PIVX is an open source privacy-centric cryptocurrency that was forked from DASH in February 2016 and was originally called Darknet (DNET). It was released with a proof-of-work mechanism but then transitioned into an updated proof-of-stake protocol.
As community involvement grew, Darknet was rebranded to PIVX in January 2017 to reflect its core mission of providing instant and private transactions. PIVX stands for Private Instant Verified Transaction. The PIVX team believes privacy is a non-negotiable basic human right. Privacy, freedom, technology, and governance are the four pillars of PIVX’s manifesto.
PIVX Pricing, Market Cap and Volume
PIVX was launched with a proof-of-work distribution phase before it transitioned into its current proof-of-stake model. Under the proof-of-stake model, 5 PIV coins are minted every 60 seconds. The newly minted PIV is divided in two ways: a fixed 10% goes into PIVX’s development pool and the masternodes vote on which projects the 10% should be spent on. The remaining 90% is divided between masternodes and stakers based on the seesaw algorithm, which adjusts the amount of rewards that are awarded to the two groups based on the number of masternodes and stakers at a given time.
PIVX does not have a finite supply of coins like Bitcoin or other cryptocurrencies. The total supply of PIVX increases by approximately 2.6 million coins every year. On December 29th 2017, there were 55,214,637 coins in circulation and one coin was worth $12.60. The amount of PIV in circulation is expected to reach 312 million units in 100 years.
How PIVX Works
PIVX is based on Bitcoin core 0.10.x code base. It’s the first proof-of-stake cryptocurrency based on version 0.10 or higher of the Bitcoin code base. It uses a network of masternodes to provide a host of network services, including coin mixing for increased transaction privacy, near instant transactions with SwiftTX, and a decentralized system of governance with immutable proposal and voting systems.
Masternodes are paid a portion of the reward from each block for the services they provide. This can serve as a passive source of income to the owner of a masternode and help offset their running costs. To encourage an even reward distribution between masternodes and staking nodes, PIVX uses a Seesaw Reward Balance System to dynamically adjust the block reward size.
All decentralized blockchain communities have a rewards system for people who help secure their network. Bitcoin, for example, gives block rewards to miners. In the network, anyone who holds PIVX can help secure the network and receive rewards for their efforts. There are three distinct groups who help PIVX in different ways, and they all receive rewards:
Masternodes – running a masternode requires 10,000 PIV as collateral and some technical knowledge.
Staking Wallets – users who stake their PIV by keeping their wallets active. There is no required minimum amount for staking.
Helpers – PIVX regularly funds community projects and users who work on these projects can earn PIV for their efforts. Projects include marketing, development, customer support, and more.
PIVX vs. Other Cryptocurrencies
PIVX has many unique features that make it different from other cryptocurrencies. Beacuse of these differences, some see it as a promising digital currency.
Improved Proof of Stake
PIVX uses a proof-of-stake mining algorithm that’s significantly less energy intensive than proof-of-work mining algorithms. PIVX holders secure the network and enable it to reach consensus. Block rewards go directly to PIVX owners and not miners.
Community Designed Governance (CDG)
Masternodes are currently the only users who can vote on proposals. They recently voted to give any PIVX holder the power to vote once CDG is established.
Balanced Coin Inflation and Deflation
PIVX coins will eventually become deflationary with use. This is because fees are burnt and not paid to any miner or staker. No one can take the market hostage with fees because they are determined by the network.
PIVX uses a mixing mechanism based on Coinjoin to provide an additional layer of privacy to transactions. While it’s not 100% anonymous, it’s much better than the privacy offered by a standard Bitcoin transaction. Even if a malicious user were to control 50% of all masternodes on the network, they would still only have less than 1% of a chance of de-anonymizing an individual transaction.
zPIV (Zerocoin) for Privacy and Anonymity
PIVX is the first proof-of-stake cryptocurrency to use the highly-vetted Zerocoin protocol to create zPIV. zPIV utilizes a coin mixing service that completely severs the link between the sender and receiver and gives 100% anonymity and untraceability.
Instant transactions with SwiftTX
SwiftTX transactions are guaranteed by the network of masternodes and are confirmed and spendable within seconds. Users don’t have to wait for multiple confirmations to establish the validity of a transaction.
Seesaw Rewards Mechanism
Block rewards earned by masternodes and staking wallets are based on the amount of coins held by masternodes versus the amount of coins available for staking. This allows for variable rewards based on the needs of the network and keeps the network’s services and security evenly distributed.
Low Transaction Fees
PIVX has very low transaction fees because of proof-of-stake efficiency, which makes it ideal for businesses with micro-transaction pricing models.
Buying and Storing PIVX
PIVX can be traded on numerous exchanges, including Bittrex, Cryptopia, Livecoin, Changelly, Upbit, Bitsquare, CoinSpot, and Empoex. PIVX currently doesn’t have a lot of wallet options, but there are enough secure options available for early adopters:
Desktop Wallet – The PIVX team has built a pre-compiled desktop wallet that works on Windows, Mac OS X, and Linux operating systems.
Mobile Wallet – The team created a mobile wallet for Android. PIVX is also supported by Coinomi.
Hardware Wallet – The Ledger Nano S supports PIVX.
Paper Wallet – You can use Walletgenerator.net to create secure paper wallets for PIVX.
Liquidity of PIVX
Rebranding PIVX from Darknet coupled with increased marketing efforts by the community has caused the value of PIVX to surge by 54,118% in less than a year. PIVX is highly liquid and can easily be traded on various crypto exchanges. Its unique rewards system and proof-of-stake mechanism makes it ideal for users interested in investing in cryptocurrencies, but don’t have the resources needed to mine proof-of-work currencies like Bitcoin.