For users wondering what is Zcash, they should know that it is an ethereum zcash cryptocurrency which is built on a decentralized blockchain. It provides its users shielded anonymity through its advanced applied cryptography. In this article, we shall provide you all the necessary zcash info.
Zcash is focused on giving its users anonymity with the help of zk-SNARKs which is a type of zero-knowledge proof tech. With this, the blockchain nodes can validate transactions without disclosing the data of users when they use the z cash coin. There are public parameters contained securely in z cash coin known as a trusted setup. This zcash info makes the coin very popular among the users. The zcash founder has enabled his users to share information on transactions which include addresses for taxation and audit purposes.The symbol used for this is referred to as ZEC.
To give you more zcash info, you should know that the ethereum zcash info is secured with the SHA-256 hash function which belongs to the SHA-2 algorithms which is also used by bitcoin. Ethereum zcash is traded in the top crypto such as Binance, CoinTiger, Huobi Global, etc.
What is Zcash trading?
The units in zcash are called zatoshi which is 0.00000001 ZEC. The transactions that take place here are stored on the zcash blockchain. It can be purchased on the cryptocurrency exchanges and is stored in the zcash wallet. Of course there are limitations! The max amount that can be mined is 21 million Zcash and the same goes for bitcoin. As of now, there are around 12.5 million zcash in the market.
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Differences Between Zcash vs Bitcoin
There are a few main differences. They are: Zcash uses SNARKs privacy protocol but bitcoin does not. Unlike bitcoin which does not maintain anonymity, zcash is very focused on that. With bitcoin, the addresses can be traced back to the original user but this is not the cash with zcash. Since transactions happen through a private blockchain, everything is truly secure. Bitcoin comes with a 10 minute block time whereas zcash only comes with a 75 second block time.
What are the features of the z cash coin?
1. Two addresses
To give you more zcash info, there are two types of addresses. The private ones start with z and the transparent ones start with t. Both of the addresses are interoperable which means that the funds can be transferred easily between both the addresses. Currently, the majority of the crypto wallets can support t addresses and are currently working on supporting z addresses as well.
2. Four types of transactions
There are four types of transactions when you think about what is zcash. They are:
- Public: this happens between two t addresses.
- Shielding: This transaction only happens from t addresses to z addresses.
- Deshielding: This transaction only happens from z addresses to t addresses.
- Private: This transaction only takes place between two private z addresses.
3. Funding structure
The zcash founder created new ZECs as block rewards. When new blocks are mined for the blockchain, then the coins are split into the 80:20 ratio. This simply means that 80% reward goes to the miners whereas the remaining 20% goes to the zcash founder. However, the reward is halved after the ZEC limit touches 21 million. This happens every four years to slow down the rate of issuance. Since november 2020, the zcash founder has been receiving no reward. However, it is still distributed in the same ratio where 80% goes to the miners and the remainder to the following:
- 8% to the grants fund.
- 7% to the ECC.
- 5% to the zcash foundation.
4. Viewing keys
Z address users can share the transaction details through a view key. This only allows read access. The main user has total control over the disclosure. This type of selective disclosure is very useful in situations such as anti-money laundering, auditing and taxation purposes, etc.
5. Some more supporting features of zcash are:
- Low transaction fees of 0.001 by default.
- Encrypted messaging.
- To reduce the mempool bloat, the transaction expiration is 40 blocks or 50 minutes.
- Multi-signature transactions which are only available for public transactions at the moment.
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How Zcash Is Mined?
Defined by equihash hashing algorithm, the cryptographic mining method works through application specific computers which can solve complex maths problems. When miners do this type of hard work, they are rewarded with coins that are newly minted. Earlier, zcash used to be mined by GPUs only. Since the release of Antminer z9 mini, there has been a tremendous growth since more ASICs hardware has been deployed. Zcash offers a bunch of advantages, which are:
- Transactions happen at a low rate.
- The users’ transactions remain anonymous.
- Selective disclosure of transactions.
Wilcox-O-Hearn who is the zcash founder has wanted zcash to progress from the hard working and energy intensive mechanism called proof-of-work to a much more friendlier version called proof-of-stake. This proof-of-stake network nodes can post holdings to negate the risks in case the parties act dishonorably and forfeit transactions. This method is much faster, lighter and also presents a lot of security at a much lower cost according to the zcash founder. He stated that this can reduce the crypto carbon footprint. What’s more, he indicated that this method is already successfully proven since the launch of Cardano, Tezos, etc., is solid proof of it.
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As you can see, zcash is a very beneficial cryptocurrency. It is secure, lightweight and presents the users of this cryptocurrency various benefits. This informative guide into what is zcash will be helpful to new and seasoned investors alike.