One of the most popular privacy coins out there, Zcash ZEC is about to have two major events this month. Both block reward halving and Canopy protocol upgrade are scheduled to happen around the 18th of November. In this article the team of Swapzone, a ZEC supporting cryptocurrency exchange aggregator, will describe the notions of halving, the main points of the newest upgrade, and revise some ZEC basics.
What is Zcash?
Zcash is a privacy-focused project. The blockchain was developed to fix the flaws in the use of Bitcoin. Zcash uses the same algorithm as Bitcoin does, but improves the point of BTC’s transparency to a more elaborate version of processing.
Zerocoin, the very core of Zcash, started to develop back in the 80s. This project was implementing a complex mathematical technique – zero-knowledge proofs (ZKPs) – to transact on the blockchain. ZKP is used to make transaction contents anonymous, even though you can see the transaction itself on the blockchain.
Zcash, created on the base of Zerocoin, is solving several issues of intensiveness in calculation and restricted functionality. To make these problems go away, Zcash creators implemented a lighter version of zero-knowledge proof that takes less time to verify – zk-SNARK.
The halving – what will happen to Zcash?
The genesis block of Zcash was mined on October 28th, 2016. Just like Bitcoin, Zcash has block reward halving events, and the very first one is about to happen very soon. On November 18th, Zcash inflation rate will go from 25% to 12.5%.
In general terms, halvings are needed to sustain the deflationary nature of a taken cryptocurrency. As the chain continues to grow, miners receive smaller rewards for generating the blocks, slowing down the creation a little. Bitcoin halving, too, happened earlier this year, creating waves of hype around cryptocurrency enthusiasts, supporting services and more.
Cryptocurrency researches say that the first halving of Zcash could provide an important novelty – the miners will no longer be holding ZEC prices down, reinforcing monetary principles of the project. Overall, the analysts consider halving an important step in the development of this privacy-preserving cryptocurrency.
Canopy Update and the new development fund
Zcash Canopy upgrade is an effort to allocate the mining rewards into the development of the ecosystem. 20% of the rewards will go into the development fund. As the Zcash team states:
Miners will receive 80% of the mining reward. The remaining 20% will be divided between the new Major Grants Fund (8%), Electric Coin Co (7%), the Zcash Foundation (5%).
Canopy will enable developers to propel the growth of the ecosystem and eliminate the questions of where to source more funding. Guaranteed funding was something Zcash devs were concerned with for quite a while now, so Canopy is a crucial step in making the project more focused.
How to get Zcash ZEC?
With so much discussion and halving on the way, there are more and more people willing to jump aboard the Zcash train. Getting ZEC coins is pretty easy – as the project is well-known, a variety of exchange services support it. However, privacy coins have not been in the favour of centralized exchanges – last year has brought us some delistings for anonymous and confidential coins. Non-custodial exchanges, on the other hand, are always here to support private chains.
Swapzone, too, is always on the frontline, aggregating the offers for Zcash ZEC. Here is how you get some Zcash coins using our platform:
- Open the main page of Swapzone – a cryptocurrency exchange aggregator.
- Select the currency you would like to exchange and enter the amount in the Deposit list.
- Pick the option to receive Zcash ZEC.
- Choose the deal you would like to proceed with from the list – all the available offers from our exchange partners will be listed there. You can sort the offers out by best rates, best swap time and the rating of the service provider.
- After picking the offer that suits you best, click the Exchange button to proceed.
- Enter the recipient’s ZEC address on the next screen. Make sure you have entered the information correctly – the currency will be sent to this address.
- Check the information once again. If all the data is correct, click Proceed to Exchange.
- Send the necessary amount of cryptocurrency to the address the service provider has generated. After the deposit is received, our partners will exchange it to ZEC.
- Exchanged Zcash coins will be sent to the address you have entered previously.
All you need to do after having performed an exchange is to use your Zcash coins!