What is BitcoinZ: Liberty, Equality, Cryptocurrency

As much of a statement as it is a digital currency, is BitcoinZ the way to fairer cryptonomics?

Illustration of scales balancing money with social responsibility                                 
BitcoinZ wants to tip the scales on proof-of-work rewards distribution – Photo: Shutterstock
                                

Contents

When BitcoinZ (BTCZ) anonymously launched its genesis block in September 2017, it did so on a community-driven manifesto under a banner stating: “In decentralisation we trust.” Now celebrating its fourth year as an active cryptocurrency, BitcoinZ operates with no company structure, no CEO and zero pre-ownership of coins, instead relying on volunteer development teams and the dedicated ArmyZ user community.

Its native coin BTCZ’s low fees and swift finalisation times allow for point-of-sale (POS) and e-commerce functionality while also acting as the basic currency on the recently launched BITCOINZ-DEX decentralised exchange.

As part of the community-driven philosophy, the vast majority of mined BTCZ goes to community miners, although a community fund also pays out weekly rewards to ArmyZ members who help to spread the message.

So how does BitcoinZ work to live up to these principles and what is BitcoinZ coin used for? Join us as we jump in and have a good look at the BitcoinZ cryptocurrency.

Democratising Mining

What is BitcoinZ (BTCZ) doing to ensure that it upholds democratic mining principles? BTCZ is mined in the same way as BTC and ETH, namely through the proof-of-work (PoW) method. But while an effective BTC or ETH miner requires the combined processing power of a small town, anyone with a discrete GPU is able to mine BTCZ.

How is this possible? The answer lies in the algorithm, specifically the ZHash algorithm, which, like many aspects of the BitcoinZ project, encourages a decentralised crypto community.

To do this, the ZHash algorithm increases what is known as “ASIC resistance”. ASICs are purpose-built cryptocurrency mining machines designed specifically to outperform standard computers. Since the BTC mining algorithm has no ASIC resistance baked in, it rewards the miners with the largest amount of processing power. This creates centralisation and intense levels of power consumption.

By snubbing ASICs, the ZHash algorithm theoretically pays rewards to the many, not the few. So how equal is BTCZ distribution?

Pie chart displaying distribution of BTCZ – Photo: getbtcz.com
More holders have a bigger piece of the pie – Photo: getbtcz.com

Data supplied from the BTCZ Explorer above shows that of the maximum supply, 27.25% is in the hands of the top 25 BTCZ holders, while the next top 25 holders account for 7.65% of distribution. 

Further analysis of the top holders shows that the largest holder has 4.09% of supply, with the following four holders each holding approximately 2.35% each. By the looks of it, BTCZ has no whales.

Should I mine BTCZ?

At going rates, BitcoinZ pays out 6,250 BTCZ per block at a block rate of 2.5 minutes. That is $2.2 in fiat terms. As a solo miner, rewards are proportional to your GPU power (despite ASIC resistance, processing power is still a factor). A standard MacBook Pro, according to whattomine.com’s analyser,  would produce a daily profit of $0.57. The same parameters generate a negative balance of -$0.11 for mining ETH, so this is a substantial increase.

While solo mining is viable, BitcoinZ promotes the use of mining pools, which increases the chances of gaining rewards by pooling resources together.

BitcoinZ has a transparent rewards-halving schedule which mirrors that of Bitcoin. As a hedge against inflation, rewards are halved every four years. The first halving occurred on 31 October 2021, so the next is a while away yet. There was a 57% month-to-date (MTD) price increase, showing the value-adding potential of a clear halving regime.

Greater returns can be achieved through other high-spec mining endeavours, but as a community-centric crypto project, BitcoinZ balances common-sense tokenomics with egalitarian principles.

BITCOINZ-DEX

BITCOINZ-DEX is a decentralised exchange with user-generated liquidity pools, allowing for P2P trades straight from the BitcoinZ native wallet. Since it is powered by Komodo, bitcoinZ wallet users can actually generate swaps with peers using Ethereum, ZCash, Dogecoin, Dash and many other wallets.

BITCOINZ-DEX does not require tokenisation: coins are exchanged directly. While swaps are fast and have no fees associated with centralised exchanges, there is a 0.15% buyer fee.

The BITCOINZ-DEX desktop app allows for your crypto assets to be held, sent and received. BitcoinZ does not currently have a staking programme, nor does the roadmap outline future staking plans.

Is BitcoinZ a privacy coin?

BitcoinZ (BTCZ) has its own genesis block and was not forked from any previous blockchain, meaning its rules and protocols were built from the ground up. However, it did use ZCash core code as a basis. Because of this, BitcoinZ incorporates zero-knowledge proof protocols, or zk-SNARKs in technical jargon.

By processing certain computations off-chain, zero-knowledge proof protocols allow for transactions to be validated, without the prover’s identity being revealed, something Bitcoin (indeed, most major cryptocurrencies) cannot do. Monero and Dash also use zk-SNARKs.

So yes, BTCZ is capable of acting as a privacy coin should the wallet holder wish. In fact, the “Z” in the name is in reference to that. It is unclear how many users opt for BitcoinZ’s privacy features. If, like ZCash, the vast majority tend not to, then this would reduce BitcoinZ’s privacy credentials, since privacy is partially contingent on both parties opting in.

BitcoinZ tokenomics

The BitcoinZ cryptocurrency has an immutable, maximum supply of 21 billion, with 10.68 billion, just over half, currently in circulation. The latest price price was $0.00035, for a market capitalisation of $3.74m, far down the charts at number 1,387.

Having hit a landmark $500,000 trading volume on 11 December, BTCZ coin hit another high of $722,000 on 22 December, nearly 0.2% of market cap. 

As previously stated, emissions are halved every four years to control circulation. BitcoinZ’s decision to generate a comparatively large maximum supply was intended as a hedge against non-integer pricing formats, although the price of BTCZ coin would need to rise significantly from current levels to justify this.

Where next for BitcoinZ?

As per its philosophy of transparency, BitcoinZ makes its roadmap readily accessible, which is a welcome decision frustratingly overlooked by other cryptocurrencies.

Ongoing projects include the development of a new website, an e-shop and added functionality in its radio station.

BitcoinZ is also seeking to expand its availability on major exchanges. For the meantime, comrades can join the ArmyZ by purchasing BTCZ at a number of decentralised exchanges, including Dogedex and its own BITCOINZ-DEX platform.

FAQs

There are currently 10.68 billion BRTCZ in circulation, against an immutable maximum supply of 21 billion.

BitcoinZ is a community-driven project with anonymous founders. With no centralised business structure or CEO, BitcoinZ relies on volunteer developers and the loyal ArmyZ community.

With decentralisation as a core philosophy, BitcoinZ has no central ownership structure. Furthermore, the ASIC-resistant PoW mining method encourages wider wealth distribution of mining rewards. BitcoinZ also uses zero-knowledge proof protocols for transactional privacy.

Further reading

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