Zcash: Complete Coin Guide

/Zcash: Complete Coin Guide

Zcash: Complete Coin Guide 2018-02-18T10:13:01+00:00

Zcash Coin Review

The amount of cryptocurrencies being developed over the last couple of years is reaching the skies. While many of these cryptocurrencies go back into the dirt in no time, a few of them show promising futures with regard to the high security, fungibility, and the privacy they offer.

The Zcash cryptocurrency is among the few newly developed digital currencies that carry the potential to become big. The technology upon which the Zcash coin is built offers the users a high level a privacy and security. The anonymity that which Zcash offers is what also contributes to the higher fungibility that it offers.

What is the Zcash Coin?

ZCash, abbreviated as ZEC, is a digital currency which is quite similar to the Bitcoin. However, it comes with quite a few added features. Just in line with Bitcoin, the base of Zcash is a decentralized block-chain. Unlike Bitcoin, however, one of the prime aims of the development of this cryptocurrency is to offer greater anonymity with respect to the sender/receiver and the amount.

While in Bitcoin, one can easily trace down the transactions amounts and addresses simply by knowing someone’s address, the Z cash cryptocurrency, on the other hand, encrypts all this information. This is referred to as shielded transactions. Being one of the most profound features of ZED, shielded transactions are encrypted using a zero-knowledge proof construction known as zk-Snark. This encryption helps in the maintenance of secure ledgers of the amount of money moving around without letting out information of the parties on either end.

The Zcash coin project was born out of the need of removing all the security limitations that come with the use of Bitcoin. The developers behind this cryptocurrency project further went on to develop a protocol that could convert Bitcoin to Zerocoin which would provide greater anonymity by hiding the transaction’s origin. This protocol could also be used to convert both the cryptocurrencies the other way round. Not so long ago, these very developers More recently, the aforementioned developers made a collaboration with cryptography researchers from The Technion, MIT, and Tel Aviv University in order to improve the Zerocoin’s protocol, which finally led to the development of the Zcash cryptocurrency.

Even though the staff at ZEC remains hesitant of describing this crypt technology as fully anonymous, it does carry this trait in general.

One of the most beneficial aspects of this added anonymity in ZEC is an increased fungibility.

What is fungibility?

In general, the fungibility of a cryptocurrency suggests that each and every coin belonging to that particular currency remains equal in in value to the other coins. This is one of the most crucial factors for the maintenance of a stable crypto financial system. Since everyone’s money will remain equal in value with respect to each other, the financial system would not have room for any sort of tampering. Hence in a way, one can say that increased fungibility comes with an increased level of security or vice versa. Another aspect of greater fungibility is that a fair system of trade could be developed, which reduces the likelihood of privacy invasion due to a large size of the data pool.

Zcash can be considered as a fully fungible currency, as it unlinks the shielded coins from their history. Without having a specific history, the origins of a coin cannot be traced and hence, differentiation of the source of one coin from the other remains nearly impossible.

Zcash price and value

The Zcash Cryptocurrency is quite a new one as compared to other cryptocurrencies like bitcoin, the way its market runs is quite similar.

There are quite a number of factors that have contributed to skyrocketing the price volatility. Right after it got released on the 28th of October 2016, Zcash value increased as it experienced a huge demand. This resulted in Zcash market cap reaching up to approximately 3300 Bitcoins ($2 million+). But in a matter of time, it fell down to about 48 Bitcoins on that very same day.

One prime reason for such sharp fluctuations could be the fact that the ZEC protocol called zk-SNARKS brought a relatively new concept which remained untested on a large level. Apart from that, no digital platform had employed its use as a currency. Hence, the future of Z cash at the time of its release was primarily based on speculation and guesses.

As of 2018, the market cap of Z cash stands at an estimated $1.4 billion, as compared to a total of 21M coins during the time when it was released in 2016.

Moving forward in time, the market cap including its price will have a high dependency on the demand and supply. Among both of these factors, the supply seems to be increasing at a constant rate while the trends in its demands cannot be accurately predicted as of yet. Nevertheless, based on pure speculation, the future of Zcash looks quite promising resulting in traders making huge investments so as to gain large profits out of it.

Zcash Mining

Zcash carries a block average of 2.5 minutes, and block rewards that are four times bigger than Bitcoin rewards. These block rewards are set to halve every 4 years. While the total supply of Zcash coins is 21 million just like the Bitcoin.

However, there is one major difference between Zcash mining and Bitcoin mining. The Zcash stakeholders will receive a total of 10 percent of all the 21M coins that are mined using Zcash’s protocol. These stakeholders include the investors, founders, advisors etc. It is referred to as founder’s reward. However, the stakeholders won’t receive the founder’s award linearly. Instead, the Zcash protocol will create 50 Zcash coins per 10 minutes, out of which 20 percent will be received by the founders and the rest of it will go to the miner’s end. After every four years, the incentive will get halved with all of it (100%) going to the miners after first four years.

Well, starting the Zcash mining is quite simple unlike other proof-of-work cryptocurrencies out there. There aren’t any complex requirements such as downloading the block-chain or manually making use of complex commands. You do not even necessarily need AMD cards. Nowadays, mining Zcash through Nvidia cards could also be quite profitable if you are using the EWBF miner.

