This Zcash vs Ethereum comparison post will give you an overview as well as the comparison between the two cryptocurrencies. We will also explore the projects they have worked on collaboratively.
Though they are significantly different from each other, their team’s desire to team up with each other and work on some project. This is the only commonality between these two cryptocurrencies.
What is Zcash?
Zcash was founded by the Zcash Electric Coin Company and went live on October 2016. The founders of Zcash went on to grant themselves 10% of the total of 21 million Zcash coins whereas the rest was distributed to miners and investors incrementally.
Zcash is a privacy-focused cryptocurrency that allows users to send transactions without revealing their origin, destination or value information. Such transactions are referred to as ‘shielded transactions’ for which Zcash uses a zero-knowledge proof mechanism called zk-SNARK.
Currently, the company’s development team comprises of the founder, Zooko Wilcox, the developer Nathan Wilcox, and the engineer and protocol designer, Daira Hopwood.
Using the cryptographic method zk-SNARK, Zcash allows validation of transactions without disclosing their integral information. Since all the payment information remains encrypted, nobody can see them on the blockchain but it can still be authenticated against rules shared by the network.
What is Ethereum?
Ethereum is a much complex platform compared to Zcash. It is an open-source blockchain-based dapp platform which is capable of executing smart contracts. Using Ethereum’s ERC20 token standard, this platform can be used to create new tokens. This enables anyone to inaugurate their own cryptocurrency that can be connected to smart contracts.
Ethereum was founded by Vitalik Buterin, who was first a part of the Bitcoin community and desired to implement a decentralized application scripting language and smart contracts into Bitcoin.
Currently, Ethereum is managed and maintained by the Swiss Ethereum Foundation which also includes Buterin, along with Patrick Storchenegger and Jeffrey Wilcke.
Built on the Turing complete Ethereum Virtual Machine (EVM) which is basically a suite of protocols capable of executing blockchain-based dapps, Ethereum is maintained by computer “nodes” that are responsible for running the EVM as well as executing the same instructions and storing the same data for dapps.
An innovation that Ethereum brought to the blockchain industry is the smart contracts which are self-executing contracts programmed to carry out specific digital transactions especially when specified conditions are met.
Zcash Vs Ethereum: The Collaborative Project
Despite bearing differences, Zcash and Ethereum have managed to bring their unique features together. The developers from both the platforms are working to introduce a mechanism for integrating zk-SNARK into Ethereum without depending on a specific setup of network rules to do so.
Back in June 2017, Buterin wrote on Reddit that Ethereum’s Zcash integration will not preserve any specific trusted setup at a protocol level. It will just implement a few cryptographic building blocks so that people can do the rest themselves on top in EVM code. Anyone will be free to organize their own trusted setup, and in case they don’t trust a given setup then they are free to use another one.
At least, Zcash and Ethereum have teamed up together to show how two different projects can collaborate with each other to revolutionize new tech in the blockchain space.