Zcash Review - The Most Confidential Cryptocurrency?
When Bitcoin started the cryptocurrency revolution in 2008, not many people envisaged that digital currencies would become the massive success they are today. Even though Bitcoin was the first cryptocurrency, there was need for better alternatives particularly in terms of privacy and confidentiality of transactions. This led to the creation of several privacy-focus cryptocurrencies, which include Cardano and Modero and ZCash.
Zcash is undoubtedly, the only cryptocurrency in the market that offers unparalleled privacy, confidentiality and anonymity for its users. Even before it was introduced into the crypto market in October 2016, there was a hot anticipation among major industry players about Zcash being the cryptocurrency that would finally take the true meaning of anonymity and secrecy to a whole new level.
Zcash is like a bolt-on for Bitcoin and uses the Bitcoin network and protocol.
Developed by Zerocoin Electronic Coin Company, Zcash, commonly known in the crypto markets as ZEC, is rather based on Bitcoin, but goes a length further in layering on security features that are absent on Bitcoin.
While it has many features similar to those of Bitcoins such as the 21 million supply cap and the four years halving time-frame, Zcash offers complete anonymity and privacy for the sender, recipient and amount when making transfers. In fact, this is one of the main reasons why Zcash has impressed millions of users globally and is now considered a legitimate heavyweight in the market despite having been around for just a year.
Unlike many of its competitors in the market, it took a lot of effort, research and brainstorming from some of the best crypto boffins in the world to create Zcash. They involved the use of very secure cryptography.
Why is Zcash a Major Player in the Market?
As mentioned above, Zcash is much more focused on maximum privacy, secrecy and anonymity than virtually every other cryptocurrency. It has a unique feature known as ZK-Snarks (zero-knowledge Succinct Non-interactive Argument of knowledge) that provides 100% untraceable proof constructions. Zcash uses ZK-Snarks to offer total payment confidentiality while still enabling users to use the public blockchain.
In other words, users can transfer currency to one another without having to worry about their identities being revealed or traced.
Unlike Bitcoin where it is possible to discover the owner of a Bitcoin wallet through blockchain analysis, Zcash solves this damning privacy problem once and for all. Zcash transactions mechanically hide the sender, the recipient and the value of all transactions of the blockchain. This gives users a complete control of their blockchain activities, as well as the option of providing others with the correct view key to see their contents, but only at their discretion.
Again, Zcash functions on a Zerocoin protocol by first converting the original currency into zerocoins before transferring it and then converting the transferred currency back to the original currency. This is particularly important in the sense that it hides virtually all information about where the payment came from, who sent it, where it is going and who is receiving it.
Mining of Zcash
The mining process of cryptocurrencies, especially Bitcoin can be a quite challenging task. On the contrary, mining for Zcash is arguably one of the simplest and easiest mining processes of any cryptocurrency. Zcash miners do not need much of a technical know-how since they are not required to have Proof of Work Algorithm. Unlike the mining of Bitcoin that requires miners to develop a complicated application-specific integrated circuit thereby making Bitcoin mining an exponentially difficult task left for a handful of large operations, the mining of Zcash is so easy and straightforward that everything can be assembled and mining can commence is less than half an hour.
The mining of Zcash is different from the mining of Bitcoins as it uses Equihash (all coins are created equal) algorithms, rather than the ASIC algorithms used in mining Bitcoins. In other words, users cannot use ASIC devices in mining Zcash, but can use CPU-friendly algorithms, which is exceptionally important in ensuring that the mining of Zcash does not become an extremely consolidated activity for a few large operators as it has become with Bitcoin. Users can, therefore, mine Zcash via Graphics Processing Unit’s (GPU), which they can build on their own by purchasing and assembling mining hardware and software such as Nvidia GTX 1060 Series (hardware) and the EWBF Miner, which is the best software for mining Zcash.
When it comes to holding Zcash, users can chooses from three main types of wallets that are available. They include:
- Web Based Wallets (Full Node, GUI and Cockpit UI)
- Local Wallets (eg Jaxx, Exodus - full wallet list here)
- Cold Storage Wallets (Trezor and Ledger Nano S)
Zcash is available for purchase on numerous platforms such as Binance, Bitsquare, Poloniex, Bitfinex, Shapeshift and Bittrex.
With a current price of $513.112 per coin and number 25 for total market capitalization, Zcash may not be on the same level with Bitcoin as yet. However, there are legitimate reasons why it is becoming a major player in the crypto market, despite being the new kid on the block. Its privacy levels are unmatched and it is designed to be as good as any other cryptocurrency if not better.
CaliCrypto last edited by
Which coin is better for hidden transaction Zcash or Dash. You know what I think would be awesome is if there some type of crypto coin list directory that showed you all the different types of blockchain technologies ranked by subject matter and reliability.
Good call @calicrypto.
I might add a table at the top of each of our coin reviews showing this type of information.
Very difficult to say which is better Zcash or Dash. Zcash has zk-STARKs to hide addresses and transaction amounts and Dash has the "privatesend" option. Neither of which has been broken, security-wise.
I should also mention Verge - which hides your IP and network packets using TOR and I2P.