Zcash Cryptocurrency- The Trending Crypto you should know about
Decade ago, when the first Bitcoin was introduced to the world, everyone thought this could be a game changer for transaction solutions by replacing paper money. But who knew, that there will be thousand plus such crypto coins to be introduced over the decades. Today, we have a number of cryptocurrencies to invest and use, unless banned by the respective countries. Many crypto projects designed to be ambitious aim to outdo fiat currencies. One such is the Zcash, a cryptocurrency that offers complete transaction privacy to the user. One should know here that in Bitcoin transaction isn't private. There are quite flaws which led to hacking and other issues. This also led to the introduction of Zcash.
What is Zcash?
Zcash is like Bitcoin and a peer-to-peer cryptocurrency which was introduced with the sole aim of being private, anonymous, and fungible transactions. This is something that Bitcoin lacks. Zcash was forked out of Bitcoin and was launched in the year 2016. When introduced, it was named as Zerocoin. It is based on a special cryptographic protocol shielding the sender's information. So in short, there is complete privacy and no information is leaked to the third party. According to the company website, Shielded Zcash transactions are completely private, making things safer.
Similar to Bitcoin, Zcash transaction data is posted on the public domain, but it will also ensure that personal and transaction details are safe and confidential. The zero-knowledge proofs allow transactions to get complete verified without revealing the information. The best thing about this cryptocurrency is it allows transparent transactions to accommodate for wallets and exchanges that don't support private transactions. It uses zK-SNARKs protocol.
What are zK-SNARKs?
zK-SNARKs is a form of zero-knowledge cryptography and the acronym is Zero-Knowledge Succinct Non-Interactive Argument of Knowledge, referring to proof construction allowing the individual to retain the information. The Zero-Knowledge proofs allow one party to prove another party that the entire statement is true and doesn't need to reveal the information beyond the validity of the statement. For instance, by giving the hash of any number, the prover can convince the verifier that there is a number existing with the hash value.
In Succinct- Zero Knowledge Proofs is verified within the few seconds under the proof length of only a few hundred bytes even for the statements about programs. Initially, both the prover and verifier need to communicate back and forth for multiple rounds. The interaction would consist of a single message by prover to the verifier.
The zK-SNARK protocol was introduced in 2014 by research cryptographers at Johns Hopkins University, Massachusetts Institute of Technology (MIT), Technion-Israel Institute of Technology, and Tel Aviv University.
What Zcash Does?
Coming back to Zcash, as mentioned abut it is similar to Bitcoin but has complete transaction privacy. However, there are some possibilities of disclosing some transaction data if the user wants to disclose. This is possible with Viewing Keys and Payment Disclosure feature by this cryptocurrency. The private address which involved shielded transactions called as Z-Address.
An individual can use 4 different ways of the transaction on Zcash-
- The first is from z-address to z-address, also known as Private Transaction
- Known as Deshielding where the transaction is between z-address to t-address. Here the sender's information is completely hidden, while the receiver information is public.
- Third is shielding, where the transaction is between t-address to z-address. Here the sender's information is public, while receiver information is hidden.
- The fourth is Public Transaction where both parties are t-address
Short History of Zcash-
In 2013, the project called as Zerocoin was introduced. This was the time when Bitcoin was facing privacy issues. The project was headed by Matthew Green, Ian Miers, Christina Garman, and Aviel D. Rubin, who were at John Hopkins University. In 2014, it was designed as an "add-on" to Bitcoin. However, with further advancement in features and its benefits, the cryptocurrency was named as Zerocash.
Hereafter, Zerocash team collaborated with Bryce Zooko Wilcox and his team from Least Authority. This collaboration was revealed in 2015, and by October 2016, it was named as Zcash. Zcash also runs a foundation which is independent and runs with the purpose to provide internet payment and privacy infrastructure for the public. Although Zcash is an open-source, is run by Zerocoin Electric Coin Company, or ZECC, and is led by Zooko Wilcox.
According to him, “We reuse all of the good ideas from Bitcoin and then we add this layer of encryption so that the payment of Zcash from one user to the next is included in the global replicated ledger for integrity.”
