What is PIVX
PIVX is a cryptocurrency that focuses on Private Instantly Verified transactions (hence the name PIVX). It is designed to fix the shortcomings of Bitcoin, where transactions are public and can take up to an hour. Whilst the concept sounds amazing, it’s not the first cryptocurrency to take on this angle. In fact, it is actually based on another cryptocurrency called DASH (short for “Digital Cash”. PIVX is actually a “fork” of DASH, meaning it shares a lot of the same code. Despite the similarities, there are still a few key differences between PIVX and DASH.
PIVX vs DASH
Here is a list of the key differences between PIVX and DASH:
- 100% Proof of Stake – PIVX supports an advanced version of Proof of Stake (POS). This is a system that relies on master-nodes to verify transactions instead of miners. PIVX is 100% Proof of Stake whilst DASH is only 50%. This means DASH still relies on miners whilst PIVX does not.
- Seesaw reward mechanism – PIVX uses an advanced mechanism to distribute block rewards. 90% of the reward is distributed to the masternodes and stake nodes, whilst 10% is distributed to community projects.
- Availability – PIVX is a newer currency than DASH and less availability. It is traded on less trading platforms.
Is it possible to mine PIVX
It is not possible to mine PIVX – it uses a transaction verification system that does NOT require mining (Proof of Work). This system is called Proof of Stake and relies on Master-nodes. Master-nodes are computers that run the PIVX wallet and make decisions and verify transactions.
How do you create a master Node:
Master nodes are created by locking 10,000 PIVX into an account and running the PIVX client. The deposit of 10,000 PIVX is mandatory and cannot be used while the masternode is running (hence proving your “stake” in the system).