![]() These differences include changing the block interval target from 10 minutes to 2.5 minutes, increasing the block size limit to 2MB, introducing a confidential value transfer scheme and implementing a 20% reward to the Zcash team for each block rewarded for the first four years. The Zcash team created a hard fork, a copy of the Bitcoin blockchain and kept the design relatively the same aside from a few differences. Zcash is based on the Zerocash protocol which aims to fix Bitcoin’s privacy issues. Zcash vs other popular privacy coins (source: ) Zcash technology Zcash still has a long way to go before achieving the status of an actual privacy coin. The decentralization can be an issue as well, as the Zcash foundation could potentially end up owning up to 10% of the total supply of their tokens (explained further in the article). This causes fungibility issues, as the coins that were a part of encrypted transactions could potentially end up being more valuable than those that were “tainted” via unencrypted transactions. It does allow for private transactions so the privacy is there, but the encryption service is being used for only a fraction of the total transaction volume. Zcash currently doesn’t offer much in any of the three listed categories. The currency is not created, maintained nor controlled by any one person or company, i.e. Decentralization: All nodes have equal power and control there are no nodes that have more influence than others, i.e.No coin risks potential blacklisting or debasement due to deprecating transaction history. Fungibility: Every coin is worth the same value and is thus mutually interchangeable.Privacy: The amount of coins you own, send and receive are not observable, traceable nor linkable by looking at the transaction history on the Blockchain.Still, these criminals are dime a dozen conserving your privacy simply means that you wish to have absolute control over who knows what about you.Ī privacy coin is usually defined by 3 key features: This fact became a focal point of any anti-Bitcoin or anti-cryptocurrencies narrative. Naturally, a part of this demand comes from people that are engaged in illegal activities. Zcash What makes a privacy coin?Įnhanced privacy and anonymity are becoming increasingly sought after in all corners of the Internet. Zcash transactions are still published on a public blockchain but the sender, recipient, and amount of coin transferred remain private.īitcoin vs. While Bitcoin allows you to follow someone’s transactions if you know their wallet address, with ZCash all the information is encrypted. This coin runs on a decentralized Blockchain, similarly to Bitcoin, but keeps transaction amounts hidden and parties involved anonymous. Zcash is one of these so called “privacy” coins as it represents an open, permission-less cryptocurrency that can fully protect the privacy of transactions using zero-knowledge cryptography. In a world where online privacy is becoming more of an issue by each passing day, coins that focus on providing it are becoming more and more valued.
0 Comments
Leave a Reply. |