With creation of Bitcoin, speculations were made that it would disrupt the traditional trading system and that banks will cease to exist. Ten years down the line, we still depend heavily upon banks, and government issued money for our everyday needs. Where is it that Bitcoin lacked? Was it security? Or was it speed? Well, there are more than one issues with Bitcoin and all the loopholes of Bitcoin lead to the creation of more than one alternative-cryptocurrencies (alt-coins), that boast about being better than the leader himself.
One such cryptocurrency is ZCash (ZEC). They flaunt the ZCash Cryptocurrency by saying that – If Bitcoin is the ‘http’, ZCash is the ‘https’. It comes with an added layer of security.
About ZCash (ZEC) and its Features
- ZCash (ZEC) uses the Zerocash system, that allows it to keep the information of the users trading on its network – anonymous and secure. Unlike Bitcoin, the transaction information is anonymous from public’s eye. ZCash enables interchangeability and interoperability into its network, allowing it to become fungible.
- It uses Zero Knowledge Proofs, something that lacks in Bitcoin. Bitcoin miners need to know the information about the users who are transacting on the network, to approve their transaction as valid. While in Zero Knowledge Proof (ZKP), miners do not need any such attribute. Fully encrypted transactions are also possible to validate, and approve on the network.
- It enables the users to enjoy confidentiality and privacy in public blockchain. The blockchain is called a universal ledger, and everyone who trades on the network can have a copy of it. Despite the fact that it is public, and that any private information shared on it is highly vulnerable, ZCash cryptocurrency guarantees security to its users. Confidentiality and privacy are two core elements of ZCash Coin (ZEC).
Mining ZCash (ZEC) and its uniqueness
Mining ZCash is similar like other cryptocurrencies, by using the computer’s processing power, but ZCash mining is different from other coins in a way that the founders keep a share of the coins. With every single unit of ZCash cryptocurrency that a miner mines, out of the first 4% the company gets to keep the 20%, which amounts to 10% of the total supply. This is done so that ZCash coin company can fund itself for future research and development, and does not crash if public demand and supply is skewed.
ZCash uses Equihash as the hashing algorithm, unlike Bitcoin that uses SHA-256. Both these use PoW (Proof of Work) algorithm, but Equihash is better than SHA-256 in many ways. The time required to approve one Bitcoin transaction is much more than what it takes in ZCash. Mining ZCash is not as extensive, expensive or time consuming as mining Bitcoin. That is the reason small scale and independent miners are moving to mining other coins like ZCash instead of Bitcoin.
ZCash employs bleeding edge cryptography to secure vital information from the public. Only the information that a ‘transaction happened’, is available, the sender, receiver and the amount are hid from the public.
Functioning of Mining ZCash (ZEC)
Just like Bitcoin, the total number of ZCash Coins are constant, that is a static 21 million in number. However, 20% of the initial funds will go to the founders and 80% to the miners. This is known as ‘Founders Reward’, and the miners will not be able to keep the full amount. Every four years or so, the reward will reduce to 50%, and after first four years, the coins will completely go to the miners instead of founders. This is how they plan to sustain themselves as an organization.
In Bitcoin, the problem is that big mining farms control the coin, and this has made it centralized in a way. But with ZCash it is not so. ZCash Coin is still decentralized and uncontrolled. The company remains the governing body but the miners get complete independence, and equality. To mine Bitcoins, you need large computers, and heavy processing power, but with ZCash Coin it is not so. Mining ZCash cryptocurrency is relatively cheaper than mining Bitcoins.
Buy ZCash (ZEC)
Users can buy ZCash from popular global exchanges like – Bittrex, Bitfinex, Binance, Poloniex, Coinbase etc. If there are local ZCash exchanges in your country that allow purchasing or trading in ZCash, you can buy ZCash from there using your traditional money. Some ZCash exchanges also accept debit or credit cards. ZCash can be stored easily in multiple wallets. From ZCash online wallets like Jaxx, Electrum etc. to offline paper wallets, storing ZCash is not much of a hassle.
Paper wallets provide the users with a private key. Using that key, the users can access the wallet any time. Online wallets like Jaxx and Electrum provide an easy to remember para-phrase which acts as a secure private key. Storing ZCash Coin is also possible on exchanges but it is not advised to do so, because of the risks associated with exchanges. Mt. Gox is a popular exchange whose security was compromised, and a huge amount of money was hacked out of it. Since that incident, long-term investors have lost trust in online exchanges.
Apart from online exchanges and online wallets, hardware wallets like Trezor, KeepKey and Nano S Ledger are also good options to store ZCash Coin for long-term. Hardware ZCash Wallets are better because the user keeps the entire information to himself, and they are risk-free.
ZCash Coin (ZEC) started at a high price of almost 6 BTC back in 2016, amounting to around $4700 a piece. It crashed to more than 99% in no time, as reported by Poloniex, and then the price of ZCash fell down to $2. It was compared to Tulip Mania of 17th century. As of early 2018, the price of ZCash Coin is $450 a piece, and has somehow climbed up the ladder. In future, with possible developments and innovations the price of ZCash might climb up. Rest, every cryptocurrency price depends upon the demand and supply of the coin. Sometimes, rumors also drive the market in such a crazy way that the unexpected happens and the price either tumbles down or hikes up.
Rest, the future is always uncertain, but keeping in mind the technological innovations of future, and changing requirements of upcoming generation – cryptocurrency has a bright future.