The popular Zcash virtual currency is actually a fork of bitcoin’s protocol. Coming in as a fork, it now has the extra addition of a privacy layer through a cryptographic proof known as zk-SNARKs.
The zk-SNARKs is an acronym that actually stands for Zero-Knowledge Succinct Non-Interactive Argument of Knowledge.
With the aid of zk-SNARKs, Zcash is capable of verifying transactions on the Blockchain without the need to reveal their origins, amounts being transferred, and destination.
Although its technical details are really difficult, zk-SNARKs is a mathematical proof that enables a prover to actually prove the genuineness of a statement to a verifier without letting others know any specific data about the statement other than the authenticity of the same statement.
Specifics Of Zcash As A Privacy Coin
Some of the specifics and technology or how Zcash works as a privacy coin includes:
Differing from Monero, Zcash has about two types of addresses, which includes private and transparent. The transparent wallet addresses begin with a “t” while the private wallet addresses begin with a “z.”
Since fungibility does not make use of the knowledge of former monetary history and just the transaction between two z addresses, this can be said to be fungible.
Have it in mind that, moving Zec from a “t” address can be used as a shielding approach to erase the monetary history of the ZEC.
Now, ZEC can be fungible since it has been shifted to a private wallet. All in all, Zcash can be taken to be a semi-fungible virtual currency.
Zcash did not have either a pre-mine or an ICO. Founders of Zcash created a profit corporation known as Zerocoin Electric Coin Company, and it received roughly one million dollars of startups fund from a certain group of private investors.
In a bid for the corporation’s investors to recoup their investment, Zcash has created an in-built founders reward which actively distributed about twenty percent of the mining rewards to its founders within four years.
Ever since Zcash has been developed by a for-profit corporation and it has gotten significant criticism, it has all being in regards to the centralized corporate design.
Always bear in mind that Zcash is a fork of Bitcoin and it also makes use of a very different Proof of work; PoW consensus algorithm known as Equihash.
At the early quarters of this year, an Equihash compatible ASIC miner was made known to the public by Bitmain. This has helped in opening up Zcash’s future to miner centralization that is practically the same as bitcoin.
Also, Zcash reacted with the simple intention to carry out a full investigation on the prospective effect of ASIC mining on its network
Zcash is known to be currently rated as the twenty-second virtual currency and has a market cap of $448 million.