Quick inner navigation:
ZenCash Coin Analysis
What do Bitcoin Cash, Zcash and ZenCash have in common? There are all Bitcoin forks. They were all forked in the name of innovation, each with slightly different features, teams, and goals. Bitcoin Cash is the most successful Bitcoin fork.
Although many forks, like Bitcoin Cash, aim to improve Bitcoin’s payment protocol, there is increasing attention on privacy oriented cryptocurrencies. Cryptocurrencies like Monero, DASH, and Zcash, have been performing incredibly in the last two years.
Monero and DASH are still the most popular privacy coins. But with the recent growth rate of ZenCash, investors are keen to watch out what direction the cryptocurrency takes in the future.
What is ZenCash?
ZenCash is a privacy-oriented cryptocurrency network modified from Bitcoin’s consensus. It’s is a peer to peer payment network, and traders can send ZenCash coins from one address to another like with any other cryptocurrency.
However, the network goes beyond a typical cryptocurrency. ZenCash started off as a cryptocurrency that gave users the option to anonymize their transaction details. This way, a user could choose whether to trade pseudo-anonymously like it’s done with Bitcoin or encrypt their data for additional privacy.
ZenCash later boosted their security techniques by implementing SSL encryption between ZenCash wallets, the nodes that verify transactions during the encryption process. This improved the way data was sent between addresses and made it more secure compared to Zcash or Zclassic.
The ZenCash team was led by Rob Viglione, a former mathematician, and physicist. A team of 50 developers and managers joined in, and a fork was created from Zclassic on May 2017. Zclassic is one of the original Bitcoin forks. It utilizes Z-snarks to hide users’ data.
Following the fork, everyone who owned Zclassic coins prior to the fork earned ZenCash coins on a scale of 1:1.
The formed ZenCash cryptocurrency would provide uniqueness to Zclassic by introducing new security techniques and features. For example, ZenCash allowed users to include private messages to traders.
Instead of only sending payment, you can add a message therein to create context or thank the recipient for transacting with you. All this is done with anonymity at center stage so that no one gets to view the message apart from the intended recipient.
Ultimately, while ZenCash, Zclassic, and Zcash all came from Bitcoin, ZenCash provided advanced anonymity features, more control to users, a new development team and a new mission. The mission—to make ZenCash the most useful privacy oriented cryptocurrency in the industry.
The ZenCash Team
ZenCash team consists of 50 team members drawn from more than 10 countries around the world. The team is divided into three: core development team, partners, and advisors. Most of the prominent team members are former crypto mathematicians who have worked with leading cryptocurrency startups.
The team leader, for example, worked for BitShares and BitGate. The main strategic advisor, Charles Hoskison, is the founder of IOHK, which developed Cardano. In general, the team members have at least 10 years of experience each and have created successful projects in the past.
Rob Viglione – Team Leader
Rob is an MBA holder in Finance and Marketing. He is a former mathematician and physicist who worked for startups such as Zclassic, BitShares, and BitGates. He worked alongside Charles Hoskinson, a co-founder of BitShares and the strategic advisor of ZenCash.
Rolf Versluis – Chief Engineer
Leading a team of 20 software engineers, developers, managers, infrastructural managers and the testing team, Rolf oversees one of the most important departments at ZenCash. He is an experienced entrepreneur in the cryptocurrency industry and owns a mining business.
Rolf’s area of specialization, however, is Cisco Systems. He has also worked for the US Submarine force as a trained officer. He brings in leadership to the fairly large development team.
Charles Hoskinson – Strategic Advisor
Charles Hoskinson was initially thought to be the lead developer for the ZenCash platform. He is the most popular person in the team after all. Charles co-founded IOHK, the company behind Cardano. He is also one of the co-founders in both BitShares and Ethereum.
Having worked with Rob Viglione, Charles has great chemistry with the leadership team. He understands the project properly and is able to use his expertise to guide them in the right direction.
The ZenCash fork introduced a lot of features, some similar to those in Bitcoin. However, ZenCash emphasized transparency, self-governance, and peer to peer communication with three main services: ZenChat, ZenPub, and ZenHide.
ZenChat is the most iconic feature in the network’s payment protocol. Acting as a private 1-on-1 communication feature or a group messaging service, ZenChat enables traders to interact and communicate in addition to doing business.
The service costs a fraction of Zen coins to prevent spam but provides an advanced level of privacy to traders. Like with all data that goes through a blockchain, all messages broadcasted over the ZenChat feature are recorded permanently on the blockchain. However, the messages are encrypted using the AES-256 algorithm and Perfect Forward Secrecy to make them virtually untraceable.
ZenPub is a service that allows anyone to publish stories, photographs, and videos anonymously without the fear of censorship. The platform uses secure nodes to shield users’ addresses and prevent security authorities from tracing a message back to an IP address or account.
ZenHide is still in new development. It will be a service that circumvents censorship by shielding the remote endpoints of messages. The service will allow people to communicate from a banned HTTPS by disguising the message as coming from an allowed host.
