ZCASH (ZEC) – A BRIEF INTRO FOR INVESTORS
The usability of Bitcoin but with the option of added security. Unlike other privacy-focused coins, ZCash (ZEC) lets users choose between adopting the added security layers or publishing transactions on the blockchain publicly.
KEY FEATURES
- Zerocoin cryptographic protocol to mix data into transactions and provide added privacy
- zk-SNARK is used to allow for transactions in which both parties, the sender and receiver, don’t have any knowledge of one another
- Transactions with added privacy are still auditable so as to comply with federal tax regulations
- ZCash cryptography is designed to never have a backdoor, making decryption by outside parties impossible
OVERVIEW
COIN SUPPLY
The total supply of ZEC is capped at 21 million, with 20% of those coins allocated to initial developers and investors.
TECHNOLOGY
The base code of ZCash mirrors Bitcoin, with the added protection layers of Zerocoin and zk-SNARK privacy protocols. Transactions can be verified as accurate on the blockchain without any parties involved having information about sender, receiver, or amount sent.
PRIVACY
Users have the choice to allow transparent transactions (broadcasted on the public blockchain), or shielded transactions (to hide all transaction information). Shielded transactions make ZCash a more fungible form of digital currency than its competitors.
DEVELOPMENT TEAM
The project is run by Zooko Wilcox-O’Hearn who has worked in decentralized software for several years. Johns Hopkins computer science professor and cryptographer Matthew Green also heads the team.
VALUE PROPOSITION
Utilizing the same technology as Bitcoin and allowing for an option to protect transaction information gives users the best of both worlds in an industry that rarely offers this type of flexibility and security.
INVESTMENT SUMMARY
As blockchain adoption has grown, users have recognized the increasing need for greater security in their transactions.
Hacks of The DAO and major cryptocurrency exchanges have left users wanting more flexibility in keeping their transaction and payment information private and secure, without the worry of having their information broadcasted publicly on the blockchain.
ZCash, a fork of Bitcoin, provides the usability of Bitcoin with the option of added security.
Unlike other privacy-focused coins, ZCash provides users an option to adopt the added security layers or to publish transactions on the blockchain publicly, much like traditional blockchain solutions.
Because utilizing added encryption results in more computing power, fees for secure transactions are higher than public transactions.
Unlike other cryptocurrency projects, ZCash is operated by a company, the Zerocoin Electric Coin Company, which has promised to allocate 10% of coins to fund the project and 1% to be distributed to nonprofit organizations.
The company is looking to make strategic business partnerships with large businesses, such as as JPMorgan, which it partnered with to implement ZCash’s privacy technology into its enterprise blockchain platform Quorum.
HOW TO BUY ZCASH
ZCash can be purchased on select exchanges using fiat or cryptocurrency, such as Bitcoin or Ethereum. After allocating the amount of fiat/crypto you would like to use, go to the exchange of your choice and follow the instructions to purchase ZCash with the proceeds.
EXCHANGES WHERE YOU CAN ZCASH (ZEC)
| EXCHANGE | COIN PAIRS TRADED | |
| Binance | ZEC/BTC, ETC | |
| CEX.IO | ZEC/USD, EUR, BTC | |
| HitBTC | ZEC/USDT, BTC, ETH | |
| YoBit | ZEC/USD, BTC | |
| BigONE | ZEC/BTC, ETH | |
| Bitfinex | ZEC/USD, BTC | |
| Bitlish | ZEC/USD, EUR, RUB | |
| Bittrex | ZEC/USDT, BTC, ETH | |
| C-CEX | ZEC/USD, BTC | |
| CoinEx | ZEC/BTC, BCH | |
| Cyptopia | ZEC/USDT, BTC | |
| Exmo | ZEC/USD, RUB, BTC | |
| GOPAX | ZEC/KRW, BTC | |
| Huobi | ZEC/USDT, BTC | |
| Kraken | ZEC/USD, EUR, BTC | |
| OKEx | ZEC/USDT, BTC, ETH | |
| Poloniex | ZEC/USDT, BTC, ETH, XMR | |
| Trade Satoshi | ZEC/USDT, BTC, LTC, DOGE | |
| Upbit | ZEC/USDT, KRW, BTC, ETH | |
| WEX | ZEC/USD, BTC, LTC |
About Author
Users should be aware that if they click on a cryptocurrency link and sign up for a product or service, we will be paid a referral fee. This in no way affects our recommendations, which products we choose to review or our advice which is the sole opinion of the authors.
The opinions provided in this article are those of the author and do not constitute investment advice. Readers should assume that the author and/or employees of Grizzle hold positions in the company or companies mentioned in the article. For more information, please see our Content Disclaimer.