What is Zcash?
Zcash is a cryptocurrency that uses encryption to provide users with more anonymity than other cryptocurrencies including Bitcoin. The codebase of Zcash is built on that of Bitcoin.
It has a lot in common with Bitcoin, such as a set cumulative supply of 21 million units. However, its main difference is its privacy-focused component.
How does Zcash work?
Transactions on Zcash may be “transparent” and managed by a t-addr, equivalent to bitcoin transactions, or they can be a kind of zero-knowledge evidence called zk-SNARKs, in which case they are “shielded” and controlled by a z-addr. Most cryptocurrency wallet programs did not accept z-addrs at the time, and no web-based wallets backed them.
As of December 2017, only about 4% of Zcash coins were in the shielded pool; at the time, only about 4% of Zcash coins were in the shielded pool.
The protection of the shielded pool of Zcash coins was investigated further, and it was discovered that heuristics-based recognizable trends of use would significantly reduce the anonymity collection.
Private transactors in Zcash have the privilege of “selective declaration,” which allows them to prove payment for auditing purposes. Allowing private transactors to choose whether or not to comply with anti-money laundering or tax laws is one such explanation.
What is the History of Zcash?
Professor Matthew Green of Johns Hopkins and some of his graduate students started working on Zcash in 2013.
The for-profit Zcash Company, headed by Zooko Wilcox, a Colorado-based computer security specialist and cypherpunk, completed the production. To complete the invention of Zcash, the Zcash Company raisedover $3 million from Silicon Valley venture capitalists.
Zcash was mined for the first time in late October of 2016.
The initial demand was strong, and within a week, Zcash coins were selling for $5,000 each.
The Zcash Business, its workers, donors, and the non-profit Zcash Foundation were to receive 10% of all coins mined during the first four years.
Ariel Gabizon, a Zcash employee, discovered a crucial bug on March 1, 2018, that could have enabled an intruder to generate an infinite amount of counterfeit Zcash.
Gabizon informed three other staff about the finding, including CEO Zooko Wilcox. The patch for this problem was hidden in the Sapling network update to the Zcash network on October 28, 2018.
The “Zcash Business” declared a rebranding as the Electric Coin Company on February 21, 2019 (ECC).
The corporation says in their blog post that they were formerly identified as the “Zcash Company,” but that their legal name has now been the Zerocoin Electric Coin Company, LLC, and that they will always be known as the ECC.
In a business blog post titled “How Zcash is Consistent with the FATF Recommendations,” the ECC reported on September 24, 2019, that Zcash complies with all conditions resulting from the FATF recommendations.
According to ECC’s blog article, their virtual asset is more compliant than any others since it adheres to the “Travel Law” provision.
How do I hold Zcash?
Digital wallets will assist you in keeping your cryptocurrencies safe, confidential, and under your power. Wallets are strongly recommended for holding Zcash (technically, they store the keys to your Zcash addresses).
However, bear in mind that your wallet is similar to your bank account, so be extra cautious about your keys and make routine backups to secure your funds.