Frequently Asked Questions

Everything you ever wanted to know about ziftrCOIN.

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Cryptocurrency In General+
Who controls the network?+

Everyone! No single person or organization owns the network. The network instead is run by all of the users around the world. Developers improve the software, but they cannot force a change in the protocol due to the fact that all users are free to choose what software they use. Every software developer has to keep in mind the issue of compatibility with the network, so developers tend to follow established rules to ensure a wide adoption. Consensus is key and therefore all users and developers must agree and protect the direction of the software.

How can I convert coins into fiat money (USD, Euro, etc)?+

Any exchange that lists ziftrCOIN will allow you to trade them for other coins, and some exchanges will allow you to trade cryptocurrencies like ziftrCOIN for fiat currency.

Where do coins get stored?+

Coins are sent to a specified address, which is only accessible with a private key. Think of your wallet as you would your online bank. Your public key is similar to your bank account number and your private key is your password.

Are coins regulated?+

The core protocol itself cannot be modified without the cooperation of nearly all its users. Allowing special rights to a local authority in the rules of the network is not practically possible. It is possible, however, to regulate the use of ziftrCOINs similar to other resources. Regulations can be used to restrict use of coins, which may lead to a decrease in or loss of the user base. Banning use of digital currencies would be a preventative measure against domestic businesses as well as markets from developing. In general, best practices for regulators are to develop efficient solutions that prohibit malicious use, while simultaneously not impairing growth of new markets and businesses. Cryptocurrency Regulations are still developing in this area. You can follow some of the latest news here.

How are coins created and by whom?+

Coins are created through the process of mining. This is a process that involves individuals getting rewarded by the network for their help in solving very difficult math problems. By solving these problems, miners validate “blocks,” which are essentially just a list of transactions that took place in the last x amount of time. If you’d like to learn more, here is a helpful video on bitcoin mining.

What does the Network Do?+

The network is sharing a public ledger called the block chain. This ledger contains every transaction ever processed. This allows a user’s computer to verify each transaction including where the money came from and where it’s going. The authenticity of each transaction is protected by digital signatures that correspond to the sending addresses.

Do ziftrCOINs have monetary value?+

ziftrCOINs have a minimum redeemable value of $1 within Ziftr’s retailer network*. However, their open market value or the value that people are willing to trade ziftrCOINs for can be volatile and is unpredictable. Market factors and public perception play large roles in determining exchange rates.

Who uses coins?+

People use digital currency to shop everyday. Also, many businesses accept digital currency for purchases both online and in stores. A few large companies that accept cryptocurrency today are overstock.com, newegg, and tigerdirect. There is an estimated 80,000+ stores accepting bitcoins as of September of 2014. People and businesses like cryptocurrency because of its many improvements over our traditional money system.

How do I get coins?+

There are several ways in which you can get coins:

1. There are exchanges where you can purchase coins for USD, Euros, etc.
2. You can earn coins through the mining process
3. You can receive coins from someone as a payment.
4. And, of course, you can get your first ziftrCOINs by participating in the ziftrCOIN Presale.

Where can I use coins?+

You can use coins in many different places depending on what you wish to use them for. Currently, bitcoins are the most widely accepted and used cryptocurrency. If you wish to shop online with them or with ziftrCOINs, then you can shop at any of the retailers that are in the ziftrSHOP, or are participating in our ziftrPAY retailer network. You can also give people coins directly by sending coins to an address that they provide you.

Can ziftrCOINs become worthless?+

One of the biggest differentiators for ziftrCOIN is that our coin has a minimum redemption value of $1 attached to it. However, no currency is completely safe from failures or hard times. Much of the value of the coin comes from consensus. Trust and confidence in any currency is a major factor in the valuation of it and often determines how volatile the price will be.

Why do ziftrCOINs have value?+

ziftrCOINs have value because they are useful and because people are willing to accept them for goods or services. One way to think about ziftrCOIN is as a decentralized digitally issued coupon. We expect ziftrCOINs to be inherently useful, and therefore valuable, because we are building support within our retailer network to accept ziftrCOIN and to provide discounts on purchases. This system will be superior to other coupon systems, simply because digital currency has many desirable characteristics, such as durability, portability and divisibility. However, the most important aspects required for currency to hold value are trust and adoption. As with all currency, ziftrCOIN’s value is created directly from people’s willingness to use and accept them.

What determines the price of a ziftrCOIN?+

The price of a ziftrCOIN is determined by supply and demand of the currency. When demand increases, price increases and vise versa. Due to the limited amount of ziftrCOINs in circulation at any one time as well as the predictable rate in which new coins are issued, demand must parallel this rate in order to stabilize price. However, ziftrCOIN will never go below the $1 threshold in value when used within the Ziftr network.

Can I receive ziftrCOINs when I'm offline?+

Yes! ziftrCOINs sent to you while offline will appear in your wallet balance the next time you start it, after it syncs with the network.

