In a world where personal information, interests and activities of users are easily tracked and documented, it is not surprising that projects that allow remain anonymous They are much more popular. The Zcash network is one of the leading blockchains whose main purpose is Restoring the power and privacy of users Is. Before the development of the Zcash network, the structure of cryptocurrencies was such that information about transactions, sender and recipient addresses were recorded in the blockchain and other users could see it. This issue means a lack of privacy for many traders, and ZCash has provided an effective solution to this problem using the ZKPproof algorithm. In this blockchain, great importance is given to the privacy of traders and the control of transaction details is in the hands of users.
Considering the importance of transaction privacy, in this article we introduce the ZCash project, its goals and applications. We also provide a short prediction of the future of this controversial project. Join Valex.
Introducing the Zcash network
ZCash’s infrastructure technology has made it one of the pioneers of privacy. This network uses the zero-knowledge proof algorithm or ZKPproof to protect transactions and privatize its details on the public blockchain. Using their revolutionary protocol, the ZCash developer team has created the ability to complete a transaction without disclosing the address of the sender’s and recipient’s wallets. This protocol even hides the amount of money transferred and only stores the information related to the date and time of the transaction in this platform.
In general, the ZCash network is an optional private platform, which means that if users want, transactions are done anonymously and privately.
At first, this protocol was known as ZeroCoin and later its name was changed to Zcash. This protocol is basically a Bitcoin fork and was introduced to the cryptocurrency world in October 2016. The native cryptocurrency of this network is ZEC digital currency, which is a peer-to-peer electronic currency like Bitcoin. Also, its supply is limited to 21 million units. Interestingly, all common points between these two cryptocurrencies end here.
What is the purpose of building the Zcash network?
The ZCash network was created with the aim of solving the problems of Bitcoin. Even now, due to its competitive advantages, it has been able to maintain its popularity among users. A zero security layer, which is placed in the highest parts of the ZCash block, increases its performance. This layer makes the support semi-transparent.
ZCash has made advances in cryptography to its users The possibility of anonymity in making transactions provide Although many blockchains have been created to date with the aim of increasing privacy, the ZCash project is different from all of them. The purpose of building the ZCash network can be explained with a simple example. For example, after the transaction, data such as the date and time of the transaction can be tracked, but the name of the person doing the transaction is not displayed. In this situation, both sides of the transaction can use the benefits of information secrecy, that is why the possibility of abuse in ZCash is very low.
Review of ZCash blockchain features
This network is one of the unique and new innovations of the blockchain ecosystem, and like all networks, it has unique features that distinguish it from its competitors. The attractive features of ZCash are:
high security
One of the most prominent features of the ZCash network is the high security it provides to users. In fact, this platform has considered one more layer of security than Bitcoin. Also, the privacy of transactions makes it more secure than many similar networks. This increases the security and privacy of users.
Advanced technologies
The Zcash network has used various technologies and technologies in its blockchain platform, all of which make it more efficient. The combination of these technologies has made this project and its structure more aligned with developments in the blockchain field than before. Also, these innovations make the ZCash network more compatible with the needs of users.
Token economy
Like Bitcoin, this platform has limited the number of tokens to 21 million units. Of course, the amount of reward for blocks in this network is different, which makes this token rare in the market. This issue, along with its high demand, has caused the price of ZEC digital currency to grow more. The important point in the token economy is the lack of offering tokens in the initial offering. Many projects sell a large portion of their tokens in an IPO to raise more capital. Ultimately, this will lead to an imbalance in the market, but ZCash has not done such an action. This prevents unwanted fluctuations in the market.
High credit
The project has a well-defined history and its founders and advisors are introduced on the official website. In addition, an officially registered company is responsible for the development of ZCash.
Privacy protection
This network can hide the wallet address and transactions of its users, thus preventing the disclosure of the source and destination addresses. Such a solution brings a lot of confidence to users. This feature has caused a large number of large traders to use the ZCash network to carry out their transactions.
