Find out Zcash’s technical characteristics, its prospects, how it differs from Bitcoin, and where you can buy it.
Zcash and Bitcoin Analysis
Confidentiality is a guarantee of personal freedom and security when making online payments. Bitcoin is pseudo-anonymous despite all its uniqueness. Its blockchain ecosystem is entirely transparent. Anyone can open the ledger and see the balance of any address and the number of transactions. Of course, passport data is not published on the distributed ledger, and no one will demand it from you when creating a personal bitcoin wallet.
The wallet owner’s identity is unknown to the network administration and wallet developers. Still, the rest of the information cannot be hidden. Having determined the IP address, you can try to establish the identity of the holder of the crypto coins. This situation did not suit many. That’s why the developers created the first truly anonymous payment network ‒ Zcash.
Technical Features of Zcash (Differences From Bitcoin)
Zcash is the first decentralized network that uses zk-SNARK cryptography for privacy. Anonymous transfers are encrypted and not available in the Zcash blockchain explorer. Despite this, they are checked for validity according to the network’s consensus rules using “zero-knowledge” proof.
Thanks to zk-SNARK, each network user can confirm ownership of specific data (for example, a private key) without disclosing them and constantly interacting with the validator. The zk-SNARK proof algorithm compiles the transaction hash into a pattern for solving algebraic equations. A quadratic asymmetric problem (QAP) developed by a group of cryptographers in 2013 authenticates the arithmetic scheme. QAP generates a random verification point the sender or the validator does not know in advance. Such forms of cryptography as homomorphic encryption and elliptic curve pairing are applied there.
How Do Zcash Transactions Work?
The recipient of the funds creates a set of keys or key tuple, which includes:
- Key for expenses
- Key for view
- Billing address
When creating a hidden transaction, the key tuple is not available in the browser. The information about these keys is provided only upon request.
The sender of a hidden transaction generates a note that includes:
- Payment key
- Transfer amount (calculated in satoshi)
- Zeroing set
- The transmission trap
The note confirms that the recipient, who has the expense key that matches the payment key, can spend the amount indicated in it.
In the blockchain, a specific part of the chain is assigned to each full node. They form a tree in which each block is linked to the previous one. The hashPrevBlock header is the connecting link. The path from the root to the nodes, along the structure of valid blocks, is called a valid blockchain. Each full node creates a function that resets all array elements, which is logically related to the tree. Unique nullifiers, which can also be found in JoinSplit descriptions, protect against double-spending. The nullifier is never duplicated in the blockchain.
The Zcash ecosystem needs more preliminary work when sending funds to the blockchain. The transaction can complete within a few seconds. Its volume will not exceed several hundred bytes.
Where to Buy and Sell Zcash?
The coin currently trades on over 100 exchanges, but the easiest and fastest way to buy or exchange ZEC is Godex.io. To convert the currency, you need to use the ZEC to BTC calculator.
Godex has a considerable number of advantages. The most important thing, though, is the complete anonymity of its customers. There is no registration, so you can start the exchange immediately. The platform does not collect or store any personal information. For this reason, your financial life will remain confidential.
Zcash Coin in Numbers
After discussing the technical aspect, let’s analyze the financial component of this project. As of May 2021, the ZEC exchange rate is $253; the coin ranks 51st in the global cryptocurrency rating. In early 2021, the coin rate was $65, then grew to 216% in less than four months. Capitalization is almost $3 billion; its circulating supply is $11,5 million.
The previous historical maximum was set in October 2016, $5,941 for one ZEC coin. So, there is still room to grow in this bullish market for this cryptocurrency.
Zcash is an entirely anonymous coin. The developers used new unique protocols, so the network has several advantages over its competitors. ZEC is a liquid coin and is listed on many exchanges.
If anonymity and work speed matter to you, visit the decentralized platform Godex.io. It features 201 cryptocurrencies and has no upper exchange limits. The service guarantees complete anonymity, fixed commission, and the best rates.