We are living in a world of digital technologies where our privacy is constantly under threat.
Social media platforms are selling our data, web-browsing history is used in ad targeting, and credit card information can easily get hacked.
Simply put: Our digital footprint is all over the Internet.
And the same goes for cryptocurrencies. Their underlying technology is distributed ledger – blockchain. Since blockchain is based on transparency, this means that all crypto transactions are public and traceable.
Or that’s how it was, until anonymous digital coins stepped into the scene.
So far we’ve been doing a series of guides on anonymous coins such as Monero, Verge, and Dash. Continuing this tradition, in this blog post we’ll focus on Zcash. Let’s dive in.
What is Zcash?
Zcash is a decentralized peer-to-peer cryptocurrency, built as a fork of Bitcoin. The cryptocurrency was launched in 2016, and at that time, it was called Zerocoin protocol.
Soon, it was renamed Zerocash system, and then, to its current name – Zcash.
Now, let’s take a look at the famous team behind the company.
All-star team behind Zcash
The company prides itself on its notable team members. They include founding scientists from institutions such as UC Berkeley, John Hopkins University, and MIT.
The founder and chief executive officer is Zooko Wilcox. He is also the founder and CEO of the Electric Coin Company. Zooko has more than 20 years of experience in cryptography, decentralized systems, and information security.
Plus, he has contributed to numerous notable projects, including DigiCash, Mojo Nation, BLAKE2, etc.
Now that we’re familiar with the driving force behind Zcash, let’s explain the underlying technology of the coin.
How does Zcash work?
The main technology behind Zcash is zero-knowledge proofs called zk-SNARKs. They are responsible for validating transactions data while keeping the information about the amount and parties involved anonymous.
Zcash’s transactions can be either private, called z-addresses, or transparent called t-addresses.
Private transactions do appear on the public blockchain, but the addresses, amount, and memo field aren’t publicly visible. If you want, you can choose to reveal z-address and transaction details with third parties. It’s up to you.
When it comes to transparent transactions, they work just like bitcoin. This means that sender, receiver, and transaction value are visible.
Despite some similarities between bitcoin and Zcash, they are different cryptocurrencies, and they work differently. In the table below, you can see the main differences between them:
|Bitcoin’s transactions aren’t private. They are recorded on a public ledger.||Zcash conceals transactions and makes |
|The target block interval for bitcoin is every 10 minutes.||The target block interval for Zcash is 2.5 |
|The average transaction fee for bitcoins is around $0.7||Zcash’s fees are less than a penny.|
|Bitcoin is auditable.||Zcash is also auditable but only with user’s permission.|
Zcash has a maximum supply of 21 million coins, just like bitcoin. These coins are expected to be mined by 2032. What’s interesting is that Zcash wasn’t pre-mined, and the team didn’t hold an ICO.
Instead, a group of investors funded the project with more than $1 million. Some of the investors include notable names such as Roger Ver, Erik Voorhes, and Naval Ravikant.
Zcash is what you can call the king of anonymous coins. It’s backed by science and powered by all-star team.
You can find the coin on all major crypto exchanges, plus, it’s compatible with popular crypto wallets like Ledger and Trezor. And what’s most importantly, Zcash fixes a key problem with bitcoin – privacy.
If you enjoyed this story, please click the clap button and share it to help others find it! Feel free to leave a comment below.