Zcash is a cryptocurrency which promises the anonymity and privacy that Bitcoin seems to lack. To do this, Zcash allows users to prove that they have the money they are sending, without having to disclose their identity or the amount of money they are transferring.
As explained on their website, “transactions with Zcash automatically hide the sender, the recipient, and the value of all transactions in the blockchain.” However, although users have full control to see this information under the use of their password, they also have the possibility of delivering, if they believe it appropriate, a key to some users so that they can access this information on their side as well
To do this, it will use the protocols known as zero-knowledge proofs, a cryptographic protocol which allows revealing only the veracity of a statement, in this case, that the user has the available balance to perform the transaction. How To Make Money Trading Currencies – Forex by using cryptocurrencies- the forex has provided a guideway solution to this problem.
The Zcash concept was born in an academic paper published in 2014 by researchers from the Massachusetts Institute of Technology (MIT), Johns Hopkins University, and the Israel Technion and Tel Aviv University. Zcash technology has been developed by the Zcash Electric Coin Company, which has received an investment so far of $ 11 million from Pantera Capital, Digital Currency Group, Fenbushi Capital, London Trust Media, among other investors.
Like Bitcoin, Zcash is open source, and also the registration of Zcash transactions is done in a public blockchain.
The monetary base of Zcash is limited to 21 million units (ZEC), undermined over time. At first, 50 ZECs were created every 10 minutes. 80% went to the miners, and the remaining 20% was what they called the “reward for founders”, that is, it went to the shareholders of the company (founders, investors, employees and advisers) who, in turn, have committed to allocating a percentage to the Zcash Foundation.
Also in the same way that happens with Bitcoin, the creation of new currencies will decrease by half every four years, in what is known as “halving”. So that after four years, the mining reward will go from 25 ZEC, then to 12.5 ZEC, and so on … until the 21 million coins have been mined entirely. There are many issues raised based on the security and safety of the bitcoins and this is the reason why other form of cryptocurrencies are introduced.
In any case, from the first halving, the total of the reward will go to the miners of the crypto coin, that is, the “reward for founders” will no longer exist. This means that the “reward for founders” will amount to 10% of the total number of currencies (i.e., ZEC 2.1 million) for the first four years.
Zcash: Bitcoin’s variant to preserve privacy
The “Bitcoin option to protect privacy” project, as they are defined, is led by its founder and CEO, Zooko Wilcox, an American computer security expert and also chief executive officer of Least Authority, an encrypted file storage provider.
According to Wilcox, Zcash’s privacy can make it a perfect candidate over other crypto currencies for financial institutions and companies “who need privacy to run their businesses”, as well as for individual users because, as they point out, “personal privacy is necessary for fundamental human values such as dignity, intimacy and morality.