Zcash is one of the top cryptocurrencies on the market. Zcash is a cryptocurrency designed for private day-to-day transactions. Zcash is extremely efficient and relies on the most advanced technological solutions. Moreover, Zcash is a Proof-of-Work currency which is expected to become the go-to asset for many miners once Ethereum switches to Proof-of-Stake. If you want to dive deep into Zcash philosophy and its key features, read this article. Since ZEC is perfect for payments, merchants can accept Zcash using NOWPayments’ tools.
Key Points:
- Zcash is a privacy-oriented cryptocurrency with fast transactions.
- Zcash is available for purchase on all major exchanges.
- With NOWPayments, businesses can begin accepting ZEC payments.
What is Zcash?
Zcash Basics
The Zcash network was launched in 2016. Zcash runs on the peer-reviewed Zerocash protocol that was published in the IEEE Security & Privacy conference in 2014. The Zerocash paper provides a thorough technical account of the network specifications. The protocol of Zcash has been subject to several independent security audits.
Zcash is a fork of the Bitcoin protocol. Based on the code of Bitcoin, Zcash managed to create its own blockchain and cryptocurrency, ZEC. The Zcash infrastructure rests on the invaluable work of the Bitcoin core team and enables additional privacy for transaction data using zero-knowledge proofs. Zcash also introduced changes to the original Bitcoin code, which are not related to privacy, including its proof of work algorithm.
Since Zcash is similar to Bitcoin, its coins are also created through the mining process. Basically, new ZEC tokens are generated each time a block is added to the Zcash network. New blocks get added every 1.25 minutes. The monetary supply curve of Zcash is also similar to that of Bitcoin. Nevertheless, since Zcash’s blocks are mined eight times as frequently as Bitcoin’s, the number of ZEC tokens created per one Zcash block is an eighth the number of BTC created per Bitcoin block.
Zero Knowledge Proofs
Zero-knowledge proofs are one of the key technologies of Zcash. ZKPs networks users to prove that a certain statement is true without actually revealing it in the first place. The particular type of zero-knowledge proof utilized by Zcash is called zk-SNARKs which are employed in all transactions that involve shielded addresses.
Privacy
Zcash takes privacy for users to another level by encrypting sender, amount and recipient data within single-signature transactions. Basically, transactions that involve shielded addresses get published in the public blockchain ledger, yet their actual information cannot be accessed by third parties. At the same time, Zcash does not protect against correlations made with public transactions (for instance, in the situation when Zcash is traded for another coin). Zcash also does not obfuscate the IP addresses of senders and recipients.
The security of Zcash is subject to regular audits, which entail updated security reports to guarantee the top-notch security of the platform. The chance of a 51% attack on Zcash is close to zero. The main reason why such an attack is impossible is that it would potentially leave the attacker’s hardware worthless. Essentially, mining with such powerful gear will yield more money.
How is Zcash different to other privacy-oriented projects?
Currently, there are several cryptocurrencies protecting the financial privacy of users. They tend to rely on different approaches. With fully-shielded transactions, Zcash encrypts the sender, recipient and amount and makes them private. Shielded transactions help preserve financial privacy by making it more difficult to link transactions. Other projects, such as Monero, use ring signatures that obscure the sender and recipient. Monero relies on Bulletproofs, which hides the transaction amount but not the transaction graph. Advanced forensics and analytics companies claim to be able to trace these types of transactions. Zcash’s use of Groth 16 proofs hides both the transaction amount and the transaction graph.
Zcash Payments
Zcash is a cryptocurrency which is ideal for payments. It is supported by top cryptocurrency payment providers, including Flexa and Gemini Pay. Nowadays, Zcash can be used as a means of payment at more than 39,000 major coffee shops, retail locations, movie theatres, and other places. Privacy is one of the key components of Zcash, and it ultimately delivers Zcash with many of its use cases, the number of which is constantly growing. Hundreds of merchants and nonprofit organizations already accept Zcash. Check out PaywithZcash for a crowd-sourced directory of places to use Zcash. Learn more about the State of Zcash Adoption.
