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Zcash

Zcash is a decentralized peer-to-peer cryptocurrency using cryptography to provide enhanced privacy for its users. It is a fork of Bitcoin blockchain announced on October 28, 2016 by Zooko...

Written by Wallebi Author · 1 min read >
Zcash

Zcash is a decentralized peer-to-peer cryptocurrency using cryptography to provide enhanced privacy for its users. It is a fork of Bitcoin blockchain announced on October 28, 2016 by Zooko Wilcox. Like Bitcoin, Zcash also has a fixed total supply of 21 million units.

At first it was calling Zerocoin. Then after, transformed into Zerocash and then finally named Zcash.

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What is Zcash?

Zcash is a privacy-focused blockchain and cryptocurrency. It developed to solve the problems which Bitcoin had. Although it’s using the same algorithm as Bitcoin, user transaction data on this network  revealed selectively. Zcash uses zero-knowledge proof which is easy to verify. It enables the transaction to occur without actually revealing its content. It fulfills the requirements of Bitcoin such as, the coin has not spent previously, authorization for senders and input equal to output, without sacrificing anonymity. Another important property of Zcash, which is impossible in public blockchains, is that all parties within a transacting system treat Zcash tokens as equal, irrespective of transaction history.

What is zero-knowledge proof?

Zero-knowledge proof concept developed by a group of researchers at MIT university in the 1980s. Zero-knowledge techniques are mathematical methods uses to verify things without sharing or revealing underlying data.

For instance, imagine a payment app checking whether you have enough money in your bank account to complete a transaction without finding out anything else about your balance. In this way, zero-knowledge proofs can help broker all sorts of sensitive agreements, transactions and interactions in a more private and secure way.

Zero-knowledge protocols are probabilistic assessments, which means they don’t prove something with the complete certainty that simply revealing it would. Instead, they provide small pieces of unlinkable information that can accumulate to show that the validity of an assertion is overwhelmingly probable.

Zcash Coin Distribution

As we mentioned before, Zcash is a fork of Bitcoin and as result they have some similarities. Like Bitcoin, it has a 21 million coins maximum supply and it’s expected that they are all mined by 2032. Furthermore, the block reward halves every four years to keep the supply in check. Unlike most of other coins, Zcash wasn’t pre-mined and also didn’t rise fund in ICO. Instead, it had a group of closed investors who funded who funded then with $1 million to kickstart their development. Some of these investors were notable names such as Barry Silbert, Erik Voorhes, Roger Ver, and Naval Ravikant.

Written by Wallebi Author
Author and analyst in the field of cryptocurrency Profile

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