Zcash is a cryptocurrency built on a decentralized blockchain that uses developed cryptography to ensure strong address security and privacy. It was invented by a group of scientists who want to improve the security and anonymity that previous blockchains like Bitcoin lack. They first invented Zerocoin, which later became Zerocash and finally turned out to be Zcash.
Zcoin can be mined on computers and devices, but is currently best mined on dedicated systems (application-specific ICs). In the Zcash whitepaper, some scientists such as Eli Ben Sasson, Alessandro Chiesa, Christina Garmen, Matthew Green, Ian Miers, Eran Tromer and Madars Virza believe in security flaws in Bitcoin transactions.
In 2015 they created Zerocoin and in 2016 the name changed to Zcash by Electric Coin Company. Zcash uses the zk-SNARK security protocol to confirm that parties involved in a transaction are verified without revealing much information to the network.
zkSNARK is a zero-knowledge proof technology that allows nodes in a blockchain network to validate transactions without revealing user information. You need a set of public parameters to allow users to make and verify private transactions. To comply with tax regulations and audits, Zcash allows users to share transaction information along with addresses.
Zcash Features
ADDRESS: The two types of Zcash addresses are private (z addresses) and transparent (t addresses). Both addresses are interoperable, meaning funds can be transferred between them in both directions. Most wallets and exchanges can support t addresses and others are in the process of updating to support z addresses.
Types of transactions: There are 4 types of transactions: Public, Shielding, Unprotected and Private. Public transactions are visible to the public on the Zcash blockchain. It is the same as Bitcoin transactions. It occurs between two transparent addresses (t addresses).
The protection transaction takes place between address t and address z. The transaction and balance amount are protected. It means that the balance and transaction amount are not displayed at the z address as long as it is public at the t address.
A private transaction occurs between two z addresses. Both the balance and the transaction amount are private.
Financing structure: The creation of new ZECs is done in the form of block rewards, this means that when the new currency is mined and added to the blockchain, the coins are minted and divided in a ratio of 80:20. This means that there is an 80% reward for miners and a 20% reward for founders. The block reward is halved when the ZEC limit reaches 21 million. This is done every four years to slow the pace of the emission rate.
Display keys: A z-address user can share transaction details through display keys. As the name suggests, it provides read-only access. This is an essential disclosure permitted to prevent fraud, money laundering and tax regulation.
Other supported features: This includes a low transaction fee of 0.001 ZEC by default and encrypted messaging. The default transaction expiration is 40 blocks. It also has multi-signature transactions, but is currently only available in public transactions.
How Zcash is different from Bitcoin
Zcash uses the built-in zk-SNARK privacy protocol and this does not apply to Bitcoin. Cash transactions They do not reveal the sender and recipient addresses, but in Bitcoin they are pseudonymous addresses and can be traced back to the user's identity. Zcash comes with 75 seconds of blocking time, while Bitcoin comes with 10 minutes of blocking time.
Zcash Goals and Security
Zcash focuses on anonymity, which differentiates it from Bitcoin. This type of anonymity is achieved through the use of zk SNARK, a special type of zero-knowledge proof technology. It allows nodes on the blockchain network to validate transactions with the disclosure of more information about the user. zk-SNARK needs a set of public parameters to allow users to make and verify private transactions.
The cryptocurrency allows information about user addresses to be shared to comply with audits and tax regulations through display keys. Private transactions also carry legal obligations. The company complies with these laws to confirm that it works within the law.
The most important challenge Zcash faces in terms of regulatory compliance is confirming that it is not used in criminal activities such as terrorist financing and money laundering.
To resolve this issue, the platform has incorporated several measures to prevent criminal activities on the platform, including Know Your Customer procedures and controls. Understanding privacy features includes protected transactions, transparent transactions, and selective disclosure.
The Zcash network is protected by the SHA-256 proof-of-work hash function that belongs to the SHA-2 algorithm suite, just like Bitcoin.
Zcash Mining
To mine Zcash, the user must obtain the appropriate hardware. It can be mined efficiently with ASIC mining machines. Download the software necessary to configure the device. Register, create an account and log in. Set up the mining device.
The miner must be connected to the f2pool server listed below for the hash rate and revenue to be logged and monitored. Add payment address by registering. In this way the mining income will be collected. Changes to the payment address can be made in your payment settings. This way, mining can be started when the machines are ready and users can manage account settings and monitor hashrate.
Zcash Supply
At the time of this publication, the market capitalization of Zcash was $452,644,746. Its circulating supply is 16,328,269 ZEC. The currency has a total supply of 16,328,269 ZEC. Zcash is available on several major exchanges, including HitBTC, Huobi Global, and OKX, among others.
