What is ZCash (ZEC) Crypto Beginner’s Guide
Over recent years, the number of digital currencies on the market has doubled, if not tripled in some cases; with that being said, not all of the digital currencies that have emerged have been able to stick around. Some came out and shortly disappeared from memory, while some have completely flourished and shown great promises. Most, if not all, of us have heard of the infamous Bitcoin, a form of digital currency that came on the scene back in 2009. Even though Bitcoin flourished for a bit due to its “promise” of providing a secure level of privacy, they were unable to live up to this promise. Simply defined, what this means is that those who are interested can take a look at what it is was then an individual purchased, without their knowledge- no discretion was provided.
How is ZCash Different?
Following the release of Bitcoin, there have been several digital currencies released that are more privacy-oriented and guarantees the anonymity of their users. What sets ZDash apart from their competitors is the fact that they use a specific technique referred to as “CoinJoin, which uses the methodology of putting multiple funds into a single transaction for the purpose of increasing privacy and protection of information.
There are other forms of digital currencies that use this same method; even so, ZCash has the ability to give its users a greater level of privacy while providing them with significant fungibility (when particular assets can be substituted for others). The reason for this is because most forms of digital currency depend on what is known as “private keys”- letters and numbers that essentially identify a particular user. ZCash steps away from this kind of technology.
How Does ZCash Work?
ZCash uses construction proofs called “zk-SNARKSs” that allows their users to essentially protect their identity and protect it well. Digital currencies such as Bitcoin contains the information of those who participant in a certain transaction, as well as the amount of the transaction, however, ZCash eliminates this; when using ZCash it will only show that a transaction was made, not the amount of it or who was involved with it.
ZCash is able to keep the level of privacy that they offer by incorporating what is called “Zerocoins”, which is a protocol that was developed in 2013. The purpose of this protocol was to identify issues with the privacy of their users and finding a solution to the weak spots; the end result was more anonymity by eliminating the original source of payment and transaction. Even more recent is that Zerocoins evolved to “Zerocash”, which offers, even more, privacy and discretion than Zerocoin, which is pretty impressive. There is another aspect of ZCash that is offered called “basecoins” but they do nearly offer the level of protection as ZCash and Zerocash.
Going forward, as with anything, the success of ZCash depends on supply and demand- as it stands currently; however, ZCash is, without a doubt, making a mark right now and shows no signs of slowing down.