Privacy-Focused Cryptocurrency Zcoin Launches Crowdfunding System

Blockchain, News | December 26, 2019 By:

Privacy focused cryptocurrency Zcoin (XZC) has launched its Zcoin Crowdfunding System (ZCS) as a key step in decentralizing funding and decision making of the project.

Zcoin is an open-source, decentralized privacy coin that focuses on achieving privacy and anonymity for its users while transacting on the blockchain. Zcoin is the first to develop and implement the Sigma Protocol, which allows users to have complete privacy over their transactions via zero-knowledge cryptographic proofs without the need for trusted setup.

The new Zcoin Crowdfunding System is designed to serve as a transition from funding directly from the block reward to a donation model and shall begin funding ancillary tasks, such as non-core development, third party integrations and community management and events. The new system will allow any community members to propose, approve and fund activities.

“Anyone can submit an idea for a feature, task or service for discussion and once it reaches sufficient interest, it is approved for donators to start funding it,” the company said. “Funds are then released according to the milestones specified along with regular updates of the progress of the project. The ZCS utilizes Zcoin’s Github for transparency so that there is a trackable history of all proposals and its amendments.”

Reuben Yap, Project Steward of Zcoin, said that as a privacy project, decentralization is essential for long term sustainability which includes governance and funding.

“While a block reward has served us well in building the foundations of Zcoin it can result in over-reliance on the core team,” said Yap. “We have looked at many funding models including decentralized treasuries where proposals are voted base on stake but these often result in plutocracies. ZCS draws from the good example set by the Monero CCS and also shows that competing privacy projects can complement one another including drawing inspiration from each other and collaborating in research. I am hopeful that the ZCS will result in increased community participation in the project by allowing a streamlined way to seek funding.”

In 2020, Zcoin will also be launching Lelantus, the company’s own innovation which have attracted a lot of academic interest, as its next generation privacy protocol. Compared to zkSNARKs and its variants, Lelantus does not have trusted setup and only relies on standard cryptographic assumptions. It also uses a relatively simple construction making it easy to deploy and maintain while achieving a similar feature set, such as direct anonymous payments.