Zcoin (XZC) is an open-source privacy-focused cryptocurrency token that launched in Sep 2016. To enable privacy, Zcoin uses zero-knowledge proofs via the Zerocoin protocol. Zerocoin is a cryptocurrency proposed by Johns Hopkins University professor Matthew D. Green and graduate students Ian Miers and Christina Garman as an extension to the Bitcoin protocol that would add cryptographic anonymity to Bitcoin transactions.
With Zcoin’s Zerocoin feature, only the sender and receive would be able to ascertain the exchange of funds in a given transaction, as no transaction histories are linked to the actual coins.
Zcoin operates a multi-node model where mining nodes verify blockchain transactions and Znodes store blockchain data. Znodes are nodes on the Zcoin network that are incentivized to run a full copy of the blockchain and to process Zerocoin transactions. The nodes earn a share of 30% of the newly mined Zcoins, 15 every block. But running a Znode will require staking 1,000 Zcoins.
You are required to stake coins as proof that you are highly invested in Zcoin. If you are highly invested, you’ll be incentivized to keep the network running honestly and with consistent uptime.