Zcash

What is ZCash (ZEC)? 

Zcash (ZEC) is an innovative Layer 1 Cryptocurrency built on the ZCASH Network. It is focused on bringing privacy and security to the blockchain world. As a Bitcoin fork, Zcash upgrades the existing Bitcoin protocol to manage shielded transaction types that allow user-related information to remain private. In contrast, the transaction is made transparent, as per demands. It has a different approach to merging anonymity and compliance for a better-world cryptocurrency, precisely where it is heading.

The Zcash Network utilizes ZEC as its internal cryptocurrency for transactions. Similar to Bitcoin, it uses a Proof-of-Work mechanism to secure its transactions and maintain its blockchain. 

The Foundation of Zcash

Zcash is a creation of the cypherpunk,  a computer security expert, and entrepreneur Zooko Wilcox-O'Hearn, who founded it in 2016. He is also the founder of an Electronic Coin Company (ECC) which is a profit-making entity managing the development of Zcash. The project plans to launch Zcash on 28th October 2016 while modernizing the definition of financial privacy in the digital age.

Created as an answer to the demand for an open yet private financial system, Zcash comes equipped with advanced cryptography like zk-SNARKs, which secures and makes the transactions anonymous.

The following are the Key features of the Zcash (ZEC) Network:

Enhanced Privacy: Transactions can be shielded for confidentiality.

Transparency Options: Users may employ transparent transactions when needed.

Security and Trust: Open-source technology ensures strong network security.

What makes ZCASH (ZEC) Unique And How secure is ZCASH Network?

Zcash is unique among cryptocurrencies because it offers optional privacy in transactions compared to many, like Bitcoin and Ethereum. There are two types of transactions with ZEC: those that are completely transparent and those that are shielded. The former works just like Bitcoin, where transaction details including sender, receiver, and amount are visible to anyone peeking at the blockchain. However, by analyzing these details, it may be possible to link them to real-world identities.

In contrast, shielded transactions employ very sophisticated cryptographic technology known as zk-SNARKs (zero-knowledge succinct non-interactive arguments of knowledge). Because of this, it allows for completely untraceable transactions with very secret data like addresses and amounts remaining hidden, but recorded on the ledger. Meaning that users have privacy without compromising the legitimacy of the blockchain.

The Proof-of-Work (PoW) mechanism operates on the SHA-256 hash function, which is the same algorithm that Bitcoin uses to secure its network. The network boasts immense security, with miners validating transactions and ensuring that the significant decentralized and immutable features of the blockchain are maintained. Privacy features combined with robust security make Zcash a different and safe alternative for users who prioritize confidentiality in their online transactions.

Zcash vs Bitcoin

Anonymity: The transactions in Bitcoin are open, while in Zcash the transaction details are hidden wherein the user's privacy is assured. The two blockchains are transparent, but Zcash provides an extra layer of privacy using zk-SNARKs.

Mining Algorithms: Bitcoin has SHA-256, whereas Zcash has Equihash-this is a memory-hard algorithm that makes it inappropriate for Bitcoin mining hardware.

Transparency: Zcash permits users to select between full transparency or private transactions, while Bitcoin transactions are public by all.

Mining Zcash

Zcash uses proof-of-work (PoW) to mine new coins. Miners solve certain cryptographic problems for transaction validation.

ZEC (Zcash) Tokenomics and Coin history

Zcash (ZEC) is a privacy-focused cryptocurrency that launched its Token Generation Event (TGE) on October 29, 2016. It listed at $4,293.37 and garnered significant attention due to its focus on enhancing transaction privacy using zero-knowledge proofs. Zcash was designed to provide a more secure and anonymous alternative to Bitcoin by using zk-SNARKs to ensure the privacy of its users.

Zcash had several funding rounds. There was the Seed Round back in March 2016, which brought $1 million to the project; the Venture Round back in September 2016 brought in another $2 million to support it. Among the known investors were Digital Currency Group, Fenbushi Capital, and Fred Ehrsam. Despite being one of the highly sought-after cryptocurrencies in its inception, Zcash's ROI, from the initial listing price, has been way low than what people would expect, with a 0.01x ROI according to the latest data.

As  of 2024, for Zcash (ZEC) include an all-time high of $3,191.93 on October 29, 2016, and an all-time low of $16.08 on July 5, 2024. 

Circulating supply is 16.3 million ZEC and at the same time is also total supply with a maximum of 21 million ZEC. The market cap as of now is $979.9 million.