Ideally, ZenHide mixes domains at different layers of communication. If two domains are used, one appears at the top and the second one underneath it. The hidden domain can’t be seen by the censor. If the censor wants to block traffic from the source, they would have to guess from a series of domains, making it expensive to implement.
ZenCash Use Cases
ZenCash envisions being the most useful privacy coin in the industry. But do crypto traders need privacy?
If trends are anything to go by, the most successful cryptocurrencies of the future will need to provide anonymity to traders. The NSA allegedly collects all information about Internet and mobile phone users around the world.
Cryptocurrency exchanges like Coinbase have also been accused of sniffing traders’ information and even going the extent of using that information to kick them out of their exchange. Because of such reasons, cryptocurrency traders want to transact privately and securely. Fortunately, ZenCash has solutions that will provide anonymity and more in the near future.
Anonymous communications using ZenChat
As people become aware of their rights to communicate privately, ZenChat might emerge popular both within and without the blockchain ecosystem. A lot of countries are known to ban private messaging services, but with the help of ZenChat, people could communicate freely without the fear of censorship.
With the addition of ZenPub and ZenHide services, ZenChat will be at the forefront of the most helpful privacy oriented communication channels in the world. And to make things better, the company’s services are broadcasted over a secure, decentralized blockchain.
Private Secure Transactions
As the demand for privacy coin increases, those with additional, helpful features will emerge at the top. ZenCash leads in both providing secure payments and in offering transparent transactions.
The way the network implements security techniques is also unique. By encrypting every step of the transaction and communication process, ZenCash makes it practically impossible to hack its system or to identify its users.
Decentralized Exchange and more
The ZenCash blockchain will have the ability to host a decentralized ZenCash exchange. Zen cryptocurrency will be the main trading pair, but any other cryptocurrency could be supported. Additionally, the platform will enable borrowing and lending of digital assets in a peer to peer manner. Related to lending, ZenCash will also facilitate insurance services so that members can pool their resources together and afford premiums.
ZenCash Secure Nodes
Many blockchains use computer nodes to keep their blockchain active in real-time. Supernodes known as master nodes provide additional functions like providing the privacy of transactions, helping with self-governance and enhancing efficiency with blockchain budget management.
ZenCash uses special master nodes called secure nodes. Their nodes are slightly modified to have a low entry barrier. This helps reduce artificial coin inflation and keep more ZenCash cryptos in circulation.
The ZenCash secure nodes have an entry point of 42 ZEN. By contrast, many cryptocurrency networks put an entry point for their nodes at 500 tokens. DASH master nodes, for example, require that interested users stake at least 1000 DASH coins.
ZenCash also offers a more advanced secure node service where users must stake at least 500 coins. Known as the Supernodes category, its members earn 10% of ZenCash block reward.
Secure node operators receive 20% of the network’s block rewards. Supernode operators (those staking 500ZEN) receive 10% of the rewards while regular node operators get the other 10%.
ZEN coin miners receive 70% of the mining reward while the remaining 10% goes to the company’s treasury accounts.
Recognized with the symbol ZEN, ZenCash is the official cryptocurrency on the ZenCash blockchain. It’s used as a currency to send funds from one address to another. The coin is also used as payment to send messages on the ZenChat feature and as a reward to the blockchain’s miners and node operators.
ZEN is distributed through a mining process. It was designed to be ASIC resistant and instead favor GPU miners. Like many Bitcoin forks, ZEN has a maximum supply of 21 million coins. The circulating supply as at the time of writing is $4.11 million.
ZEN coins are distributed through mining. ZenCash uses the Equihash mining algorithm which attempts to decentralize the mining process by making mining ASIC resistant. ZEN’s mining method is a proof of work consensus and requires miners to solve complex math algorithms using GPUs to verify transactions.
At the time of launch, mining ZEN coins had a block reward of 12.5 ZEN coins and one block would be distributed after 2.5 minutes. The total supply of ZEN coins is 21 million ZEN. 4.11 million ZEN coins are already in circulation, meaning that miners compete to mine the remaining 17 million.
ZEN’s block reward will be halved every four years. However, miners are eligible to ZEN transactions fees. The fees are classified in blocks of 2MB in size each to lower costs for traders in general, but they are still significant as rewards for mining.
Although ZEN’s mining algorithm is not as labor intensive as that of Bitcoin, it is still difficult to do as a solo miner. Many miners join altcoin mining pools to mine together and share rewards afterward.
Here are some of the mining pools that mine ZEN.
As its name suggests, ZenMine is a pool built for ZEN miners. There are no pool fees as it is built by the ZEN community for community members. There are almost no limitations to join the pool. You mine anonymously; get paid both block rewards and transactions fees and receive all important statistics about your mining activities in real-time.
This pool was initially built for ZEN mining but later began supporting other altcoins albeit at a mining fee of 0.5%. Miners don’t need to create an account with their name in the spirit of keeping things anonymous. After all, altcoins mined on the platform are privacy coins like Komodo, Zclassic, Votecoin, and Hush.
