Hi investors, Dean (@deanliu) and Dan (@tradealert) are back and today we’re talking about how you can generate passive income with ZenCash.
I-ZenCash.
We’ve already covered ZenCash in a previous issue but if you are new to the project, ZenCash is one of the many applications available on the ZenSystem (ZenSys) which is a private platform for money (ZenCash), media (ZenPub) and messages (ZenChat).
The ZenSys platform is secured by zk-snark cryptography (as in ZCash) which allows its users to selectively control their privacy and hide metadata, account/transaction balances and identities from the miners and from other nodes.
Similar to Telegram, communication between nodes is end-to-end encrypted to increase the robustness of the network and guarantee total privacy for users while allowing ZenSys to be compliant with general privacy laws such as the GDPR.
ZenSys also boasts the most decentralized node architecture in the world. Nodes on the ZenSys are called Secure Nodes and their number has been growing fast such as the Zensys network currently surpasses Bitcoin in node count which is remarkable for a project which was launched only about a year ago.
Then, in April 2018 the Zen team released a new whitepaper which explores the future of the platform and present a brand new incentive scheme for node operators.
So today, we would like to talk about this new whitepaper and how you can leverage the power of the platform to generate a passive income stream.
II- Generating an Income Stream with ZenCash.
ZenSys allows you to generate passive income by becoming a Secure Node (A) or a Super Node (B).
A-Secure Nodes.
Under the traditional system anybody could set up a secure node on the network by staking 42 ZenCash coins as collateral into a Swing or Ledger Wallet as well as other requirement typical of node operation such as keeping a copy of the blockchain and guarantee a minimum daily uptime. Apt secure nodes would then get rewarded 3.5% of the total mining reward divided between the total number of nodes in the network.
Faced with the issue of quickly diminishing returns for node operators due to the rapid growth of the community, the Zen team recently decided to implement a brand new reward scheme. Under this new system, secure node operators now share 10% of the total mining reward.
B-Super Nodes.
The team also introduced the released of SuperNodes which can be set up by staking 500 Zen coins in a wallet but also have higher computational and uptime requirements than secure nodes. The number of those nodes should cap around 2 to 5,000 units and these nodes will also share 10% of the mining reward.
Super Nodes will allow ZenSys to graduate to a full-fledged platform equipped with side chains which will make it possible to run applications such as :
- a distributed storage system (ZenPub)
- a distributed computation for rent (ZenGrid)
- zero-delays transactions (InstantZen)
- a decentralized exchange (ZenXchange) with a fully collateralized price stable asset called ZenUSD
All these exciting applications will be able to run privately from the comfort of your computer or directly on your mobile.
The ambition of the project didn’t fail to attract the attention of powerful players when a bout a week ago, Barry Silbert’s Digital Currency Group announced that they had added ZenCash to their investment portfolio.
Finally, keep in mind that the team estimates that the network should cap around 20,000 secure nodes and 5000 super nodes which means that a lot more coins might soon be bought up on the open market. ZenCash coins have already appreciated over 2.5 times since the release of the new whitepaper and, due to the fact that ZenCash coins are rather thinly traded, it might soon be very expensive to acquire enough coins to acquire a secure node (currently priced around $1700).
If you liked this post, you can learn about ZenCash by visiting their website, join their vibrant Discord or read their new whitepaper.
Cheers.
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Dean and Dan.
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