What are the characteristics of Zcash?
Zcash is a decentralized cryptocurrency, which means that there is no centrail point in the network on which it would depend. The main purpose of this cryptocurrency is to facilitate fast and cheap transactions – that is, it has the ambition to serve as a payment tool.
One of the interesting features of Zcash is the ability of a user to choose whether the transaction will be „transparent“ (in which case you send it to an address displayed in the blockchain, which is de facto the same principle that is used by the most prominent cryptocurrency – Bitcoin) or whether it will be anonymous, which means that you will send it to an address with a parameter that will ensure the transaction’s anonymity – this is where Zcash differs from Bitcoin. Even if you send an anonymous transaction, you as the user have the option to make certain information about it accessible if you wish so. If you don’t, it will remain anonymous. This function of Zcash which focuses on ensuring user and transaction anonymity makes it similar to the Monero cryptocurrency which also focuses on protecting the privacy of its users.
History of Zcash
The Zcash cryptocurrency was built on the basis of the Zerocash protocol, which was created at the end of 2013. Originally, this protocol was intended for implementation into Bitcoin so that completely anonymous transactions could be sent. However, the implementation into Bitcoin did not take place, which is why the developers decided to create a brand new cryptocurrency which they named Zerocoin. It represented a de facto hard fork of Bitcoin. The developers worked together with cryptographers at MIT and at the university of Tel Aviv (this cooperation is reflected in the scientific approach used in the development of this currency as well) and the cryptocurrency was renamed Zerocash. In 2015, first information about Zcash emerged. Officially, Zcash began operating on October 28, 2016. An interesting fact in its history is that the creation of this cryptocurrency was made possible by a group of investors who donated nearly a million dollars to its development. These investors receive the so-called founder´s reward, which constitutes 20% of mined coins for the duration of 4 years. At the same time, this reward ensures high interest in the development of this cryptocurrency from these investors.
Zcash is currently one of the most popular cryptocurrencies suitable for mining. It is based on the so-called proof-of-work, which means that transactions are verified by using the computing power of „miners“. This power also ensures that no one can rewrite the transaction history in retrospect. Miners receive a share of transaction fees and also mine new coins based on a pre-determined timetable. The algorithm Equihash is used for mining. The reward for mining a block is 12.5 ZEC (20% goes to the investors as a founder´reward during the first four years). After this, the miners will keep 100% of the reward for mined coins. The size of the reward is cut in half every four years, similarly to Bitcoin.
Number of Zcash coins
The total number of Zcash coins is 21,000,000 (the same as Bitcoin, since Zcash is Bitcoin’s fork). The cryptocurrency’s symbol ZEC. At present, approximately 7,600,000 coins are in circulation. They should be completely mined around the year 2032. The coin is divisible into a maximum of 8 decimal places, which means that you can purchase, for example, 6.5 ZEC. The transaction fee is 0,0001 ZEC, which is a very low amount.
All time high – 5 941,80 USD (29th of October 2016).
You can use the cryptocurrency exchange Binance which allows you to purchase by exchanging for example Bitcoin for Zcash. Binance allows purchase of cryptocurrencies (e. g. Bitcoin) up to 2,500 USD without identity verification.
Zcash is fully supported by all available cryptocurrencies wallets.