The 3 Most Important Things About ZCash

When it comes to cryptocurrencies, the big players that everyone hears about their crypto trading 101 courses are Bitcoin, Litecoin, Ethereum and Ripple to name just a few. Of course, each cryptocurrency is different and they all have their pros and cons, but one of the most significant problems with Bitcoin is the topic of privacy.

The whole concept behind Bitcoin is that all transactions are made on a publicly available and fully transparent blockchain. This idea has plenty of merit and benefits but fundamentally undermines the concept of privacy. In a world where a vast majority are rather private when it comes to their finances, a fully transparent blockchain is not exactly what they might be looking for. ZCash has some solutions.

• 1) What is ZCash?

ZCash is a cryptocurrency focused on bridging the flaws that come with Bitcoin. It’s main focus is the user’s privacy but uses the same algorithm and system as Bitcoin. ZCash has lower levels of transparency when compared to Bitcoin and user data is revealed selectively.

The currency’s roots lie in Zerocoin. Zerocoin was the brainchild of Matthew Green – all the way back in the 1980s. He came up with a concept called zero-knowledge proofs to conduct blockchain transfers. The idea was that a transaction would be visible on the blockchain ledger but the contents of the transaction would remain encrypted and only viewable by the sending and receiving parties. The original Zerocoin had a variety of limitations, but the concept itself was very valid.

ZCash is based on the idea but executed differently and updated to modern standards. It behaves a lot more like current physical currency when compared to Bitcoin.

• 2) How is ZCash Applied?

Another big problem with the transparent nature of Bitcoin is the transaction of private or classified data, which banks and other financial institutions deal with on a daily basis, given that the entire system is built on privacy and secrecy. That secrecy is needed of course, as transparent information would make abuse far too easy.

ZCash can be applied here too. The company behind it has a new type of ledger technology dubbed “zero-knowledge security layer” which can be used on top of currently existing blockchains to make use of both the asset as well as ZCash’s privacy benefits. Recent news have shown one of the big financial players, JPMorgan Inc., sign a deal with ZCash to use its technology in a new product of its own. So there’s definitely merit to the idea of ZCash’s take on privacy.

• 3) How well is ZCash doing?

ZCash first token was mined at the end of October in 2016. The currency has been around since then and has been available for trading since that day. ZCash is listed on all the major cryptocurrency exchanges. ZCash’s financial performance has been interesting as it launched at a staggering price well above $4,000. This quickly lowered down by a huge amount: ZCash was worth barely $49 within two months after launch.

Since then, the currency has grown and recovered quite a lot. It reached close to $900 at the start of 2018 but has been declining since, as has the general majority of the altcoin market.

Despite that, the future seems rather bright for ZCash. Its investors are very optimistic in the growth of the currency, especially given the currency’s focus on privacy which is becoming more and more of a luxury these days. There will likely come a time when more and more businesses have to adapt to cryptocurrencies and adopt using them too, which is when ZCash will shine.