Exchange Zcash (ZEC)

Zcash (ZEC) is a privacy-focused cryptocurrency that was launched in 2016. It was created by a team of researchers and developers who aimed to improve upon the privacy features of Bitcoin.

The team of developers and researchers who founded Zcash was led by Zooko Wilcox. Other notable founders include Matthew Green, a cryptography expert from Johns Hopkins University, and Ian Miers, a graduate student at the time of Zcash's launch who co-authored the original Zerocash whitepaper upon which Zcash is based. The team also included several engineers and advisors with expertise in cryptography, computer security, and distributed systems. Today, the development of Zcash is led by the Electric Coin Company, a for-profit organization that is dedicated to building and maintaining the Zcash protocol.

Zcash is based on a decentralized blockchain network that allows users to send and receive transactions without revealing their identities or transaction amounts to the public. This is achieved through the use of advanced cryptography technology — zk-SNARKs, which enables private transactions to be validated without the need for revealing any sensitive information.

Zcash uses a type of zero-knowledge proof called zk-SNARKs (Zero-Knowledge Succinct Non-Interactive Argument of Knowledge) to enable private transactions on its blockchain.

In simple terms, zk-SNARKs allow a Zcash user to prove that they have a valid transaction without revealing any information about the transaction itself. This is accomplished by creating a mathematical proof that demonstrates the validity of the transaction, without revealing any information about the inputs, outputs, or amounts involved. The proof is then verified by other nodes in the network without revealing any sensitive information to them.

The use of zk-SNARKs in Zcash is based on a complex cryptographic algorithm that involves several steps. First, the user generates a private key and a public key, which are used to encrypt and decrypt the transaction data. Then, the user creates a "commitment" to the transaction by using the public key to encrypt the transaction data in a way that makes it impossible to decipher without the private key.

Next, the user generates a zk-SNARK proof that shows the transaction is valid and that the commitment was generated correctly. The proof is constructed in such a way that it can be verified by anyone in the network without revealing any information about the transaction itself.

Finally, the proof is included in a new block in the blockchain, and other nodes in the network can use it to verify the validity of the transaction without seeing any of the transaction data. This ensures that the transaction is private and secure, while still allowing the blockchain network to validate transactions and maintain a distributed ledger.

The network uses a proof-of-work consensus algorithm, similar to Bitcoin, to validate transactions and create new blocks in the blockchain. However, Zcash's mining algorithm is designed to ensure that mining can be done using commodity hardware, rather than requiring specialized mining equipment, which makes it more accessible to a wider range of users.

Zcash is used for various purposes, including as a means of payment and a store of value, as well as for privacy-preserving transactions. The Zcash ecosystem also includes a number of applications and services that make use of its privacy features, such as encrypted messaging platforms and anonymous marketplaces.

ZEC is the native cryptocurrency token of the Zcash blockchain network. It is used as a means of payment and a store of value, and can be used to pay transaction fees on the Zcash network.

The total supply of ZEC is capped at 21 million coins, which is the same as the total supply of Bitcoin. Unlike Bitcoin, however, Zcash has a slow start mining period, during which mining rewards are gradually ramped up over a period of about 34 days to incentivize early adopters and promote network stability. After this period, the mining reward is fixed at 6.25 ZEC per block.

As of April 2023, the circulating supply of ZEC is approximately 13.5 million coins. The remaining coins are expected to be released into circulation over the next several years through the mining reward process.

ZCash vs Monero 

ZCash is often compared to the Monero network as both are privacy focused cryptocurrencies that don’t reveal the transaction data, though the networks have some notable differences in their approach to privacy and technology. While ZCash uses zk-SNARKs, Monero utilises the technology called ring signatures. 

Another difference between Zcash and Monero is their level of privacy. Zcash offers a higher degree of privacy than Monero in some cases because it allows users to choose whether or not to make their transactions private. This means that Zcash users can transact with either a transparent or shielded address, whereas all Monero transactions are private by default.

Zcash also has a fixed total supply of 21 million coins, which is the same as Bitcoin, whereas Monero has an infinite supply, with a gradual reduction in the rate of inflation over time.

Ultimately, the choice between Zcash and Monero depends on personal preferences and use case. Zcash may be a better fit for users who prioritize flexibility and transparency, while Monero may be a better fit for users who prioritize strong privacy and anonymity.

Average Fees on the Zcash Network 

The fees on the Zcash network vary depending on the current network congestion and the size of the transaction being processed. However, the fees on the Zcash network are generally low, and in many cases, they are lower than those on other major blockchain networks like Bitcoin and Ethereum.

As of April 2023, the average fee for a Zcash transaction is typically less than $0.001 USD.

It's worth noting that fees on the Zcash network may fluctuate depending on the current demand for network resources, as well as the availability of mining rewards. However, overall, the fees on the Zcash network are designed to be affordable and accessible to users of all sizes.

ZEC Crypto Wallets 

ZEC tokens can be held in a variety of wallets that support the Zcash network, including Zcash official wallet that supports shielded and transparent addresses, Ledger Nano S/X, Trezor, Atomic Wallet, Exodus, Guarda wallet, Coinomi, Jaxx Liberty, MyEtherWallet, Guardarian, Magnum Wallet.