Zcash is a cryptocurrency with open source, developed by Zerocoin Electric Coin Company on October 28, 2016. Zcash provides privacy and selective transparency of transactions. A "Zerocash" protocol was developed in 2014. The developers improved the original design, making it more efficient and private. Zcash is the evolution of Zerocoin project.
Zcash is the first digital currency based on the protocol Zero-knowledge proof. The operation principle of the protocol is that one of the parties can ensure the reliability of scientific assertions, without having any other information from the second party. In fact, Zcash is the first genuinely anonymous currency. It is possible to confirm that a transaction has been committed, but there is no way to know the amount, the sender and the recipient.
Zcash software generates many random values. They are taken as input parameters and produce cryptographic key fragments creating a new Zcash. At the launching ceremony, there was a demonstration of these vital cryptographic pieces. The protocol does not preserve information about addresses and the transaction amount. Only the fact of the transaction is visible. Users can open or hide information about the operation of the blockchain. It is the Zcash hallmark.
The price of Zcash
Zcash creators refused the ICO and pre-mining, and as a result, the rate of coins production was artificially slowed down from the start. Good advertising fueled the demand and those who wanted to get anonymous coins could not buy them anywhere. Therefore, in the first trading minutes, the price of 1 ZEC amounted to 3300 BTC on Poloniex. The same day, the rate fell to 50 BTC. Today 1 ZEC costs $339.
It is difficult to talk about the growth prospects of the price, because the only advantage of coins is anonymity, and there are other virtual units with similar features, for example, Monerо.In the first trading minutes, the price of 1 ZEC amounted to 3300 BTC on Poloniex.
Advantages of cryptocurrency
1. Interchangeability. The monetary units of one currency and one value should cost the same. In practice, you can buy bitcoins on the exchange, but they are "dirty" (e.g., someone stole them). As a result, financial institutions may refuse to accept them after checking their history. That’s why the initial interchangeability may be lost.
2. Mining. Zcash mining is much easier and faster. Besides, to create a farm, you need less investment than during Bitcoin mining.
3. Privacy. Unlike Bitcoin, Zcash provides a higher level of data protection. However, users have the opportunity to make public payments if they have nothing to hide.
On the one hand, Zcash seems to be a promising project that can take a proper place among cryptocurrencies. Moreover, the developers continue the work on the project. After the coin has been launched, there are a lot has been done to improve the reliability of the currency and its stability. Points of vulnerability have been identified, and corrective actions have been taken.
On the other hand, by creating the most anonymous cryptocurrency, the team may not consider that their development becomes an ideal tool for illegal transactions. It makes ZEC a target for legislative bans because there are some countries which regulate the Internet at the state level.
In General, as every coin, this cryptocurrency has two sides – light and dark. And which one will prevail depends on creators and those people who will use Zcash for their purposes.