What Is Zcash?

Category: Bitcoin, Money
Last Updated: 28 Jan 2021
Pages: 3 Views: 199
ZcashNowadays, it is trendy to invest into various cryptocurrencies – it is considered a reliable and secure way to stock money. The wave of investments launched the day Bitcoins were invented in 2008 and from that time numerous alternative cryptocurrencies were created to reproduce the success of Bitcoin. Currently, there are hundreds of them. Among this large number of digital money, Zcash can be pointed out.

The token of currency is ZEC and Zcash value is holding firm position irrespective of the situation on the world market. The monetary base of this currency includes 21 million of ZEC currency, the same with Bitcoins, that will be issued in 131 years with 2.5 minutes blocks for buying. So what is Zcash and why the number of its admirers is increasing? It is relatively new decentralized cryptocurrency with an open source released in 2016 by the Founder and CEO of the Zerocoin Electric Coin Company (ZECC), Zooko Wilcox.

Using a public blockchain protocol the company managed to create the platform similar to Bitcoin which differs in its enhanced security and privacy. If you deal with money transactions on traditional block chains like Bitcoin every time you make an operation on the blockchain information about the amount of money and details about buyer and seller are revealed. The team of developers decided to change this situation and to provide total anonymity. They have elaborated a new method to encrypt information – zero-knowledge technology or a zk-SNARK (zero-knowledge Succinct Non-interactive Argument of Knowledge). It can be viewed as a secure transport layer for the digital currency.

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This mechanism protects the personal information of the clients. All transaction are recorded and published on a blockchain – the information considering the amount of money transferred, sender, and recipient remain secret. Only the proof that the transaction took place is publicly visible. The transaction will be valid and secure, and no personal details will be visible to those whom it doesn’t concern. In such a way consumers, services, and applications can decide themselves to whom reveal the details of their transactions.

These special transactions are named “shielded, ” and the client can choose whether to transfer money through an ordinary transaction or choose a more protected version. Clients can optionally prove the existence of their transactions. “Shielded” transaction can be limited in terms of certain options, for instance, multi-signature wallets, and the requirements to the hardware can be more complicated. This can be a problem for official usage – authorities usually demand some level of transparency to avoid money laundering, fraud, or evading taxes. Zcash virtual coins are not linked with their history on the blockchain which promotes fungibility and makes them equally interchangeable.

There are a couple of places where to buy Zcash. First of all, if you have decided to obtain a bit of these digital coins, you should get a wallet on their official website. It is possible to download a digital wallet on your computer or smartphone where all information considering your transactions will be stored. You will create your own address for money transactions and obtain a paying key. This information should be treated carefully – if you lose the key, you automatically lose your money. And if someone else gets your key, the money will belong to this person.

The address of your wallet can be used to register on various exchanges or markets, special trading websites, where Zcash coins can be bought and sold. Chose those exchanges that support Zcash, for instance, Kraken, Shapeshift, or Changelly. After you buy the necessary amount of coins, just draw the coins out of exchange to your personal wallet. Another way is to buy ZEC from a certain person willing to sell it or offer services that can be paid for by Zcash. And if you have time and opportunity, you can try mining of this digital currency which works practically the same as for other cryptocurrencies.

Zcash is a new innovative digital currency whose rapid development and increasing price inspires hope for further achievements. Being an open financial system, Zcash aims at providing enhanced security by means of zero-knowledge technologies to everyone in the world. It allows both the seller and the buyer to protect their financial relationships as well as the total sum of money which is being transferred. The main objectives of the company are respect to human dignity and the right to privacy. If the clients are looking for a more secure way to conduct their business, Zcash has all means to make their dream come true.

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What Is Zcash?. (2018, Oct 10). Retrieved from https://phdessay.com/what-is-zcash/

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