Most blockchain projects in the world have similar ideas and applications. However, a few stand out from the crowd with several unique capabilities, one of which is Zcash. Have you ever heard of bitcoin privacy issues? So far, several digital currency critics have attacked the entire industry based on these security issues.
The digital currency community has also come up with solutions for applications that require more privacy. Zcash is a digital currency that prioritizes the confidentiality of its users’ information, and this is its most significant advantage.
If you want to know the future of ZEC and whether its value will grow or not, you can find the answers to many of your questions in this article.
The origins of Zcash are rooted in an old digital currency called Zerocoin, developed in the 1990s. Matthew D. Green, currently a professor at Johns Hopkins University, has created his digital currency Zcash.
He was a graduate student at the institute at the time. Zerocoin (or Zerocash) first used an advanced and new mathematical method called zero proof to perform blockchain transactions. This method ensures that the transaction contents remain anonymous, even if the transaction is publicly visible in a decentralized head office.
The transfer from Zerocoin to Zcash began when the team worked with Zooko Wilcox and his team at Least Authority company. The partnership was introduced in 2015, and in October 2016, the Zcash blockchain was ready for launch.
The Zcash team now consists of scientists, engineers, designers, and business professionals worldwide. Many of them include graduates of MIT, Johns Hopkins, and Tel Aviv University.
Zcash also has an independent foundation called the Zcash Foundation, which operates differently from the digital currency developers and aims to provide online payment infrastructure and privacy for the public.
What is Zcash?
Zcash is a digital currency based on the original Bitcoin code. Zcash considers itself a fair and open currency. Anyone can spend, send or receive Zcash, and everyone has equal access regardless of demographics.
Zcash is different from other digital currencies because of its protected transactions, allowing people to maintain their complete privacy. Zcash is decentralized across a vast area network, making it more secure and accessible.
To send or receive digital currencies, you need an address from which the transaction can be routed. And Zcash privacy depends on your address.
Transparent transactions with Zcash can exist, and everything goes back to the address in question. Some addresses start with a “t” – these are transparent addresses and are not protected. Addresses starting with “z” are protected. Protected addresses allow transactions to help protect privacy, while transparent addresses act like bitcoins because they show addresses and inventories.
Zcash transactions, on the other hand, still need to be transferred through a public blockchain. However, unlike pseudo-digital currencies, ZEC transactions do not show sending and receiving addresses or shipping amounts by default. However, there is an option to disclose this data for audit or regulatory purposes.
How does it work?
Zcash works by encrypting information in protected transactions. Because payment information is not visible due to encryption, the protocol relies on a new encryption method. Its name is zk-SNARK, a proven structure with zero knowledge.
The cryptographers behind Zcash created this document inspired by recent cryptographic advances. This system allows encryption, while zk-SNARKs prove that no one has stolen or cheated.
When using Zcash, the system is very similar to Bitcoin. The difference is that users can choose to encrypt or protect their information. Zcash supports transparent and secure addresses; you can send Zcash publicly or privately.
Payments can even be sent from a protected address to a transparent address or vice versa. In the first case, the received inventory is visible, while in the second case, it will be hidden.
As mentioned earlier, based on the wallet address, it is easy to tell if the address is transparent. If the address starts with “t,” it is fine and acts as a bitcoin. If it begins with “z,” it has privacy enhancements resulting from zero-knowledge proofs and is a protected address.
You can also use Zcash with multi-signature transactions, but these do not include enhanced privacy. Any transaction that performs on Bitcoin is also supported with Zcash.
Future of zec
Many experts are optimistic about the future of ZEC digital currency. In addition to its contributions to the industry, digital currency has won the trust of many investors. In general, two main reasons for the success of Zcashare stated in the future.
The first is the similarity of this digital currency to Bitcoin. According to many experts, the similarity between the economic practices of bitcoin and Zcash may mean that the cryptocurrency will be as valuable as bitcoin in the future.
Focusing on the security of transactions and keeping information confidential is one factor that guarantees the future of these cryptocurrencies.
Many users are looking to increase privacy and anonymity to buy Zcash in their trades or investments.