1. Introduction
PIVX is a secure and private, decentralized, open-source cryptocurrency that represents private instant verification of transactions. It was released under the name Darknet (DNET) before February 1, 2016, and was officially renamed PIVX after that. When DNET transitioned to the current Proof of Stake (PoS) stage, the initial stage of distribution using Proof of Work (PoW) was correspondingly terminated in August 2016. PIVX adopts Blackcoin's Proof of Stake (PoS) 2.0 protocol and runs on the Bitcoin Core 0.10.x codebase. It leverages a network of masternodes to enable an open, decentralized approach to governance while enhancing transaction privacy. The main goal of PIVX is to enable near-instant private transactions and to build a sustainable network governance mechanism that safeguards the interests of all users.
2. Project introduction
PIVX, known as PIVX in Chinese, PIVX is the abbreviation of Private Instant Verification Transaction. PIVX is an open source digital currency that ensures transaction security and focuses on privacy and decentralization, which means that PIVX is, in essence, designed, built, continuously optimized and developed to ensure the security and privacy of your transactions. PIVX is an open source cryptocurrency based on Bitcoin Core 0.10.x and DASH technology. It uses the Proof of Stake (PoS) 3.0 protocol to ensure network security, and uses an innovative variable rocker reward mechanism to dynamically balance 90% of block rewards between masternodes and stake accumulation nodes, and the remaining 10% for budget proposals. PIVX aims to be a sustainable cryptocurrency through near 24/7 real-time private transactions, fair governance, and a knowledgeable community.
The goal of the PIVX project is to create a community-based electronic cryptocurrency with a responsive transaction system and a fair management system. PIVX applied the POS (Proof of Stake, Proof of Stake) algorithm of Black Coin after the 6-month stage of POW (Proof of Work, Proof of Work). PoS2.0 and above abolishes the mechanism of coin age and allows a fairer reward system, while enhancing the security of nodes. The main difference between v2.0 and v3.0 is that the variable block reward related to the coin supply is fixed to a static value to provide a more stable reward amount and liquidity, however PIVX goes one step further by creating a The dynamic balance system of trade-offs allows the block reward value between the master node and the equity node to be variable, so as to optimize and reasonably configure the two node networks.
In order to promote the proportional balance between stake nodes and master nodes in the network, the PIVX team has developed a variable seesaw reward balance system that can dynamically adjust the zone between master nodes and stake nodes. Block reward share. 10% of each PIVX Proof of Stake (PoS) block reward is dedicated to the budget system and 90% is dedicated to masternode and stake mining revenue rewards. The reward part is further dynamically distributed between master nodes and stake nodes through the seesaw reward balance system.
The higher the number of master nodes held, the smaller the reward part of each certificate of equity (PoS) block, that is, the proportion of rewards paid to the master nodes also decreases, and the proportion of rewards used for equity nodes increases. . Conversely, when the number of masternodes decreases, the masternode reward ratio increases, while the stake node reward ratio decreases accordingly. Proof-of-Stake (PoS) block rewards start at a 9-to-1 ratio when the number of coins set by masternodes falls below 1% of the total coin supply.
However, as the number of coins locked to masternodes exceeds 41.5% of the total amount of PIVX coins, the total block reward will be transferred to stake nodes based on greater than 50% of the block reward amount . Doing so would make a masternode less attractive as it is more likely to reduce its profitability than an investment with less maintenance costs. This threshold was chosen because it will enable a strong and profitable network of masternodes, as it stimulates the generation of coins that make up 60% of the total coin supply, which will be used to anchor the network and maintain the liquidity of the currency.
Privacy: PIVX implements an advanced version of the "Zerocoin Protocol" which allows PIVX users to conduct completely anonymous transactions.
Quick: PIVX transactions can be confirmed within 60 seconds, and usually instantly.
Low fees: Sending a $25 bitcoin transaction currently costs $0.42. The same transaction, paid with PIVX, costs less than $0.01.
Rewards for Ownership: There are three different types of rewards for PIVX owners - masternodes, PIV staking, and zPIV staking.
Secure Network: A 51% attack on PIVX is almost impossible. PIVX is a highly decentralized proof-of-stake network, and there is no possibility of highly centralized mining pools or authorized nodes.
The seesaw reward balancing system that PIVX utilizes has many advantages over certificate-of-stake cryptocurrencies over the many used masternode reward splitting methods.
1. It can indirectly affect the total number of masternodes in the network by changing its reward size to adjust its reward amount and staking amount.
2. When the amount of masternodes is too high, the number of equity holders will be promoted by increasing the reward payment share of equity holders, thereby maintaining a high degree of network security.
3. As long as the masternode value is below the balance threshold (approximately 40% of the coin supply), the return of the masternode holder will continue to be higher than that of the stake holder.
4. Guarantee all coin holders to receive rewards, not just masternode holders. This results in a more fair and relatively less centralized system.
