What Is Zcash (ZEC)?

Zcash (ZEC) is a privacy-focused cryptocurrency, created as a fork of Bitcoin. Launched in October 2016 by Wilcox-O’Hearn, based on Zero-coin protocol Zcash (ZEC) was previously known as Zerocoin. Just like Bitcoin, Zcash also has a hard limit of 21million coins. Zcash is the proof of work digital currency which was designed to minimize the inherent flaws of Bitcoin. Through the use of some ingenious cryptographic features (zero-knowledge proof), Zcash (ZEC) offers complete privacy to its users. Using Zcash you can choose between two types of transactions. One is the normal transactions like other cryptocurrencies that are controlled by ‘t-address’ and the other one is Zcash’s own privacy protected transaction using its zero-knowledge proof called zk-SNARK, controlled by a ‘z-address’.

Zcash (ZEC) transaction works the same way the Bitcoin Transaction does. In addition to this, Zcash transaction also offers two types of features to its users. They can choose between the two when making a transaction, either the normal transparent transaction or the shielded private transaction.

Suppose you want to send 1 ZEC to your friend and if your friend wants to make the transaction transparent and public one, you can send the crypto to your friend’s public address (t-address). Contrarily if your friend wants the transaction to be protected one and private from the public, then you can choose your friend’s private or shielded address (z-address) to send the Zcash.

If both of you and your friend want to interact with each other using the shielded address than all the details of the transaction will be private and privacy protected. This includes yours and your friend’s identities and all the transaction details. The question is how Zcash achieves such a higher level of privacy?

Zero-Knowledge Proof

The answer to the above question is its Zero-knowledge proof that makes the Zcash transaction untraceable and private. We want to thank the work of MIT researchers Shafi Goldwasser, Silvio Micali, and Charles Rackoff, for bringing the concept of zero-knowledge proof into existence in 1998. In the cryptographic world, this is the method through which one person (the prover) can prove to another person (the verifier) or some information. This means you have the knowledge of some particular information and you convey and prove it without revealing the information itself.
Some certain parameters and requirements need to satisfy for the ZKP to work.

Completeness: A statement is considered true when an honest prover can convince an honest verifier.

Soundness: If the prover is dishonest than convincing the verifier about the statement is impossible.

Zero-Knowledge: If the statement is true, the verifier will not have any clue about the actual statement that what it was.

As mentioned earlier that Zcash is also a fork of Bitcoin. There are total of 21 million ZEC coins that are supposed to be mined till 2032. Zcash is not pre-mined and to keep the supply in balance, each fourth year the block reward cuts into the half. As of writing, Zcash has been fairly successful with a Market Cap of $689,071,444 USD with a circulating supply of 10,152,319 ZEC and One ZEC values $67.74 USD. It is pretty evident looking at the states that why people value Zcash globally.

Some of the key features responsible for Zcash success include;

• Encrypted memos (the sender can send only relevant information to the receiver).
• Payment disclosure (disclose transaction-specific details to third parties).
• Transaction expiration (transaction will expire if a specific number of blocks not mined timely).
• Multi-sig transactions (transactions may require multiple signatures before funds are sent).
• Low-fee transactions.

Zcash performed extremely well in the past years. Now as you know how Zcash currency works. You might also be aware of how to get some coins into your crypto wallet. The process of trading and storing ZEC is much easier than other known digital currencies. Simply, register yourself on B4U Mobile Wallet for free and store not only your Zcash but also buy and exchange a number of multiple cryptocurrencies.