Zcash is an open source, distributed encryption that provides users with privacy and transparency in selective transactions. Zcash was developed from the Zerocoin project, aimed at improving anonymity for Bitcoin users and built using the source code of Bitcoin Core v0.11. The innovation provided by Zcash uses security-enhancing techniques and enhances the proofs without knowledge to ensure the validity of financial transactions without disclosing any information about them. The development team created Zcash's proprietary secret code called zk-snarks.
To make transactions completely natural, Zcash uses a technology called "zero-knowledge proof" that even the most genius mathematicians and researchers don't fully understand how this technology works. .
Zcash offers a total of 21 million just like bitcoin and also uses PoW's proof of consensus mechanism to verify and process transactions.
Zcash (ZEC) is currently in the top 20 largest cryptocurrencies with a market cap of over $ 1 billion and in the top 10 according to CoinGecko. This digital currency can trade a lot of the top exchanges and at the time of writing, the price of zcash is at 336 USD.
Zcash was launched in 2016 by founder and CEO Zooko Wilcox. Wilcox is a computer scientist with over 20 years of experience. He has worked on decentralized systems, information security, cryptography, and start-ups. His previous works include DigiCash, ZRTP, “Zooko Triangle,” Mojo Nation, Tahoe-LAFS, SPHINCS and BLAKE2.
Zcash launched on October 28, 2016, when its first block was mined. However, the launch of zcash has not been without controversy.
What is Zero-knowledge proofs?
By understanding, zero-knowledge proof means that you have completed the math without others doing the math again, from which you can confirm that the statement is 100% correct and not reveal to anyone else know more.
Zero-knowledge proofs make Zcash "untraceable" by performing private transactions on Zcash's public blockchain. Transactions on Zcash are encrypted to conceal the sender's and recipient's addresses, as well as transaction values from one address to another. What most blockchain systems have in common is that they show us the full value of one address to another and can be seen by anyone on the blockchain. As for the Zcash blockchain, it can be encrypted by users to protect their transactions. Zcash sending addresses are pseudonyms, meaning that if you don't know a person's real identity or actual address, you won't be able to see where the money is going.
What is the block size of Zcash?
Block size is a scarce resource in the blockchain system. If you have a transaction that takes up half a Megabyte (MB) on the blockchian, it will cause the blockchain to grow by half a MB. With just 2,000 transactions in 2 hours, you will have 1 Gigabyte (GB). Along with the rapid growth of blockchain, the system will soon be damaged.
Zcash was able to optimize individual transactions down to a usable level of 1,500 bytes. With this size, the encoding calculation time is reduced from 5-6 minutes to 1 minute.
What makes Zcash different?
Zcash's inception was far from that of Ethereum. During the first token sale of Ether, there was a rate of 2000 Ether per Bitcoin. After 42 days it decreased linearly to 1337 Ether. Only 60 million Ether were issued to the first block buyers, and an additional 12 million Ether went to the Ethereum Foundation as compensation. 9.9% has been split among the original contributors and the remaining 9.9% becomes the source of the Ethereum Foundation's funding. Ethereum started off with 72 million Ether and had a relatively low inflation rate. 30,000 Ether is pumped into each day to compensate miners for transaction processing and network maintenance.
Similar to Bitcoin, Zcash's mechanism is instantaneous and has no "pre-miner" phase. After 24 hours, only 4 ZECs are exploited out of a total of 21 million ZEC.
Every day 0-7000 ZEC is mined for 30 days and kept at 7200 ZEC after that time, 10% of all ZEC mined within 30 days and kept at 7200 ZEC after that time, 10% of all ZEC mined over time will be sent to the Zcash Foundation.
Controversy around Zcash.
The controversy surrounding this launch stems from media agencies not owned by Zcash investors, such as Roger Ver and Digital Currency Group, creating a huge hype around currencies. new currency, which attracts investors to buy in and therefore absurdly increases the price of the coin. For this reason, some argue that Zcash is just a well-executed Pump and Dump program aimed at enriching early stage investors. For example, BitMex's Crypto Trader Digest stated at the time, “October 28, 2016 established its place in the Cryptocurrency history books with what is arguably the biggest Pump and Dump game.
On the first day of trading, the price of Zcash was volatile with a large volume of transactions on the Poloniex exchange, the price of a ZEC at the time was 3,299.99 BTC or 2.3 million USD at the time. Needless to say, the price plummeted from unreasonable levels within minutes but stayed between $ 400 and $ 2,200 during the first few trading days before finding the $ 500 range. This is at a time when the price of BTC was around $ 700.
Furthermore, Zcash mining involves what's known as a "founding reward" for the first four years.10% of all mined coins will be distributed to Zcash's stakeholders, founders, investors, advisors. This includes people like Gavin Andresen, Vitlik Buterin, Arthur Breitman, Roger Ver, Barry, Silbert, Fred Ehrsam and a few others.
The "slow start" feature means that inflation expectations are among the highest cap cryptocurrencies. The supply of money (MS), inflation due to the supply of new coins expected to enter the market, is extremely high for Zcash, at 876% compared to around 16 to 29% like Bitcoin, litecoin and monero. . The report also states that, at most 11.12 million newly mined ZEC coins will be provided in the next five years.
It is not surprising that the founder's reward has been added to the Zcash controversy, leaving a bad taste in the mouth of miners when economically and margins are not on their side. This also created a bad light on this type of anonymous cryptography.
Moreover, the launch of Zcash also received some criticism that: If somehow this setup gets compromised, the spoiler will be able to create an infinite number of ZECs and sell them slowly in the market without being noticed. But at least the ZEC team has stated that they are looking for a solution to create reliable setups on their own network. Although zk-STARKs allow unreliable settings, they are not as efficient as zk-SNARKs.
The dissatisfaction with the Zcash founder's rewards has actually led to the creation of new altcoins based on the open source Zcash. Two of these projects include ZClassic (ZCL) and ZenCash (ZEN).
"Corporate Feel" by Zcash.
The Zcash founders have made it clear they don't want their coins to be the underground network's crypto. Instead, the Zcash team started working with giant Wall Street bank JPMorgan.
Zcash is helping JPMorgan add a layer of privacy protection for JPM's enterprise blockchain platform users, Quorum. Zooko Wilcox announced in November: "I am delighted that our first corporate customer is the world's most valuable bank." Suresh Shett, a lead architect at JPMorgan said:
"By adding Zero-knowledge to Quorum, we can discover that state-of-the-art cryptographic security will advance the next generation of financial services applications."