Optimal infrastructure
ZCash has provided many facilities and capabilities for the development and development of blockchain. For example, it has provided several different types of digital wallets for the cryptocurrencies of this network, which are suitable for different operating systems.
High speed
The speed of verifying transactions in the Zcash network is about 4 times faster than that of Bitcoin. Although this seemed pretty good at the time, much faster networks are now being built that can process thousands of transactions per second. But since ZCash was created based on Bitcoin codes, it can be said that this speed increase is a bonus.
Introducing the creator and development team of the ZCash network
The ZCash network was created by Zooko Wilcox. He has an extensive background in cryptography, decentralized systems, and other technology-oriented companies. Among his most significant work activities, we can mention his work in Digicash, Mojo Nation and BLAKE2. Other members of this team are great engineers and consultants. These people are professors and faculty members of prestigious universities such as MIT, UC Berkeley and John Hopkins University.
Apart from the powerful and active team of ZCash project, there are unique consultants along this path. Among the most prominent of these people are people like Barry Silbert, Erik Voorhees and Roger Ver.
ZCash future plans
The creator of the Zcash network recently announced that it is looking to transform the energy-based mechanism of “Proof of Work” into an environmentally friendly “Proof of Stake” mechanism. Proof-of-stake nodes can deposit assets as collateral. If they do it illegally, they are at risk of confiscation. According to the creator of this project, proof of stake is lighter, safer and cheaper. ZCash has the potential to significantly minimize the carbon footprint of crypto.
The founder of ZCash stated in an interview that proof of stake has already been tested in successful projects such as Algorand, Tezos and Cardano.
Advantages and capabilities of the Zcash network
The main advantages of ZCash blockchain are:
- Low transaction rates
- Privacy and anonymity of user transactions
- The possibility of disclosing information if needed
- The possibility of expiration of transactions
- Multi-signature transactions
Limitations of the Zcash network
The main problem with ZCash blockchain is that it can be a safe haven for hackers and cybercriminals. Although the project’s creator claims there are several legitimate uses for Zcash. For example, a user with a chronic illness may want to purchase their medication anonymously. Some businesses want to protect their trade secrets or proprietary information from competitors.
Among other risks of this network is the possibility of performing the traffic analysis process. This means that if someone uses a transparent address, the privacy of other people may be at risk. The reason is that the transactions made with “Z-Address” can be seen by other people. For example, let’s say you sent about 5 ZEC to a protected address and then you send 8 ZEC to a public address. Other users can communicate between these two transactions and learn about your information.
Introducing ZEC digital currency
The ZEC token is used as a native cryptocurrency of the ZCash network. This digital currency was created on a decentralized blockchain platform, and people who use this currency will have anonymous accounts. This priocoin, like Bitcoin, has a mining limit of 21 million and its smallest unit is called Zatoshi, which is one hundred millionth or 0.00000001. Currently (February 2023), ZEC digital currency is ranked 62nd in the market with a price of about 46 dollars and a market value of 759 million dollars.
ZEC digital currency to maintain the security of its blockchain from the proof-of-work algorithm (PoW) and the hash function “SHA-256” is used. This function is part of the “SHA-2” set of algorithms that is also used by Bitcoin. Currently, prominent exchanges such as Binance, OKX, Hobby and CoinTiger support this digital currency.
The futuristic project of Zee Cash
Protecting the privacy of traders is one of the major goals of the ZCash project. Meanwhile, some crypto experts believe that this issue is like a double-edged sword. Some profit-seeking people can abuse this feature and start actions such as money laundering. Since ZCash cannot replace Bitcoin, it cannot grow very much.
In this article, we reviewed the ZCash project and ZEC digital currency. What do you think about this network? Can it transact anonymously as it claims? Share your comments with other users.
What is written by ZKash? Introducing the Zcash network and ZEC digital currency for the first time on Wallex blog. appeared.
