The high traction of Bitcoin (BTC) all over the world caused the emergence of several alternative cryptocurrencies that were inspired by it. An example of this is the ZCash cryptocurrency which was patterned after BTC with modified privacy and security features. Through this crypto asset, you can transact online while remaining fully anonymous. Learn more about it in detail here at the BTC Post:
Brief background about ZCash
ZCash (ZEC) is a digital coin known for allowing safe and anonymous transactions. Its beginnings can be traced back to 2013 when a group of cryptographers from Johns Hopkins University, namely Matthew Green, Ian Miers and Christina Garman came up with Zerocoin. Their objective was to make Zerocoin a private and anonymous form of payment, which Bitcoin (BTC) fails to completely fulfil.
During its early days, Zerocoin received conflicting positive and negative feedback from the people in the industry. To improve their project, they added more cryptographers into their group namely, Alessandro Chiesa, Eli Ben-Sasson, Eran Tomer and Madars Virza. As a result, they built a standalone protocol that became Zerocash but is now called ZCash.
In 2015, the Zerocoin Electric Coin Company (presently Electric Coin Company) was established to execute ZCash. A year later, in 2016, the Chief Executive Officer (CEO) of Electric Coin Company Zooko Wilcox-O’Hearn officially launched it after making a $3 million investment. Meanwhile, the ZCash Foundation which is a non-profit organization that serves the users of ZCash was made public in 2017.
Best features of ZCash cryptocurrency
Know why ZCash (ZEC) is one of the leading alternative cryptocurrencies in the world by uncovering all of its best features here:
It allows you to remain anonymous
One of ZCash’s key features is that it allows you to remain anonymous in every transaction. Most common cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) use pseudonyms that can still trace the identity of an individual even with the little information given. However, that’s not the case for ZCash because all of its transactions are encrypted and only the users with direct access to them could view them.
ZEC utilises a cryptographic tool known as Zero-Knowledge Proofs (zk-SNARKS) which lets the users hide their identity and conceal their payment addresses. With this tool, all your transactions are untraceable. This is a better option compared to the method done by similar cryptocurrencies that has an anonymity feature like Monero (XMR) where your private keys are made with alphanumeric characters.
In an XMR transaction, they give out unique public addresses to their users which are required to receive funds from other people. By using this over time, there is a possibility that your previous transactions can be seen by the users to whom you gave your public address.
It has a tight security system
Similar to BTC, ZEC uses a proof-of-work SHA-256 consensus mechanism which keeps every transaction safe in the blockchain. The companies behind ZCash, namely the Electric Coin Company and ZCash Foundation periodically conduct a series of checks to ensure the security of ZEC.
ZCash is known for its high efficiency since it boasts of its average block time of 75 seconds and a low fee of 0.0001 ZEC. This means you can complete transactions in less than a few minutes for a cheap price. This is also supported by different crypto wallets and large exchange sites all over the world so accessibility won’t be a problem.
It’s audit and regulation-friendly
Even if you are using a shielded ZEC transaction, you can still disclose your transaction details for audit and regulatory purposes. Any user has the free will to reveal all their incoming transactions and memo field through their viewing key. But be informed that you won’t have access to the address of the sender unless it is included in the memo field of your transaction details.
How does a ZCash transaction work?
In ZCash, you are given the freedom to choose between two different kinds of transactions: the transparent and the shielded. A transparent (T) transaction is similar to Bitcoin where all the details about the transactions are visible to the public. This includes information about the sender, receiver and the amount in the transaction. They do not disclose the personal identity of any involved parties since they are represented through their public addresses, not their real names.
Meanwhile, a shielded or private (Z) transaction still appears on the blockchain but all the details about it are not open to the public. This means that the addresses, the value of the transaction, and the memo field are all encrypted and cannot be traced. It’s all possible because of the zk-SNARKS cryptographic tool. However, the owner has the liberty to disclose their z-address and details about their transactions to third parties if they want.
Where can you use the ZCash cryptocurrency?
ZCash can be utilized in any of the following transactions:
- Online shopping
- Paying for bills
- Sending money
- Private transactions.
It is also supported by different payment providers such as Flexa and Gemini Pay.
How to buy ZCash
Here’s a step by step guide on how to buy ZCash cryptocurrency, especially if it’s your first time:
- Find a digital wallet
Before buying any ZEC tokens, you need to first find a digital wallet where you can store them. This keeps your coins safe and stored in one place that makes it easier for you to access them whenever you want. Some of the most popular crypto wallets that you can choose from are Exodus, Electrum and Mycelium among others.
- Buy ZCash from an exchange
You can buy ZCash from any of the major crypto exchanges in the world such as Binance, OKEx and Poloniex to name a few.
- Start transacting using ZCash
After buying some ZEC tokens, you can now start using them for your private transactions or online purchases.
Current performance of ZCash on the market
Similar to BTC, ZCash only has a limited number of mineable tokens which is 21 million coins in supply. As of writing, there are over 12 million ZEC coins in circulation. From the data from CoinMarketCap, the current market capitalization of ZCash is over $2 billion, ranking number 66 in the crypto market.
Choose the foolproof cryptocurrency, ZCash!
Although ZCash is not as popular as most cryptocurrencies, it has a lot of potential in the future because of its security and privacy features. This allows people to transact online without having to worry about having their identity disclosed. To get the latest news and updates about cryptocurrencies like ZEC, you can browse through here at BTC Post!
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