What is ZCash?
ZCash is a financial system which doesn’t need permission and employs zero-knowledge security. It was created in 2016 by Zooko Wilcox. ZCash is the first of its kind to have such feature which means that payments are treated with an utmost confidentiality, as it maintains a decentralized network with a public blockchain. With ZCash, the identity of the person involved in the transaction is not visible. The person who can only view it is those that have the right view key. In simple term, the sender and the receiver are anonymous.
ZCash Broken Down
Wilcox created ZCash due to the fact that he doesn’t like how transparent transactions are in the cryptocurrency industry. With this in mind, he copied the original Bitcoin code and made impressive changes to make it private and faster.
ZCash own a proprietary digital coin known as the ZCash or ZEC. Transactions with ZCash is much faster and more scalable than Bitcoin. The only information visible with the transaction is the date and time. Furthermore, ZCash is fully decentralized which means that no one controls it, no central organization controls it at that and miners maintain it. Miners are compensated with ZCash coins for their time. It makes use of a fairer platform known as the Proof of Work or POW. Its main purpose is to receive and send funds quickly, cheap, and private. New blocks can be confirmed within 2.5 minutes.
When it comes to privacy, users are in full control of their account, which means that it is only them who can share the view key to others. It essentially combines anonymity and confidentiality to give clients the best experience. Moreover, ZCash uses an open-source protocol, which means that distribution of coins, information access and mining can’t be accused by the company itself.
How does it work?
ZCash encrypts all the transaction information, thus the protocol relies on a new cryptographic method called the zk-SNARK which starts for Zero-Knowledge brief non-interactive argument of knowledge.
zk-SNARK is a Zero-Knowledge proof construction which proves that no one has stolen or cheated.
ZCash is similar to Bitcoin. What differentiates it from Bitcoin is that it allow users to hide or shield their information. A transaction can either be done publicly or privately. Knowing if the transaction is visible or not is quite easy. Addresses which begin with “t” are public transactions while addresses which starts with “z” are private transactions.
- Transactions and personal details are completely anonymous
- Entries are privately funded
- Only the owner of the coins can have it
- Highly secured
- Most transactions need a large amount of computer memory
- Multi-signature transactions are allowed, but they are not equally secured
ZCash is the very first ever less permissive cryptocurrency which totally hides the identity of every transaction done. ZCash is considered as a great alternative to Bitcoin with additional privacy at that. This is best for traders who value their privacy so much. It is expected to grow and expand soon, in as much as the technology that is used will be enhanced as well.