrency. A truly exciting moment for all privacy conscious crypto-currency enthusiasts.”Roger VerZcoin Investor
“In the conventional multi-party anti-taint protocol, every participant knows the mapping from inputs to outputs. But in your improved protocol using libzerocoin, nobody sees the mapping.”Hal FinneyRecipient of first Bitcoin transaction
“The Zerocoin protocol was written in 2013 as a privacy-enhancing layer intended for Bitcoin. But as a stand-alone protocol, it’s also been up-for-grabs for any other enterprising coin. Gary Le and Poramin Insom have taken that grab, today launching the testnet of a new cryptocurrency called Moneta [now ZCoin] .”Bitcoin.com
“Bitcoin, despite its reputation as anonymous internet cash, was never designed for perfectly private payments. For the promise of fully untraceable money, cryptocurrency fans have been waiting for Zerocoin—a technology designed to have default uncrackable anonymity”Wired
“If bitcoin main choses not to integrate zerocoin - and indications so far is it wont for compute and storage efficiency reasons, and perhaps other reasons, then maybe this would be something interesting for a new altcoin.”Adam BackInventor of HashCash, referenced by Satoshi in the Bitcoin whitepaper
“Bitcoin, despite its reputation as anonymous internet cash, was never designed for perfectly private payments. For the promise of fully untraceable money, cryptocurrency fans have been waiting for Zerocoin—a technology designed to have default uncrackable anonymity.”Wired
“ZeroCoin, a blockchain protocol that grants total and absolute transaction anonymity, has finally been brought from concept to implementation. The protocol will allow developers to create coins that, linked to the Bitcoin network, will grant transactions anonymization.”CoinTelegraph
“Bitcoin transactions are published on the blockchain...Zerocoin’s blockchain, on the other hand, uses a cryptographic trick known as a “zero-knowledge proof” to guarantee that transactions in the Zerocoin economy aren’t fraudulent or forged.”Wired
“An alt coin with an integrated ZeroCoin would be a very interesting thing to play with.”Mike HearnFormer Bitcoin Core Developer
“About privacy in my view bitcoin is a bit too open which I think is not so much by design, but because its difficult to have privacy and the auditability SPV operation needs, because miners need to validate, and to validate they need to see amounts and transfer histories. (Hence the interest in zerocoin and zerocoin2.)”Adam BackInventor of HashCash, referenced by Satoshi in the Bitcoin whitepaper
“The users want more privacy once they realize how weak [Bitcoin] privacy is. It’s somewhat related to putting your bank statement and credit card statement online, with your name and address on it”Adam BackInventor of HashCash, referenced by Satoshi in the Bitcoin whitepaper
“Privacy is also essential for fair markets: Without privacy your counter-parties and competition can see into your finances— get a raise and get a rent hike, and as long as there are power imbalances between people privacy is essential for human dignity.”Gregory MaxwellBitcoin Core Developer
“Taint and tracability of taint is bad because it affects fungibility (in a p2p respendable ecash system like bitcoin, random users end up holding retroactively tainted and reduced value or unspendable coins through no fault of their own, and this erodes confidence).”Adam BackInventor of HashCash, referenced by Satoshi in the Bitcoin whitepaper
Zcoin is the implementation of the Zerocoin Protocol, which is the world’s most private cryptocurrency protocol.
Zcoin solves the privacy problem found in all previous cryptocurrencies. Zcoin implements a protocol called ZeroCoin, which allows users to have complete privacy via Zero-Knowledge cryptographic proofs. Zero-Knowledge proofs allows one to show ownership of a Zcoin coin without having to reveal which coin one owns. The original Zerocoin paper can be found here.