Table of Contents
- Digital Currencies and Zcash
- TOP 10 THINGS TO KNOW ABOUT ZCASH
- What Zcash Entails / Technology / Founder
- The Rebranding of Zcash
- The Pioneering of Zero-Knowledge Proofs
- How does the Zcash Market operate?
- Mining Zcash
- Zcash Security Concerns
- Fungibility of Zcash
- Limited Supply
- Transaction Process
- Price Vitality
- What Expert’s Say about Zcash
Digital Currencies and Zcash
Today we are going to talk about Zcash. There is no doubt that the cryptocurrency industry is growing rapidly. People are now beginning to accept the use of digital currencies. The rate at which people invest and trade digital currencies are quite impressive, and it shows that the cryptocurrency industry has a bright potential ahead of it. The influx of other cryptocurrencies has led to a strong competition among all digital currencies that tend to compete to have more users or digital currency investors. Despite the influx, Bitcoin continues to lead the digital currency industry as it evolved from it.
Nevertheless, Zcash was launched within less than a year, and it has already gained many users who make use of the digital currency. Furthermore, this digital currency comes with an advanced anonymous feature that serves the purpose of upholding the confidentiality of its users. (Related reading, see: 6 WAYS TO BUY BITCOIN WITHOUT VERIFICATION OR ID ANONYMOUSLY)
TOP 10 THINGS TO KNOW ABOUT ZCASH
- What it Entails
- The Rebranding (Zerocash)
- The Pioneering of Zero Knowledge Proof.
- How this market operates
- Zcash Security Concerns
- Limited Supply
- Transaction Process
- Price Vitality
What Zcash Entails / Technology / Founder
This makes use of a special zero-knowledge proof known as ZK-snarks to protect its system. This proof of construction enables users to carry out their transactions and exchange data without disclosing their identities or the amount involved in the business dealings. Unlike other cryptocurrencies which make users transaction and transaction history public, This does not make such public as its system protects its users from prying eyes. Due to this, the blockchain only shows or makes it clear that a transaction or business dealing was conducted, but it does not disclose the parties involved.
Zooko Wilcox was one of the founders and CEO of this currency and Zerocoin which was developed between the year 2013 and 2014. This was initially developed to help solve the low level of privacy common to most cryptocurrencies. Thus, a cryptographic protocol with a higher level of privacy was created. This cryptographic protocol enables users to turn Bitcoin into Zerocoin. This helps to provide a better level of anonymity by hiding the origin of the business dealing. Just the way users can convert Bitcoins into this currency, users can also turn their Zcash back to Bitcoins.
The Rebranding of Zcash
The present Zcash was once rebranded. The Zcash project kicked off in the year 2014. The main Zerocoin analyzers and a group of cryptographers created it. This was because of joint work between the two groups. In 2016, the CEO, Zooko Wilcox, disclosed the project. He disclosed that this project is an advancement of the Zerocoin project.
The Pioneering of Zero-Knowledge Proofs
Zcash pioneers the utilizing of zero-knowledge proofs. It also encourages the use of innovative cryptography to the blockchain system. The zero-knowledge proof enables the authentication of fully encrypted transactions. This will help to enable the creation of new blockchain applications.
How does the Zcash Market operate?
Zcash came into the trade market on October 28, 2016. This was first set of tokens were listed on exchanges as well as the genesis block mining. Investors also had the opportunity to purchase and sell Zcash futures using BitMex. More so, Traders had the ability to use these purchased futures to contemplate the possible future value of the cryptocurrency. Nevertheless, the Zcash market works in a similar way just like the other digital currencies. There is no difference in the way Zcash operates. Digital currency traders could purchase Zcash and resell it using exchanges.
Similar to other digital currencies, Zcash allows interested cryptocurrency miners to mine the Zcash digital currency. When mining Zcash, miners work to verify all user transactions on the Zcash blockchain. The mining process involves the creation of blocks and in return for their work; the miners are rewarded with newly minted Zcash, which is shared among them. The Zcash system makes use of the popular proof-of-work scheme to verify all the miners’ contributions. This scheme depends on the amount of RAM a Zcash miner has. Zcash mining process is comparable to that of its competitors as it has only a few differences. For instance: Zcash shareholders receive ten percent of the twenty-one million coins mined with the Zerocash protocol. This is known as the founder’s reward. (Related reading, see: HOW TO MINE ZCASH? – A GUIDE FOR BEGINNERS)
Zcash Security Concerns
Despite its impressive features, there have been some security concerns that have to do with this cryptography. Bitcoin core developer, Peter Todd once referred to this cryptography as ‘Highly experimental and relatively weak.’ He went on to point out that, the strength of the actual parameters chosen for this cryptography seems to be uncertain. He stated that it would not be surprising if the ZK-SNARKS turn out to be fully broken. He disclosed that due to this, an attacker might be able to develop a fake ZK-SNARK proof by directly breaking the cryptography without necessarily having to enter the protected backdoor. Apart from that, there have been concerns concerning the ability to create fake ZEC currency. Not only that, but Todd also noted that there are possibilities that people who may want to develop fake Zcash tokens could recover keystrokes from the computers that were used in the function. With the security concerns, the zero-knowledge transactions may make the issue worse as the users may not be able to know the difference between the fake and the real cryptocurrency.
Fungibility of Zcash
According to this, for the currency to remain interchangeable, the units of cryptocurrency must be separated from their record.This currency offers fungibility to digital currency through the unlinking of shielded coins from their record on the blockchain.
Just like Bitcoin, This has a total fixed supply of around twenty-one million units. This has an issuance estimate of 131 years. This means that the 21 million ZEC will be issued over the course of 131 years. More so, Zcash will have a minute block average of 2.5.
Users can use Zcash for their individual transactions. Similar to other crypto’s, It is suitable for all forms of transactions. It can be used as far as both parties are willing to make use of the cryptocurrency as their method of payment. However, with this anonymity feature, users may experience slight problems. This is because a customer’s transaction history cannot be checked.
To develop trust, a person or vendor may want to view his customer/client’s history to make sure that such customer is genuine, but with the anonymity feature put in place, it is impossible. Therefore, certain people may reject this digital currency as a mode of payment. (Related reading, see: TOP 5 CRYPTOCURRENCY EXCHANGE SITES)
The Zcash price is subject to change. When it comes to price volatility, many factors contribute to the surge or downfall of a cryptocurrency ’s price. According to Poloniex statistics, Zcash had its major good times after its launch. The high demand for the digital currency made its price rise above two million dollars. Unfortunately, the price dropped to less than five hundred dollars that same day. (Related reading, see: BITCOIN PRICE PREDICTION (SHOULD YOU INVEST IN BITCOINS-ANSWERED)
What Expert’s Say about Zcash
Conclusively, This is a good digital currency for users to explore. It tends to have some oversight that needs to be corrected. Nevertheless, This is a cryptocurrency that has a great capability, and I believe that over the course of the years, its technology will be improved to correct any oversight.
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