All transactions are completely closed: the blockchain uses an open platform for transfers, but the names of the recipients, senders, and the amount of money are kept secret. The principle of operation is based on the use of a cryptographic method of evidence with zero disclosure, or zk-SNARK. It is he who makes it possible to confirm the veracity and infallibility of financial transactions without disclosing data on participants and transaction value.
Thanks to the use of the zero knowledge protocol, Zcash cryptocurrency transactions are stored on a completely encrypted block chain. Secret contracts allow the use of open blockchains, while maintaining complete anonymity.
The new coin is becoming more popular among users. Some experts believe that in the near future it will be able to compete with the Monero cryptocurrency, also intended for closed currency transfers, as well as with DASH, and even with Bitcoin. The new project attracted the attention of many companies, in particular Digital Currency Group. And the authors continue to work to improve the reliability and stability of their coins.
So Zcash, at first glance, seems to be a very promising digital currency. But there is another opinion: a development that ensures the anonymity of the currency can be used for illegal transactions in the field of arms, people, drugs, or the creation of fake zikesh. And this promises many problems with law enforcement agencies.
History of occurrence
In 2013, Zerocoin Electric Coin Company, led by Zooko Wilcox, successfully completed the creation of the Zerocoin protocol, designed to exchange bitcoins for zerocoins, which has an improved level of information security. The protocol also made it possible for consumers to split or combine zerocoins and carry out reverse conversion. He later became a platform for altcoin.
The history of zikesh continued in 2014, when a group of engineers and cryptographers from Israel, Massachusetts, and Tel Aviv universities achieved an increase in the effectiveness of mathematical privacy. So Zerocash was born. This electronic cash combines the quality features for which the first Bitcoin cryptocurrency was conceived.
In January 2016, Zuko Wilcox, the creator of Zikesh, announced the release of the new Zcash system (symbol on the ZEC exchange) as a separate currency, not a variant of bitcoin.
The official birthday of the Zcash cryptocurrency is considered October 28, 2016. It was then that Zcash mining software was launched, and new money appeared on the market.
ZEC’s creative engineers continue to address identified shortcomings. In 2017, the CEO of Wilcox announced the release of the coin on the South Korean exchange Bithumb. The ZEC network is growing not only in the Asian, but also in the European market.
Features and principle of operation
The main feature of this system, its main advantage over other crypto-money, experts consider actual, mathematically secured anonymity, the guarantee of which is a decentralized network with an open blockchain.
The technological feature of cryptocurrency is also of interest – the presence of ‘XCATs’. With it, cross-platform “atomic transactions” (those that are performed entirely or not at all) are conducted between two different digital finances without a centralized exchange.
Equally important are the following benefits:
- High level of protection of cryptocurrency confidentiality;
- The availability of opportunities for the emergence of new applications using the evidence-free method of disclosure on which the blockchain technology is based;
- The ability of Zcash to work without binding coins to the history in the chain, which ensures the interchangeability of cryptocurrency.
But it is necessary to point out some disadvantages:
- Six participants can agree among themselves on saving the public key;
- The possibility of information leakage is not excluded, as a result of which another public key can be created;
- It takes a lot of calculations to complete transactions.
Difference and similarity with Bitcoin
Zcash and Bitcoin share many common characteristics. The number of coins in both currencies is fixed, halving every 4 years. The same maximum number of issued coins is 21,000,000 ZEC and BTC. A new crypto, like Bitcoin, is created through mining. A separate block of the ztc cryptocurrency is mainly formed with a frequency of 150 seconds, during this period of time 12.5 new tokens are generated, that is, 50 new banknotes appear in 10 minutes – at the beginning of its existence, bitcoin was created in the same way. As in the case of Bitcoin, after 4 years, the total income for generating the block will be half as much.
But there are differences. The main thing was already mentioned at the beginning of the article – the absolute closeness of transaction information. This is exactly what new money was created for. Hash algorithms also differ, so the equipment for mining ZEC and bitcoins is incompatible. Zikesh also uses its own blockchain network and a reward method.
According to the founders of the company, miners will receive 80% of the planned income, and the creators and investors of the network – 20%. Such a separation of profits will occur until October 2020. During this time, it is planned to extract 10.5 million coins. The second half will belong only to the miners.
