Sunday, December 26, 2021

ZCash – Pioneer in Anonymity on the Blockchain

What is ZCash?

Zcash is a decentralized cryptocurrency started as a Bitcoin fork by Zooko Wilcox-O’Hearn and his team in 2016. It is based on the Zerocash protocol developed by American and Israeli scientists and aims to provide enhanced privacy for its users compared to other cryptocurrencies such as Bitcoin.

Strong Privacy Features

Two types of addresses are used for transactions in Zcash: a “t-address,” which is “transparent” and similar to a Bitcoin address, and a “z-address,” which is fully private and allows its users to shield a transaction from being visible to third parties in the blockchain. The latter is achieved by implementing zk-SNARKs, a protocol that uses non-interactive zero-knowledge proofs. It allows one party to prove to another that a certain statement is true without revealing any information besides whether the statement is valid or not. This protocol ensures that the transaction’s contents remain anonymous even though it is publicly visible on a decentralized ledger.

Stanslavs ZCash 1
ZCash – Pioneer in Anonymity on the Blockchain 3

ZCash vs Bitcoin

Not only does ZCash have superior security features, it also puts an emphasis on having a Proof-of-work (PoW) system that wouldn’t benefit ASIC miners equipped with cost-effective custom hardware. Instead, ZCash uses Equihash, a memory-oriented protocol with very efficient verification. This brings it much closer to Satoshi Nakamoto’s original idea of “one-CPU-one-vote”. At the same time, similar to Bitcoin, ZCash has had a great impact on the industry in general, with many projects employing the same or similar implementation of zk-SNARKs in their own cryptocurrencies, such as Komodo, Bitcoin Private, and even Tron.

Where to store ZCash?

Choosing a good wallet for storing cryptocurrencies is the best way to secure digital assets. Magnum Wallet lets you manage your ZEC in a user-friendly interface with a built-in exchange. Your data is kept safe in the Magnum Wallet, as no one but you has access to your private keys, and no personal information is collected in the process.

Leave a Comment