Zcash (ZEC) is some other Crypto currency like bitcoin but with some exceptional capabilities. Like Bitcoin it is primarily based on a decentralised blockchain but allows for anonymity behind transaction quantities and parties involved. In Bitcoin if you recognize someone’s address you could follow their transactions and you could see which all the addresses and their transaction quantities – so its pretty clear how a whole lot cash is transferring around, with ZCash all the data is encrypted.
Zcash uses a particular proof to secure the network called zk-snark – or evidence of building. This allows the network without disclosing numbers or parties involved in trades to keep up a safe ledger of balances. This occurs through using zero knowledge proofs – or basically where the individual making the trade has got the capacity to spend the ZEC and the values balance plus they haven’t been spent before. In Bitcoin each total node keeps a balance of what is held by every address in the UXTO or unspent trades output database – with each trade being confirmed to unlock that output signal. Zcash is set to launch on the 28th of October 2016 and has a hefty colossus team backing it and working on it. These include Pantera Capital along with names such as Roger Ver and Barry Seibert. The code is open source that is uncommon as the Company – run by Zooko Wilcox, a 41 year old cryptographer – will expect to give 10% of 1% for non profit organisations and the coins for funding costs. The Zcash whole coin supply will be 21 million like Bitcoin, and it even follows the same issuance rate with 21m ZEC being issued over 131 years, but instead of having 10 minute blocks, ZCash is going to have a 2.5 minute block avarage with 4 times bigger block rewards that halve every 4 years.
How ZCASH is Funded and Distributed
Zcash has caused a lot of controversy because of its process of doling out the crypto currency. The organisation isn’t set up as an opensource community but as a Company. Here is the initial important difference to Bitcoin and other crypto currencies for example ethereum. The 2nd important difference is how they intend to reward investors and workers in the Company which will be by a tax on mining compensations called “Creators compensation”
The premine has been the bane of currency enthusiasts that are crypto – but the line is becoming blurred between what is wrong and what is appropriate. But at the exact same time the digital currency creators should be incentivised to keep the job running plus they generally do that by establishing a crypto currency and issuing coins to various people which are then dumped on the marketplace depressing the price – the programmer soon loses interest and the project is left stagnating.
With Zcash before releasing it they have taken a different approach and have taken cash from investors in the company to produce the crypto currency. To some people this is causing anxiety and ire as they feel the investors are using the network to enrich themselves by the power which they control. The backers include Pantera Capital and various Bitcoin celebrities for example Barry Seibert and Roger Ver.
In a few ways though this approach is sensible as it aligns the long term aims of the Zcash community and the Company – i.e. to make it a success and give it the ability to finance itself to maintain development and research.
Another point is that Zcash has been pushed by one of its investors – the Digital Currency Group, which possesses a large percentage of the media outlets active in the crypto currency space prompting some to accuse ZCash of being a true product of corporate greed.
There has been plenty of discussion on forums about this – and with all the coin there have been some implying they
will (Have) create their very own money based on the exact same protocols but without the 10% tax on mining rewards. Called Zcash classic (ZCL)