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Zcash is a decentralized and open sourcecryptocurrency which arises from a fork of Bitcoin. However, this curious cryptocurrency has its own blockchain, through which it can be privata completely anonymous.
The most interesting thing about this cryptocurrency is that transactions are recorded in the Zcash blockchain, however the sender and recipient data are confidential, as well as the amount of the transaction carried out. That makes Zcash a complete anonymous cryptocurrency, which differs from cryptocurrencies such as Bitcoin which is not anonymous but pseudonymous and could be traced.
History of Zcash
The cryptocurrency Zcash was born on 28 October 2016 as Bitcoin fork together with an implementation of a protocol created by Matthew D. Green and students Ian Miers and Christina Garman.
The goal of this protocol was to improve privacy and the anonymity of Bitcoin. In the beginning it was called Zerocoin and it was implemented in currencies like Zcoin, because the implementation of this protocol in Bitcoin required a great computing capacity. Later a new cryptographic protocol with the aim of solving many of the problems that presented and would be called Zerocash.
How does Zcash work?
To understand how Zcash works, you have to identify its two types of addresses.
- Indirizzi privati: These transactions appear in the browser, however the addresses and the transaction amount are encrypted thanks to the use of zk-Snark. However, the owner of the transaction can reveal the transaction details by sharing the display keys.
- Transparent addresses: these types of addresses work the same way as those of Bitcoin.
It should be made clear that, although they are different approaches, the funds may be sent and received between a private address and a transparent one. The choice of address to use depends on the user.
Scheme of operation of zk-Snarks.
Mining of ZEC
Being a fork of Bitcoin, this cryptocurrency is obtained by the algorithm of Proof of Work (Pow) its issue is limited to a total of21 million units, just like Bitcoins. However, Zcash had a founders’ reward system by which 10% of the mineral rewards it was distributed equally among the founding company of Zcash.
However this system of reward of the founders has been eliminated this year 2020, and currently the miners receive the 100% of the reward of their work.
Price of ZEC
Zcash has a current value of $68 dollars, has a market capitalization of $731,774,858 dollars, reaching its maximum price on October 26, 2016, when it went out on the market reaching a value of $5941 dollars.
Its lowest value took place on March 13, 2020 reaching a value of $18.94.
Zcash vs Bitcoin
Zcash arises as a result of Bitcoin and although both cryptocurrencies are similar, Zcash is characterized by some changes compared to Bitcoin.
- The production rate of Zcash blocks (2.5 minutos) is greater than that of Bitcoin (10 minutes)
- Zcash offers a complete anonymity however Bitcoin is a pseudonymous and traceable cryptocurrency.
- Zcash has a function through which transactions may expire if they have not been completed within a certain time, by returning the amount of the transaction to its issuer.
Where to buy Zcash?
If you want to know how to buy Zcash (ZEC) coins we recommend you to buy Zcash on bitnovo. It’s really aquick and safe way to do it.
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