What is Zcash (ZEC)?
Description
Zcash Cryptocurrency (ZEC) is confidential, and provides fast transactions and low commissions. Zcash Coin (ZEC) can be bought and sold on multiple exchanges, including EXEX. The ecosystem includes multiple addresses, PoW algorithm, and zk-SNARK concept
What is ZCash (ZEC)?
There are many cryptocurrencies in the cryptocurrency market. Some are known to almost all users, others to a narrow circle of customers. Among the most popular ones is z cash.
What is Zec Zcash? It is a cryptocurrency, an advanced Bitcoin fork, and a decentralized and confidential payment system. It is sometimes referred to as the world's first private cryptocurrency.
History ZCash (ZEC)
In the spring of 2013, at a conference in San Francisco, Professor Matthew Green, graduate students Christina Garman, and Ian Miers presented the project "Zerocoin: Anonymous Distributed E-Cash from Bitcoin."
The project was originally part of the Bitcoin protocol. In the winter of 2014, the developers notified that Zerocoin became an independent project. At the end of September 2016, the release of the Zcoin asset was presented, but it did not attract much attention from the community. A month later, the cryptocurrency Zcach was released on the market based on the ZeroCash protocol.
In the spring of 2017, they founded The Zcash Foundation, a non-profit public organization. Its mission is to support cryptocurrency, expand infrastructure, and serve the community of supporters of the asset. Currently, the value of the cryptocurrency Zcash is about $53.
How does ZCash work?
The ecosystem of the coin uses the concept of zk-SNARK. It is a method of decentralized and confidential payments, using the technique of "brief non-interactive knowledge arguments with zero disclosure", i.e., zk-SNARK. Through this technique, the system verifies transactions, achieves consensus, and does not disclose data about the participants in the process:
- Customer identity
- Transaction amount
- Account balance.
To put it simply, the point of the technology is that the system validates transactions but doesn't provide any data about who owns the account, how much was transferred, or what the account balance is. That is why it is called the most private cryptocurrency known.
The public blockchain contains only a record of the transaction, and that's it. Only the client himself decides whether to close the information about the transactions. He can use a special view key to disclose transaction data.
This key allows the client to comply with regulatory requirements if they need to provide proof that the way the cryptocurrency was received was legal and not criminal.
If the customer intends to keep the transfer information secret, he pays an additional fee.
The Zcash cryptocurrency network includes several types of addresses:
- T-addresses are public, visible in the blockchain, and can be viewed by all users.
- Z-addresses are private and visible only to those who make the transaction, allowing for hidden transfers.
Transactions to Z-addresses are more complex and cost more.
How Zcash cryptocurrency is mined
The cryptocurrency ecosystem functions using the PoW algorithm. Miners process transactions and generate new crypto blocks. The Equihach algorithm is used for mining. It was created by programmers Alex Biryukov and Dmitry Khovratovich. When creating it, the developers paid special attention to protection from various possible blockchain vulnerabilities.
Blossom was updated in the ecosystem 3 years ago. Due to it being possible to reduce the time to create a block to 1 m, 15 sec, the bandwidth of the network increased. The reward per block was reduced to 6.25 ZEC. 2 years ago, Halving happened, and the block reward was reduced even more. It is now 3.125 ZEC.
Miners compete by solving complex puzzles. Whoever gets the right answer will be rewarded with a coin. Getting this cryptocurrency through mining is easier because it uses ASIC or GPU hardware.
What are the benefits of Zcash cryptocurrency?
The main advantages of ZCash (ZEC) include the following:
- The main advantage and uniqueness of the asset is that it ensures the privacy of transfers. According to its developers, the payment system guarantees confidential payments for customers. The privacy of payments made cryptocurrency so popular among fans of digital assets.
- The payment system is designed so any user can work with it. Clients of the network can be sure that their data will not be shared in the public domain without their permission.
- The network's blockchain is decentralized, preventing hacking by hackers and organized groups of cybercriminals. This is made possible because numerous mathematicians and cryptographers were used to develop the network. Due to this, the system works stably and reliably.
- The network's transactions are 4 times faster than Bitcoin's. It takes a maximum of 2 minutes for 1 transaction. A block is created in 150 seconds. Transfers are also half a minute faster than in SWIFT. Thus, ZEC cryptocurrency is more advanced than BTC in this parameter.
- Buying Zcash is not very difficult. Numerous approved Zcash fund applications and services allow you to buy and store the asset. Therefore, the question of how to buy Zcash is not difficult for any user. This cryptocurrency is available for purchase on many exchanges, including EXEX.
- Transaction fees on the network are lower than other virtual assets.
These are the main advantages of Zec Coin.
How to buy Zcash?
If a user wants to buy Zcach, he should use a cryptocurrency wallet. It is necessary to visit the official resource of the asset and select the "wallets" option in the relevant section. The user will be given a list of wallets that support the cryptocurrency. What is the best Zcach wallet? Several types of wallets can be used. Hardware wallets are considered the most reliable. The customer can also use a ZecWallet, Exodus, Trezor, or Ledger wallet.
You can buy an asset on various exchanges, including EXEX, Binance, Kraken, or use Zcash Coinbase. There is an opportunity to use the services exchange services, which also have cryptocurrency Zcash. However, it is not always safe to use exchange platforms. It is recommended to use opportunities of safe cryptocurrency exchanges for buying and selling.
How to sell Zcash?
To sell cryptocurrency, you can use the services of our EXEX exchange or the above-mentioned cryptocurrency exchange, exchange services. They provide the appropriate tools to sell the currency. It is worth noting that each trading platform has its own buying and selling rates. Therefore, the user should find the most profitable for himself and make the sale of Zcash.
Can I make passive income with ZCash?
Yes, it is possible through stacking and liquidity pools. And many exchanges offer this option just to increase the well-being of users and fans of this currency.
What is the forecast for the future of Zcash cryptocurrency?
This digital asset attracted a lot of attention from investors at launch. Is Zcash a good investment at the moment? It's worth noting that anonymous cryptocurrencies are in a generally difficult position right now. Yes, it is profitable to use them, as they keep transfers and customer data private. But, even a valuable asset like Zcash is under pressure from regulators.
The general trend in the cryptocurrency market is that regulators in different countries are trying to tighten the requirements for placing cryptocurrencies on trading floors as much as possible. Zcash developers are now trying to level out these issues and want to present their cryptocurrency as anonymous and with significant Web 3.0 potential.
Conclusion
Cryptocurrency ZCash (ZEC) can be classified as a promising investment solution because it has found its niche, offering users anonymity. Suppose the regulators' pressure is not increased and the developers find a solution in the new use of the currency. In that case, ZCash (ZEC) can be attributed to profitable investments, including on the EXEX exchange.
