ZCash or ZEC is one of the new cryptocurrencies out in the market, but why should you invest in ZCash? It is similar to bitcoin but is also different for a lot of other reasons. Unlike bitcoin which one can view the past transactions of the users, ZCash provides anonymity by using high encryption of data.
What do You Need to Know About ZCash?
1. Unlike other cryptocurrencies, ZCash is set up as a company. Other cryptocurrencies work as an open source community, which is one of the biggest controversies.
They are built so that the investors and the workers and the company will get rewarded by a small percentage of what miners will net. This is to ensure that the cryptocurrency won’t just suddenly fall into disrepair by giving investors incentives and keep the cryptocurrency circulating.
This might seem like the investors are raking up money without doing anything, and makes one doubtful to invest in ZCash. But if you look at it from a business perspective, it is only sensible. The incentive, called Founders Reward, also reduces by half each year, until at the fourth year, the miner will reap 100% of the rewards he earns.
2. Privacy. Bitcoin and many other cryptocurrencies have run with the problem of getting refused my many institutions based on the user’s purchase habits. This is the problem with bitcoin’s blockchain. While other cryptocurrencies offer more anonymity for their clients, they still use a private key, which can still be attached to purchases and the history can also be viewed that way.
With ZCash zk-SNARK, a trade between two people or entity will be entirely anonymous. There will be a record that the transaction occurred, but not who did it or how much was exchanged. This is one of the reasons for its development, and it’s a good idea to invest in ZCash if you value your privacy highly.
3. Distribution. ZCash is similar to bitcoin in regards to how only a supply of 21 million coins will be available, same issuance rate of 131 years, but instead of a 10-minute block, it will have 2.5 minutes block as well as a reward that is four times bigger than bitcoin.
ZCash coins can’t be mined fully much like etherium, but they did not sell the cryptocurrency before its release. ZCash also has a slow start to avoid instamine.
They use Equihash as the algorithm based on the birthday problem. It needs a high RAM to bottleneck proof generation and to make the generation of ASIC to be not feasible.
ZCash is at beta testing stage at a live testnet. ZCash value is currently volatile, but like all other cryptocurrencies, the cost will depend on supply and demand. To invest in ZCash as any other, and better for people who value their privacy.