Mining+
Why is mining necessary and how does it work?+

You need to have a process to create new money as well as to verify transactions, and mining serves both of these needs for cryptocurrencies. Miners group together a list of transactions over a finite amount of time and associate with those transactions a very hard math problem and these are called “blocks.” The first computer or group of computers to solve a block is rewarded with a set amount of cryptocurrency. By solving this block, the miners are verifying all of the transactions within the block as valid. If you are interested in learning more about mining or getting starting mining, we suggest starting here.

What are the risks of mining?+

There are a few risks associated with mining. First, using your computer at a high capacity for an extended period of time may cause a hardware failure. Mining is also an inherently random process, so there are no guarantees that you will profit sufficiently to replace the cost of your mining hardware. Pooled mining mitigates this risk, but requires trust that the pool will fairly distribute coins, and it is best practice to read up on specific pools’ credibility before joining.

How do I mine ziftrCOIN?+

ziftrCOIN is GPU friendly, meaning it can be mined successfully without specialized equipment such as ASICs, etc. ziftrCOIN, however, utilizes a new mining algorithm called Sign to Mine™, which limits the centralization of miners into large pools. To enable users to still be able to get payouts regularly by mining with a few peers whom they trust, we will develop social pools and possibly even build on the P2Pool technology.

What are Ziftr Social Pools?+

Rather than the few large pools that currently exist in Bitcoin (and the potential issues that come with this ), our aim is to have many more dynamic small pools. Each member of the pool keeps track of work done by all other members, and each miner is individually responsible for distributing the reward when he or she actually solves a block. The Ziftr Social Pool will be a platform for enabling miners to meet other small miners that they trust.

About ziftrCOIN+
Is ziftrCOIN a scam, a "pump and dump" or a pyramid scheme?+

The short answer is “No.” We believe in the idea of cryptocurrency. For it to ever become mainstream though, “regular” people need to start using it, meaning people that aren't already enthusiasts. Bitcoins are scary. The average online shopper simply doesn't know what they are, how to get them or where to spend them. We're creating ziftrCOIN to give away to users so those “regular” people will realize that cryptocurrency isn't that bad and in fact has a lot of really great benefits to it.

Holy pre-mine! Pre-generating coins screams scam. How do you explain that? What are you going to do with all these coins?+

ziftrCOIN is to be given away in large amounts to everyday users to increase the adoption of cryptocurrency in general. Why not just let them get their feet wet with Bitcoin? Think about it: If you offer the average shopper ten USD to learn about bitcoins, they probably won't bother. It’s a hassle to set up and learn about. It’s also less widely accepted than say USD so they need to search out places that accept it. Overall, it’s not very successful. We know because we've tried it. What can you even buy online for ten dollars?

Now give them one hundred dollars, the equivalent of 100 ziftrCOINs when used within Ziftr’s retailer network. They'll start to become a little bit more interested. Now give them an easy way to spend their “magic internet money” (you guessed it: within Ziftr’s retailer network, using our seamless wallet-integrated checkout system) and you probably have a new person interested in cryptocurrency. Some of these coins are going to be saved for us here at Ziftr. I mean hey we're excited for our own coin, too. But to prove that we aren’t going to just dump all of our coins right away to make a quick buck, these coins are going to be locked up by the block chain and released in whole year increments. Essentially, peers and miners will refuse to accept transactions with these coins for one to four years, depending on which block of coins they are. Basically what this all means is that the coins reserved for Ziftr employees will be used as incentives to promote the use of ziftrCOIN, ziftrPAY, ziftrSHOP and ziftrWALLET over the course of the next four years.

We're also going to sell some coins in a Presale to help with initial distribution of coins and to help fund all the exciting things we have planned for ziftrCOIN.

Really, a Presale? Why have a Presale if you're so legit?+

The Presale helps to generate interest, it helps to distribute coins early on and it helps fund further development of ziftrCOIN projects and features. Ziftr is a young but established, company located in the United States. We're a startup but have 35+ employees already and we want to keep growing. We don’t know what we will raise in the Presale, but we can assure you that whatever it is, if you split it 35 ways, no one is going to be running off to live a life of luxury on a tropical island paid for by scammed coins. There are already countless man-hours and millions of dollars of real investor money put into ziftrCOIN and the many features being built around it. It simply doesn't make economic sense to put in so much time, money and effort for the sake of a scam coin Presale. Check out our multi-coin wallet on Android (currently in beta testing) to see some of the work we've already done. And take a look at ziftrSHOP, our marketplace where you can search for the best price on products from tens of thousands of retailers.

