ZEC cryptocurrency belonging to the ZCash project is rapidly gaining popularity. Learn all about how the cryptocurrency was created, how it works, and how to dig it.
ZCash - what is it?
ZCash is a payment network project based on blockchain technology. It has its own ZEC cryptocurrency and open source code. opensource. The incentive for the creation of Coin was the desire to create a private cryptographic currency. Zerocoin Electric Coin Company, led by Zooko Wilcox, is responsible for project development. The venture started in 2016.
ZEC is the main cryptocurrency of the project. It belongs to the so-called private coins, i.e. private cryptocurrencies, which hide information about the addresses of senders and recipients. Anonymity was ensured thanks to the ZK-Snark zero knowledge protocol. Zec stands out from the group of private coins by the possibility of conducting public transactions.
The ZEC user has two types of addresses to choose from. One of them t-addr is a public address, the other z-addr is a private address. Using public address all data is public, while using z-addr the sender and recipient address are private. However, there is a special preview for selective transparency. The possibility of using public addresses is also controversial, especially by supporters of anonymous payments who do not fully recognize ZEC as a private cryptocurrency.
The project founders themselves believe that thanks to the ability to hide addresses, the cryptocurrency is more transparent. Thanks to this, there is no coin selectivity and blocking that is suspected of being fraudulently used in the past. All ZEC coins are equal. It is worth mentioning that 95% of transactions in the ZEC blockchain are carried out at public addresses.
Technically, cryptocurrency works in the same way as BTC. There are 21 million coins, which is exactly the same as Bitcoins. Currently, almost ZEC 9.5 million is in circulation, which accounts for 45% of all coins. The current price is around $ 55, and the daily volume is $ 225 million, which gives 25th place in terms of market capitalization. ATH Zcah is $ 5,941.80 and took place on October 29, 2016.
ZEC cryptocurrency is based on the Proof of Work algorithm. This means that it is extracted in the same way as Bitcoin. By solving complicated mathematical calculations, the so-called miners who mine new blocks and maintain the network by charging additional fees for transaction approval. The average time to dig a new block is 2.5 minutes, and the current prize for miners is 12.5 ZEC. Like Bitcoin, ZCash is also subject to halving. The next one will take place on November 17, 2020 and will reduce the prize to 6.25 ZEC.
It is worth mentioning that 10% of each block award is collected for the development of the ZCash Foundation. In addition, up to the first halving, the prize is reduced by 20% for the authors' remuneration. Both of these issues are very controversial and do not necessarily appeal to users and miners. They even led to the hard forks and the creation of ZClassic ZCL, which in principle does not differ from ZEC in addition to the waiver of the abovementioned fees.
The algorithm used in ZEC was to be resistant to mining using ASICs. This was to prevent possible centralization of the network by using much more computing power. However, ASIC excavators for excavating ZEC have been on the market since 2018. After all, much of the extraction is still done using GPUs.