In the following article, we will touch upon Zcash – a privacy-focused cryptocurrency that is quite close to Bitcoin (because both networks use an open-source code and Zcash is, in fact, build on the Bitcoin network) and has a couple of unique features at the same time. For instance, Zcash is famous for aiming at providing a high level of privacy and anonymity to network users. Another feature that is different for Zcash compared to the other cryptocurrencies is fungibility. Keep on reading this article to find out more information about Zcash. Especially if you have zero knowledge about the topic, you will find the article useful for you.
Table of contents:
- Zcash Essentials;
- Zcash History;
- The main features of Zcash;
- Advantages of Zcash;
- How to Produce ZEC;
- How to Get a Zcash Address;
To begin with, Zcash is a decentralized cryptocurrency. In other words, it has a decentralized blockchain which means that a higher level of security and anonymous transactions are guaranteed. To raise a miner’s security level, the zero-knowledge proof is used. This way transactions can be validated without revealing any personal data that a user does not want to share.
Since Bitcoin has become extremely successful, a huge number of brand-new cryptocurrencies. One of these is Zcash. The team of Zcash has been prepared for the trend of transactions and users’ accounts being more secure and not easy to be traced in the blockchain. Zcash network was founded in October 2016 by Zooko Wilcox-O’Hearn. Most cryptocurrencies do not have such an inspiring history of constant development.
As the first step, a team of American partners (cryptographers and specialists from Zerocoin) have created a project called Zerocash. Later they have improved the system for it to provide the greatest efficiency and privacy when earning money on ZEC transactions. Due to the new underlying protocol, a sender will have an opportunity to communicate with another trader directly. Moreover, the data on both sides of the transaction will be hidden from the eyes of fraudsters. After the implementation of the underlying protocol, a corresponding coin was also issued, which was by no means a compliment to Bitcoin, but became a unique and full-fledged digital currency. Since October 28 of 2018, the history of ZEC mining has begun. It all started at the moment when the developers launched the 1.0.0 release of “Sprout.”
The main features of Zcash
One feature that is outstanding when compared to other digital currencies is the fact that Zcash has support from serious companies. The developers of this project were the leading specialists of universities and institutes in the US and Israel (Tel Aviv University). The professionalism of the team leads to the creation of the perfect system for conducting secure transactions.
The main informational purposes of creating this company project were to make people familiar with an open financial technology platform that will be used by traders all around the world and will be truly easy to use for non-professionals.
Compared to the Bitcoin network that was created in 2009 by Satoshi Nakamoto, Zcash was founded in 2016. There is the Zcash blockchain as well as a blockchain technology used on the Bitcoin network. These two platforms have the same consensus method that is called Proof-of-work. However, there are some differences, too. The initial distribution that is used for Zcash is ICO, while Bitcoin is based on mining. The mining method itself also differs: it is GPU for ZEC currency and ASIC for Bitcoin. Market Cap of Zcash equals over $700 million, while the same measure of Bitcoin is over $300 billion.
Advantages of Zcash
Here are the obvious perks:
- In general, Zcash is pretty similar to Bitcoin (the structure, the majority of features). However, some new unique services such as increased level of privacy and fungibility. Fungibility is a notion that means the easiness of a person to miss a day at work. For example, fiat currencies such as dollars or euros can be traded and exchanged for every currency in the world. The more developed fungibility is, the better it is for a cryptocurrency.
- Nowadays, it is a well-known fact that Bitcoin is a pseudonymous network. However, a couple of years ago, the first miners believed that anonymous wallet addresses guarantee the network and Bitcoin’s codebase being safe, too. In a matter of time, it was revealed (due to the numerous hacker attacks and legal actions against websites on the darknet) that it does not actually a great effort and data to get access information about the true identity hiding behind a Bitcoin wallet. Therefore, there are no private transactions. Even private keys can be stolen if the security of the cryptocurrency network is not strong enough.
- On the contrary, the Zcash company provides a completely anonymous transaction. Zcash users can really trust the company and be calm about user privacy. Fraudsters will not get access to their personal data. Although all ZCash transactions are recorded on a blockchain, the transactions are encrypted and can only be viewed by users that have been given access to them. The team made everything possible to protect each transaction on the cryptocurrency network. You should accept the fact that Zcash is a company that is focused not only on earning money from its users but it is also on a privacy-focused network.
