Zcash Price (ZEC)

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About Zcash (ZEC)

Zcash (ZEC) is a cryptocurrency focused on privacy and anonymity. It uses zk-SNARKs (zero-knowledge succinct non-interactive arguments of knowledge) to allow users to make transactions without revealing the sender, receiver, or transaction amount to anyone else on the network. Zcash offers the option of 'shielded' transactions for users seeking greater privacy, in addition to 'transparent' transactions that are similar to Bitcoin.

    Zcash Frequently Asked Questions (FAQ)

      What is the primary privacy feature that sets Zcash apart from other cryptocurrencies?

      The primary privacy feature that sets Zcash apart from other cryptocurrencies is its use of zk-SNARKs (Zero-Knowledge Succinct Non-Interactive Arguments of Knowledge) to enable fully encrypted transactions that can be verified as valid under the network's consensus rules without revealing any sensitive information about the parties involved or the transaction amounts.

      Can Zcash transactions be traced back to individuals by public address?

      Zcash offers both transparent and shielded transactions. Transparent transactions are visible on the blockchain, similar to Bitcoin, and can potentially be traced back to individuals by their public addresses. However, shielded transactions use zk-SNARKs to encrypt transaction information, making it highly unlikely to trace them back to individuals by public addresses.

      How do shielded Zcash transactions maintain users' anonymity?

      Shielded Zcash transactions use zk-SNARKs (zero-knowledge succinct non-interactive arguments of knowledge) to encrypt transaction data. This cryptographic method allows the network to verify transactions without revealing sender, receiver, or transaction amount details. As a result, users can transact with strong privacy, as their financial information and identities remain confidential, maintaining their anonymity.

      What was the original relationship between Zcash's and Bitcoin's codebase?

      Zcash originally forked from Bitcoin's codebase, incorporating advanced cryptographic techniques to offer enhanced privacy and security features. It modified Bitcoin's protocol by implementing zero-knowledge proofs (zk-SNARKs) to secure transactions and provide users the option of 'shielded' transactions.

      Who is the founder of Zcash and what is his background in cryptography?

      The founder of Zcash is Zooko Wilcox-O'Hearn. He has a strong background in cryptography, having contributed to the creation of several cryptographic protocols and systems. Zooko is known for his work on the Tahoe-LAFS, a secure, decentralized file store. He is also recognized for his role in the development of the BLAKE2 cryptographic hash function. With a career spanning more than two decades in information security, Zooko is a seasoned professional in the field of cryptography.

      How does the Zcash network ensure regulatory compliance while offering privacy?

      Zcash ensures regulatory compliance through its selective transparency feature. Transactions can be shielded for privacy or transparent depending on the user's needs. Compliance can be achieved by disclosing transaction details to authorized parties (such as regulators or auditors) using view keys, which allow selective visibility into shielded transactions without compromising overall privacy.

      What is the total supply limit for Zcash coins and how does it compare to Bitcoin?

      The total supply limit for Zcash coins is 21 million, which is exactly the same as Bitcoin. Both cryptocurrencies are designed to have a capped supply to mimic the scarcity attributes of precious metals like gold.

      How are new Zcash coins distributed through block subsidies?

      New Zcash coins are distributed through a process called block subsidy, which occurs every time a block is mined. The block subsidy starts at 12.5 ZEC and halves every four years in an event known as 'halving.' This subsidy is part of a block reward, which also includes transaction fees. The reward is distributed to miners who successfully mine a block, incentivizing them to secure the network. Zcash has a Founder's Reward that initially took a percentage of the block rewards, but this stopped as of November 2020 when it switched to a new development fund.

      What significant changes were made in the Zcash Canopy upgrade regarding the distribution of rewards?

      The Canopy upgrade, which is the fifth network upgrade for Zcash, brought significant changes to the distribution of rewards by ending the Founders' Reward and establishing a new development fund. The new fund, known as the Zcash Development Fund, redirects 20% of the mining rewards to support network development. Of this 20%, 8% goes to the Major Grants fund, aimed at large-scale, long-term projects, while 7% is allocated to the Electric Coin Company (ECC) and 5% to the Zcash Foundation for ongoing development and operational costs. This change ensured that Zcash's growth and maintenance are funded without relying solely on donations or external funding.

      When is the Zcash network upgrade NU5 expected to go live on the testnet?

      As of early 2024, The Zcash NU5 network upgrade is expected to go live on the testnet on July 1, followed by a mainnet launch in October, coinciding with the planned Halo Arc release.

      What hashing algorithm is used to secure the Zcash network?

      Zcash uses the Equihash hashing algorithm to secure its network.