What is ZCash?
ZCash is a cryptocurrency with a decentralized blockchain that seeks to offer anonymity for its customers and their transactions. As a virtual currency, ZCash is much like Bitcoin. Like Bitcoin, it additionally has an along with its open-supply code, however, their important variations lie withinside the degree of privateness and fungibility that every provides.
Hundreds of rival cryptocurrencies, like ZCash, have sprung up as a result of Bitcoin’s success. As cryptocurrency users realized that their transactions were easily traceable on the blockchain, the need for anonymity grew. Zooko Wilcox-O’Hearn founded ZCash in October 2016 in response to Internet users’ requests for an open banking system with additional privacy protections.
Bitcoin was a forerunner in the open financial system; ZCash aims to keep the same structure as Bitcoin, but with the added benefit of privacy and fungibility. The ease with which one commodity can be replaceable for another refers to as fungibility.
Origin and History
The Electronic Coin Company introduced Zcash on October 28, 2016. (ECC). Before rebranding, the ECC is popular as Zerocoin Electric Coin Company, LLC. Zooko Wilcox-O’Hearn, an expert in information security and cryptography, created the company. Together with professors and academic researchers from John Hopkins University, MIT, Tel Aviv University, and Technion, he created the Zcash protocol.
The ECC raised $3 million to create the first version of the Zcash protocol. It was produce using the Bitcoin codebase. In the past, Zooko Wilcox-O’Hearn worked on Digicash, Mojo Nation, and the Tahoe Least-Authority File Store filesystem.
He also co-invented the BLAKE3 cryptographic hash function.
Between 2016 and 2018, It released a series of upgrades called the “Sprout Series” with two core protocol upgrades, i.e., Overwinter and Sapling. It Foundation was launch in March 2017 with an initial endowment of 273,000 ZEC, release from the “Founders Reward.” The foundation organized the largest multi-party computation ceremony called the Powers of Tau Ceremony.
Bitcoin vs. Zcash
The following are the main distinctions between the two cryptocurrencies:
- Zcash, unlike Bitcoin, has a built-in zk-SNARKs privacy protocol. Monero, DASH, Horizen, and Verge are some of the other privacy-focused cryptocurrencies.
- The majority of cryptocurrencies, such as Bitcoin, are pseudonymous and come with addresses that can be traced back to the user’s identity. However, because Zcash transactions through zk-SNARKs are relayed through a private blockchain, the sender and receiver addresses, as well as the transaction amounts involved, are not disclosed.
- It has a 75-second block time compared to Bitcoin’s 10-minute block period.
Advantages and Criticism
The major advantages are:
- Low-rate transactions
- The anonymity of users’ transactions metadata.
- Selective disclosure of payment data to a third-party
- Transaction expiration
- Multi-signature transactions