What is ZCash? – Zcash is the first open, permissionless cryptocurrency that can adequately protect the privacy of transactions using zero-knowledge cryptography. The Coin was founded in Oct 2016, is a relatively new digital currency with powerful technology and a strong focus on development & innovation.
19 March, AtoZForex – ZCash or ZEC is decentralized and open-source cryptocurrency that provides strong privacy protections like Bitcoin. It offers protected transactions to the sender and the recipient, and value on the Blockchain network. If Bitcoin is like HTTP for money, Zcash is HTTPS—a secure transport layer. Here is the step-by-step guide which helps you to know more about the hidden gem.
What is ZCash?
Zcash is a privacy driven cryptocurrency launched October 28, 2016. It uses Equihash algorithm, which is a lopsided memory hard POW (Proof of work) based cryptocurrency. Zcash payments are published on a public blockchain, but the sender, recipient, and amount of transaction remain private. Also, Zcash was the first open, permissionless cryptocurrency that can fully protect the privacy of operations done by the users using zero-knowledge cryptography. It relies on high RAM requirements to hinder the generation of proofs and making ASIC development highly impossible. Like Bitcoin, Zcash has a total fixed supply of 21 million units with 3,513,593.8 in the market.
History Of ZCash
The underlying Zcash protocol was launched as “Zerocash” in the year 2014. Zcash was produced through a coordinated effort between the first Zerocoin specialists at John Hopkins University and a gathering of cryptographers at the Massachusetts Institute of Technology, the Technion – Israel Institute of Technology, and Tel Aviv University. Also, through this association, they based upon and enhanced the first protocol by making it more productive and private.
Additionally, the Zcash Project was formally reported by ZECC CEO Zooko Wilcox-O’Hearn on January 20, 2016, as in the advancement of the current Zerocoin Project (crafted by Matthew Green, Ian Miers, Christina German, Aviel D. Rubin, at the John Hopkins University Department of Computer Science, Baltimore).
With the new Zerocash convention, clients can make guide installments to each other with an immensely more effective digital money convention that likewise shrouds the measure of payment, not only its origin.
Why does Zcash have value?
At the time of writing this article, ZCash was trading at $250 per coin with the market cap of $870 Million. Also, ZCash is the 23rd highest valued digital currency on coinmarketcap.com. ZCash encrypts the contents of shielded transactions. The protocol uses a zk-SNARK to verify their validity since the payment info is encrypted.
Moreover, these algorithms enable the network to maintain a secure ledger of balances without disclosing the parties and amount. The transaction information is encrypted, and zk-SNARKs are used to prove that nobody is cheating or stealing.
Most interestingly, Zcash is considered by most in the cryptocurrency community as a truly fungible coin. Fungibility is a crucial function of currency; it’s well-advised by many to be an essential aspect of the future of cryptocurrencies. Because Bitcoin is pseudo-anonymous, the altcoin space is trying to fill the role of private zero-knowledge transactions.
Zcash uses Equihash, which is an asymmetric memory-hard proof of work (PoW) algorithm. Also. it relies on high RAM requirements for narrowing the generation of proofs, making Application-specific integrated circuit (ASIC) development unfeasible, much like Ethereum.
Currently, Zcash mining is possible via Graphics Processing Unit’s (GPU rig) and Central Processing Unit’s (CPU). Zcash remains ASIC resistant because of the Equihash algorithm. Despite the crypto market boom in the past months the mining difficulty remarkably increased from 5M to 8M.
Not everyone has a computer, or the knowledge and patience to starting mining Zcash on their own, especially since there is no Graphical User Interface (GUI) Miner available yet. Moreover, the best hardware for mining Zcash tokens is standard GPUs and RAM. The hope is this will lead to a more decentralized set of miners.
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