Zcash cryptocurrency

A Guide to ZCash Cryptocurrency

Zcash cryptocurrency is a decentralized cryptocurrency like every other coin that uses the open-source payment system software. Zcash was known as one of the cryptocurrencies that use the cryptography to provide a high level of security to its miners and investors. This cryptocurrency was developed to address the challenges faced by other cryptocurrencies and improved on them.

History of ZCash

ZCash cryptocurrency was designed and improved upon to re-address the issues faced with privacy in bitcoin. It first started as Zerocoin when Work by Ian, Matthew, and Aviels unveiled the shortcomings of bitcoin on areas of Bitcoin transaction log that is only protected by the use of pseudonyms which cannot be entirely security guarantee. Zercoin unveiled their cryptographic extension as a tool to create anonymous currency transactions. It was not only known as an extension then but as an add-on to bitcoin.

Works on Zerocoin was later improved on by the team that first started it and cryptographers at MIT, and the Tel Aviv University to form the Zerocash that was built to enable direct payment and transactions and its new currency making it different from the initial add-on to bitcoin. As more work began earnestly, it was able to transient zerocoin into ZCash and finally released into the public 28th October 2016.

ZCash and its market cap

When Zcah was launched, it had a fixed total supply of 21 million units giving 20% of its coins to the founders and shared between investors, and developers within the first four years because of their enormous financial contribution to the project. It is expected that all 21million coin is supposed to be mined by 2032. Currently, ZCash has a circulating supply of about 5 million ZEC and a Market Cap of about $707 million as at when this article was published.

Zcash, a more advanced security system of peer to peer network works on the anonymity of transactions. This Zcash uses a zk-SNARK protocol for its operation. This protocol is a non-interactive zero-knowledge proof in which no interaction is necessary between the prover and the verifier. This zk-SNARK for ensuring privacy and anonymity are designed to be entirely optional for users.

How to buy Zcash cryptocurrency?

Zcash is an altcoin and the buying of Zcash is made more possible through a crypto exchange. The various ways to buy Zcash is through:

  • Binance; Binance is one of the most popular crypto exchanges that offer a wide exchange of crypto-to-crypto transfer from different coins. When registered and logged into your Binance account, your dashboard provides you with a four-step process to deposit your altcoins you are trading for Zcash into your Binance account. When using the exchange dashboard button, you will see any of the pairing exchange either ZEC/BTC or ZEC/LTC. Selecting the market tab on the ‘buy’ section will buy Zcash on its current market price. But be aware of a deduction of exchange fee for any exchange transaction through Binance.
  • Changelly; Just like Binance, Changelly offers crypto to crypto exchange between different coins. But before transacting crypto exchange, your Zcash address is required and some altcoins like bitcoin to exchange for Zcash.
  • FreeWallet.org; Free wallet also offers another avenue where you can trade altcoins for Zcash. It requires depositing your desired altcoin to exchange for Zcash. Using your deposit address and altcoins wallet allows you to receive and fund your Zcash account.

How to open a Zcash wallet

A Zcash wallet allows you to store your coin and transact whenever the need arises. Some popular Zcash wallets are;

  • Ledger Nano wallet; When this wallet was built, securing the funds of owners was the utmost interest of Ledger Nano. This Nano wallet comes with a built-in OLED display which can be used to carry out transactions manually. This hardware device like USB can be connected with your system and also provides offline storage protected by a pin. Ledger wallet can be used to store Zcash, Bitcoin, Ethereum and up to 20 more cryptocurrency.
  • Jaxx; Jaxx wallet was designed to be compatible with so many platforms like Android, iOS, Windows, Linux desktop and even chrome browser extension. Jaxx in mind was built to cover a wide range of users from any platform. It is free to download and install and secured with your private keys with a 12-word master key. Jaxx support coins like Zcash, Bitcoin, Ethereum, cash and a host of other cryptocurrencies.
  • Cryptonator; Cryptonator gives room to store up to 19 cryptocurrencies and is very user-friendly. It offers an instant in-wallet exchange between cryptocurrency. This wallet can is compatible with both web and mobile wallet system. Other Zcash wallets include; Coinomi, exodus, Guarda, Trezor, and Mobi.

How to choose a wallet

Choosing a wallet can be a tricky and difficult decision to do especially when you have a list of a variable number of wallets. But as a customer, some key features to look at should be;

  • Easy to use
  • High-level security through a secure password, and even multi-signature system to guarantee funds security from hacks.
  • Access to your Zcash private keys
  • A good customer support system whenever you have problems with your wallet.

How to mine Zcash cryptocurrency?

Mining a Zcash cryptocurrency allows for the transfer of funds through a decentralised network. This mining process requires computers that are able to encrypt and verify the transaction by solving a mathematical puzzle and being rewarded as a new block for their work. As more and more mining of block becomes more difficult to solve the puzzle, mining pools are generated to solve such a puzzle. Mining pools refer to the joint effort by miners with a little amount of processing power known as a hash rate to be rewarded without having to solve the entire mathematical puzzle and spending more resources.

Registration on a mining pool gives you the right to be able to have access like every other miners to contribute your little hash rate in mining. An example of Zcash mining pool is 2miners.com. At 2miners, there is an option for SOLO mining and other features like monitoring bot for any amount of rigs.

Benefits of Zcash cryptocurrency

It is built on top of bitcoin core to improve on its security system protocol.

Updating a proof-of-work consensus from bitcoin and introducing zero-knowledge proofs to enhance user privacy.