What Is Firo Coin (ZCoin)? Here’s What You Should Know Before Investing
ZCoin was once one of the popular cryptocurrencies that focused on secure payments. However, since the hack, such a rapid decline forced the developers to rebrand the company in the direction of Firo. So what is Firo Coin? The following article will share with you what you need to know before making an investment decision.
What is Firo Coin? Why change the name of Zcoin
Zcoin on October 6, 2016 for $0.36. Zcoin, is one of those original privacy coins. It is also the first cryptocurrency to implement the Zerocoin protocol, a popular technology used by private coins.
However, less than six months after its launch, in February 2017, it was vulnerable to a major hack. The attackers minted 370,000 Zcoins and sold them for 400 BTC.
The developers have noticed that there is a sharp drop from 40th to 250th on Coinmarketcap rankings. This led them to make the decision to rename Zcoin to FIRO from October 2020.
Firo is fully responsible for some of the security protocols of the blockchain platform. Therefore, they are integrated with advanced technologies.
Lelantus is an innovative technology developed by Aram Jivanyan at Zcoin. This technology allows Traders to “burn” the coins they own and hide them in an anonymous pool. Anyone who receives it can exchange money from this anonymous group.
The Lelantus protocol supports Sigma technology by eliminating the requirement for a fixed denomination. At the same time, it allows users to burn arbitrary amounts of money and exchange a portion of the amount with an undisclosed value. In addition, this technology does not require a reliable installation, but only needs to use DDH assumptions. They also support direct anonymous payments, allowing Traders to exchange and transfer funds to others.
Sigma technology was introduced into Zcoin 2018. Before that time, developers believed that the purpose of blockchain was to create systems that did not require trust and to apply the same principles to the system. privacy system. That is also the reason why Sigma technology was built into the Zcoin system that year.
Sigma technology is the forerunner of Lelantus technology and promises to further develop this technology in the future and lead us to where we are today.
Dandelion technology was born with the purpose of protecting users’ IP addresses. Initially, this technology was used for Bitcoin as a way to conceal the origin of transactions.
Merkle Tree Proof (MTP)
The Merkle Tree Proof mining algorithm used by Firo promotes average mining while maintaining fast verification. At the same time, this algorithm also enhances the actual anonymity of transactions.
PoW is a perfect mechanism for Firo. They are equally distributed and more efficient when mined with commercial equipment. Participants in the network will receive block rewards when they provide computing power on other blockchain mechanisms such as ICOs, Airdrops, etc.
How to mine FIRO with MTP
Currently Firo can be mined using CPUs and GPUs although it is most efficient on GPUs. Firo uses an MTP algorithm designed to be resistant to ASICs to prolong the time of fair distribution and allow home miners to participate for as long as possible. Before you start, make sure you have a Firo (FIRO) address to which you want to transfer your mining payments. To get one, download the Firo wallet and sync it to the network.
Firo’s Merkle Tree Proof (MTP) mining algorithm further enhances the actual anonymity of transactions. MTP uses a lot of memory, preventing miner concentration. However, nodes can ignore this memory request. An audit sponsored by Zcoin in 2017 demonstrated the effectiveness of this two-pronged approach.
Exploiting instructions are detailed at: https://firo.org/guide/how-to-mine-firo.html
Ecological bridge between Firo and DeFi of Ethereum
In 2020, Zcoin officially became the first project on StakeHound to deploy a liquidity bridge to Ethereum’s DeFi ecosystem. As a result, Zcoin holders can reap huge profits from DeFi applications by staking XZC tokens. Not only that, Traders will also be rewarded for their staking activities.
According to current practice, half of the XZC has been staked in Znode. By using the StakeHound bridge along with more than 850,000 USD worth of Zcoin, investors will not have to choose between staking or participating in the DeFi ecosystem.
In addition, StakeHound will also convert XZC to a staked token XZC. It is known that this is a token of the ERC-20 type and has high liquidity. Therefore, StakeHound is considered a very good platform for applying tokenization of positions, helping recipients both receive rewards from staking and earn instant profits from the DeFi ecosystem.
How Is the Firo Network Secured?
after the attack, Firo uses a PoW-Chainlock hybrid consensus model whereby quorums are formed by several hundred masternodes deterministically selected (LLMQ) that perform a verifiable network-wide measurement/vote of the “first-seen” rule and locks in the block that is first-seen. Blocks are final with a single confirmation as no reorganizations are allowed past this point.
This also mitigates 51% mining attacks as more than half the masternode network would need to be compromised to disable Chainlocks before a 51% attack can be mounted.
Firo’s mining algorithm is MTP which relies on memory hardness to make it resistant to ASICs. It is moving to FiroPOW, a ProgPOW variant that is explicitly designed for GPU mining and is even more resistant to ASICs and FPGAs to encourage fair distribution of its coin.
Basic information about FIRO
Token Name: FIRO
Total Supply: 21,400,000
Circulating Supply: 12,427.855
Firo cryptocurrency is one of the best digital currencies that protect the privacy of transactions and apply modern algorithms, technologies and security methods. Not only that, Zcoin is also the 2nd project to use DASH innovation in developing LLMQ ChainLocks.
The members of the project development team are all famous names in the field of blockchain development and IT technology.
Although the Firo rate is affected by the strong bearish trend in the market, it is still a cryptocurrency with a lot of potential. Whether to invest in this coin or not is still entirely up to you. Therefore, please research carefully before making the final decision.
Above are our shares about Firo Coin. Overall it’s a protocol that leverages many of the cutting-edge technologies like Firo’s Lelantus privacy protocol and its predecessor, Sigma, relying as part of its build on zero-witness proof. specialized formula.
Unlike other zk constructs, no reliable setup or weird cryptographic/mathematical assumptions are required while retaining high sets of anonymity.
It was also the first project to implement Dandelion++ in October 2018, a transaction propagation method that prevents third parties from associating IP addresses with transactions.
However, the only disadvantage of the project is that it has been hacked, so it takes time to regain the trust of users.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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