Greetings, crypto comrades!
I recently got my hands on some ZCash, so I felt compelled to learn more about this cryptocurrency.
8 Basic Facts About Zcash
1) I thought Zcash was some obscure cryptocurrency but it is actually ranked a respectable 60th on CoinmarketCap as of December 2021 (https://coinmarketcap.com/currencies/zcash/). What's more, you can't exactly consider it as petty cash because 1 ZEC typically costs anything from $215 to $246. My sincere apologies to Zooko Wilcox, the person who founded Zcash.
2) I raised my eyebrows when I found out that Zcash has a finite supply of 21 million coins, which means that it was founded on similar principles as Bitcoin. Apparently, Zooko Wilocox bounced off ideas and worked closely with Satoshi Nakamura - the founder of Bitcoin - to make Bitcoin a reality. This is why both ZEC and Bitcoin are based on proof-of-work protocols. In fact, ZEC can be considered to be a fork of Bitcoin!
3) However, the similarities end here. As the granddaddy of all cryptocurrencies, Bitcoin is more heavily employed than its counterpart. Zcash processes about 4000 transactions every day whereas Bitcoin processes a whopping number of 250,000 transactions daily.
4) Zcash's unique selling proposition is that it is a privacy coin that is centered on anonymity. It leverages zero-knowledge proof technology (also known as zk-SNARKS) that enable nodes on the network to verify transactions without exposing any personal information associated with these transactions. Tis means that not only the identities of the sender and receiver will be kept under wraps, but even the transaction amount will not be made known. This affords the topmost level of confidentiality for peer-to-peer transactions, which makes it on par with P2P fiat currency transactions made possible by providers like SWIFT. Perhaps this was why Gemini Exchange struck while the iron was hot and became the world's first licensed Zcash exchange in 2018.
5) ZEC transactions are hence categorised into two types: transparent and shielded. Transparent ZEC transactions work on similar principles as those of Bitcoin as they are based on the same source code - ZEC is sent between two public addresses, with the transaction being recorded on the public immutable blockchain network. On the other hand, shielded ZEC transactions employ zk-SNARKS to allow for completely anonymous transactions to be sent over the blockchain. Same same, but different.
6) Since ZEC is originally based on the proof-of-work protocol, you must be concerned about the energy demands it imposes on the environment. Fret not, in November 2021, plans were announced to enable ZEC make a transition from the proof-of-work to the proof-of-stake (PoS) protocol. Pivoting to the PoS protocol will not only enhance the rigour of the security of the ZEC network, but will also empower it to be interoperable with other leading blockchains.
7) You can grow your ZEC on crypto platforms like Coinbase, Celsius and Gemini. I store mine on Gemini. If you are keen to get more ZEC, you can even join a mining pool, the details of which are explained on the Zcash website.
8) In regards to safekeeping your ZEC assets, you will wish to check out Cake Wallet because it has clinched the rights to add ZEC to its mobile wallet. Cake Wallet is said to be one of the most privacy-conscious mobile wallets.
Hands-On Activity
1) Use my referral code (https://globalhive.io/r/198822) from Global Hive (https://globalhive.io/home)
2) Insert your Zcash address from Celsius, Coinbase or Gemini. Or download a wallet from Exodus (https://www.exodus.com/download/)
3) Solve a captcha
4) Sit back and wait for the ZEC to be deposited into your account within the same day!
Which of the three privacy coins (Monero, Dash & Zcash) are you rooting for? Will you be interested in acquiring Zcash?
Till the next lobang*,
CryptoSensei
*Lobang is a malay word and is commonly used to describe an opportunity or a chance.
