Cryptocurrency Incentives In most early cryptocurrencies like Bitcoin, miners secure the network by verifying transactions and adding new blocks to the blockchain. The miners are rewarded with newly created bitcoins, which provides them the incentive to ensure they keep working. It was an elegant solution to the problem of securing a decentralized network. But directing all financial incentives to the miners leaves nothing to incentivize the community, the group that is most needed to grow adoption of the cryptocurrency.
Mt. Gox was one of the earliest and largest Bitcoin exchanges, processing hundreds of millions of dollars worth of Bitcoin trades every day - right up until it closed back in 2014. Mt Gox announced that they had been hacked, and that 850,000 bitcoins had been stolen. But because all Bitcoin transactions are recorded in the public blockchain, researchers were able to track all of the coins as they moved around the network, and eventually even to figure out who was likely behind the hack.
PIVX (Private Instant Verified Transaction) was launched in February 2016 as a fork of DASH, primarily due to philosophical differences. While Dash is pushing for mass adoption of cryptocurrency as its primary goal, the PIVX team wanted to work further towards making transactions more private. The two coins are still very similar from a technical perspective. PIVX has a 60 second block time compared to Dash’s 2.5 minutes, but both also offer “instant” transactions for a nominal fee.
Everytime you send Bitcoin, information is recorded on the blockchain about your address, the address you sent to, and how much bitcoin was sent. And while no one knows who owns those addresses, anyone can see how every bitcoin flows through the network, stey-by-step. That’s why Bitcoin is anonymous (no one know who is moving money), but not private (because everyone can see the money moving). In October of 2016, Zcash was launched with the goal of making a making a cryptocurrency that was both anonymous and private.