Zerocoin Minting and Spending
The Zerocoin layer is where you will anonymise your coins and it works through the Mint and Spend transactions. You can think of the Zerocoin layer as a form of coin laundry where you will put in your existing ‘dirty’ coins (that have a long transaction history) and then redeem new ‘clean’ coins that appear to be brand new and have no prior transaction history. Unlike other coin mixing solutions, Zerocoin does not rely on trust of other people you’re mixing with and is built directly into Zcoin’s protocol.
Zcoin or XZC: This is the base coin that you use to do transactions including receiving or sending. This coin works just like any other cryptocurrency.
Zerocoin: A Zerocoin is a token you receive after destroying Zcoins. It’s a token that you have destroyed a certain number of Zcoins. Zerocoins cannot be directly transferred to other people. For Zerocoins to be transacted they need to be ‘spent’ to turn them back into Zcoins before they can be used for transactions.
Minting a Zerocoin means destroying a fixed number of Zcoin and turning them into ‘Zerocoins’ which are tokens to redeem completely new ‘clean’ Zcoins.
Start the wallet. Click on the Zerocoin tab on the top section.
In the dropdown menu at the bottom, choose a denomination (1, 10, 25, 50, 100) in which to mint the Zerocoin. A mint fee of 0.01 Zcoin will be charged regardless of how many coins you mint.
After an amount is chosen, click on the Mint Zerocoin button. It takes about 7 confirmations (about 70 minutes) before you can spend the Zerocoin you have just created. The newly minted Zerocoin will appear as ‘New’ in the list.
It is always recommended to backup your wallet.dat whenever you do a mint. You can do this by going to File>Backup.
The longer the time between the initial mint and the subsequent spend, the more potential privacy you have. We recommend minting some coins beforehand and spending them when you require them rather than immediately spending your mints as soon as they are confirmed.
If the mint has 7 confirmations or more, select the denomination of the coin you minted (1,10,25,50,100) that you want to spend and click on the Spend Zerocoin button. This will take awhile, and your Zerocoin will appear as ‘used’ after it is completed. Your Zerocoin is now redeemed into Zcoin and will be sent to a new Zcoin address with no previous transaction history.