Quick Facts

Approximate Market Cap$2,488,246,475
Year Established2016
FounderMatthew Green, Ian Miers, Christina Garman
Symbol/AbbreviationZEC
UtilityAsset

For the first time in human history, the value may be transmitted everywhere in the globe. It can be done at the same velocity as information while being safe and trust-free.

Today, digital currencies are more than just payment providers. They provide an alternate solution to the economic, political, and social systems. Backed by millions of peers over widely dispersed networks, they are decentralizing information and value in new ways.

Zcash (ZEC) is one of the most well-known privacy cryptocurrencies. It uses improvements in encryption to provide users with the choice of anonymity while transacting.

What is Zcash – Definition

Zcash is a cryptocurrency that operates on a decentralized blockchain. It is comparable to Bitcoin in terms of digital money.

Zcash, like Bitcoin, has open-source software. The main distinction between them is the amount of privacy and fungibility each of them enables. All Zcash transactions are recorded on a blockchain. Yet they are encrypted and only individuals who have been granted access can read them.

The Zcash Network’s digital token is the ZEC token. ZEC can be purchased and sold in exchange for fiat or digital currencies. Zcash has a set total supply of 21 million units.

An open network system adds blocks using an algorithm named Equihash. This algorithm determines how much RAM a miner is able to devote to protecting the blockchain.

zk-SNARKs are the most key inventions in Zcash. It signifies a Zero-Knowledge Succinct Non-Interactive Knowledge Argument. This is a proof construction that enables the system to confirm it has information without actually displaying it.

Pros and Cons

Pros

  • Ensures privacy
  • High value ensured
  • Fungible

Cons

  • Designed for Linux users
  • CPU mining only
  • Reduced mining rewards 

The History

The origins of Zcash may be traced back to 2013 with the publishing of the Zerocoin white paper. The authors knew that the architecture of Bitcoin threatened user privacy, so they proposed alternative solutions. However, the concept had limits. This work was later expanded in 2015.

Zcash was officially released in 2016 by the Zcash Company. Its team consists of world-class cryptographers, engineers, and computer scientists.

Zcash developers deployed novel cryptographic technologies that protect financial privacy.

How Zcash Works

Zcash (ZEC) is one of the most well-known privacy cryptocurrencies. It uses improvements in encryption to provide users with the choice of anonymity while transacting.

Prior to Zcash, most cryptocurrencies were meant to be “pseudonymous.” The traded volume, the addresses to which users gave funds, and the addresses from which they got funds have been stored on the Blockchain. Zcash increased privacy by adding “shielded addresses”. The addresses protect transactions and address data kept on its blockchain.

Zcash allows users to select their amount of privacy. Users can choose between:

  • Transparent addresses – which display on the Blockchain
  • Shielded addresses – which do not display on the Blockchain

Advantages & Disadvantages

Advantages

Privacy

To encrypt all information, the system employs Zero-knowledge proofs. This approach helped Zcash maintain its position as a top cryptocurrency from its very beginning.

Scarcity

The Zcash network shares Bitcoin’s scarcity. Over the course of the project, only 21 million ZEC coins will be issued.

Scalability

Concerns about scalability continue to plague Bitcoin users. Zcash modified some systems in order to improve them.

Disadvantages

Mining activity

The blockchain’s mining usability was developed with Linux users in mind. Zcash can only be mined using a Central Processing Unit (CPU).

Transaction activity

DASH and XRM support a higher number of transactions per day than ZEC.

Zcash in the Global Crypto Market

With over 10,000 coins in circulation, Zcash is considered a significant altcoin. Regardless of where you are on the planet, the Zcash Network may be utilized to transfer and accept funds in a secure and simple manner. Today, Zcash processes over 4,000 transactions per day, scaling faster than most rival blockchains.

Zcash and its innovative token ZEC are one of the few regulatory-friendly projects that may be able to withstand a big crackdown.  With a transaction volume of $328 million, ZEC continues to witness strong investor interest, which may lead to a price increase in the future.

FAQ

How to store Zcash (ZEC)?

The native Zcash wallet is amongst the most common ways to store Zcash. This wallet is accessible as a mobile application as well as a desktop program.

Who runs Zcash?

The Zcash Company is the entity in charge of the Zcash initiative.

How is Zcash different from Bitcoin?

Zcash has its own blockchain as well as its own currency token. Its evolution includes certain non-privacy modifications to Bitcoin.