ZCoin is the originator of the Zerocoin Protocol, a zero-knowledge proof mechanism used to guarantee complete financial privacy and confidentiality. While Bitcoins publicly announced addresses can be linked to specific users through its public ledger, XZC prioritizes anonymity and confidentiality by implementing infinite anonymity scalability free from revealing transaction graph analysis.
The Zerocoin Protocol works by destroying ZCoins to mint new Zerocoins, untraceable coins without transactions histories. Zerocoin protocol can be thought of a genius money laundering machine, where used and traceable coins are converted to brand new tokens. When the new Zerocoins are spent, they are converted into new ZCoins, thus completing the cycle of anonymity.