What is the difference between ZCash and Bitcoin?
Bitcoin and most cryptocurrencies expose your entire payment history to the public. Zcash is the first open, permissionless cryptocurrency that can fully protect the privacy of transactions using zero-knowledge cryptography. Shielded transactions hide the sender, recipient, and value on the blockchain. It is good to keep your bank statements private and there are many arguments for having the ability to mask your transactions, but ultimately this is up to the individual and their personal circumstances.
Why is ZCash a more secure alternative to Bitcoin?
From the outset ZCash was created around the concept of a zero proof network consensus mechanism. Zcash encrypts the contents of shielded transactions. Since the payment information is encrypted, the protocol uses a novel cryptographic method to verify their validity.
Zcash uses a zero-knowledge proof construction called a zk-SNARK, developed by a team of experienced cryptographers based on recent breakthroughs in cryptography. These constructions allow the network to maintain a secure ledger of balances without disclosing the parties or amounts involved. Instead of publicly demonstrating spend-authority and transaction values, the transaction metadata is encrypted and zk-SNARKs are used to prove that nobody is cheating or stealing.
Zcash also enables users to send public payments, which work similarly to Bitcoin. With the support for both shielded and transparent addresses, users can choose to send Zcash privately or publicly. Zcash payments sent from a shielded address to a transparent address reveal the received balance, while payments from a transparent address to a shielded address protect the receiving value.
When did the ZCash project come into life?
Whilst originally The Zerocoin Electric Coin Company was registered as a private company in 2016, The software is completely open source and transparency is a key building block of their infrastructure.
Since Zcash is an open-source protocol, the Zcash Company (ZcashCo) does not control it (including controlling the mining or distribution of it) or have special access to private or shielded transactions. Just like anyone else, ZcashCo only has the ability to see a private or shielded transaction if it is a party to that transaction or someone provides it with the correct view key.
ZcashCo’s role in the ecosystem is to offer updates to the Zcash protocol which the public may choose to implement or ignore. ZcashCo does not sell, exchange, transmit, or retain custody of Zcash for consumers or the public at large. In addition to ZcashCo, the Zcash Foundation was launched in March of 2017 to guide the evolution of Zcash.
Should I trade or mine ZCash?
Mining ZCash and trading Zcash is completely different from Bitcoin mining and trading. The markets for both are not saturated by far and mining ZCash at home for profit is easily achievable with the right equipment, thanks to the ASIC proof architecture of the ZCash protocol.
“Balance is always a good thing…”
The general consensus seems to be that most traders tend to mine ZCash and then trade between different cryptocurrencies to make up additional profits, whilst finally converting into BTC in order to improve the stability of the assets they hold or to service invoices for their mining operations through BTC, seeing as more FIAT processors accept BTC using cryptocurrency processors such as Merkeleon do.