ZCash is a privacy coin, so in order to understand it, you will first need to know what privacy coins are.
Transactions that take place through bitcoin and other popular cryptocurrencies are placed on an open ledger and are easily traceable. This practice is great for avoiding frauds and reducing corruption. However, it comes at the cost of one’s privacy.
Not everyone wants to be on an open ledger, as they want their privacy to stay intact, and this particular school of thought gave birth to Privacy Coins. ZCash is one of the shining cryptocurrencies in this category and has been able to do quite well for itself. At the time of writing, ZCash sits at the price of $164.52 and is ranked amongst the top 25 cryptocurrencies.
Origin of ZCash
ZCash came into being as a result of bitcoin fork back in October of 2016. It has received different names since its inception. Initially it was called Zerocoin, then it was given the name of Zerocash, and finally, they settled on ZCash. The founder and CEO of ZCash named Zooko Wilcox had one goal in mind for this cryptocurrency and that was to provide security and privacy, even in an open network.
Seeing the success of ZCash, you can pretty much conclude that he was able to achieve his goal just fine. However, there is always room for improvement and Wilcox insists that his team will keep working towards adding new measures to enhance the user’s experience.
A lot of businesses weren’t onboard with the idea of cryptocurrency’s open ledger. They had private transactions, secret clients, and tax-related dealings. And they just can’t put them on an open ledger. This is where ZCash comes into play. It allows the entities to keep their privacy intact.
Businesses, apps, and consumers making use of ZCash have complete control over the visibility of their transactions. With everything in user’s control, they can hide or reveal transactions at will.
Some people have raised concerns that privacy coins might be used for criminal activities, and that’s a legit point. However, if you look at the broader aspect of things, privacy coins were needed for the longevity of cryptocurrencies. Open ledgers don’t suit most of the corporations and businesses and for them to be interested in crypto, they needed something like ZCash to exist.
ZCash is capped at 21 million and it uses proof of work’s Equihash method for mining. This method is completely different from Bitcoin as it relies more on the RAM as compared to raw processing power. This means that anyone who is looking to mine won’t have to go overboard with supercomputers as this task can be accomplished on a regular computer with ease.
Just like Bitcoin, there is a reward for every block mined. Every 10 minutes, 50 ZEC (ZCash Currency) is issued for the miners. However, all of the rewards don’t go to the miners. In order to support the development of ZCash, 10% of what miner earns is given to the founders. This is known as founders reward. Fortunately, this reward is for a limited time only as Wilcox assures that in 2 years, 100% of the earnings will be given to the miners.
ZCash, along with other privacy coins have a bright future ahead of them. Some entities that were unwilling to adapt to crypto because of their open nature, now have privacy coins for their transactions, so they are slowly adapting.
Things are only going to improve from here on out because cryptocurrencies are becoming increasingly popular. Although it is unlikely that it will go on to compete with the likes of Bitcoin, ZCash has its own properties, which makes it an optimal choice for a lot of users.