August 7, 2014 1:27 PM

Librexcoin – Relaunched with Zerocoin Implementation

Librexcoin is today’s Random Coin of the Day for its implementation of Zerocoin, a library used in anonymization of the coin’s transactions. Librexcoin claims that some other coins do not truly implement any form of anonymity, but instead making it easier to track the transactions. “Vaporware” is where a company (or coin in this case) publicly discusses releasing hardware or software to generate interest, but the product is never formally released or canceled publicly. Librexcoin seeks to change this with their coin.


Librexcoin Review

I researched Librexcoin on their BitcoinTalk announcement thread. The original launch flopped because they had technical issues, but the developers acted responsibly and let the community know they messed up and not to mine the coin. The coin has recently re-launched.

Market Cap: $71,938
Maximum coins issued: ~10 Million LXC from PoW mining + 2% yearly stake interest
Hash algorithm: X11
PoW or PoS: Both
Is it able to be mined: Yes
Exchanges: Bittrex, LazyCoins
Block explorer: CryptoBE
Launch date: Relaunched on July 31st, 2014 (Original launch date was July 21st, 2014)

What is the coin’s purpose?

Librexcoin seeks to provide what some other coins only say they do, provide anonymity instead of just telling people they implemented it. Librexcoin uses the Zerocoin library for native Zerocash protocol support. As confusing as the names are, Zerocash is an improved version of Zerocoin’ protocol and is developed by many of the same people. The protocol allows for the exchange of non-anonymous coins for anonymous Zerocoins.

What problem does it solve?

Librexcoin solves the problem of some coins not implementing anonymity features, but just saying they have. That is vital because people who are transacting in coins that aren’t truly anonymizing their transactions might be spying on their users in some fashion. If no one’s transactions are truly anonymous, but told that they are, they could be making traceable transactions and not even realizing this. Official coin wallets are usually open source, so people can still review the source code, but remember good old Heartbleed?

OpenSSL is packaged with every major browser, integrated with every cryptocurrency, and used in a huge number of other applications. It’s a major project that could be compared to the likes of Java, and is only about three years younger. It has grown up with the internet. Open SSL is open source, and many people have reviewed its code for 16 years, yet for two years the massive Heartbleed bug laid unperturbed while the NSA preyed on innocent people by exploiting it. It wasn’t until Google security found the flaw and notified OpenSSL that it was even acknowledged and repaired. Presumably, no-one knew about the bug until Google security mentioned it.

Don’t wait for third-parties to catch every bug in open-source software, even major bugs! That could be the Achilles heal in your quest for anonymity. Maybe the code exists in the wallets that provide anonymity, but yet the code isn’t strong enough or even implemented properly. Librexcoin is working to make sure their coin allows for true anonymity, but always inspect the code yourself or hire a trusted programmer to do so for you if you’re concerned about such things.

What are the coin’s future endeavors and how do they plan on achieving those goals?

Librexcoin’s development team is reaching out to the community to see if I2P and Tor implementation is a desirable route for the coin to take or if this will only add confusion to the usage of the coin. If merchants and the community in general are interested in I2P and Tor, they will implement those into the coin.

What do you think?

I’d like to hear from you. Do you think Librexcoin’s crusade to bring real anonymity to the cryptocurrency world is worthwhile? Would you like to see them implement I2P and Tor? Do you plan on transacting with Librexcoin as a merchant or end user? Leave a comment below or discuss this in the CCN forums!

Disclaimer: I am not affiliated with Librexcoin, and I do not own any Librexcoins.

Photo Credit: Librexcoin logo

Rick Mac Gillis @ManWithNoBrows

Rick Mac Gillis entered the world of Cryptocurrencies in late 2013. He is a controversial journalist committed to investigating and exposing the "dirty bits" of the community. With over a decade of experience in LAMP web development with a focus in custom cryptographic security methods and ethical hacking, Rick Mac Gillis understands the need for proper security standards in cryptocurrency.