Zcash, similar to all the other private cryptocurrencies we have discussed so far, offers great privacy and anonymity during the transaction. It is a Bitcoin fork, but the hashing algorithm and security protocols differ.
Users have more anonymity compared to other cryptocurrencies thanks to its user verification process.
Whether you want to buy it, save it, or make a payment, Zcash is a cryptocurrency with new privacy features. If you want to learn about this cryptocurrency, patiently review this article.
What Is Zcash
Zcash is like all the other decentralized cryptocurrencies but with a little extra. This extra part is its zero-knowledge proof technology, zk-SNARK. Thanks to this technology, the network’s nodes can verify the transactions on the platform without giving away any sensitive information about the sender, receiver, or the transaction itself.
It is an improved fork of Bitcoin that offers users a higher level of user anonymity and security. When released for the first time, the coin was named Zerocoin. Later, the name changed to Zerocash.
While most of the cryptocurrencies like Bitcoin are marketed as anonymous, they are pseudonymous in reality. Those coins are anonymous, but the networks they belong to are easy to run a chain analysis on, meaning it is easy to track the transactions, senders, and recipients on those cryptos. However, ZEC or Zcash makes it completely impossible for any third party to find out transaction information on its platform.
Who Founded Zcash?
Cypherpunk developed the first Zcash. An entrepreneur and computer security expert named Zooko Wilcox-O’Hearn is responsible for creating this coin in 2016. This person is also the founder of the ECC (a for-profit electronic coin company). This company is responsible for the development of Zcash.
The founder of Zcash has been associated with cryptography and computer security for more than 25 years. He has also contributed to different projects throughout his career. He is a key contributor to the now-defunct digital money firm called DigiCash. The p2p data storing software named Mojo Nation also have a significant contribution from the founder of Zcash.
Zcash Cryptocurrency Features
The Zcash cryptocurrency boasts some of the best features aside from being an anonymous cryptocurrency. Here is a brief overview of the features of this cryptocurrency.
1. Low-Fee Transactions
Although highlighting itself as a private cryptocurrency, Zcash charges significantly low fees. Users of this private coin can avail of fast transactions for a measly fee. 0.0001 Zcash. It is a pretty low fee considering the current price of Zcash.
2. Address & Transaction Privacy
The most interesting and outstanding feature that separates Zcash from other pseudo-anonymous cryptocurrencies is its privacy features. This cryptocurrency offers two different types of addresses – shielded and transparent. Transactions between the shielded addresses are not visible on the Zcash network.
The transaction amount also remains encrypted and away from the site of the other members of the network. However, the transparent addresses during transactions work like the rest of the pseudonymous cryptocurrencies.
3. Encrypted Memo
A sender on the Zcash network can create and send an encrypted memo to the receiver during a shielded transaction. This memory is visible only between the shielded parties in a transaction, and it includes all the transaction information but remains exclusive between the shielded sender and receiver.
4. Viewing Keys
The owners of the shielded address can reveal the transaction details and the memo field for auditing or regulatory compliances. But they don’t have any access to the sender’s address unless it is mentioned there.
5. Multisignature Transactions
Zcash allows its users to make multi-signature transactions. This means more than two parties are required to sign before a fund is sent to an address. However, this type of transaction comes under transparent transactions and are not shielded.
6. Transaction expiration
The network offers users the feature of transaction expiration. This means that the transactions will expire if they are not mined within 50 minutes.
7. Payment Disclosure
Indeed Zcash is an anonymous cryptocurrency. However, the senders and the receivers can share specific transaction details with third parties for auditing, compliance, or visibility. However, this feature is currently in the experimental phase.
How To Mine Zcash?
If you are interested in mining Zcash, then you can do so using a GPU. You only need an Nvidia GPU to get you started. The process should not take you at most 20 minutes. However, here are the small and simple steps for mining Zcash –
- Install the Video Card Drivers.
- Get yourself a Zcash Wallet Address.
- Download the EWBF Zcash Miner.
- Your Windows settings will require some tweaking.
- You have to Join a Mining Pool now.
- Start mining Zcash.
This cryptocurrency does not require you to handle all the technical difficulties associated with more mainstream cryptocurrencies. The mining process here is fairly simple.
Where To Buy Zcash?
If you want to buy, sell or invest in Zcash cryptocurrency, you need to get yourself on a cryptocurrency exchange platform. Currently, there are many exchange platforms globally that accept the trend of Zcash.
Here are some of the digital asset exchange platforms that allow the selling and buying of Zcash –
- Binance Exchange
These platforms are mostly available globally, so you will have no problem trading Zcash.
Is Zcash Good Investment?
At the time of writing this article, Zcash was priced at $36.1 USD. 74% of the coin’s supply has already been mined. Zcash has a low amount of supply while the demand for its eccentric features is rising phenomenally. This is why it is safe to assume that the price of this private coin will increase in the future. This coin’s current price prediction expects it to hit the price point of $86 in 2023.
If you are willing it invest in a cryptocurrency but are concerned about the privacy and the security features, then Zcash is a good option to consider. However, all cryptocurrencies are volatile, so you should only invest once you are done running through market research and gone through predictions on different platforms.
However, this article should suffice if you needed general information on this cryptocurrency. Please let us know if you are curious about anything similar. We will love to hear from you.