cryptocurrencies

Zcash - Everything You Need To Know About Zcash

Daksh Murkute | | |

Zcash is a cryptocurrency network launched in 2016 to provide private anonymous transactions to its users. It allows anyone on the internet to send tokens which can be later transferred into cash.

 

It uses z-snarks protocol to make transactions completely private and anonymous.
 

Recently Zcash is in the news because it announced its most ambitious project Halo Arc, Zcash calling it the next generation product suit, it includes updates in Zcashd, the Electronic Coin Co. (ECC) Reference wallet applications, and ECC wallet software development kits.

 

In this blog we’ll discuss all about Zcash or ZEC (it is what they call their token) in detail, we'll look at the advantages, features, and capabilities of zcash, future potential and I am sure at the end of this blog you’ll get all your answers.

Contents

What is Zcash or ZEC?

Core features and capabilities

What it has achieved so far?

Should you invest in Zcash or not

What do you think about Zcash

 

In the era of Bitcoin, Ethereum, Sia, Bancor, with the market cap of around $1.3B Zcash (ZEC) is in the #63rd position according to coinmarketcap and it is one of the most promising tokens which consists high level of anonymity, and as the crypto market grows in the near future, Zcash has the high potential to explode.

 

What is Zcash or ZEC?

Zcash logo

Have you heard about Bitcoin? When Bitcoin was first released, first time in the history of humanity it introduced the open financial system to the world, anyone around the world could connect with anyone without any permission, and literally when it came in the market people around the world were totally gone mad, consequently, the price of Bitcoin went all-time high, but soon people realized that there was a key drawback of Bitcoin which can cause little concern to them and that is its privacy.
 

In Bitcoin, anyone can see the name and the addresses of sender and recipient, not only that it can also show you the value of all the transactions related to them.
 

Because of this, transactions are relatively easy to track and it is possible to see

  1. how much money someone has,

  2. how many transactions he made and

  3. what are the addresses of that transactions.
     

Zcash team saw the need for privacy and came up with a new blockchain which includes two main features:
 

  1. Decentralization (it is the process where an organization distributes its power and management to various local computers in their ecosystem) and
     

  2. Privacy (we know what it is).
     

Unlike most cryptocurrencies, which make every transaction detail public, Zcash offers confidentiality to the identity and financial history. Zcash is a fair and open currency that can be spent, sent, and received via mobile phone, computer, or digital wallet.
 

Zcash is privacy oriented blockchain and digital currency introduced in 2016. The native currency of the network is ZEC. It is one of the oldest privacy-based blockchain networks existing today. It supports the Proof-of-work algorithm and provides full access to the transactions.
 

It is:

  1. Fast, reliable, and has low transaction costs.
     

  2. Decentralization provides essential security to it.
     

  3. It has confidential transactions and protected addresses.

 

 

Core features and capabilities

 

explaining the features of Zcash

 

As cryptocurrencies are gaining global acceptance, privacy becomes the main concern, it is well-known fact that without privacy and security, we are very vulnerable in the network. Our right to privacy must be protected at any cost.

 

Zcash is truly secure, it is fully decentralized, and you are in full control of your funds, nobody not even the governments or the banks can interfere in your decision.
 

Let's talk about some of its features and capabilities:

 

  1. Zcash provides low fees transactions. Zcash’s most important feature is its fees, if we make any private or transparent transaction to anyone in the network, the fees will be extremely low of only .0001 Zcash.

 

  1. Privacy is the main concern: Zcash is working on a two addresses type system. The first one is private know as z- address or shielded address and the second one is public or transparent which will be visible to everyone, we call it t-address, and by these two addresses, we can make four combinations.

      1. Private – Private

      2. Private – Transparent

      3. Transparent- Private

      4. Transparent – Transparent

 

  1. Encrypted memoSometimes we need to send some additional information with the payment, for example- bill number or bank account no. etc. To do that encrypted memo was introduced in Zcash, in which we can send additional information along with the payment without breaking the key rules of privacy.

 

  1. Sharing keysNow we know that the transaction in Zcash is private, but If we want to share our transaction details for auditing purposes or we have to show our transactions to the government for regulatory purposes. 

    We have the option of viewing keys in which we can disclose all our incoming transactions and encrypted memos to the authority. 

 

  1. Expiration of a Transaction: When a transaction is done by us we have a very limited time to settle the process of that transaction. If the transaction is not settled within that time limit, it will be moved to expired status. Zcash also supports this feature, by default the expiration time of any transaction in Zcash is 50 minutes.
     

  2. MultisigIt is also known as multi-signature, it is the opposite of a single-signature transaction in which only one signature is needed to make a transaction.

    In this feature, a transaction must have two or more parties to agree and needed to sign before it can happen. It is a transparent address feature.

 

What it has achieved so far?

 

Zcash achievement

 

Zcash is a crytpcurrency, similar to Bitcoin. But with different functionalities altogether. The transaction in Zcash came with an extra layer of security and privacy. With a market cap of $1.5B, it is in the best 60 cryptocurrencies of all time according to capmarketcoin.
 

It enters the market in 2016, but its token price began to drop within weeks of its launch that downtrend continued for a while but by the end of 2017 it began to recover and reached at $695.67 but because of the market instability, Zcash again lost its ground and its value remained in the cap of $30-$100.
 

But as the starting of 2020 the time for Zcash has changed and after that it has continued to recover with some ups and downs and it holds the value of $106 as I writing this post. The history of Zcash is full of ups and downs and experts believe that after this pandemic it will recover with a bang in the cryptocurrency market.

 

Also Read: Guide to SiaCoin

 

Should you invest in Zcash or not

In the past years, the investor has shown interest in the ZEC and they’ve got approx. 200% gain in return. But Zcash is highly volatile, it is not a simple task to predict its value in advance. Various experts from the crypto community have different opinions altogether regarding Zcash.
 

Zcash is a good investment if you are an experienced trader, but as I said earlier this is highly unpredictable coin. If you are new to this cryptocurrency market then you have to consider it for long-term investment.
 

What do you think about Zcash

 

Your thoughts on Zcash

 

In the coming years, Zcash has made plan to provide strength and build up its blockchain infrastructure to compete with Bitcoin. It is providing privacy and security way better than Bitcoin and this quality will benefit ZEC in the future, if everything goes according to the plan you’ll see this coin will be among the top 30 cryptocurrencies in the world. It has a future for sure, we all know that its price is highly changeable so before investing do your own research.

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