- Name: Zcash
- Currency Code: ZEC
- Algorithm: Equihash
- Max Coins: 21,000,000
- Block Time: 10 Minutes
- Consensus: Proof of Work
- Homepage: z.cash
- Description: Zcash offers total payment confidentiality, while still maintaining a decentralized network using a public blockchain. Unlike Bitcoin, Zcash transactions automatically hide the sender, recipient, and value of all transactions on the blockchain. Only those with the correct view key can see the contents. Users have complete control and can opt-in to provide others with their view key at their
The Case for Zcash
As of this writing, the price of Zcash futures is hovering between 1.2 and 1.4 bitcoin ($820- $950) on BitMEX. If those numbers are any indication, Zcash could well become the second highest valued digital currency on record behind Bitcoin.
Zcash represents the hope for a perfectly untraceable digital currency. Although progress is being made, at this point, Bitcoin transactions are traceable. This lack of fungibility, the idea that one bitcoin may not be as valuable as another, based on how it has been used in the past, has long been a threat to Bitcoin’s livelihood.
“You need fungibility for Bitcoin to function. If you receive coins and can’t spend them, then you start to doubt whether you can spend them,” Blockstream CEO Adam Back told the audience at the Scaling Bitcoin conference in Milan.
The hope is that Zcash finally solves that problem, using the established cryptographic protocol, zk-Snarks. The basic idea is that when you make a transaction, you give a proof that says you have access to a certain amount of funds, but that proof gives zero knowledge to other people about what those funds are. (That is the “zk” part). The “SNARK” part is that Zcash can do this fairly efficiently now, especially compared to ZeroCoin, its precursor.
But Wilcox’s own words capture the aspirations of Zcash the best. In an earlier interview with Bitcoin Magazine, he said:
“The dream is that people all around the world use Zcash and other cryptocurrencies directly, to cooperate and organize with one another in safety and privacy. This will give them freedom from corrupt regimes, banks and unstable national currencies.”
Whether or not Zcash lives up to this dream, only time will tell. As it states on its website, Zcash still considers itself “an experimental technology” and cautions, “there is risk involved.” But for many people who wish they had jumped into Bitcoin earlier, those cautions may go unheard.
Mining for ZEC
There are two ways to mine Zcash: you can build your own GPU rig — arguably, with good mining software, you can use a CPU as well, — or you can mine Zcash in the cloud.
Because of the work involved, cloud mining make might make sense for some people, though it carries more associated risk. To that end, several cloud GPU providers are open for Zcash business. Genesis Mining is offering a limited number of one-year contracts. Toomim Brothers is offering Zcash cloud mining on three, six and 12 month contracts.
Building your own GPU is not easy. When you buy an ASIC for mining bitcoin, you simply connect it to the internet and plug in the power. But GPU mining is a custom setup, where you need to source motherboards and graphic cards.If you are setting up your own CPU or GPU rigs, you will need to find an efficient mining software. Zcash recently held an open source miner challenge, and made all the submissions available to the public.
WHAT IS ZCASH?
If Bitcoin is like http for money, Zcash is https. Zcash offers total payment confidentiality, while still maintaining a decentralized network using a public blockchain. Unlike Bitcoin, Zcash transactions can be shielded to hide the sender, recipient, and value of all transactions on the blockchain. Only those with the correct view key can see the contents. Users have complete control and can opt-in to provide others with their view key at their discretion. Zcash transactions do not depend on the cooperation of other parties.