What are the benefits of Zcash?
Efficiency
Zcash provides users with a fast and reliable means of sending money. For instance, Zcash is ideal for purchasing goods and services online. Zcash is also easy to purchase since it is available at top exchanges and wallets. Zcash transactions are extremely fast and take mere minutes.
Audit-Friendliness
Zcash is open for audits since its private addresses and transactions can be disclosed by Zcash users for information sharing. This makes it easy for third parties to conduct audits and comply with regulations.
Decentralization
Zcash is a decentralized blockchain which is not controlled by one entity. Instead, its operations are maintained by a wide network of people and machines. There is also no central database which can be easily hacked and no single point of failure. There is no authority that can shut it down or prevent its use.
Private Transactions
As mentioned above, privacy is an inherent part of Zcash. Zcash enables users to send and receive Zcash without disclosing any information about the sender, recipient or the amount transferred. At the same time, Zcash users have an option of sending standard public transactions. The transparent addresses which start with “t” are similar to Bitcoin, which means that they expose addresses and balances on the blockchain. The shielded addresses which start with “z” include the privacy enhancements provided by zero-knowledge proofs. It is also possible to send ZEC between these two addresses.
Zcash Tokenomics
Zcash’s tokenomics model is in many ways similar to that of Bitcoin. For instance, Zcash has a fixed supply of 21 million Zcash currency units (ZEC). Every 75 seconds, a new block is mined. When a block gets added to the Zcash blockchain, miners receive a reward of 3.125 ZEC, which instantly comes into circulation. Every four years, the amount of the block reward cuts in half until all 21 million ZEC have entered into circulation. The Zcash inflation almost precisely mimics Bitcoin’s. As new coins are created, the Zcash inflation goes down, and at each halvening, the rate drops significantly. 20% of the Zcash block reward is distributed to a Community Development Fund.
Zcash miners validate every on-chain transaction. Transactions that involve a shielded address come with zero-knowledge proof. The zero-knowledge proof ensures that the transaction doesn’t violate the “conservation-of-money” rule.
Is Zcash a good investment?
As one can see from the information presented above, Zcash is a progressive cryptocurrency which has a variety of unique features. Privacy is perhaps the most notable one since there are very few projects on the market that provide infrastructure for confidential transactions. As a result, Zcash delivers a lot of utility to users and crypto investors, which manifests itself in the high market capitalization of the ZEC coin. As more people are likely to enter the crypto world in the near future, the demand for privacy-oriented coins such as Zcash is expected to rise. Therefore, Zcash can be considered a solid investment option for everyone who is not rushing after instant gains. It is important to note that Zcash is a well-established coin which is unlikely to jump in value unexpectedly. Nevertheless, if the current momentum of the crypto industry growth is maintained, Zcash holders have a great chance of seeing the value of their investment increase.
How to buy Zcash
In order to get Zcash, one will need to follow these steps:
- First, you will need to register on Binance and verify your account;
- Then, you will have to add your card to your account.
- Next, you will need to specify the amount of ZEC you wish to buy and make a purchase with the fiat currency of your choice.
How to get Zcash payments
As was mentioned above, businesses and individuals can begin to accept ZEC payments and donations. In order to start featuring a Zcash payment gateway, you only need to register on the official website of NOWPayments and choose your preferred way of accepting ZEC payments and donations.
FAQ
What is Zcash crypto?
Zcash is a digital currency, or cryptocurrency, which was built on the original Bitcoin codebase. You can use Zcash to buy goods and services — it’s fast and confidential, great for payments — or you can exchange it for another kind of money, including US dollars, Euros or another fiat currency.
How do I get Zcash?
To get Zcash:
- Register on a crypto exchange such as Binance.
- Load your balance with fiat.
- Specify the ZEC amount you want to buy and make a purchase.
Conclusion
Zcash is one of the best cryptocurrencies for making day-to-day payments. Zcash is private, reliable, and fast. NOWPayments provides tools for accepting Zcash payments to businesses and individuals.