How to Produce ZEC
In this section, we will cover what is needed to extract Zcash ZEC. You do not have to worry, and the process is actually not complicated at all since it is similar to the mining of Bitcoins or other crypto coins.
The only things that are essential to have are some pieces of equipment to produce Zcash ZEC:
- The amount of RAM in the amount of 4 gigabytes;
- The presence of an operating system with a 64-bit bit. Using both Windows and Linux is acceptable.
If you mine on your home desktop computer, the energy costs can be ignored because they are not going to be much larger. Usually, for trading other cryptocurrencies, much more computing power is needed. But a user of Zcash should download a special program on their computer that will allow you to extract Zcash ZEC.
How to Get a Zcash Address
As an experienced trader, you will probably know. If there is a cryptocurrency that is new for you, you will need an appropriate wallet to complete transparent transactions using your computer and central banks to accept your payment. Because of this, we will consider what the Zcash address is. It is important to understand how the process of receiving addresses works. This address does not differ greatly from the other coins’ addresses of cryptocurrency exchanges, but it has a significant difference – anonymity.
All other currencies use at-address that is classified as a public address. Usually, it is applicable among various pools and stock exchanges. And the z-addresses are stealth addresses, and they are based on a zero-proof protocol. In this case, it requires high power if you make a transaction. You can use both addresses with the Zcash currency, for which you can create your own wallet. The easiest way to do this is through the official website. To earn Zcash, visit the sites of leading exchanges, where you can conduct transactions to buy or sell your coins. Remember that it is better to choose an anonymous address than a public address.
Does Zcash have a future?
Nowadays, Zcash is one of the leading cryptocurrencies. As it has been already mentioned above, the aiming to tip the balance of power back in the hands of users as the world hastens its transition from the analog to the digital realm. Most cryptocurrencies have not experienced such development of a transaction security system. We should mention that Zcash offers the best privacy security among other crypto trading platforms on the market. Team members of the company who are engaged in cryptography at Electric Coin Co. and crypto privacy settings have done their best to develop the practical implementation of zero-knowledge proofs. This was done to offer users 100% safe transactions.
We can ensure you that spending money on crypto investment into the Zcash currency is worth it. As for our investment advice for you, we recommend trying Zcash cryptocurrency because of transactions and addresses being secure. Receiving a great feeling of security while trading and exchange processes are what makes Zcash a great platform that will be popular in the future, too. There is no cryptocurrency that is known to protect users’ privacy better than Zcash, so you can try to make a profit trading this currency.
What is Zcash’s all-time high?
Let’s have a look at Zcash’s important metrics and compare them to Bitcoin. An all-time high of Zcash is 5,272 dollars. This amount was presented in October 2016. The same measure equals 19,908 dollars for Bitcoin (December 2017). The all-time low of Zcash was 23.33 dollars in March 2020. For Bitcoin, the all-time low is 0.06 dollars. The figures were like this in July 2010.
You might also want to compare time periods that it took each electric coin company to hit $100? Surprisingly, Zcash was worth over $5,000 within the first days of its launch, while it took 51 months for Bitcoin to reach the same result. Maybe this fact will make you think about using this electric coin company once again. The total circulating supply of Zcash equals 21,000,000. The circulating supply of Bitcoin is absolutely the same – 21,000,000.
Why did Zcash’s price drop?
Zcash’s price might have dropped because of the increase in Ethereum price. The connection can be found since this event came shortly before the decrease in Zcash price. Zcash is mostly GPU-mined. In general, the hash rate tends to follow relative prices for the coins that have low-latency difficulty adjustment and between which mining power can be easily switched. Currently, the average price of ZEC cryptocurrency is 254,06 dollars.
Where to use Zcash?
Zcash is a cryptocurrency that can be traded and then used on an open-source device. It is not a problem today to pay with cryptocurrencies such as Zcash. There are quite a lot of retailers who accept cryptocurrency as valid money when paying for goods. All you need to do is to use the Gemini or Flexa SPEDN apps to complete a payment transaction. You can download them on your mobile phone to pay with Zcash at many shops, cafes, and other places.
What is Market Cap?
Market Cap serves to demonstrate if a crypto company is still good to invest in it. In other words, Market Cap helps investors to predict future fluctuations in the crypto market and make the right decisions and protect the investments. Market Cap is the total value of shares a crypto company has.