What is Zcash Cryptocurrency?

  • According to the official website, Zcash is a digital currency, or better known as a cryptocurrency, like Bitcoin. (In fact, Zcash is built on the original Bitcoin code base.)
    It was conceived by scientists at MIT, Johns Hopkins and other leading academic and scientific institutions.

    The basic difference between cryptocurrency and real money is that each transaction is tracked and managed on a decentralized public blockchain, and is different from the real currency that all transactions are managed by centralized institutions, such as banks.

    With cryptocurrency, this means you really have your money. Most cryptocurrency reveals the history and ownership of your full transaction to everyone.

    ZCash (ZEC) is a cryptocurrency that is created differently from bitcoin, even though this coin is from harfork BTC. The Blockchain is decentralized which allows the anonymity of its users, like the Monero. Both of these coins have their own markets that do want to close privacy. What is ZCash that now appears on the crypto market and competes with other privacy coins?

    ZCash coins are now widely used by some who really want to maintain the privacy of transactions. Unlike bitcoin, coins cannot be traced, both transactions carried out by the recipient and the sender. Unlike Monero, this coin is based on bitcoin with the Equihash algorithm. And the people behind it are famous crypto experts


    What is ZCash?

    After Monero appeared, a few years later the Zerocoin project was established on October 28, 2016. The name was later changed to ZeroCash which is now known as ZCash (ZEC). Unlike Monero, ZCash is a hardfork of bitcoin by adding a Zero-knowledge proof called zk-SNARKS. This evidence guarantees privacy that is used to hide the identity of the sender and recipient, as well as the number of transactions.

    ZCash uses special evidence to secure the network, making it possible to maintain the ledger without revealing the user or transaction value.

    Evidence of each transaction carried out by the sender and the recipient is entirely verified to unlock the output.

    ZCash's mining method is different in terms of rewards, for 4 years since it was established until 2020, around 20% of reward blocks will be given to developers, investors and non-profit foundations.

    ZCash takes 2.5 minutes or 4 times faster than bitcoin. It is estimated that ZCash will be completely mined within the next 131 years.

    ZCash charges a transaction low rate of 0.0001 ZEC, cheaper than Monero.

    What is ZCash? Each ZCash transaction that is privacy requires more space per block, so network speeds range from 6 transactions per second.

    ZCash's total supply reaches 21 million coins mined with CPUs and GPUs with the Equihash Proof of Work algorithm.

    Mining is almost the same as Ethereum, depending on high RAM requirements, so it is very useful to inhibit ASIC devices.

    ZCash developers are far more open than Monero, the founding CEO of this project is Zooko Wilcox.

    Another developer is Eli Ben-Sasson, an Israeli Institute of Technology Lecturer. Alessandro Chiesa, who has taken a Ph.D. at the Massachusetts Institute of Technology.

    In addition, the advisor for the ZCash project is also supported by Vitalik Buterin, known as his Ethereum coin. Then there are Gavin Andresen, Arthur Breitman, and Syrcuse.


    What is Zcash algorithm?

    Many people know the Zcash Algorithm with the name Equihash, this was developed by Alex Biryukov and Dmitry Khovratovich at the University of Luxembourg.

    The Equihash algorithm is proof of a working system oriented to asymmetric memory based on common problems.

    The Zcash algorithm, Equihash, is memory oriented because it is 'memory-hard'.

    And As a result, the amount of proof of mining work that can be done using the Equihash algorithm is mainly determined by how much memory is RAM that is owned.

    In other words, hard memory refers to an example where the length of time needed to solve a computational problem is, in large part, determined by the amount of memory needed to store data.

    The current landscape of mining evidence for systems like Bitcoin can be said to be one that has now become very centralized.

    This cause can mainly be attributed to the development of special mining hardware such as ASIC (application-specific integrated circuits). ASIC hardware is a special integrated circuit that has been specifically designed for mining cryptocurrency.

    As a result, they are very strong and efficient in producing a large number of hashes for evidence of work processes, so ASIC miners get a considerable advantage over other miners, for example, GPU Miners.

    Because of this, cryptocurrency mining activities have grown increasingly centralized in supporting entities that are able to buy large amounts of ASIC hardware. This resulted in large-scale livestock dominating a large part of the cryptocurrency mining landscape.


    ZCash Transaction Type

    ZCash is the first cryptographic to run the proof of knowledge algorithm, where it not only attracts the attention of miners but also other users who want to use the protocol's confidentiality element.

    When someone wants to send or receive ZEC (ZCash), they can choose to make transparent transfers or shielded transfers. By understanding these two types of transactions, this will take us deeper into ZCash.

    zcash2.png

    The purpose of the shielded address is to use a zero-knowledge proof to make verification of transactions without divulging the encryption data.

    All shielded transactions must use a wallet address called z-addrs.

    While the purpose of the transparent address is, it uses the interaction "Transparent Value Pool (TVP)" where all transaction data is transparent and uses a wallet address called "t-addrs".

    Here the transaction fee in the Zcash protocol must be through TVP and for that, it will always be transparent, but even so ... the value and address of the transaction through the shielded address is kept confidential.

    zcash3.png

    As we know ZEC is the currency unit of ZCash, and it is quite different from another cryptocurrency because ZEC contains different sets of elements depending on what type of wallet address was used before.

    • If ZEC is stored in a transparent address, it can be listened to publicly.

    • If the ZEC balance originating from t-addrs, is sent to another t-addres or z-addrs (shielded), the output will always be transparent.

    • However, the uniqueness of transferring ZEC from t-addrs to z-addrs is that it removes the connection of the previous transparent element and shields it

    • At present not all mobile wallets support z-addrs because of limited software and hardware limitations.

    The transaction shown in the figure below shows an example of transferring 0.2025 ZEC (no fee deducted 0,0001) from t-addrs to z-addrs.
    zcash4.png

    Here we can see that the nominal ZEC t-addrs is still shown, while all information related to the z-addrs destination is kept confidential.

    It should be noted that the explanation above only shows basically what type of Zcash transaction type and how the procedure is. In the future, there are still many more complicated elements to be introduced as ZCash's innovation develops in the cryptocurrency industry.


    Conclusion

    Zcash is an alternative to bitcoin. Zcash is often also called a cryptocurrency that can be fully transacted without knowing the sender, recipient, and even the nominal amount of the transaction. However, this Zcash cannot display usage history.

    However, to verify the transaction block, Zcash can be done without the decomposition of information and the cryptocurrency code remains open.

    Until now, Zcash has occupied the crypto ranking 20th among all the coins currently available.

    Of all the valuable coins, Zcash occupies a market limit of $ 293,730,490 USD and a relatively high volume. Well, nowadays many people use Zcash but alternative coins are very expensive. To overcome this, you only need to do Zcash mining activities. You can do Zcash mining activities so that your Zcash activities don't suffer losses.