The Supply and Distribution-
The total maximum supply of Zcash is 21 million coins and is mined through POW- Equihash Algorithm. It is said that all 21 million coins will be mined 7by 2032. Zcash isn’t pre-mined or ICO funded, but it follows a unique funding and distribution approach. It all began with an investment of $1million for its development, in return of which investors are promised of 10% reward for total supply and distributions. The reward which investors will receive is called as Founders Reward, in which amount which is mined in Zcash for first 4 years, 10% of Zcash will be incrementally distributed among investors.
Over the years, this cryptocurrency named as Zcash has witnessed some good achievements and launch. This includes- payment disclosure, payment offloading, core circuit improvements, etc. By reaching in 2018, the goal was to improve the performance of this cryptocurrency by using Sapling Cryptographic Technology. Zcash Sapling is a network upgrade that introduces significant efficiency improvements for shielded transactions paying the way for broad mobile, exchange and vendor adoption.
In the month of August, Zcash announced the release of the first sapling-compatible version called as Zcash 2.0.
Unlike other cryptocoins, Zcash coins are widely adopted and is currently 21st largest cryptocurrency by market cap. In January 2018, the price of Zcash was $876 in January 2018. It is currently available for trading in multiple exchange websites like- Binance, Bithumb, Kraken, Gemini, and Bittrex.
When it comes to storing coins, having a reliable wallet is very important. Zcash carries its own blockchain and there are multiple wallets. Zcash wallet is built for Linux and has the capability shield payments and transparent address. When you look for Zcash wallet, there are two kinds of addresses- Transparent and Private. Let us look a few of the options-
- Internet Wallets- These are the fastest way to accept Zcash. You can download these wallets from different sites. Make sure you use strong passwords for safe use.
- Hardware Wallets- These are considered as the safest way of storing Zcash coins. However, it only supports Zcash Transparent Addresses costing around $139.
Some of the compatible Zcash wallets include-Coinomi (mobile), Jaxx (mobile, desktop, web), Bitgo (web), Guarda (mobile, desktop, browser), Mobi (mobile, web) and WinZec.
Buying Zcash Cryptocurrency-
Since Zcash is altcoin, buying it directly isn't encouraged and is quite rare too. If you want to buy Zcash, then Changelly is the site to go for. Moreover, you can even exchange your other coins like BTC, LTC, and ETH. You can even visit other websites for Zcash exchange. This are-
- Huobi-Supported pairs are ZEC/BTC, ZEC/USDT
- Binance– Supported pairs are ZEC/BTC, ZEC/ETH
- Gate.io-Supported pairs are ZEC/BTC, ZEC/USDT
- Bittrex-Supported pairs are ZEC/BTC, ZEC/ETH, ZEC/USTD, ZEC/USD
- Cex: Buy using Credit/Debit card instantly
What does the future for Zcash hold?
When this cryptocurrency was launched, the value $3000, but by January 2017, it came crashing down to $50. This had really created panic among investors to use Zcash. But this doesn't mean that this cryptocurrency is not good to invest on and doesn't hold any value. The price of cryptocurrency in the market is volatile; you cannot predict its market rate. Having a free mind with well-research information can really help in investing over Zcash. When it comes to the transaction, an individual needs at least 8GB of RAM and several minutes to sign the transaction. But for Zcash to be valuable, it needs to keep this process an optional. The core-technology od Zcash- zk-SNARK protocol was invented in 2014 and is still new in the market. It needs more time to get user-friendly and gain trust among users.
Although there are positive things about Zcash, the governance mechanism still raises the question. It is handled by the company that looks after this cryptocoin. The trusted setup of individuals will take care of Zcash security, backdoor allegations, and inflation rates.
If certain issues, like the mentioned ones are considered, Zcash will see a positive future in the cryptocurrency market. It could be interesting to see how this relatively new cryptocoin will manage to sustain the competitive Bitcoin market.
With its tie-up with different top global companies, it further displays that Zcash will gain market trust. According to Zooko, "The Zcash and JP Morgan partnership is making an enterprise blockchain technology which could be a leading candidate for the breakthrough that allows enterprises to use blockchain for real-world use cases."