PIVX is a secure and private, decentralized, open-source cryptocurrency that stands for Private Instant Verified Transaction. Before being rebranded to PIVX on February 1, 2016, it was known as Darknet (DNET). When DNET transitioned to the current Proof-of-Stake (PoS) phase, the initial Proof-of-Work (PoW) distribution phase concluded in August 2016. PIVX operates using the Blackcoin PoS 2.0 protocol, based on the Bitcoin Core 0.10.x codebase. It utilizes a masternode network to achieve a publicly decentralized governance model while enhancing transaction privacy. The primary goal of PIVX is to enable near-instant private transactions and build a sustainable network governance mechanism that benefits all users.

Introduction

PIVX, also known as PIVX Coin, is an abbreviation for Private Instant Verified Transaction. As a secure, privacy-focused, and decentralized open-source digital currency, PIVX is fundamentally designed, built, 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 secure the network and an innovative variable seesaw reward system to dynamically balance 90% of the block rewards between masternodes and staking nodes, with the remaining 10% reserved for budget proposals. The aim of PIVX is to create a sustainable cryptocurrency through near-instant private transactions, fair governance, and a proficient community.

Following the completion of the Proof-of-Work (PoW) phase, which lasted six months, PIVX adopted the Blackcoin PoS algorithm. PoS 2.0 and above abolished the coin age mechanism and allowed for a more equitable reward system, enhancing node security. The key difference between v2.0 and v3.0 is that the variable block reward related to coin supply became fixed, providing a more stable reward amount and liquidity. However, PIVX went one step further by creating a dynamic seesaw balance system, allowing the block reward allocation between masternodes and staking nodes to vary, optimizing the distribution between the two networks.

Project Features

To promote a balanced ratio between stake nodes and masternodes within the network, the PIVX team developed a variable seesaw reward balancing system that dynamically adjusts the block reward split between masternodes and staking nodes. 10% of each PIVX PoS block reward is dedicated to the budget system, while 90% is allocated to masternode and staking rewards. This portion is then dynamically distributed between masternodes and staking nodes through the seesaw reward balancing system.

The higher the number of masternodes, the lower the portion of each PoS block reward, reducing the proportion paid to masternodes and increasing the proportion for staking nodes. Conversely, when the number of masternodes decreases, the masternode reward proportion increases, and the staking node reward proportion decreases. When the number of coins locked into masternodes falls below 1% of the total coin supply, the PoS block reward begins at a 9-to-1 ratio. However, as the number of coins locked into masternodes exceeds 41.5% of the total PIVX coin supply, the overall block reward shifts towards staking nodes, exceeding 50%. This reduces the attractiveness of masternodes since, compared to investments with less maintenance cost, their profitability may decrease. This threshold was chosen to promote a robust and profitable masternode network, as it can incentivize the generation of 60% of the total coin supply, which can be used to secure the network and maintain currency liquidity.

Use Cases

Privacy: PIVX implements an advanced version of the "Zerocoin Protocol," allowing PIVX users to conduct fully anonymous transactions.
Speed: PIVX transactions can be confirmed within 60 seconds and are often instantaneous.
Low Fees: Currently, sending $25 worth of Bitcoin costs $0.42 in fees. The same transaction with PIVX costs less than $0.01.
Ownership Rewards: There are three different types of rewards for PIVX owners—masternodes, PIV staking, and zPIV staking.
Secure Network: A 51% attack on PIVX is virtually impossible. PIVX is a highly decentralized PoS network without the possibility of highly concentrated mining pools or authorized nodes.

Technical Overview