  1. Get your GPU drivers ready and running: Updated drivers can be found from on graphics card provider’s website.
  2. Ready your Zcash wallet address: You will need your wallet’s address a path to receive the Zcash coin you mine. Download the Zcash client from the official website for Zcash. You may use an internet wallet or a hardware wallet depending on your choice. There are plenty of hardware wallet choices for you to make such as Trezor.
  3. Download EWBF miner: You need the EWBF miner. Look it up on the internet and download the latest version. However, make sure that you are getting it from the EWBF official website.
  4. Change some window settings: In order to get your windows ready, you need to tweak some of the settings. First, turn off the auto-sleep settings and check never sleep. Also, disable automatic windows updates so as to avoid disruptions in the mining process. You may also want to set your system page file to 16384 MB.
  5. Join your preferred mining pool: There is a range of mining pools that you can choose from. Jon one after proper research and speculation, or only those that are officially recommended. A list of the most popular mining pools is provided in this article later. There are plenty of tutorials regarding setting up your miner on the internet.
  6. Start the miner: Once your miner has been started, just sit back, relax, and watch your earnings grow.

What is a Zcash mining pool?

As far as cryptocurrency is concerned, a mining pool is more like a collection of the processing power that miners contribute and share over a network, resulting in the equal splitting of the reward based on the amount of processing power contributed.

Many people, especially those who are starting out with ZEC, do not own a mining farm. Hence, a Zcash pool can provide a good chance of earning rewards to starters.

However, you must consider some crucial factors before considering this option. These include:

  • Any mining pool will require you to pay the server costs. Hence, they come with their fees. This fee is charged for the server’s maintenance.
  • Secondly, you need to have good trust in the pool operator as transparency in this case limited. This is because the pool operator is the one paying you for your contributions.
  • You will have to do quite a lot of research in finding the best pool, based on reputation, fee, and quality.

There are plenty of well-reputed ZCash pools that you can join. These include:

  1. Suprnova.cc
  2. F2POOL Beta
  3. ConMine.pl
  4. nanopool.org
  5. Flypool
  6. guru
  7. MinerGate
  8. Slushpol
  9. Dwarfpool
  10. org
  11. 2Miners
  12. io
  13. Mining pool hub
  14. Coinotron
  15. Miningspeed
  16. Zcash4u

Zcash Wallet

Crypto wallets are digital wallets where one can safely receive, send, and store their cryptocurrencies such as Bitcoin, and Zcash. Many cryptocurrencies have their own official wallets while those who do not have, usually do have an official recommendation of third-party wallets.

In more technical terms, your digital currency does not get stored in exact terms. Rather, they store a private key which reflects the ownership of a public key which is a code that is related to a particular amount of currency.

To store Zcash, there are plenty of internet wallet and hardware wallet options. Information related to some of the most widely used Zcash wallets is shared below:

Jaxx Wallet >>

The Jaxx wallet provides quick and easy access to the cryptocurrency without any form of verification, allowing one to check or manage his/her funds on the go. This is because it does not record information upon sign up. Jaxx is available on mobile and desktop.

You can have full control of your cryptocurrency right from your device, which however reduces the security.

Pros:

  • It is an open source wallet.
  • It has a clean interface which is easy for beginners to use.
  • It supports a wide range of cryptocurrencies including the Zcash coin.
  • It is easily accessible on your phone or desktop computer.

Cons:

  • Recently, it underwent a bad press primarily because of security reasons.
  • It does not have a 2-factor authentication.

Ledger >>

Ledger is yet another hardware wallet for cryptocurrencies which is based on the smartcard. It provides a high level of protection while providing many control features.

Pros:

  • It supports multiple currencies.
  • One can integrate it with wallet software.
  • Contains an OLED display.
  • It is quite affordable

Cons:

  • It isn’t very popular and highly-reputed as of yet.
  • Not cheap.

Trezor >>

Unlike the aforementioned wallets, the TREZOR crypto wallet is a cold storage hardware wallet which contains a USB connection. It can be used to receive, send, or store the cryptocurrency. It supports a wide range of digital currencies such as the Bitcoin, Ethereum, Litecoin, Dogecoin, and Zcash of course.

It contains a 2-step verification which increases its level of security. Furthermore, one can also connect it with other wallets such as MyEtherWallet.

Pros:

  • Offers a high level of security.
  • It supports multiple currencies
  • It is very portable.
  • It has an easy to use interface.

Cons:

  • The PIN can be quite complex.
  • The transaction options are limited.
  • Expensive.

Freewallet Zcash wallet

The Freewallet Zcash wallet is quite easy to use and it carries cryptocurrency exchange which his built-in. With an easy to use interface, this wallet allows you to access your funds on the go. It is available for both Android and IOS devices.

Pros:

  • It allows access to Facebook and Gmail.
  • You can top up your Zcash coins from any currency.
  • Allows exchange to 10+ coins.
  • Provides cold storage for coins.
  • The app is highly secure.
  • Provides regular updates on the ZEC stats and prices.
  • One can restore the wallet using an Android or IOS device.
  • Provides a clean and easy to use interface.

Cons:

  • It isn’t an open source.
  • Does not have 2-factor authentication.
  • Private keys get stored by third-party.

Coinomi

Coinomi is an opensource, secure, and universal wallet which supports multiple currencies allowing you to store all your funds in a single wallet.

Pros:

  • Simple and easy to use.
  • Provides strong security.
  • Supports nearly every type of cryptocurrency including Zcash.

Cons:

  • Is supported on Android only.
  • Does not have an instant send option.

The Conclusion

ZEC is indeed, one of the most promising cryptocurrencies today. However, the Zcash value in the future will obviously be dependent on a range of different factors. There are quite a few competitors that Zcash has in the market, and continuous development of new open-source platform will also play a huge role in the demand for Zcash coins.

Nevertheless, the technology that has been employed in the development of ZEC is not limited. Constant work is being done to improve its zk-SNARKS protocol to remove any sort of limitation that there is. The future of ZEC however, does look promising enough.

Thank you for reading, don’t forget to roam our site for more critic information about cryptocurrencies and much more.