What is ZCash (ZEC) crypto?
ZCash (ZEC) is a cryptocurrency based on a decentralized blockchain, like Bitcoin, but unlike Bitcoin, it allows for anonymous transactions (exchanged amounts, users participating in the transaction, etc.).
When you know someone’s Bitcoin address, you can track their transactions, see the amounts exchanged, and see the addresses where the funds were sent (or received).
Zcash aims to address this problem by encrypting all information related to transactions made on its network.
The ZCash cryptocurrency uses ZK-Snarks technology to secure transactions on its network.
This allows it to maintain an up-to-date and secure ledger while preserving the confidentiality of user information and the amounts exchanged during transactions.
Anonymity of financial transactions is made possible using ZEC, which is based on a protocol called zero-knowledge proof.
This makes transactions anonymous by erasing the token record at the time of the transaction.
The user proves ownership of ZEC at the time of exchange, and the token is then destroyed (burned) to make way for a new, empty (without a record) token used during the transaction.
There is no connection between the new token and the destroyed token, so it is impossible to link the token to the user.
ZCash was founded in 2016 by Zoko Wilcox, a cryptographer in his 40s.
Several crypto giants are working on or supporting the project, including Roger Ver, Barry Siebert, and Pantera Capital.
The ZCash code is open source, and a maximum of 21 million tokens will be issued, similar to Bitcoin.
In terms of mining, a ZCash block is discovered every two and a half minutes, compared to ten minutes for Bitcoin.
How is Zcash funded and distributed?
Zcash has been the subject of much controversy regarding its regulation and business model.
Zcash is a company, unlike Bitcoin or Ethereum, which are open-source communities.
ZCash also compensates investors and company executives/employees with a 10% tax on mining rewards, called the Founder’s Reward.
This approach makes sense in some ways, as it aligns the long-term expectations of the Zcash community with the company’s goals.
This funding strategy is expected to enable the company to continue development and research.
However, some issues remain unclear, such as how the profits from this tax will be distributed among investors and ZCash executives/employees.
There’s another controversial point. The Cryptocurrency Group, which owns several cryptocurrency media outlets, is also one of the largest investors in Zcash. The group is accused of over-promoting ZCash to serve its own interests.
How to buy ZCash (ZEC)?
You can buy ZCash on several exchanges, and the platforms with the highest trading volumes are CoinEX and Binance.
To purchase ZEC tokens, you must first purchase Bitcoin (BTC) from an exchange like Coinbase.
After you have your Bitcoin, you can transfer it to an exchange like Binance to purchase ZEC for your Bitcoin.
ZCash project: Pros and Cons
Pros
- An effective and proven system for concealing the identity of transactions.
- Coins number issued is limited.
- Available on many crypto trading platforms.
- The transaction volume is large.
- A team of top cryptocurrency experts.
- ZCash mining has seen a surge in recent months.
Cons
- The privacy coin sector is highly competitive (Monero, ZCoin, etc.)
- Miners must pay their taxes.
- It has already been the victim of many controversies.