ZCASH (ZEC)Wallets 

Here are some of the ZCash (ZEC) wallets, offering strong privacy features and user-friendly options:

• Zashi: It is a Zcash self-custody wallet, whereby all transactions are shielded by default. 

• YWallet: A privacy-based Zcash and Ycash wallet plus a messenger. 

• Edge Wallet: A multi-purpose wallet that automatically shields transactions for privacy. 

• Nighthawk: An open-source wallet providing privacy with built-in shielded transactions. 

• Trezor Model T: An advanced security, hardware wallet for Bitcoin and other cryptocurrencies, but does not support shielded transactions. 

• Flexa: A super-fast and ever-fraud-proof payment network supporting multiple cryptocurrencies, Zcash is one of them. 

• Unstoppable: Simplifying the whole process is a multi-currency, decentralized wallet that ensures privacy and efficiency. 

• Zingo!: The Zcash wallet has all the features for sending, receiving, and keeping financial history private. 

Where to buy Zcash (ZEC)?

Zcash is already present on over 50 exchanges across different countries in the world. Some are centralized (CEX), while others are decentralized (DEX).

Centralized Exchanges (CEX): Currently, there are more than 20+ centralized exchanges that have listed Zcash (ZEC).

Top 5 CEX Listing Zcash:

1. Binance

2. Coinbase Pro

3. Kraken

4. Bitfinex

5. Huobi Global

Decentralized Exchanges (DEX): Currently, Zcash (ZEC) is being supported by 8 to 10 decentralized exchanges.

Top 5 DEX Listing Zcash:

1. Uniswap (V3) 

2. SushiSwap 

3. 1inch 

4. PancakeSwap

5. Balancer

Exchanges Available in US Markets:

CEX Available in the U.S. for Zcash:

1. Coinbase Pro

2. Kraken

3. Gemini

DEX Available in the U.S. for Zcash:

1. Uniswap 

2. SushiSwap

Top 5 Zcash Trading Pairs:

1. ZEC/USD

2. ZEC/BTC

3. ZEC/USDT

4. ZEC/ETH

5. ZEC/EUR

ZCASH (ZEC) History 

Zcash is a Cryptocurrency invented in 2016 by Zooko Wilcox, a computer security expert. Zooko is also a founder of the for-profit Electric Coin Company (ECC) that propagated Zcash. Before that, development work was started in 2013 by Johns Hopkins University professor Matthew Green and his graduate students. Zcash officially launched on October 28, 2016, following the successful completion of its development by the Electric Coin Company. The project attracted more than $3 million in venture funding to complete it. 

Key Milestones in the Network

2016 - Inaugural Mining: Mining of Zcash started in the latter part of October 

2016, and within a week, the price of each coin soared to $5,000.

The Trusted Setup Ceremony: In 2016, Zcash underwent a trusted setup procedure known as "The Ceremony," through which a private key was generated to ensure the security and privacy of the network. 

Rebranding to ECC (2019): The Zcash Company, in February 2019, rebranded itself to be called the Electric Coin Company (ECC). 

In 2017, Zcash Foundation was incorporated as a 501(c)(3) nonprofit organization with a mission of building internet payment and privacy infrastructure for the public good. 

Transition to Bootstrap (2020): In 2020, all investors and owners of ECC agreed to these terms: "contribute 100% of ECC's shares to the Bootstrap Project," making Bootstrap the owner with no strings.

51% Attack Threat (2023): The mining pool ViaBTC that held over 50% hashing power in September 2023 caused apprehensions over a possible attack from 51% and led Coinbase to defensive strategies.

How does ZCASH Work?

Zcash (ZEC) isa truly digital currency meant for private transactions created with great cryptographic techniques for doing highly secure transactions efficiently. Zcash allows public and private transactions through its special structural design of Z-addresses (private) and T-addresses (public).

Private Transactions: Zcash applies shielded transactions for the privacy of users. When transactions occur between Z-to-Z addresses, the address, transaction amount, and memo fields are encrypted, keeping them hidden from the public blockchain. However, the occurrence of the transaction and the fees incurred is still visible. Users can voluntarily share transaction details with trusted third parties using view keys and pay object disclaimers.

Zk-SNARKs: Private transactions are made possible through Zero-Knowledge Proofs (Zk-SNARKs). These proofs ensure that transactions can be fully encrypted and can even be verified as valid without disclosure of the associated sensitive information to achieve privacy without compromising the integrity of the blockchain.

Public Transactions: A T-to-T transaction functions like that of Bitcoin in which all transaction details (sender, receiver, and amount involved) are made publicly available on the blockchain.