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The way that Zcoin creates value: Only by putting Zcoin on the blockchain network and consuming a basic currency can it have value.
Note: Zerocoin is only used to provide a proof and then consume the base currency, which is different from the actual currency and the consumption method and function of Bitcoin.
The process of minting zero coins is divided into three steps:
Generate a serial number S SS and a random key r rr.
Calculate a function C o m m i t (S, r) Commit(S,r)Commit(S,r), which is the commitment of the serial number S SS.
As shown in the figure below, publishing the promise on the blockchain requires the consumption of a base coin, which can no longer be spent, thus creating a zero coin. At this time, S SS and r rr are still confidential.
In order to consume a Zcoin and redeem a new base currency, you need to prove that you have minted a Zcoin before. Publicly committing the value of S SS and r rr will result in the association between the old base currency and the new base currency, so we The method used here-zero-knowledge proof