From the first day of its appearance on the market, ZCash took a place in the top five of the most popular cryptocurrencies themselves, but did not last long there. The ZCash rate is rather unstable, although the desire for growth is quite noticeable. In February 2017, the price of 1 ZEC fell to $ 29, and in June rose to $ 410. In November, zikesh was trading at the level of 300-360 dollars.
ZEC’s market capitalization in October was about $ 600 million, and daily trading volume was $ 7,000,000. According to experts, this indicates the optimistic prospects of Zcash.
Former ZEC lawyer Ted Moskowitz is confident that despite spikes in volatility, zikesh remains one of the most popular digital money with huge growth potential. Judging by the forecasts made by various experts, the Zcash rate will grow in the near future.
How to create a Zcash wallet
To get started with Zcash, you need to create a wallet. You can choose from several existing types: exchange, local, hardware. The easiest way to get a zikesh wallet on the exchange. The algorithm of actions is as follows:
- Register an account;
- In the upper right corner click on the ‘wallet’ tab;
- Enter the name of the desired coin into the search;
- After its appearance, put a “+” sign in this field;
- Click on the button “New Address” and get the e-wallet number for storing, selling, buying or exchanging earned money.
Local wallets are created directly on the PC using the official application for Linux. Designed for mining, Zcash software includes a built-in wallet for transferring and receiving crypto money.
The greatest security of Zet Cash storage, as well as other electronic money, is provided by the hardware wallet. Outwardly, it looks like a regular USB flash drive, which is enough to connect to a computer. It costs a hardware wallet for Zcash from 40 to 99 dollars.
How to buy or exchange digital money
Cryptocurrency can be purchased at exchangers or at service exchanges. Most often they use the BestChange website for this, which contains proven and reliable services that allow you to exchange any digital money for fiat.
The procedure is simple and can be carried out in automatic or manual modes:
- Go to the site;
- Specify the payment system and currency;
- From the list, select the exchange office that offers the most favorable price;
- Make a transaction.
Keep in mind that when switching to the websites of exchangers, Zcash courses can be more profitable than with a simple visit to exchangers. In order not to make a mistake in the exchange, it is always useful to use a calculator, as well as familiarize yourself with exchange rates statistics and the status of the reserve funds. If none of the proposed options is suitable, it is worth making a double exchange.
You can buy / exchange Zcash at exchange trading. First you need to register an account on the Kraken website, then you need to go through verification and receive confirmation by e-mail.
Next you need to go to the “Trade” tab, find the right pair of money, in the subheading “New order” choose how many ZEC you are going to buy, and click on “Buy”. Next, check the data and, if you are convinced that there are no errors, click the ‘Submit Order’ button. Purchase completed. To control the safety and movement of money, transfer them to your wallet.
There are other forms. A crypt can be purchased using the services of instant exchange points, for example, such as Shapeshift or Changelly. You will have to pay more commission, but there is no verification.
How to earn Zcash
The main way to earn Zcash is mining. There are two varieties of it, but you definitely need a video card, software, an electronic wallet, a connection to the pool.
- Using miner programs – Claymore’s Miner, EWBF Miner, – specially developed for Nvidia cud-kernels and providing the highest possible performance. In just 20 minutes, the miner is downloaded, installed and configured. But powerful equipment is needed: Windows 64 bit or higher or Linux, CPU i core-7 or 6-8 core amd, top-end graphics cards with 2Gb memory.
- Cloud mining. Its essence is the conclusion of an annual contract, the cost of which depends on the capacity of the equipment used for production. The Internet network offers a large number of quite useful contracts. Sometimes you can find a proposal for substantial discounts and even free mining at the initial stage of work.
When deciding to earn zikesh, you should first calculate the relevance of mining. Go to whattomine.com, select the model of your computer’s video card, the page will display information about hashing and profitability. Selecting various video cards with the help of a calculator, determine which modification provides the most favorable combination of price, performance, electricity consumption.
Currently, Zcash mining is more or less profitable, and you can invest in this cryptocurrency without undue concern. But few decide to make long-term forecasts.
For those who value the convenience of cryptocurrencies, such as Bitcoin, but would like additional privacy, Zcash offers an excellent alternative. Since it provides all the same functions as Bitcoin, with the possibility of shielded addresses, it can be easily used in the same way without sacrificing user privacy. Thus, he must have a bright future and expand. The use of innovative technologies also shows that these methods are expanding, and Zcash is growing in popularity.