Zcash is a DeFi cryptocurrency platform that is focused on the delivery of anonymity and privacy for transactions. This is made possible on the platform through a zk-SNARK zero-knowledge proof mechanism which grants access to nodes on the platform to verify transactions without revealing any of the sensitive data required for the transaction.
In a contrary notion to popular belief, several of the available cryptocurrencies on the market, with the inclusion of Bitcoin are not Anonymous but are rather tagged pseudonymous. This is because although the identities of the involved parties are kept hidden, the details of the transaction such as the addresses used are visible to both parties and can be traced back through a data science procedure used for blockchain forensics.
On the other hand, even though Zcash transactions still have to be delivered through a public blockchain, it does so without any revelation of the amount involved or the individual addresses. This is unlike most of the pseudonymous cryptocurrency platforms such as Ethereum. However, the Zcash platform provides an option for the details to be revealable for regulatory and auditing purposes.
Who are the Founders of Zcash (ZEC)?
The Zcash network was founded by cyberpunk in 2016. Cyberpunk is an entrepreneur and a security expert also known as Zooko Wilcox-O’Hearn. He also founded the for-profit Electronic coin company, the platform that manages the development of the Zcash network.
Wilcox-O’Hearn is a vastly experienced professional in information security and cryptography. He has a series of projects to the broad ecosystem including the now non-functional electronic money platform, Digi Cash, the Tahoe Least-Authority system for file storage, and Mojo nation, the peer-to-peer data storing software.
In addition to all of this, he is also responsible for establishing a technology company that has its focus on the global improvement of digital security and all rights about digital assets known as the Least Authority Enterprise. He also co-discovered the BLAKE3 cryptography hash function.
What is Zcash (ZEC) used for?
The main goal for the creation of Zcash was to bring a new level of security and anonymity to the world of blockchain technology and cryptocurrencies. Unlike all of the other traditional coins whose code is based on the Bitcoin network, Zcash provides the highest level of security between the two ends involved in the platform.
In addition to making the provision of security and anonymity at a colossal level, the platform also has a native cryptocurrency token known as ZEC. Apart from serving functions within the network, ZEC can also be traded with other cryptocurrency pairs to make a profit for the holders.
What Is the Unique Point of Zcash (ZEC)?
The major advantage of the Zcash network lies in its option for anonymity which provides a level of privacy that is next to impossible for regular pseudonymous cryptocurrencies.
The transactions executed on the Zcash network are sent in two ways which could either be shielded or transparent. For the transparent transactions, they work in the same way as the Bitcoin network because of the Zcash build base being ok Bitcoin. The transactions are publicly executed between open addresses and saved in a public ledger. As such, all the details pertaining to the transactions are openly available to anyone with an internet connection on the network to see with the inclusion the amount sent and the addresses involved.
However, the public execution of the transactions does not reveal the identities of the users, instead, the users are only identified with their public addresses. Due to years of research and monitoring by law enforcement and data analysts, there exists a method of blockchain analysis that can allow an interested party to connect a public address used for a transaction to a real-world identity. A process that essentially eliminates all forms of privacy from cryptocurrency transactions.
On the other hand, shielded Zcash transactions make use of technology to achieve zero-knowledge or short non-interactive arguments of knowledge in order to achieve a state of complete anonymity for transactions to be sent over a public blockchain record. Simply put, the occurrence of the transaction is recorded, however, the details of the transaction including the involved addresses and the involved amount are not revealed in the records.
As such, the participants on the Zcaah network are able to enjoy utmost privacy while still getting the usual advantages of a decentralized digital currency.
How many Zcash (ZEC) coins are in circulation?
In general, the tokenomics of Zcash is similar to that of the Bitcoin network in that is also a scarce token that supports mining operations. The token has its total supply capped at 21 million coins.
The creation of new tokens in the ZEC network is through a process known as block subsidies. Whenever there is an addition of a new block after it has been mined, a specific number of coins are minted and parted into the founder’s reward and miner subsidy, with 80% being assigned to the miner subsidy and the leftover 20% to the founder’s reward. According to its design principle, the block subsidy is halved regularly to reduce the issuance rate as the token gets closer to its 21 million limits.
Based on its assignment process, the miner subsidy is assigned to the miner who mined the newest block on the system, while the founders’ reward is shared between the founders of the Electronic Coin Company, the Zcash Foundation, and the employees of the system. In November 2020, there was a halving of the block subsidy from 6.25 ZEC to 3.125 ZEC. The amount that was triggered at the block was 1,046,400. This system was introduced by the Zcash canopy upgrade and also eliminated the founders’ reward. However, the leftover 20% will be distributed among the Major Grants Find, Zcash Foundation, and ECC at the ratio 8%, 5%, and 7% respectively.
Ever since the launch of the Zcash system, there has been noticeable interest in the ZEC to AUD and ZEC to EUR price pairs.
Is the Zcash (ZEC) Network secured?
Similar to the Bitcoin network, the Zcash platform is secured using a modified version of the proof-of-work consensus mechanism which includes the SHA-256 Hash function.
As such, the miners are required to solve complex puzzles to add new blocks to the existing blockchain. In some other cases, the miners are tasked with creating a new hash that is an exact match to the platform’s target. Upon solving the puzzle, they are instantly rewarded with ZEC tokens.
How do I buy Zcash (ZEC)?
The Zcash network offers services that are years ahead of other platforms using pseudonymous. As such, there is a consistently rising demand for Zcash tokens which has led to an increased rate of adoption and its availability across various exchange platforms including Binance, among others. To buy ZEC tokens, the steps below provide the right direction to purchasing its tokens.
* Open an account with the crypto trading platform.
* Transfer the specific amount of your fiat currency to your account.
* Wait for your deposit to be confirmed and Buy ZEC through your trading account.