Zcash (ZEC) is a popular crypto currency like other crypto which we have already talk about in other previous articles. If you haven’t read them, then you can check these here.
- Best Cryptocurrency to Invest in 2018
- What is Ethereum?
- How Bitcoin Works
- Why LiteCoin is a better than Bitcoin for Investment?
- Read the three Golden Rules before you go to buy a Bitcoin Wallet
What is ZCash?
All of us knows about Bitcoin, so we are going to talk all things in reference of bitcoin. Bitcoin is a decentralised blockchain where the parties involved in transaction stays anonymous. But do you if you know someone’s bitcoin address , you can follow their transactions & all those addresses where a transaction is involved. This will provide you the details of money. Your money can be tracked soon or later. All the information in ZCash is encrypted.
Here comes the ZCash
ZCash uses zk-snark(proof of construction) to secure the whole network. Using this the network maintains a ledger for balance in a secure way without revealing the identity of parties which are involved in transactions.
This happens through the use of zero knowledge proofs – or basically where the person making the transaction has the ability to spend the ZEC and that the values balance and they haven’t been spent before.
In Bitcoin network, a single node keeps the balance of what is kept by each address in UXTO (Unspent transactions output database). To unlock the output, each transaction is verified.
Origin of Zcash
ZCash was launched in 2016 in the month of October. ZCash has been released after hard work done by the developers team. The main pillars for the establishment of ZCash are Roger Ver, Barry Seibert and Pantera Capital.
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The codes are open source which is unusual in other cryptos. The company is run by a cryptographer i.e. Zooko Wilcox who is 41 years old. He gave 10% coins for funding cots & 1% to the non profit organization.
The total coin supply of ZCash is 21 million same like bitcoin. The issuance rate is also same as bitcoin i.e. 21m ZEC issued in over 131 years but instead it has 10 minute blocks. ZCash will have 2.5 minute block average with four times block rewards that half every four years.
Distribution & Funding of ZCash
ZCash has faced a lot of controversy in the method of distribution of crypto. This organisation is not open source but the company is open source.
One more difference in ZCash & other cryptos are to reward investors & workers in the company which is which are called mining rewards or or Founders reward.
ZCash has taken a different approach & took money from the investors in the company to create a crypto currency before they released it. As you mine Z currency , the first 4% is given to the company by 20%. This is thought a control by company to enrich themselves unfairly.
This was made to get funding for the company in research & development which is a long term planning in the welfare of the company. They never disclose the information for the cash flow between the company, employees & investors.
How to Mine ZCash ?
ZCash uses Equihash hashing algo. This is an asymmetric memory-hard PoW algorithm based on the generalized birthday problem. It works on high RAM requirements to bottleneck the generation of proofs and making ASIC development unfeasible, much like Ethereum. In order to avoid Instamine ZCash will have a slow mining start, where block rewards will be issued slower than normal.
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