Security-driven digital currencies have picked up pace since the last year as it became evident that Bitcoin’s pseudonymous nature does not offer complete privacy to its clients. A standout amongst the most well-known security-driven cryptographic currencies in the market today is Zcash. As you read on, you will know more about Zcash and if this advanced digital currency can be considered a good investment venture or not.
The Altcoin Named ‘Zcash’
Essentially a Bitcoin fork which is digitized and decentralized, Zcash is an open-source altcoin which provides genuine protection to its clients. Despite being published on a public blockchain, Zcash transactions maintain privacy of the receiver, sender as well as the transaction amount.
Zcash was born out of the Zerocoin venture, which was intended to improve the anonymity feature that was lacking in Bitcoin. It was created using the core codebase of Bitcoin and this modified version utilizes advanced cryptographic security known as zero-knowledge proofs to ensure the legitimacy of ZEC transactions without uncovering any data about them. Zcash developers made Zcash’s own exclusive zero- knowledge proof known as zk-SNARKs.
Just like Bitcoin, Zcash has an overall coin cap of 21 million and at the same time, utilizes a PoW (proof-of-work) consensus tool to check and process exchanges. Currently, Zcash is among the top 10 cryptocurrencies having a market cap of more than $500 million. This digital currency may be exchanged on some of the leading platforms such as Bithumb, HitBTC, Bitfinex, Bittrex, Kraken, and Poloniex.
Zcash was officially launched on October 28, 2016 by CEO and Founder Zooko Wilcox. Wilcox has more than 20 years of experience as a PC researcher and has worked on decentralized frameworks, cryptography, data security, and new businesses. His earlier work experience incorporates “Zooko’s Triangle”, ZRTP, DigiCash, Tahoe-LAFS, Mojo Nation, SPHINCS, and BLAKE2. However, the inception of Zcash was not without a debate.
The Zcash Controversy
There has been a lot of debate and discussion regarding the launch of Zcash. The media outlets headed by Zcash speculators, for example, Roger Ver and the Digital Currency Group, devised an extraordinary hype surrounding this digital coin and spread the news that it is attracting financial specialists to purchase ZEC, and at the same time, adequately blowing up the cost of the coin to ludicrous highs. Consequently, some recommended that Zcash was only a top-notch ‘Pump and Dump’ plan to finance the founders and early investors.
On the very first day of the trade, the value of ZEC experienced high unpredictability with one trading exchange, namely Poloniex, demonstrating the cost of 1 ZEC as equivalent to 3,299.99 BTC, which was close to $2.3 million during that time. Obviously, the value went down unexpectedly from that unreasonable high in a matter of few minutes, yet, at the same time, remained between $400 and $2,200 during the initial days of trading before coming to a halt at $500. We are speaking about the time when the cost of Bitcoin was about $700.
Besides, Zcash mining includes what is alluded to as the ‘founders’ reward’ for the initial 4 years. 10% of the total mined coins are issued to the partners of the Zcash Company, especially the investors, founders, advisors and workers. Vitalik Buterin, Gavin Andresen, Roger Ver, Arthur Breitman, Fred Ehrsam, and Barry Silbert are some of these blockchain experts. When analysing how exactly the founders’ reward is organized, one realizes that 20% of the total mined coins during the 1st year will go to team Zcash and its sponsors and that there is a relaxed start to ZEC mining so as to curb the supply and eventually increase the value.
Obviously, the founders’ reward also adds up to the Zcash controversy. This has badly affected the miners who are economically reliant on Zcash mining. This has likewise left an adverse effect on this new cryptographic currency as this boosts everybody who has been supporting this coin to value this currency more, so as to make as much profit as possible.
Is Zcash A Profitable Venture?
Apart from Monero, Zcash is the other prominent anonymous cryptocurrency, owing to its dynamic developer group and solid support, it will probably maintain this status quo for quite a while. If you think that anonymous cryptocurrencies will assume a fundamental role in the world of digital currencies, then adding exposure to one of the chief security- focused coins with progressive innovation would bode well.
There are a few different features of Zcash which you may not like, but when considering an investment, do not let emotions get the better of you. Given the fact that Zcash has got the support of a few blockchain speculators and pioneers, this undertaking is more or less ready to succeed. ZEC is a genuine contender for your crypto asset portfolio. In any case, the dangers lie with the trusted setup and inflation issue for the next 5 years, not represented by straightforward market capitalization figures.