Zcash price

Cryptocurrencies are frequently chosen over fiat currencies by users seeking to safeguard their privacy. Centralized authorities can monitor online transactions and access users' data, which has led to concerns among individuals. In response to this issue, cryptocurrencies have emerged as a solution.

Cryptocurrencies provide a higher level of privacy and anonymity compared to traditional financial institutions. Among the primary cryptocurrencies that prioritize user privacy is Zcash (ZEC). Zcash utilizes advanced cryptographic techniques to protect user identities and transaction details, empowering individuals with increased control over their financial privacy.

What is Zcash?

Zcash is a decentralized cryptocurrency that prioritizes privacy and security using advanced applied cryptography. Built on a blockchain similar to Bitcoin's open-source code, Zcash sets itself apart with its innovative shielded addresses. These addresses provide enhanced anonymity, ensuring that transactions on the Zcash network remain private and secure.

The ZEC team

Zcash was founded in 2016 by Zooko Wilcox, a cypherpunk, computer security expert, and entrepreneur. Wilcox, who also founded the for-profit Electronic Coin Company (ECC), has played a crucial role in the development of Zcash. 

In creating the Zcash protocol, Wilcox collaborated with professors and academic researchers from prestigious institutions such as Johns Hopkins University, Massachusetts Institute of Technology (MIT), Tel Aviv University, and Technion. With over 25 years of experience in cryptography and information security, Wilcox has made significant contributions to various notable projects, including DigiCash, Mojo Nation, and the Tahoe Least-Authority File Store filesystem.

How does Zcash work?

Zcash is designed to prioritize user privacy and transaction anonymity. The protocol utilizes advanced cryptographic technology, including zero-knowledge (ZK) proofs, to protect the anonymity of participants in transactions. 

The native token of Zcash, ZEC, functions as digital cash for online payments, providing a secure and private medium of exchange in the digital realm. Zcash incorporates two types of addresses: shielded and transparent, which offer different levels of privacy and visibility in transactions.

Shielded transactions

In Zcash, shielded transactions employ zero-knowledge succinct non-interactive arguments of knowledge (zk-SNARKs) technology to enable fully anonymous transactions on a public and immutable blockchain. While the transaction itself is recorded on the ledger, the sending and receiving addresses and the amount sent are not publicly disclosed. 

Transparent transactions

In addition to shielded transactions, Zcash users also have the option to execute transparent transactions. Transparent transactions are conducted between public addresses and are recorded on the blockchain. Unlike shielded transactions, the details of transparent transactions, including the amount sent and the sending and receiving addresses, are accessible online and can be viewed by anyone. 

ZEC tokenomics

The ZEC tokens are created through "block subsidies" every time a new block is mined and added to the blockchain. These newly generated coins are allocated in a ratio of 80:20 to the "miner subsidy" and "founders' reward." The issuance rate slows as the total supply of ZEC approaches its maximum limit of 21 million, and the block subsidy is halved at regular intervals. 

ZEC use cases

ZEC has several use cases within its ecosystem. It is utilized for peer-to-peer (P2P) payments, borderless transactions, and preserving medical information privacy. As a privacy coin, Zcash enables users to maintain their anonymity. 

Zcash distinguishes between transparent addresses, which are visible on the blockchain, and shielded addresses, which provide enhanced privacy by not appearing on the blockchain. Moreover, ZEC serves as a store of value, allowing individuals to preserve their wealth and hedge against inflation.

Distribution of ZEC

ZEC is distributed as follows:

• 80 percent is reserved as block rewards.
• 8 percent is awarded to Major Grands Fund, a funding program for Zcash ecosystem contributors.
• 7 percent is allocated to ECC founders.
• 5 percent is allotted to the ZCash Foundation.

What does the future hold for Zcash

ZEC is distinguished as a highly decentralized cryptocurrency, strengthening its resilience against attacks. Its security is reinforced by a Proof-of-Work (PoW) mining algorithm, attracting an expanding network of miners as time progresses. With its strong security measures and promising use case, Zcash demonstrates considerable long-term potential, positioning it as a prime option for investors seeking a valuable cryptocurrency to acquire and hold for the future.