Firo is an open-source, decentralized privacy coin that focuses on achieving privacy and anonymity and is the first full implementation of the Sigma Protocol, which allows users to have complete privacy over their transactions via zero-knowledge cryptographic proofs. Firo also implemented Merkle Tree Proofs on its network for egalitarian mining and incorporated the Dandelion++ protocol, which protects user identities by obscuring their IP addresses.
Firo is a privacy-focused cryptocurrency project. It was the first to implement ideas from the Zerocoin project whitepaper written by a group of academics in 2013. When working on his first cryptocurrency in 2014, founder Poramin Insom realized that the project he developed lacked sufficient safeguards for the user and transaction privacy.
Consequently, in 2016, he created Firo, a new cryptocurrency with security and privacy at its core. Since then, Firo introduced key protocols, including the MTP mining algorithm, network privacy protocol Dandelion++, and recently, the Sigma Protocol to replace Zerocoin as the privacy protocol in use. Zcoin formally departed from the Zerocoin protocol in favor of Sigma both because it prevents counterfeit privacy coins from inflating coin supply; a significant issue with the original Zerocoin protocol. This is achieved by removing a feature called "trusted setup" from the Zerocoin protocol.
The Sigma Protocol lets a user burn existing coins to redeem them for coins with no previous transaction history later. By breaking links in the blockchain, the protocol provides strong end-user privacy.
Firo is based on a fork of the Bitcoin Core codebase and uses Merkle Tree Proofs (MTP) as its mining proof-of-work algorithm, making it mineable by GPUs and to a lesser extent, CPUs. Because MTP requires a big amount of memory, it has a certain degree of ASIC resistance as memory bandwidth isn't as easily optimized as computing performance. New blocks are created every five minutes and the difficulty is adjusted every six blocks.
Firo has a network of around 6,000 masternodes called Znodes which receive a part of the block reward. Initially created to offload some of the more intense computation for its old privacy protocol, they are currently being repurposed to serve as a protection against 51% attacks (LLMQ ChainLocks).
Zcoin’s privacy is based on the Sigma zero-knowledge proof protocol. Sigma is particularly focused on dissolving the ability to associate certain coins with distinct addresses from the past, thus eliminating traceable coin histories within the network. Using zero-knowledge proofs, users prove that they burned a specified amount of XZC without divulging which particular token within the network was destroyed. Upon XZC burn, a intermediate coin is minted by the user, which has no transactional history. When a coin is spent it appears the same as any new coin that had entered the network through a block reward.
Unlike other privacy-focused crypto assets, Zcoin has an auditable supply, due to the fact that the number of coins originally burnt are not hidden. While this can add transparency by allowing others to check that users are using a legitimate process to create new coins, it creates the ability for third parties to see addresses for large holders on the network.
Firo developement is handled by the Firo core development team.
This content is being provided to you for informational purposes only. The content has been prepared by third parties not affiliated with American Trade Exchange, Inc. (Sequoir) or any of its affiliates and Sequoir is not responsible for its content. This content and any information contained therein, does not constitute a recommendation by Sequoir to buy, sell or hold any security, financial product or instrument referenced in the content.