"In this paper we propose Zerocoin, a cryptographic extension to Bitcoin that augments the protocol to allow for fully anonymous currency transactions. Our system uses standard cryptographic assumptions and does not introduce new trusted parties or otherwise change the security model of Bitcoin. We detail Zerocoin’s cryptographic construction, its integration into Bitcoin, and examine its performance both in terms of computation and impact on the Bitcoin protocol."
What we don't like:
One of the major qualms about ZCoin is the high proof sizes. Mining the coin requires higher computing power. This ZCoin being a privacy coin also means the coin can be used for the dark net, which has the potential for harmful transactions to be made as with all privacy coins.
What we like:
ZCoin has been in development since 2014 being developed by early cryptocurrency developers. With ZCoin utilizing the Zerocoin protocol, the traceability set is on a dramatically higher magnitude. Instead of having a traceability set limited to the few hundreds, ZCoin has a traceability set that encompasses all minted coins in a RSA accumulator, therefore the magnitude of the traceability could be in the order of many thousands, rather than dozens. ZCoin is one of the few cryptocurrencies in which the transaction link is completely broken upon transactions utilizing the zerocoin protocol. ZCoin uses zero-knowledge cryptographic proofs. A zero-knowledge proof is a method in which one person can prove to another person that a given statement is true, without conveying any information apart from the fact that the statement is indeed true. Also the zero cash redemption process allows for a more auditable supply, protecting the coin from manipulation to its supply. Poramin Insom is founder and core developer of ZCoin, he was the first person to add stealth addresses to QT wallets.