PIVX Whitepaper - Private Instant Verified Transaction

PIVX Whitepaper - Private Instant Verified Transaction

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Private Instant Verified Transaction
These technical notes are intended to formally document and describe the features and concepts of the Private Instant Verified Transaction cryptocurrency. This specific document will thoroughly explain in detail the technical details of the Seesaw Reward Balance System along with its intended benefits.

The majority of cryptocurrencies that make use of masternodes, split their block reward per block equally between the mining and masternode distribution mechanisms. The intended fairness of this reward distribution can be subverted by the growth of masternodes held by large investors without limits leading to potential centralization of the budgeting system much like having a majority shareholder in a company. The additional benefits of masternodes can lead to less number of users conducting Proof of Stake (PoS) mining activities and thus lowering the security of the PoS network.

Masternodes do provide a valuable service and should be rewarded for that service, but our aim here is not to reward them way beyond the extra value they provide. For we believe that doing so disproportionately benefits masternode owners above and beyond other users of the system and ultimately leads to a greater degree of centralization.

To overcome this problem, the feature outlined in this paper was developed and implemented with the sole intention of ensuring the security of the PoS network. This is achieved by creating an incentive to stake, which subsequently promotes liquidity in exchanges and controls the growth rate and count of the masternode network.

Private Instant Verified Transaction, PIVX, is a privacy focused decentralized open source cryptocurrency launched in Feb 1 2016 under the name of Darknet (DNET) before it was professionally re-branded to PIVX. Initial Proof of Work (PoW) distribution phase ended August 2016 when DNET transitioned to the current Proof of Stake (PoS) phase.

PIVX runs on Blackcoin PoS 2.0 protocol and is based on Bitcoin core 0.10.x code base. It utilizes a network of masternodes for an openly visible decentralized governance and increased transaction privacy.

The main goal of PIVX is to achieve near instant private transactions and a governance that helps sustain the network for the benefit of all of the users involved. While we are well on our way to achieving this, some of the features are under development and should appear in the near future.

PIVX has an open task and development environment and a highly accessible development team utilizing multiple social networking channels, including social media. The development team is welcoming of anyone and everyone to join its cause, regardless of technical expertise. We encourage people to just go ahead and do things rather than having lots of gatekeepers or a hierarchical structure where permissions are required to move forward.