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What is ZCash (ZEC)?
ZCash is one of the popular cryptocurrencies with a decentralized blockchain that is intended to protect its user’s identity and their transactions. ZCash uses a unique protocol called zero-knowledge proof to provide the user’s anonymity by protecting their financial history.
ZCash has a resemblance to the Bitcoin framework since it is built on the same framework. Since the ZCash network is based on the original codebase of Bitcoin, the transactions on the network of ZCash are confirmed rather quickly and more efficiently.
While most of the other cryptocurrencies including Bitcoin does reveal the users’ financial history and how much they hold currently ZCash, on the other hand, is fully secured and shields the transactions.
However, ZCash has to encounter criticism for providing a protective haven for the illegal transactions to be carried out. Nevertheless, ZCash’s intentions are clear in providing users with privacy for legitimate reasons.
As and when the cryptocurrencies that have been built on Ethereum like Bitcoin came to fruition, they paved the way for many such cryptocurrencies as ZCash.
As cryptocurrency users realised that their transactions were easily traceable on the blockchain, the need for anonymity grew.
Who are the founders of ZCash (ZEC)?
Zerocoin, a proposed privacy enhancement to Bitcoin, was created by Johns Hopkins University’s M.Green, I.Miers, and C.Garman in 2013.
In response to the community’s indecisiveness and a desire to move rapidly, the team enlisted the help of more scientists to create Zcash, a stand-alone protocol.
The Zcash Foundation was founded in 2017 to ensure the network’s continuing development, while the Zerocoin Electric Coin Company which is currently known as the Electric Coin Company was founded in 2015 by its founder Zooko Wilcox-O’Hearn to help create and deliver the idea.
What makes ZCash (ZEC) unique?
Bitcoin was a forerunner in the open financial system; ZCash aspires to have the same structure as Bitcoin, but with the added benefits of anonymity and fungibility.
The cryptographic tool zk-SNARKs, a tool used by ZCash enables two users to conduct transactions without disclosing their payment addresses to one another.
It’s not possible to trace the course of any given coins to its sender or receiver because the payment addresses registered are not the actual user’s address. This distinguishes ZCash from several other blockchains.
With Bitcoin’s breakthrough, hundreds of competing cryptocurrencies (altcoins) – including Zcash – emerged (ZEC).
How many ZCash (ZEC) coins?
Currently, there are 10,028,406 ZEC coins in circulation with the maximum supply being 21 million coins. Each ZEC bears a value of $150.30.
How does ZCash (ZEC) work?
Zcash is digital money that protects your anonymity by combining sophisticated arithmetic and computer science with high-tech protection. Users can make payments through the Zcash network quickly, easily, and for a low transaction fee.
Users who want to keep their transactions private can use Zcash’s shielded transactions. Users’ personal information can be kept confidential by using shielded transactions.
Because of Zcash’s unique structure, private transactions are feasible. Private Z-addresses and public T-addresses are the two types of Zcash addresses.
The transaction’s privacy is determined by the type of address utilised and the type of address to which the value is transmitted.
A Z-to-Z transaction is visible on the public blockchain, allowing users to verify that it took place and that fees were paid. The addresses, transaction amounts, and note fields, on the other hand, are all encrypted and not visible to the public.
Through the use of view keys and payment disclosure, a user can opt to share this information with trustworthy third parties.
Zero-Knowledge Proofs, also known as Zk-SNARKs, are the sole way to conduct Z-to-Z transactions.
Zk-SNARKs enable ZEC transactions to be entirely encrypted on the blockchain while still being verified as legitimate. They function by allowing a user to demonstrate ownership of specific information, such as a secret key.
A T-to-T transaction functions similarly to a Bitcoin transaction. The entire transaction is open to the public. The two types of Zcash addresses are interchangeable, and money can be sent between them. The official guide for Zcash (ZEC) contains more information about cross wallet transfers.
How is the network of ZCash (ZEC) secured?
The consensus mechanism in Zcash is proof-of-work. To safeguard the network, Zcash will never employ another consensus technique. Zcash miners protect the network by generating blocks by solving computationally complex challenges.
The state of all the information is recorded and the network moves on to the next block as long as every miner or node on the network agrees on the sequence in which the blocks were produced.
Proof of work has the goal of extending the chain, and miners are rewarded for continuing to do so on the Zcash network. Users will always choose the longest or “official” chain, hence there is little motivation for miners to build their chain.
However, because of differences over development and the roadmap, forks such as Ycash have emerged.
What is ZEC (ZEC) mining?
Staking is not possible with Zcash. Rather, it employs the same proof-of-work (PoW) consensus as Bitcoin.
In comparison to Bitcoin, Zcash uses a different mining algorithm. Equihash is the algorithm used by Zcash, and it can only be mined efficiently using custom-designed ASIC miners. Unless they have a huge number of ASIC miners all working in tandem, most users choose to donate their computational power to a mining pool to obtain regular payments.
How to use ZCash (ZEC)?
Though ZEC presently works in the same way as Bitcoin, anyone who would like to operate a node or transact on the Zcash network will need to download the Zcash software.
Moving value on ZEC’s L1 network is currently the most common usage for Zcash. Zcash is especially appealing because of the native ZEC tokens’ ability to move funds discreetly and maintain personal financial information concealed. ZEC can also be used as a method of payment and a speculative investment instrument.
Conclusion
Zcash is a well-established cryptocurrency that has overcome several challenges. Its network is unique in terms of providing users with privacy which may appeal to many investors.
Zcash has made cryptocurrencies more accessible than ever before to people who value secure and private transactions by enabling them to transact and conduct business securely.
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