Price Info: - https://www.coinmarketcap.com/currencies/phore/
Phore Blockchain is a fork of the Pivx privacy coin. It was initially airdropped and rebranded from KTK. Having no ICO or pre-mine has resulted in a completely community funded ecosystem.
Conceptually, the Phore Blockchain can be visualized with the organization and governance of the system, including staking and masternodes, supporting all of the resulting features. Some of those functionalities include what most people are familiar with already, including the Phore coin (PHR), wallet, and upcoming developments including smart contracts and atomic swaps.
Phore enables private transactions through our implementation of the Zerocoin Protocol, which prevents any transactions from being recorded on the blockchain that directly link the sending and receiving addresses. Phore nodes and masternodes can also be run over the Tor network for anyone who wished to do so. It is important to note that the use of Zerocoin is optional, allowing users to send both private and transparent transactions— unlike many other privacy coins which are private transactions only.
One more thing which is important to note is that the “privacy coin” aspect of the Phore code COULD be removed in order to comply with regulations, and the transparent transactions would continue to operate exactly as they do now along with all of the other features of Phore.
How does Phore’s implementation of Zerocoin work?
When you know you that you will want to do private transactions at some point in the future, you begin by ‘minting’ zPHR, which is the private version of Phore.
The PHR are added to an accumulator pool and you receive zPHR which are like vouchers for those specific denominations, which exist only in your wallet. These zPHR have no direct linkage to any specific input address on the blockchain. An analogy of this would be taking US Dollars that have serial numbers on them and give them to the cashier at a casino. You then receive casino chips of a variety of standard denominations (ranging from 1 to 5000 PHR), that have value but are no longer tied directly to your identity.
A side effect of this is that your zPHR balance would not show up as belonging to your address or wallet on a rich list or other block explorer view. So zPHR would allow someone to mask their true Phore holdings if they were worried about being targeted by hackers based on their wallet balance. Information is available about how much zPHR exists, but not who owns it.
This minting can be done at any time. More mints of the types of zPHR you minted have to be done before you can spend yours. This helps to ensure a certain minimum amount of privacy by eliminating the possibility of someone immediately minting and spending the same amount of zPHR, which would make it easier to guess where the private transaction started.
When you are ready to spend your zPHR, you can send your zPHR to any Phore address and it arrives as PHR. Your zPHR are destroyed, and the transactions recorded on the blockchain are from the accumulator pool to the receiver—nothing traceable back to the original sending address, which may have minted their zPHR weeks or months prior. Each zPHR denomination coin is mixed with all of the other coins of that denomination up to the point it was minted, as well as a configurable privacy level ranging from 10 blocks ahead of your mint to a maximum of all mints on the blockchain. The amounts you minted may have different amounts than what is being spent. This makes analyzing the blockchain to guess the sending address very difficult, and the privacy gets stronger as more zPHR is minted and used.
The process also uses zero knowledge proofs which prevents even the Phore nodes that are doing the minting and spending processes from having enough information to piece together your transactions, which eliminates what otherwise may require a developer-trusted setup.
See the original zerocoin whitepaper from Johns Hopkins University is located here
Why does Phore use Proof of Stake instead of Proof of Work?
There are a number of benefits of Proof of Stake over Proof of Work.
Proof of stake uses vastly less computing power than proof of work. There have been estimates that Bitcoin and Ethereum burn over $1 million in electricity and related computing costs every month. This also means that a full Phore staking node can mine blocks on very inexpensive computers, which leads to greater decentralization and gets rid of massive centralized mining farms.
This decentralization also increases Phore’s security by making it more difficult and expensive for a coordinated, centralized group of nodes to form, and discourages any groups that did form from harming the network.
Segregated Witness (SegWIt) will provide a number of benefits to Phore. While Phore is already very fast and efficient, processing transactions with a 60 second block time and a 2MB maximum block size, SegWit will increase PHORE transaction throughput even further, since it allows many more transactions to be included in a block.
The most important reason phore is adding SegWit is because it solves the transaction malleability problem, which is that there is at least the possibility pre-SegWit that certain minor information about a transaction could be changed, altering the txid. Removing transaction malleability makes adding sidechains and smart contracts less complex to write and more efficient, raising performance.
Phore plans to automate their masternode setup and launch their decentralized marketplace (similar to Bitify) by the end of Q1 2018. The market will not only allow users to directly exchange goods and services with each other, but also will serve as a medium for crowdfunding user projects. The integration of smart contracts in the marketplace will add an additional security layer for both crowdfunding and the purchase and sale of goods and services. Like ETH, Phore has an infinite supply of coins whose staking block rewards will decrease over time to control for inflation. Phore is also offering very generous rewards for early adopters. A PHR masternode requires 10000 coins (currently ~$30,000 USD) and mints a 40% annual ROI, a 50% increase over standard PHR staking.
How does Phore’s masternode and governance process work?
The governance model of PHR’s masternode system allows each one to vote on community proposals. Afterwards, those with the most votes will be those funded via the Phore Foundation allowing development to be truly driven by the community.
The governance system and masternodes make the Phore blockchain and project very resilient, in a very decentralized and powerful way. Masternodes require 10,000 PHR to be locked as collateral in order to set one up. In return for the services these special nodes perform securing the Phore network, they receive a portion of the block rewards, creating a passive income stream for the owner. The annual masternode ROI as of right now is about 40%, which can fluctuate based on the number of masternodes, and will decrease at certain points in the future to control inflation.
The masternode owners also have voting rights over the development budget for the Phore project that is paid out every 30 days. Anyone can submit a proposal, which is recorded on the blockchain, and masternode owners vote to decide which proposals are approved and paid. This process is completely decentralized and the blockchain has specific rules for payments are sent automatically to the Phore addresses listed in the approved proposals.
This is how the Phore core team and all other project expenses are paid. However, even if the Phore team all died in a plane crash, as unlikely as that may be with the team located all over the world, this system would still be in place—another development team or set of individuals could submit proposals and pick up where we left off, as governed by the masternode owners with the largest stake in Phore’s long term success. This process is also open to any member of the Phore community. We welcome ideas and contributions from the community and expect that as Phore matures, we will see more community proposals and discussion within the community to rally support for the best ideas.
The design of this system also has self-balancing effects on the number of masternodes and the amount of Phore that is being staked. Each masternode that is added removes 10,000 PHR from the circulating supply and the amount that could be set up for staking, which is another critical function securing the Phore blockchain. As the masternode count goes up, the masternode ROI drops slightly, and the staking ROI goes up. At a certain point, the staking ROI would become higher than masternode population ever decreased, the ROI and incentive for running a Phore masternode would increase.
The Phore Foundation aims to develop long term e-commerce solutions, investments, and partnerships. Phore Labs will serve as services to be sold exclusively through the Phore marketplace. Phore Scholarships will provide financial incentives to those who contribute in further developing the ecosystem. There’s also a “Blockchain Services” division, but no further information has been provided yet. All of this information and more can be found in the recently updated v2 of Phore’s whitepaper
To back up their lofty aspirations, the Phore team consists of 30 members who, thus far, have delivered on all major milestones.
Within the group there are three full time developers with additional part-time coders, a robust marketing team, as well as personnel dedicated to corporate partnerships, legal, and content creation. Their roadmap has plans to expand the team over the course of the year. As has become common with many privacy coins, the team is a mix of anonymous and identifiable individuals and can be viewed in full on their site
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