What is ZCash (ZEC)?
When a group of scientists decided to develop a cryptocurrency comparable to Bitcoin but with some extra features, ZCash was born in 2016. They created a fork on the Bitcoin blockchain that offers improved anonymity and security for users. The scientists’ original creation, Zerocoin, soon evolved into Zerocash shortly after it was first made available. The cryptocurrency was eventually rebranded as ZCash.
Recognizing ZCash (ZEC)
From the original Bitcoin codebase, ZCash split off. Alessandro Chiesa, Eli Ben-Sasson, Christina Garman, Matthew Green, Ian Miers, Eran Tromer, Madars Virza, and others thought there were security holes in the way transactions were tracked via the blockchain of Bitcoin in 2014. They dubbed their cryptocurrency Zerocash in the whitepaper that outlined their concepts.
In 2015, the scientists founded the Electric Coin Company, or Zerocoin. In 2016, the Electric Coin Company changed its name to Zcash.
ZCash verifies the parties to a transaction using the zk-SNARK security protocol, which prevents any information from being shared with the network or each other.
What distinguishes ZCash from Bitcoin?
Transparent transactions and anonymity are a point of pride for the Bitcoin community. On the other hand, the parties to a transaction could be located by anyone interested in it.
ZCash does not remove transaction data. Instead, it encrypts it to prevent tracking. The ZCash blockchain is still encrypted, but the security protocol zk-SNARK adds additional user security and anonymity.
Bitcoin uses the hashing algorithm SHA-256. ZCash uses Equihash, which is incompatible with hardware and software designed for Bitcoin mining. It also has larger blocks and increased hashing times, which increases the network’s hash rate. A cryptocurrency’s hash rate is the processing power of the network of miners—it’s a measure of how fast the transactions can be verified and validated to open a new block.
Joining a mining pool is one of the best ways to benefit from ZCash mining. Efficiency and opportunities to earn are increased when resources are pooled together.
Hashing is the process of converting data into a string of alphanumeric characters. The series of numbers is unique because it is created from the data in the block. Once hashed, it cannot be replicated. The hashing algorithm is the mathematical method used to develop the alphanumeric string, also called the hash.
Goals of ZCash
ZCash was designed to be efficient, safe, and anonymous. The developers behind ZCash also promote complying with regulatory requirements. Additionally, you can choose full transparency when you use ZCash, in which case its transparency is similar to that of Bitcoin when transfers are conducted.
How to Mine ZCash
Mining is the process that creates new coins. You can use an application-specific integrated circuit (ASIC) miner or your computer if it has a graphics card capable of mining. Operating systems supported by ZCash are Docker, Debian/Ubuntu, Mac, and other Linux flavors. However, ZCash recommends using an ASIC miner and mining pool because the network difficulty has gotten high enough that PC mining is not worth the time and costs. ZCash uses a proof-of-work mining algorithm, which requires miners to compete against each other to produce a new block by racing to solve the hash. The first miner to find the solution opens a new block and receives the block reward.
How many ZCash are left?
ZCash has a maximum supply of 21 million coins, with 14.6 million in circulation. Once there are 21 million ZCash in circulation, no more can be mined, and you’ll only be able to acquire them by purchasing them on an exchange or from an individual.
Is ZCash safe?
ZCash is safe in the sense that it hides and protects your information.
Does ZCash use proof of work?
It uses Equihash, a proof-of-work mining algorithm based on the generalized birthday problem concept.
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Conclusion
- ZCash is a Bitcoin fork with a different hashing algorithm and security protocols.
- ZCash was originally known as Zerocash before the Electric Coin Company improved it and changed the name.
- ZCash verifies ownership of coins and transactions more anonymously than Bitcoin, thus providing more security for users.
- Zcoin can be mined on devices and computers, but the currency is best mined on dedicated systems called application-specific integrated circuits.
