Zcash
Zcash is a blockchain-based digital currency launched in 2016. It is known for its strong focus on privacy and confidentiality. Unlike most other currencies, Zcash gives users the option to conduct completely anonymous transactions, while maintaining the security of the network.
What makes Zcash unique?
Zcash's primary feature is its reliance on advanced cryptography called Zero-Knowledge Proofs, specifically the "zk-SNARKs" protocol, which allows transactions to be verified without revealing their details (who sent them, how much they cost, who received them).
Types of addresses in Zcash:
- Transparent addresses (t-addresses): They work like Bitcoin, and everyone can see the transaction details.
- Shielded addresses (z-addresses): They hide all information, revealing only that a valid transaction occurred.
Purpose of Zcash:
Zcash is not only used for privacy purposes, but also as a means of everyday payment, especially in countries where transactions are subject to strict controls. It provides true financial freedom to those who need it.
Market Cap and Trading:
- ZEC is the official token.
- It is supported on most major platforms such as Binance, Kraken, and KuCoin.
- Its value fluctuates, but it remains among the top 100 cryptocurrencies globally.
Criticisms:
- Some parties consider excessive privacy to be potentially used for illegal purposes.
- Also, the use of z-addresses is less widespread due to their high operating requirements.
Of course! Here is more detailed information about Zcash (ZEC):
Origin and Foundation:
- Founded in 2016 by a team led by scientist Zooko Wilcox.
- Built on the Bitcoin code but with the addition of advanced privacy technologies.
- The project is backed by the Electric Coin Company.
Unique Technology – zk-SNARKs:
- Stands for Zero-Knowledge Succinct Non-Interactive Argument of Knowledge.
- It allows transaction verification without revealing its content.
- This technology makes Zcash a leader in blockchain privacy.
Examples of privacy usage in Zcash:
- Converting from z-address to z-address: The transaction is fully protected.
- Converting from t-address to z-address: The sender is exposed, the recipient is hidden.
- This flexibility allows the user to choose the privacy level that suits them.
Real-world uses:
- Zcash is used for payments on privacy-enabled platforms.
- It allows its users to protect their identity from surveillance or tracking.
- It is popular among developers and privacy researchers.
ZEC in the market:
- Total supply: 21 million units (similar to Bitcoin).
- It is mined via Proof of Work mining, using the Equihash algorithm.
- Its value fluctuates depending on the market, but it is valued as a cutting-edge technology project.
⚠ Criticisms and Challenges:
- Some governments believe that private currencies like ZEC may be used for suspicious activities.
- The amount of protected usage is relatively small due to storage and resource requirements.
- Special wallets that support zk-SNARKs are required (not all wallets are compatible).
Institutional Support and Development:
- Zcash is open source.
- The Zcash Foundation continues to develop and improve its protocols.
- Efforts are currently underway to transform Zcash into a more efficient and private system using new protocols like Halo (without a trusted setup).