This is yet another mining pool dedicated to ZEN mining. The pool claims to have dedicated servers for ZEN, Hush, SnowGem and Bitcoin Private, 100% stratum support and low pool fees. The payouts are paid on a daily basis and like many pools, and your statistics are shown in real time.
ZenCash Price Growth
ZenCash is one of Bitcoin’s most successful forks in terms of price growth. While a few forks have remained below $1 in prices, ZEN recorded a price of $10 on its first day in crypto exchanges.
Within six months, the cryptocurrency was valued at $65, 6.5 times higher than investors paid in June 2017. The coin’s market cap also grew from just $23 million in early June to $193 million by January 2018.
Between February and April 2018, the crypto experienced a market correction that left it valued at $16. While the loss in value was massive, the market correction didn’t affect ZEN alone. Most cryptos lost value in January and February 2018.
ZEN has since then risen in value again, hitting $40 on May 4th and fluctuating between $35 and $15 in June 2018. In general, the first half of 2018 did not favor cryptocurrencies. But coins with solid innovations have been projected to rise in value again later in the year.
ZEN, with its revolutionary privacy-driven services, is projected to gain value and perhaps reach $50 by the end of 2018.
How to buy ZenCash?
Follow this guide to help you set up a secure wallet and purchase ZEN coins at safe and efficient exchanges.
Step 1: Setting up a ZenCash Wallet
Securing coins is the most important obligation of a cryptocurrency investor. Yes, you want to hold those coins and profit from them, but that may never happen if your wallet gets hacked. You could also lose your password, and if your wallet doesn’t offer backup—you are doomed.
Here are the top 3 wallets that support ZEN coin and how each is unique:
Ledger is a hardware wallet, shaped and designed to look like a flash drive. It has been voted as the best cryptocurrency wallet before for its advanced security features. With the Ledger, your coins are secured offline. You also get a backup seed phrase and a password for extra security.
This is a mobile app wallet. While you can hold and use the Ledger physically, Coinomi is a simple app that lets you access and secure your ZEN coins online. It’s less secure than ZEN but has the reputation and ease of use that should make it a good option for holding small amounts of crypto.
Do you know how Ledger Nano S is operated on a personal computer? XEEDA operates on a smartphone. It has a micro-USB that can be mounted on your phone and a slightly large LCD screen for effective use.
Step 2: Get Some BTC/ETH
Like many altcoins, ZEN is paired with BTC and ETH on exchanges. As such, you must first buy Bitcoin or Ethereum on an exchange like Cex.io and use the coins to purchase ZEN at crypto to crypto exchanges.
Cex.io is the most preferred exchange for purchasing crypto with fiat thanks to low fees and a variety of payment methods. You can purchase either BTC or ETH with credit cards, use bank payments or SEPA if you live in Europe. The exchange is reputable and has been in operation since 2013.
Step 3: Choose a ZenCash Exchange
All of the 3 ZEN wallets we highlighted above also support both BTC and ETH. With your coins in a secure wallet, select a safe cryptocurrency exchange that supports ZEN. Here are the top three picks:
Based in Malta and founded in 2017, Binance is consistently the largest crypto exchange based on 24-hour trading volumes in 2018. The exchange started with an ICO, an exchange-based token that offered its traders a 50% trading discount fee and an efficient team. Binance currently supports over 200 altcoins, Bitcoin, and ICO tokens.
Changelly is a cryptocurrency broker that purchases altcoins at the best prices on exchanges for you. You can buy BTC and ETH on Changelly using a credit card, but their fees are generally high. The trading fees for buying ZEN are also high at 0.5%. On the bright side, the exchange is compatible with some wallets so that you trade altcoins without leaving your wallet.
Cryptopia is a popular crypto to crypto exchanges based in New Zealand. It’s famous for listing new crypto and for their good customer services. With more than 400 altcoins supported and relatively high liquidity, Cryptopia is one of the most preferred exchanges to trade new cryptocurrencies.
Step 4: Storing ZenCash Safely
After you purchase ZEN from any of the exchanges outlined above, don’t leave them there. Exchanges have control of your coins and could lock you out of your account. Exchanges also get hacked, which is why it is advisable to transfer your ZEN into a personal wallet.
Moving your coins from an exchange is easy. Start by setting up the wallet. Most wallets will ask you to write downs a backup phrase and create a password. After that, access the ‘Receive’ icon on your wallet and select ZEN as the crypto you want to fund.
An address will be generated. Copy it and use it as your destination address on the exchange. ZEN payments are completed fast, and you should have coins in your wallet within 10 minutes.
ZenCash is a privacy coin forked from Zclassic in May 2017. It quickly rose in value after introducing advanced security features that included an online chatting service. Along the way, ZEN has undergone fluctuation like most crypto, and suffered from tough competition in the privacy coin sector, but has remained valuable.
In 2018, the demand for privacy coins is on the rise. And with ZEN cash consisting of so many security-oriented features, it’s primed to lead other privacy coins in value. The crypto has a great reputation online, and its prospects are higher than that of most privacy coins.
Thank you for reading our ZenCash guide. Feel welcomed to view more cryptocurrency guides, reviews, and investment tips.