What is Zcash (ZEC)?

Have you just started your adventure in the cryptocurrency and blockchain world? Or, perhaps you've been exploring this innovative new sector for a while now, yet still remain unclear on one of its most captivating coins — Zcash? Let's do a quick rundown of this cryptocurrency and find out why it might be worth adding to your watchlist.  

This article will also address Zcash features different from Bitcoin or Ethereum and outline advantages that make investing in this currency an exciting prospect.

Introducing Zcash

Zcash blockchain was launched back in 2016 based on Bitcoin code with a little more to a few impressive changes and a unique perspective on cryptocurrencies. In the first place, the protocol is known for its privacy-preserving features.

Notably, Zcash was founded by a cybersecurity specialist Zooko Wilcox together with MVPs in computer science and technology. The development team includes respected information technology and cryptography experts, with Ethereum co-founder Vitalik Buterin as one of the advisors. Furthermore, Zcash has an incredibly active GitHub community, regularly pushing upgrades.

Zcash (ZEC) Currency

The native currency of the network, Zcash coin, goes under the ticker ZEC. It is mineable and, similarly to Bitcoin, has a capped supply of 21 million coins ever to be produced, with 77% of the supply already mined and out in the market. Additionally, Zcash utilizes the same anti-inflation mechanism called halving.

Boasting robust encryption and privacy features for years already, Zcash stands out as one of the most secure digital assets available.

As for price history, ZEC went as high as $756 in 2017 to as low as $18 per coin in 2020. The current price stays above the $30 mark. However, seeing an unsettling global economy state and the heightened demand for privacy-centered currencies, chances remain that it might retest the previous highs in the new altcoin season.  

ZEC 3-Month Price Chart / Source: CoinMarketCap

How does Zcash Work? Features and Advantages

Zcash is rapidly rising in popularity among newcomers to the realm of cryptocurrency thanks to its plethora of user-friendly features.

• Zcash Privacy

Above all else, it stands out for its focus on protecting users’ delicate financial information with state-of-the-art encryption protocols.

Every Bitcoin transaction is broadcast onto the blockchain. Once you’re spotted as the owner of an address, all the operations will be easily accessible and tracked down through block explorers.

Zcash solves the problem by integrating zero-knowledge proving technology, known as zk-SNARK. It allows verifying transactions without revealing the details, such as transacting party address and the sum transferred. ZK-Snarks also allow Zcash to remain compliant with certain regulatory standards while still protecting each user's private data.

Example Of a Transaction Between Two Protected Addresses / Source: Blockchair.com

With Zcash, users get to choose between

• staying transparent with their crypto operations using public addresses ("t-addresses"); 
• or securely transacting money without worrying about data being exposed by choosing shielded and encrypted "z-addresses".

This makes Zcash an ideal choice for those who understand how vital safeguarding their finances really is.

Transaction variations within Zcash protocol / Source: Z.cash

• Transaction Speed & Low Fees

Zcash also has its own proprietary algorithm, which can process transactions at a much faster rate compared to Bitcoin's proof-of-work system. On that account, Zcash network fees are generally as low as 0.0001 ZEC, which is less than a cent.  

ZEC Average Transaction Fees in USD / Source: BitInfoCharts

Zcash vs Bitcoin: What's the Difference?

While Zcash is technically the fork of Bitcoin, the differences between the two currencies are vaster than the similarities, the anonymity feature being the biggest one.  

1. Zcash focuses more on privacy than Bitcoin does. Where Bitcoin does have certain third-party-provided privacy tools, Zcash takes it a step further utilizing in-built mathematical algorithms to guarantee user anonymity by masking everything from blockchain data to IP addresses.
2. Furthermore, ZEC mining is considered to be more beginner-friendly than BTC mining, as the system was intentionally built to be accessible to the general public. ZEC miners are encouraged to use CPU/GPU hardware, which is more cost-effective than ASICS, widely used for BTC minting.
3. Finally, Zcash stands out for being much speedier and cheaper than BTC. Comparing the two cryptocurrencies, ZEC is 8x faster, with 75 seconds of confirmation time on average as opposed to Bitcoin’s 10 minutes.

Getting Started with Zcash

Where to Buy and Sell ZEC

To acquire Zcash, you can take advantage of reputable exchanges such as Binance, KuCoin, and Coinbase by using either fiat currency or other cryptos. Each platform is different, so understanding the unique features of each one is essential before selecting a platform for buying and selling Zcash coins.

Where to Store ZEC

Zcash benefits make it a great secure choice for digital currency trading. To take the most of its anonymity-protecting features, it’s strongly recommended to store purchased coins in self-custody wallets to avoid risks associated with centralized exchanges.  

As an example, Arctic Wallet was designed to be perfectly suitable for beginner users. Arctic is a privacy- and security-focused cryptocurrency wallet that gives users full control over their private keys and, consequently, all the crypto funds, making it a perfect Zcash wallet. Moreover, you can directly purchase, exchange, and store crypto in the wallet without leaving the app. With Arctic Wallet, newcomers will be able to confidently explore the complex world of digital assets.

Arctic Wallet MacOS App

Conclusion

Zcash is among the few popular cryptocurrency options that offer superior data privacy and user anonymity. Unlike other blockchain-backed currencies, Zcash provides users with advanced coin control options to tailor their coins' visibility and transferability. For cryptocurrency novices, Zcash is an ideal starter asset; however, it's paramount to take the time to comprehend its fundamentals, choose the right Zcash wallet, and assess all the possible risks prior to joining the Zcash community.

If you're interested in learning more about creating a secure virtual currency experience without compromising your privacy, consider looking into Arctic Wallet. With Arctic Wallet's suite of security tools and resources for newcomers and experienced crypto traders alike, you can be confident in investing safely with Zcash.

Disclaimer:  Consider investing in any cryptocurrency upon your own careful research and after accessing all the risks. When it comes to investing, nothing pays off better than educating.