Zcash (ZEC) is a privacy-focused cryptocurrency that uses advanced cryptography such as zero-knowledge proofs to enhance privacy and security of transactions. It gives users the option to send and receive funds with shielded transactions, which protects the identity of the transacting parties and the amount being transacted. Unlike Monero, users do not have to adhere to their identity being cloaked.
How Does ZEC Work?
ZEC is built on blockchain technology, which is a distributed public ledger (a digital record of transactions) enforced by a distributed network of computers. All transactions occur independently on the blockchain network. The tasks to manage and maintain ZEC occur across the distributed network of computers. Because of this, there is no need for the authority of a central bank.
Use cases of Zcash (ZEC)
1. Digital Asset: Zcash serves as a digital asset that can be bought, sold, and traded on various platforms. It operates on a decentralized ledger, providing greater security and privacy compared to traditional financial systems.
2. Innovative Finance: Cryptocurrency is revolutionizing the financial industry through its use in decentralized finance (DeFi) applications. It provides new opportunities for loans, yield generation, and trading, increasing financial access and innovation.
3. Investment Option: Cryptocurrency is increasingly seen as an investment option, particularly with Bitcoin as the most well-known example. Its decentralized and scarce nature makes it a valuable asset, offering protection against inflation and market volatility.
4. Alternate Payment: Cryptocurrency provides a convenient and cost-effective payment option for merchants and consumers alike. Transactions are fast, secure, and incur low fees, making it a viable alternative to traditional payment methods.
5. Global Money Transfer: Cryptocurrency enables seamless cross-border transactions, providing a fast, secure, and low-cost option for sending and receiving money globally. This is particularly beneficial for countries with limited access to traditional financial systems and weak currencies.
History of Zcash (ZEC)
ZEC was founded by was launched on October 28, 2016 by the Electronic Coin Company (ECC). It is the company of Zooko Wilcox-O’Hearn, an information security and cryptography expert. He had help developing Zcash from professors and academic researchers from John Hopkins University, MIT, Tel Aviv University, and Technion.
The ECC raised $3 million in funding to develop the Zcash protocol. The protocol was initially based on Bitcoin’s codebase, however, between 2016 and 2018 there were a series of upgrades called the “Sprout Series”. There were also two core protocol upgrades called “Overwinter” and “Sapling”.
After its launch in March 2017, Zcash released 273,000 ZEC from its “Founder’s Reward”. In 2019, Zcash went through a third network upgrade called “Blossom”.This upgrade halved the target block interval to 75 seconds. Finally, in 2020, the fourth and fifth network updates, Heartwood and Canopy, would occur. Following this, Zcash stopped the “Founder’s Reward” and miner rewards were cut in half to 3.125 ZEC.
Pros and Cons of Zcash (ZEC)
Decentralized: In the traditional banking system, a bank can decide to freeze your account and seize your assets at any moment. Your identity is also tied to any transaction you make with your bank card. As long as you hold your crypto on a decentralized exchange (DEX) or hardware wallet, it cannot be seized because it is in your custody.
No middleman: Zcash eliminates the need for middlemen by using decentralized, peer-to-peer networks to facilitate transactions. These networks use distributed nodes to verify transactions, without the need for a central authority or intermediary.
Faster, cheaper transactions: Thanks to their blockchain technology, cryptocurrencies such as Zcash enable users to make local and global money transfers much quicker than using a bank. TransferringZcash is also a lot cheaper than bank transfers.
Opportunities for big gains from investments: The crypto market cap (total value) has skyrocketed over the past decade, with its quickest growth in 2021 when it reached $3 trillion. Many crypto stocks are priced below $1 when they are first released and have the potential to increase by hundreds or thousands of dollars like Bitcoin or Ethereum.
Not completely anonymous: A big claim of cryptocurrency is that it is anonymous, so transactions cannot be traced back to your identity. Unfortunately, this is not accurate. Crypto is actually pseudonymous. Your crypto transactions are documented on a public ledger, so it is possible for anyone to trace the trail of the transactions back to you.
Prone to hackers: Because of the earning potential that comes from holding coins like Zcash, crypto wallets and exchanges are often targeted by cybercriminals who want a piece of the pie.
Volatility: It’s very common to suffer financial losses with cryptocurrency because they do not have a stable price. For example, you could buy a crypto coin at $19 one day only for the price to drop to $10 the next day.
Lack of user protection: Zcash transactions are irreversible, so there is no way to reverse or cancel a transaction once it has been completed.
Where To Buy Zcash (ZEC)
You can trade Zcash on major crypto exchange platforms. You can buy, sell or use the token for trading on centralized and decentralized exchanges.
3. Huobi Global
Before buying cryptocurrency, it is important for users to know the risks involved. Because centralized exchanges hold your private keys, you are at risk of losing access to your assets if there is a hack. Holding your cryptocurrency in your own hardware crypto wallet is recommended, but you put yourself at risk of losing your assets forever if you lose your private key or are targeted by hackers unknowingly. In any case, it’s important to do your research before investing in any crypto project; this article is for guidance only and should not be seen as investment advice.
Current supply: 16,254,475 ZEC
Max supply: 21,000,000 ZEC
ZEC Developer Engagement
Zcash has a dedicated developer fund with great access to resources on their website. Activity on the Zcash GitHub repository is high, with daily commits to make improvements to the token.
ZEC Network Speed
Transaction Time: 60 minutes
Zcash disbursement is unknown as the holding addresses are hidden.