This guide focuses on the Zcash token, its main features, use cases, and the technology used by virtual currency. It also highlights the advantages of Zcash over the most popular digital asset, Bitcoin (BTC).
The breakthrough of Bitcoin (BTC) resulted in hundreds of other cryptocurrencies, such as the Zcash (ZEC) token. As users of virtual assets discovered that they could track transactions on a blockchain, the demand for privacy increased. ZOOKO Wilcox-O’Hearn created Zcash in October 2016 with additional security features to meet internet users’ demands for an open banking system.
Zcash: privacy-focused cryptocurrency
Zcash’s mission is to enable everyone to achieve economic independence. With Zcash, everyone has the right to privacy, the pursuit of economic independence is noble, and the future of money is virtual currency unaffected by attacks and censorship.
Zcash aims to keep the same structure as Bitcoin but with its anonymity and fungibility as additional functionality. Fungibility refers to the ease of replacing one product with another. Money, whether it’s gold or cash like the US dollar, is fungible because you can exchange it for anything else.
In addition, Zcash’s goal is to give virtual currency customers additional privacy when transacting through a decentralized network. Zcash is the same as Bitcoin in terms of digital currency. But the main difference is in the degree of privacy and fungibility provided by each of the two virtual assets.
Zcash is practical and efficient. Cash can be used to send money quickly and securely and to make purchases online. In addition, Zcash is regulated and auditable. For information sharing, third-party audits, or compliance with regulatory requirements, Zcash users may have private addresses and transactions.
One of the main features of Zcash is the integration of ZK-SNARK technology adopted by PIVX. Interacting parties are unable to trace protected transactions. Zcash further allows users to turn off the trade shield, KYC, and use the trading and brokerage functions.
ZK-SNARKs is the abbreviation for Zero-Knowledge Succinct Non-Interactive Knowledge Argument. They help build trust while dealing in a blockchain and dramatically increase the speed of verifying a transaction while hiding data from prying eyes.
The term “zero knowledge” refers to a situation in which one side wishes to show a true proposition without explaining why it is true.
When interacting with a blockchain, a user may be required to prove that certain conditions are met before completing a transaction. For example, they must demonstrate that they have the funds to complete a transaction without disclosing the amount they have in their wallet.
The ZK-SNARKs system allows two people to carry out their transactions without exposing their addresses. While using ZK-SNARK, ZEC transactions become untraceable by obstructing transaction addresses and Zcash blockchain transaction value.
ZK-SNARKs can also be useful to prove one’s identity in a blockchain. For example, if B wishes to confirm the identity of A, he can send a secret message to A without telling him what it is and ask A to decode it using his private key. A can then send the message back to B, thus establishing its identification.
The advantages of Zcash over Bitcoin
Zcash uses the ZK-SNARK, which allows network nodes to authenticate transactions without exposing sensitive transaction information. The role of a blockchain is however not useless to the general public. Zcash transactions must be routed through a public blockchain. Unlike Bitcoin, ZEC transactions do not display sending or receiving addresses or the amount sent. Zcash transactions may be subject to audits or regulatory compliance to increase transparency and comply with regulatory standards. Additionally, ZEC coins are much more flexible and efficient than Bitcoin because they are interchangeable or fungible. Bitcoin incorporates previous records and history. However, past records of ZCash transactions have no impact on their current efficiency.
Zcash use cases
Investors use ZEC to trade on exchange platforms such as Coinbase and Binance. What prompts many investors to buy the coin is that Zcash is a coin focused on privacy and the fact that it has an academic development team of cryptographers.
The biggest crypto-payment providers, such as Flexa and Gemini Pay, accept Zcash. At more than 39,000 major retailers, cafes, cinemas and other institutions, Zcash is currently accepted. The Zcash Foundation has continued to engage with partners to enable other uses of Zcash, as data protection is necessary for both a medium of exchange and a store of value. Hundreds of stores and nonprofits already accept Zcash. PaywithZcash is a crowd-based website database where Zcash is available.
Zcash Mining (ZEC)
Zcash depends on miners to add blockchain transactions, like most digital currencies. As the validity of transactions is improved by each node in the Zcash network, the mining companies are working hard for the protection of the network. Zcash (ZEC) is not in favor of staking. Instead, it uses the same consensus as Bitcoin for Proof of Work (PoW).
Notably, Zcash uses a unique Bitcoin mining algorithm. Equiphash is Zcash’s algorithm that requires the efficient extraction of custom ASIC miners. With the exception of the large number of ASIC miners, most users opt for the computing power of a mining pool in order to receive regular rewards.
Mining can be an inexpensive way to enter Zcash markets which are popular among traders due to their high volatility. If you are a good trader or if you are lucky, you can increase your profits.
Since its introduction, ZEC has been one of the most expensive cryptocurrencies on the market, peaking at over $ 400 in June 2017. Therefore, accumulating a large ZEC holding today may allow you to profit from future increases. of price with less risk than the simple purchase of ZEC. .
Zcash’s security depends on consensus. If a program interacting with the Zcash network deviates from the consensus, its security will be low. The cause of the discrepancy does not matter. It could be a bug in your program, it could be an error in that documentation that you implemented, or it could be that you are doing everything correctly, but other software on the network is failing. behave unexpectedly. The specific cause will not matter to those users of your software whose wealth is lost. Along with this, a specification of the expected behavior is essential for security analysis, protocol understanding, and maintenance of Zcash and associated software.
Since its launch, the Zcash token (ZEC) has been a success. It looks like the token is following in the footsteps of its parent Bitcoin platform. Its goal is to provide a secure cryptocurrency platform. Many crypto investors are increasingly interested in Zcash cryptocurrency, which is quickly becoming a popular choice.