Zcash (ZEC) has one very important feature that many other cryptocurrencies do not have – anonymity. This is very important in today’s environment, where appear services allowing to trace payment history of any user thanks to information recorded on the blockchain.
Zcash was created in 2016 and was the first cryptocurrency based on zk-SNARK (zero-knowledge proof protocol) technology. It is one of the most popular anonymous cryptocurrencies. This is why a lot of people are looking for a reliable Zcash wallet.
What is Zcash?
Zcash (ZEC) is an open-source cryptocurrency founded in October 2016 by Zooko Wilcox-O’Hearn. It became the first coin based on a zero-knowledge proof protocol. The ZEC blockchain records the transfer of coins, but information about the sender, recipient, and amount of the transaction is hidden. It is one of the most popular anonymous cryptocurrencies.
Zcash was released on October 28, 2016. The creator is an American cryptographer and developer Zooko Wilcox-O’Hearn. Before launching his own cryptocurrency, Zooko was a Bitcoin fan, but he didn’t like the fact that everyone could track transactions. He then had the idea of creating a digital currency that would have the basic features of Bitcoin, but would not reveal transaction details.
Zooko Wilcox-O’Hearn decided to create the new coin by doing a fork of the original Bitcoin code, integrating the Zerocash protocol, a development of the Zerocoin team.
zk-SNARK and zero-knowledge proof
Zcash Cryptocurrency (ZEC) is based on zk-SNARK (Zero-Knowledge Succinct Non-Interactive Argument of Knowledge) technology, which uses zero-knowledge proof. This special feature allows the creation of completely anonymous transactions while ensuring their authenticity and security. The zk-SNARK protocol was created in the 1980s by scientists at the Massachusetts Institute of Technology.
Below is a comparison of how transactions are recorded in the Bitcoin and Zcash blockchain.
- Bitcoin: From GHN196 wallet sent 7.9 BTC to IPZ503 wallet on September 23, 2021 at 12:00 am.
- Zsash: X.X ZEC was sent from XXXXXXXX wallet to XXXXXXXX wallet on September 23, 2021 at 12:00.
Unlike the Bitcoin network, the Zsash blockchain does not disclose basic transaction details such as the recipient and sender wallet, as well as the amount of the payment.
The zero-Knowledge-Proof protocol allows transactions to take place but does not store complete information about them in the blockchain. This plays a very important role in keeping users safe, as it prevents attackers from tracing a particular user due to their inability to analyze transfer data.
How to mine Zcash (ZEC)?
Among the main reasons for the popularity of the Zcash cryptocurrency are its relatively simple hashing algorithm (Equihash) and the high degree of anonymity. One of the ways to obtain the coin is to mine it using special equipment: ASICs or GPUs.
One should keep in mind the fact that the algorithm for the ASICs is fixed and cannot be changed. In the case of video cards, the owner can choose coins and use different algorithms to maximize profits.
Where to store Zcash (ZEC)?
If you prefer to use the Zcash cryptocurrency (ZEC) because of its inherent privacy, you can choose any wallet that supports z-addresses and provide maximum data protection. If you prioritize the security and safety of funds, then you should use a non-custodial Zcash wallet like Sapien Wallet.
The question of how to create a ZEC wallet is the most popular among other questions about this project. You can store your ZEC coins in Sapien Wallet. The main advantages of the Sapien Wallet are:
- Non-custodial multi-currency crypto wallet
- User-friendly interface
- Built-in rating system
- Possibility of in-app correspondence
- Low cryptocurrency exchange fees
- Ability to buy and withdraw cryptocurrencies using Visa and Mastercard
- Fully decentralized cryptocurrency wallet
To store your ZEC cryptocurrency you should use a reliable Zcash wallet. Sapien Wallet is one of the best wallets for Zcash crypto as it is non-custodial and safe. Moreover, Sapien Wallet is a multicurrency wallet.
The benefits of Zcash (ZEC)
Compared to many other coins, Zcash Cryptocurrency (ZEC) has several distinct advantages:
- Anonymity is the main advantage of this cryptocurrency. Because no information is written to the blockchain, transactions are untraceable and the identity of the sender and recipient cannot be established.
- Interchangeability – each coin has a clean history, meaning that there is no way of knowing in which transactions it has been used. This ensures that no ZEC can be compromised. This problem is very relevant when it comes to Bitcoin. Some shops and organizations do not accept BTCs that have previously been used to buy illegal goods (drugs, illegal weapons, child pornography).
- Security – because the Zcash blockchain does not store user key information, the network and user wallets are more secure.
- The energy efficiency of mining – unlike Bitcoin mining, which requires a lot of energy because the computing device needs to perform a large number of operations in a short amount of time, for Zcash mining the amount of RAM is crucial. Video cards for Zcash mining consume much less electricity than ASICs for Bitcoin mining.