We have seen the wide acceptance of cryptocurrency, but today’s generation is optimistic about the decentralized currency because they get the ability to transfer value without the interference of banks. Though the first generation introduced a decentralized-based economy, it couldn’t resolve the privacy issue.
Zcash solves the privacy issue, and unlike Bitcoin, it is not an open ledger. If you are to use Zcash, you will be satisfied that your transactions will be completely hidden from any other people who use the blockchain.
What is Zcash?
Zcash is a cryptocurrency that is well known for its privacy and anonymity. All of the information that is transmitted among the two parties using Zcash is secure and encrypted. In order to use anonymity, zk-SNARK is used by Zcash. This is remarkable proof that makes sure that this is a secure network. It also uses proof of construction. By using such type of methods, the blockchain values are kept hidden from the outer world. Zcash has a hard-limit that is quite similar to Bitcoin, and it means that there are only 21 million coins available.
How does Zcash work?
If you want to send some BTC to another person, you need to send it through the public address. The miners will take over once you send the transaction. They will be mining the block in which the transaction is allocated. The transaction gets successful when the block is mined. However, there is a drawback that it doesn’t have any privacy protocol.
With Zcash, the sender can choose two ways to make the transactions. It can either be a shielded private transaction or an average transparent transaction. Zcash is quite different from other privacy coins like Monero, where there is one way to initiate transactions.
When the user chooses, he can make the most out of the blockchain and give the best of both worlds. Sometimes, a transparent transaction is essential, and it is done to protect the interest of both sender and receiver.
Zcash coin distribution
As Zcash is forked from Bitcoin, therefore, it has the same supply of 21 million coins. Looking at the current mining rate, one can estimate that all of its coins will be mined by 2032. With each block getting mined, the mining difficulty is increased. This means that the block mining reward is cut to half after every four years.
It was never intended to make Zcash part of a big project or to raise funds through ICOs. This is the main reason why closed investors fund it. $1 million was invested in making sure that it is on a development path. There was a ‘Founder’s Reward’ received by the investors, which contained 10% of the total supply over four years.
Zcash aims to solve any drawbacks of the first generation blockchain, and it also ensures both security and privacy. It is worth noting that Zcash doesn’t impose privacy from the get-go, and the users are can always choose to do a transparent transaction.