With the expansion of cryptocurrencies in the market, little by little we can see how new options are present such as Zcash. And it is that more and more companies are betting on creating their own electronic currency to compete in the new market.
A perfect example is found in Zcash, a cryptocurrency that has come with everything that many would like to have; an attractive offer, an impeccable market launch and absolute anonymity for its users are its main differentiators. That is why here we will talk about this virtual currency.
➡What should you know about Zcash? ✨
In a nutshell, Zcash is a cryptocurrency which finds its operation, like most, in block networks or Blockchain. While it might seem the same as the others, ZEC differs from the rest in the way it protects its users.
That's right, in order to make operations safe and the information of its users is 100% protected, Zcash has implemented a series of improvements to its technology. In this way, when it hit the market, it gave a real coup of authority as it was one of the few cryptocurrencies totally focused on people's privacy.
The system behind Zcash is simple, on the one hand, we have encryption technology of the highest level which allows us to keep user information safe. On the other, the consensus of the network is used to validate the transaction, thus decentralizing decision-making.
It is said among experts that the day Zcash went on the market, users welcomed it with great expectation because at the beginning, this project planned to improve Bitcoin, although in the end, it opted to create its own cryptocurrency.
➡How is Zcash different from other cryptocurrencies? ✨
- Information record: The first difference that we can find here is the fact that the registration of the information is completely anonymous. That is, unlike Bitcoin, Zcash does not record information on public keys, transaction amounts, or user data.
- Algorithm: Another difference that we find between Zcash and other cryptocurrencies such as Bitcoin is the encryption algorithm they use. In this sense, ZEC uses a zk-SNARK algorithm which allows keeping information completely hidden and private, thus guaranteeing operations between platforms.
- Mining commission: The mining commission is another point that we must take into account, since Zcash charges a 10% commission on mining for the first 4 years of the coin. This is because the commission acts as a kind of reward for the founders.
- Rewards: You should know that the mining process will not keep its rewards the same over time. This is because, as the years go by, the amount of the rewards will decrease in order to stabilize the value of the virtual coins. Every 4 years the payment is reduced by half.
➡Technology behind Zcash✨
Zcash's technology turns out to be a bit quirky. In the first place, we have a platform which works on a Blockchain similar to that of Bitcoin, so the transactions and processes are almost identical. Its security is the only difference we find between both blockchains.
And it is that, when processing transactions, Zcash does not store public keys, contact information, personal data or the transaction amount. This is possible thanks to the introduction of algorithms and improvements to the Blockchain focused on privacy.
One of these improvements is the use of the zk-SNARKs algorithm, also known as Zero Knowledge Proof. This algorithm is in charge of verifying that there are no secret keys or some kind of data leakage without showing user information. In addition, it acts as a kind of shield to protect the user's personal information.
In addition, This platform gives you the option to choose if you want the transfer of coins to be public or private. In both cases, the platform offers protected and transparent addresses, with the certainty that your information is protected against hacks. Thus, the risks of operating this platform are reduced.
➡Improvements to solve potential errors✨
While security and anonymity seem to be the cornerstones of Zcash, there is actually a point that raises a bit of doubt. And it is that its supposed security is called into question because during its activation a large amount of cryptographic garbage was generated.
Such crypto garbage acts counterproductively for the platform, as this could leave the door open for hacks and security breaches. That is why many users and analysts still do not fully trust Zcash and its security algorithm.
➡How to obtain ZECs? ✨
To get ZEC, coin from Zcash, you have two options. The first is to carry out a mining process which is based on the Equihash algorithm, Zcash's PoW algorithm.. Each mined or validated block will give you rewards, although this requires good power hardware.
You can also get ZEC coins by buying them, for this you must go to one of the most famous Exchange Houses such as Kraken or Bitfinex. Here you can find the pairs available for exchange by ZEC. Take into account that not all wallets allow use with Zcash.
➡Is Zcash worth it? ✨
Here we find a discrepancy in the market because while some say that it is worth it, others consider that it is unknown. Based on data, technological innovation for anonymity could be a good reason to trust Zcash.
Another point to take into account is that the stability of the currency is very good, with relatively low volatility, although it does have a tendency to inflation. Similarly, we must take into account that cryptographic garbage could play against Zcash because it could generate vulnerability.
Financial analyst and economist with a master's degree in finance.