Zcash payments are published in a public blockchain, though the details of the sender, recipient, and transaction amount remain private.
The cryptocurrency is based on a peer-reviewed cryptographic research. It was specially-designed on an open source platform based on a Bitcoin tested code.
Similar to Bitcoin, Zcash total coin supply is 21 million. Unlike recent altcoins, Zcash did not have an ICO. The currency’s distribution works through mining. Every 2.5 minutes a Zcash block creates 12.5 new ZECs (the symbol for Zcash), which adds 50 new coins every 10 minutes.
Zcash was launched in October 2016. The founder – Zooko Wilcox has served as CEO of both Zcash and the Zerocoin Electric Coin Company, which created the Zerocoin protocol.
Zcash improvement over Bitcoin is the extra privacy it offers. It uses the ZK-SNARKS network or proof of construction to maintain a secure ledger of balances without disclosing transaction details.
How to buy Zcash
There are three stages involved in buying Zcash. They are:
- Get a Wallet – This is the first step. You can download a desktop application for mac or windows. Ensure you secure it since losing it will allow anyone with a key to control your portfolio
- Zcash exchange – Sign up and get verified on an exchange such as Kraken where you can buy Zcash. Once you fund your account, you can begin trading in ZEC
- Withdraw cash – This takes place on the Kraken ‘Withdraw’ tab. Within minutes Kraken will send out your Zcash to your secured address.
Additional platforms for buying Zcash include instant exchanges such as Shapeshift and Changelly.
Here are several benefits of using Zcash.
Fast and easy payment – This is made possible as users don’t need any identification document, credit card or address of the sender or recipient. Transactions take a few seconds to process and this is ideal for a fast-paced lifestyle.
Security – The use of military-level cryptography guarantees the security of transactions. Only the holder of the wallet can authorize transactions.
Low fees – Unlike payment processing companies and banks, Zcash does not charge users any transaction fees. The crypto network compensates miners.
Fraud – Unlike credit cards which are prone to fraud, the digital nature of Zcash helps prevent counterfeiting and transaction reversals.
Immediate settlement – When buying real property, you don’t need third-party approvals in Zcash.
Mutual exposure – Both players gain from the arrangement when they sign on with a vendor.
International use – Banks and credit cards international reach is limited. Government rules, international transaction fees, interest rates or exchange rates do not bind Zcash.
Customer privacy – Zcash transactions do not contain personal information, and this promotes customer anonymity.
Zcash has to contend with limitations similar to other cryptocurrencies. They include:
Losing your wallet – Users cannot recover digital currencies stored in the system or a mobile wallet that gets misplaced. You can’t even file a complaint with the police.
Acceptance – Few companies and websites accept payment in cryptocurrencies.
Irreversible payment – Since Zcash lacks a central processing point, erroneous transfers cannot be reversed or refunded. There’s no option for dispute.
Cryptocurrencies such as Zcash are still a long way from replacing conventional currencies and payment methods. Since it’s still in its infancy stage, Zcash will need time and exposure to the global financial system before the masses can actively carry out transactions with the cryptocurrency.