The best ways to buy, sell, send & spend ZEC
All About Zcash
What is Zcash, how does it work & why is it cool?
What is ZCash
ZCash (sym. ZEC) is a fully decentralised, peer to peer, open source cryptocurrency which offers all the benefits of Bitcoin while adding newer features, especially in security and anonymity.
History of ZCash
ZCash is born out of ZeroCoin project which started in 2016. In October 2016, the coin was made public. The lead developer of ZCash is Zooko Wilcox-O’Hearn while Matthew Green looks after the cryptography which is a very important factor for ZCash.
Prominent names in the cryptocurrency world, like Roger Ver was one of initial investors of ZCash.
A total of 21 million coins exist in the ecosystem, just like Bitcoin. Just like Bitcoin, again, the supply of the total coins is fixed.
In April 2017, for the first time. ZCash made it to the top 10 list of the cryptocurrency world.
How ZCash Works
ZCash is a cryptocurrency and works much like the Bitcoin. However, there are several changes in how exactly it operates.
Like Bitcoin, ZCash can be transferred between two users of the network when the sender initiates a send command which contains the receiver’s wallet address, sender’s information and the amount of ZCash to be transferred. This information is carried to the miners via blockchains and once they approve the transaction, the ZCash is deducted from the sender’s account and added to the receiver’s account. The miners charge a small percentage for facilitating the transaction.
However, ZCash offers complete but selective anonymity of the transactions using the modern Zero knowledge zk-SNARK cryptography. The user can remain completely anonymous while transferring or receiving ZCash, if they wish to.
ZCash is almost a Bitcoin but with very advanced cryptography and anonymity features. If Bitcoin is HTTP, ZCash can be HTTPS. Basically, ZCash adds one layer of security on the Bitcoin protocol.
- Private Transactions: ZCash offers completely private and anonymous transactions within the network by adding maintaining a secure ledger of transactions without mentioning the parties involved in the transaction. Their in-house zk-SNARK cryptography is used for this purpose.
- Selective Disclosure: However, if the parties involved want to disclose certain transactions to someone, they can do so by opting for selective disclosure. This is beneficial when participating in a tax audit or an anti-money laundering investigation.
- “Every Coin is Created Equal”: The motto of ZCash states that every unit of a cryptocurrency should carry equal value and they achieve it by unlinking shielded coins from the blockchain history. Total fungibility is, thus, obtained.
- Futuristic Application Compatibility: ZCash allows completely anonymous transactions, utilising latest cryptographic techniques. Moreover, applications can be built upon this technology so the apps can receive and send money without disclosing any data to the public.
- Common Bitcoin Benefits: ZCash also offers all the benefits of Bitcoin including super-fast and direct transactions between users, no third party involvement and a small transaction charge.