It's just yet another clone coin. You don't add anything new.+

First that's not a question, but we’ll answer it anyway! We do add a lot of new ideas and tech onto existing cryptocurrency. It's detailed in our white paper if you want more technical information about it. The short version is that we have some features designed to prevent large mining pools and to keep our coins decentralized. We're also guaranteeing that ziftrCOINs can be redeemed for a minimum of $1 in Ziftr’s retailer network. Plus, ziftrCOIN has a fast block time of 60 second so that it’s perfect for online purchases. And oh yes, there’s more. We are giving ziftrCOINs away to onboard the next millions of consumers into the cryptocurrency space.

How can you possibly guarantee a minimum redemption value of $1 for ziftrCOINs?+

The short answer is that the $1 minimum redemption value for ziftrCOINs can only be used for a maximum 5% discount within our retailer network when the coins are trading for under one dollar market value. When ziftrCOINs are trading above $1, the merchant will take them for their tradable exchange value, and the 5% limit per order no longer applies. This way, we will ensure that the user wouldn’t lose money by shopping with us if ziftrCOINs were valued above $1. In addition, when you use our coin through our retailer network, retailers give us a reward for bringing them a new customer (you!). We're simply passing some of those advertising dollars back to you, the user, in return for your ziftrCOINs at the time of purchase. Click this to read more about the $1 minimum redemption value .

Can ziftrCOIN only be used in Ziftr’s merchant network? That doesn't seem useful. Why aren't you telling us what sites will accept ziftrCOIN?+

You can use ziftrCOIN at any merchant who accepts it even if they choose not to join the Ziftr merchant network or implement ziftrPAY.

That being said, we are currently working hard to make it as easy as possible for retailers to implement our ziftrPAY system, which will enable them to accept cryptocurrency and traditional payment methods. In addition, all of the technical solutions that we develop will support many different cryptocurrencies, not just ziftrCOIN, because we really believe in this technology and would like to see more consumers involved. In fact, this is one of the things that sets us apart. While more and more retailers are beginning to accept Bitcoin, it’s nearly impossible to find retailers that accept altcoins. ziftrPAY will enable retailers to accept ziftrCOIN, Litecoin, Dogecoin and other altcoins in addition to Bitcoin.

And though we aren’t quite ready to release a list of sites on our merchant network, we have a team dedicated to establishing those relationships. If you want ongoing updates, sign up for our newsletter or follow us on Twitter.

Why did you decide to use Sign to Mine with SHA256?+

We decided that proof of work is still the most proven and fair method of securing the block chain. However, we find the centralization of miners into large pools to be worrisome, and threatening to the security of the system. Thus, we created Sign to Mine, our unique mining protocol that requires the solver of the block to be able to spend the reward for that block. Essentially, miners can no longer mine for someone else, they have to be mining for themselves. That does NOT mean that there can be no pools mining ziftrCOIN, however, it just means that there must be trust established within members of the mining pool.

Security+
Are ziftrCOINs secure?+

The protocol and cryptography that make up ziftrCOIN have a strong security track record, likely making cryptocurrency the most secure way to shop online. Malicious persons looking to disrupt the network would have to go through impractical efforts to gather both enough computing power and total coin amount to have significant power to sway the network. However, at that point the dishonest users would only be hurting themselves by disrupting the network. Any attack on the network would result in a decreased value attached to the currency, thereby reducing their own personal stake in the value of their coins.

The most common vulnerability to the system, however, is user error. Wallet files that store private keys can be accidentally deleted, lost or stolen. These issues are similar to physical currencies stored in digital forms. However, users can counteract this by implementing sound security practices to protect their money. Read more here

What about consumer protection?+

Cryptocurrency allows users more freedom to participate in more complex transactions. Multiple signatures allow transactions to be validated by the network only if a certain number of defined groups of people agree to sign the transaction. Coins leave public proof that a transaction took place, which can be used in an appeal against businesses participating in fraudulent practices.

What happens when coins are lost?+

When wallets are lost, coins are effectively removed from circulation. Lost coins still remain in the block chain just like any other coin, however these lost coins remain dormant forever because there is no way for anyone to find the private keys that would allow them to be spent. We may implement multisig, or Hierarchical Deterministic wallets, which will allow for users to recover lost coins as long as they still possess one of the private keys, or the seed data in the case of HD wallets. When fewer coins are available, the value of the remaining coins increases in order to compensate due to a higher demand with a lower supply. This follows the law of supply and demand.

Can someone take my coins?+

If someone gains access to your private keys then they can effectively spend your coins or send them to another address and take them. To help keep your coins safe, be sure to follow security best practices and stay up to date on all new wallet developments. Here’s a helpful article to get you started. https://www.cryptocoinsnews.com/bitcoin-wallet-security-best-practices/

Can someone steal coins from ziftrWALLET Mobile?+

The only way someone can steal coins from our app is to physically steal the phone, or if the user doesn't encrypt their wallet, to steal the unencrypted files off the phone.

Where should I go if I have more questions? +

To find more specific information on any of the topics discussed here or to converse with our developers directly, visit our subreddit!