Zcash (ZEC) current price is $55.12 with a marketcap of $338.95 M. Its price is -4.20% down in last 24 hours.
- Zcash (ZEC)
- Live Price $55.12
24h % -4.20%
- Market Cap$338.95 M
- Volume$180.85 M
- Available Supply6.15 M ZEC
More Info About Coin
Zcash is a cryptocurrency that works to improve on the basic Bitcoin model instead of trying to fork off of it. Its creator, Zooko Wilcox, led a team of developers that trusted his more than 20 years of experience in decentralized systems and cryptography. This latter qualification is a key to how Zcash works.
The Essence of Zcash
While Zcash is more than just Bitcoin with an added feature, it has gained the notice of investors by employing cryptography to conceal either the identity of the parties involved in a transaction, the transaction itself, or both. This feature offers both the privacy many users are seeking and the flexibility of being able to choose which, if any, part of a transaction is visible to the public.
Yet making cryptography a part of Zcash does not violate the basic principles of cryptocurrency – being decentralized and open source. The cryptography enables a transaction to be unlinked from the blockchain’s history, removing any ability to back track either the users involved in the transaction or the values of the individual transaction. The end result is a transaction that is both anonymous and confidential, yet maintains the basic blockchain features.
However, this method, for better or for worse, loses complete control over the mining and distribution of Zcash coins. While this adds one more layer of privacy for users, it also brings a level of uncertainty to the value of Zcash as a financial investment.
zk-Snarks – the Method Behind the Curtain
What makes Zcash work is a method called zk-Snarks. Developers have named this a zero-knowledge proof construction, meaning that the proof exists in the encrypted data known only to the users involved in the transaction. One nice feature is that users have the option to make their information visible, so this methodology is not forced upon its users. The zk-Snarks encryption key is the actual proof that the individual transaction is legitimate, so all that is being done is using the Bitcoin model and adding the encryption feature. This makes it compatible with Bitcoin transactions.
The Zcash Foundation
As expected, there is an entity that has been created to both maintain and improve the Zcash protocol – the Zcash Foundation. Assembled in 2017 as a non-profit organization, it will get 1.44% of the total monetary base to work to benefit users of Zcash now and in the future. Interestingly, part of the development team includes people who are also working on Bitcoin and Ethereum.
What’s in it for Investors?
This is the key question since the Zcash model focuses primarily on the privacy of the transaction. As for the numbers, the mining and distribution of Zcash has been capped at 21 million coins. Like Bitcoin, its mining reward is reduced by half every 4 years. Ten percent of these 21 million coins will be given to the founders and other stakeholders.
Initially, the Zcash value started off strong, but soon fell back for several key reasons. The first is that despite the innovative approach using zk-Snarks, the method has not undergone significant testing in the real world. Even though mechanisms were built-in to minimize any potential losses during its release, this did not satisfy investors sufficiently to gain any long term confidence in the cryptocurrency.
The second, and likely the most important reason, is that Zcash has not yet been adopted by any platform that would use it as a currency. While the encryption is a useful feature, it offers no other significant advantages that would attract long term investors or challenge Bitcoin as a major cryptocurrency alternative.
All this leads to a simple strategy for would be investors – trading it as a purely speculative investment for the foreseeable future. If a major platform should see some benefit in adopting Zcash, that would cause its value to rise significantly. In the absence of this event, it is hard to give a reason why it should be bought at all.
But there is always a “but.” It cannot be overlooked that the involvement of Bitcoin and Ethereum advisors gives a certain amount of credibility to Zcash. Perhaps this is what the initial excitement was about when Zcash was first released. Should either of these major cryptocurrency players conclude Zcash has more value than believed, it could send its value and popularity soaring.
Pros & Cons
|It anonymizes the identity of people and the amount of the transaction.||Under the pressure of government agencies, some сryptocurrency exchanges may refuse to trade Zcash and similar ones.|
|mining to prevent centralization|
|Improved block-time of 2.5 minutes|
BCrypto Investment Tip
ZCash is an another great privacy coin like Monero, although I think Monero is a better investment in the long term, I have nothing against ZCash and I think it's a great investment but in my opinion it will always stay behind Monero and it might start to decline within the coming years. But untill the decline happens I believe ZCash might see a few x from its current price.