Hard Work of Bitcoin Developers Directly Benefits Zcash

Bitcoin has the largest community in the cryptocurrency world. It is the embodiment of the entire industry, but it still has some disadvantages. Many people criticize BTC for its low bandwidth. More people don’t like the transparency of its registry. Anyone can enter the blockchain and trace the entire history of the transaction since 2009.

Several teams are working on the problem of crypto payments transparency. The most popular are Monero and Zcash. In this article, we will talk about Zcash – its advantages, features, and prospects.

What Is Common between Bitcoin and Zcash?

It is the first publicly available cryptocurrency to use “zero-knowledge proof”. That is, payments are published on the public blockchain, but information about the sender, recipient, and the amount of the transfer is hidden.

Zcash cryptocurrency is based on the bitcoin protocol. It uses the latest cryptography achievements and applies them to blockchain technology. It is a chain of blocks first implemented in the Bitcoin network.

Block is a unique structure for recording a group of transactions in the system. A transaction is considered complete and confirmed only when checked and signatures received. The transactions are then grouped with others and recorded in a “block”. They can be checked because each block contains information about the previous one. Each new block is mined by miners who provide the power of their equipment to perform resource-intensive calculations.

As the Bitcoin network, Zcash operates on a consensus algorithm. When using PoW, all participants mine a new block at the same time. Who gets coins first? It depends on the power of the equipment.

Differences between Bitcoin and Zcash Blockchains

Zcash uses the Equihash hashing algorithm. It has high requirements for RAM. Besides, the Zcash cryptocurrency uses the zk-SNARK (zero-knowledge proof) cryptographic protocol. This tool helps to secure information about the status of accounts without disclosing the parties and the number of transfers. Instead of publicly showing the payment, amount, and participants, the payment metadata is encrypted, while the zk-SNARK proves the integrity of all parties.

To remain fungible, a crypto unit should not contain any story of previous use. The Zcash system achieves it by severing the link between hidden coins and their previous history on the blockchain.

A key factor in sending and receiving ZEC is the ability to choose addresses to use. There are two types of addresses:

  • open addresses start with “t”; these are the same addresses as in the bitcoin network;
  • hidden addresses begin with “z”; they are protected by zero-knowledge proof (zk-SNARK).

If the coins are on an open address, the balance is visible to everyone. Sending from a public address to a hidden one will break past connections between public addresses. The blockchain confirms transactions for hidden addresses but leaves no information about the sender, recipient, or amount of the transfer. It all guarantees anonymity.

How to Buy Zcash?

Financial regulators don’t appreciate anonymous coins, which is why Zcash has been removed from several major exchanges. It is still listed on Binance, Kraken, Coinbase Pro, Huobi Global, etc. They are top-rated and reliable exchanges, but they all have one common drawback – centralized management. It makes it impossible to trade anonymously.

To convert cryptocurrencies and remain incognito, use the Godex.io decentralized platform. The ZEC to BTC exchange takes only a couple of minutes, and the confirmation of the application takes up to half an hour. The exact time depends on the network’s congestion. The platform is available to citizens of the United States and other countries of the world. The exchange interface is simple and straightforward.

Who Is the Zcash Developer?

CEO of Zerocoin Electric Coin Company, Zooko Wilcox, is the founder of the project. In 2013-2014, the company developed the Zerocoin protocol.

The Zcash protocol was developed and launched by scientists, consultants, and engineers at ZECC. This list includes all the authors of the Zerocash protocol, most of the creators of the Zerocoin protocol, and the top researchers of the zk-SNARKs.

In November 2020, they launched a fund to finance independent developers. This fund receives 8% of all mined coins, which is about 4320 ZEC monthly. It is $993 thousand at the current rate.


The Zcash cryptocurrency is the first decentralized project to use “zero-knowledge proof”. It is one of the most anonymous cryptocurrencies on the market. Its main competitor is Monero. ZEC rate is still far from its all-time high ($880 in January 2018).

Edward Snowden, a top privacy advocate in recent years, spoke well about this coin. The project has excellent potential, but its fate will depend on the team’s success and the policy of financial regulators.