They then simply tell a random masternode they would like to mix a specific denomination such as VIVO. The masternode has no information about the transaction at this point, since the denomination carries no information about which inputs the user would ultimately like to mix.
Why Bitcoin is Gaining Traction
The masternode receives the request and issues a message to the network saying that it is ready to mix that denomination and that there is a user waiting. Outputs are also in a separated list, only tied to each other. This means, literally, that all users are paying all users in this process. The users are not only paying themselves, but everyone else.
When all inputs are signed to all outputs, the transaction suddenly becomes valid, and the masternode broadcasts using a special message called DSTX.
The network keeps track of these messages, allowing masternodes to submit one PrivateSend transaction every N hours without paying fees. InstantSend is an advanced service that allows for near-instant transactions to take place. With this system, inputs can be locked to specific transactions and verified by consensus of the masternode network. Conflicting transactions and blocks are rejected.
If a consensus cannot be reached by the masternode network, validation of the transaction will occur through standard block confirmation. InstantSend is able to solve the double-spending problem without the longer confirmation times of other cryptocurriencies such as Bitcoin. With a fast block time of only 2 minutes, transactions will usually confirm and be successfully processed very quickly.
How Can You Invest in Bitcoin (Crypto)
NeoScrypt is the newer, improved version of Scrypt. VIVO has a very determined development team, an active and vibrant community and an ambitious roadmap.