Opinions

Understanding Zcash & The Future of Cryptocurrency

With the introduction of cryptocurrency, the entire world has been on the move to create total anonymity. As much as cryptocurrency began as a platform for a decentralized currency, users were still driven by the anonymity factors. Most of the cryptocurrency available in the market right now promise that they will provide uttermost anonymity but only a few have proven to do so. Zcash cryptocurrency has over the years emerged one of the best in this sector.

In this article, we will discuss in detail the history of the Zcash crypto coin. In addition, we will talk about any relevant information aimed at giving you a better understanding of the coin.

History of Zcash

Most of the new cryptocurrencies emerge from forks of other existing cryptocurrency. This usually helps the new crypto have a building block hence a better foundation. As with any type of building, the foundation is where you need to put more emphasis on. Zcash is no exception. The crypto was forked from Bitcoin. The launch of this coin was on October 2016 with the name Zero-Coin.

Due to Zcash having its team focus on providing complete anonymity to its users, the crypto coin gained its fame among users. It provides a two-way protective shield protocol that protects the receiver’s information, sender’s information and the amount that is being transacted between the two parties. This in turn enhances the anonymity aspect of the crypto. The currency is an open source crypto coin that uses zk-SNARK. This is a new protocol that ensures anonymity, privacy and fungibility in the Zcash platform

However, the anonymity feature in this cryptocurrency is not installed by default since the platform also has a transparent functionality which is similar to that of Bitcoin. Therefore, the users have a chance to choose the anonymity feature or not. It is all totally controlled by the users. The setting is not a mandatory feature hence if you don’t choose the anonymity feature; your transactions will be open to any keen eye.

The Zcash crypto was an improvement on the privacy of Bitcoin. It was developed by the Zero-Coin Electric company referred to as Zcash company. The CEO of the company is Zooko Wilcox-O’ Hearn. Another member of who helped improve the crypto is Matthew D. Green.

What is of Zcash?

The Zcash can be defined as a peer to peer cryptocurrency that solely focuses in providing its users with anonymous, private and fungible transactions. Fungibility is the smoothness of substituting one commodity for another which is very crucial in the cryptocurrency realm. Therefore, while other cryptocurrencies have an open ledger system, Zcash has an encrypted ledger system. Meaning that even though the blockchains have records of the transactions made, they can only be viewed by authorized members. This contributes to the overall security of the cryptocurrency and its users.

Anonymity has always been an issue with opponents arguing that it is only necessary if you are planning to conduct illegal business. The reality is that anonymity is very important especially in financial projects. Let’s say for example everyone in your life was publicly given the opportunity to see your bank statements and how you spend your money. Your rivals will take that to their advantage and use it to bring you down. This proves that anonymity is more important than we care to admit.

Trading with Zcash

The crypto coin has about 21 million coins in circulation. By 2032, the company expects that all the 21 million coins will be mined. The reward system is made in such a way that it’s cut into half after every 4 years. The Zcash cryptocurrency is a little different compared to other cryptocurrencies. This is because the coin was not ICO funded or pre mined which is the routine in other coins. Instead the cryptocurrency follows a different distribution and funding approach.

The coin started with a few investors who funded the coin with about one million dollars that was to kick off the coin’s operations. In return, the initial investors are promised about 10% of the total reward in supply which is expected to increase in the next four years.

Some of the first investors of Zcash include:

  • Roger Ver
  • Erick Voorhees
  • Barry Silbert
  • Naval Ravikant

The total amount of Zcash in circulation is about 2,294531 which is currently at the price of $288 at the writing if this article. Therefore, the market cap is about $662 million.

Buying Zcash in the Local Markets

Since Zcash is an altcoin, it can be hard to exchange the currency with a fiat currency. Hence it is always advised you exchange the currency with another cryptocurrency. For example, you can exchange Zcash with LTC, BTC or Ethereum on all the major crypto exchanges including Cex, Binance, Bitfinex, Kraken and Bittrex. When you decide to purchase these cryptocurrency, you will obviously need a wallet that can hold the crypto. Think of it like a private bank dedicated to serving you.

Before trying to trade, it is always a good idea to read the white paper of the currency just to get a better understanding of where you are planning to bank your investment. Be sure to get a clear picture of the ins and outs of the currency. Here are a few wallets you can opt for:

  • Mobile wallets include Jaxx and Coinomi which is supported by android devices hence you can put it in your smartphone
  • Browser wallets include Jaxx
  • Desktop wallets Jaxx which can be installed offline hence increased safety of your cryptocurrency
  • Hardware wallets Ledger Nano S or Trezor

The Future of Zcash

Well, the future is something that is quite unpredictable especially in the world of cryptocurrency. This currency has a couple of controversies that the developers should deal with for them to reap better fruits. For example, the Zcash transactions require at least 8 GB RAM along with other requirements just to transact with this currency. This may prove to be a challenge especially to the day to day users.

All in all, this can be a good investment opportunity for those cryptocurrency enthusiasts. I hope with the above descriptions; you now have a better understanding of Zcash.

Tags

Collins Valentin

Collins is a blockchain enthusiast, who spends his time between documenting the blockchain revolution in Africa, and writing the latest on the cryptocurrency space. Collins contributes guests posts to BlockPublisher. Email: editor.news@blockpublisher.com

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.