The cryptocurrency sphere in this fast-moving financial world is growing to a large scale, so involved persons gain more and more. Mining various cryptocurrencies has a large potential because each coin offers something groundbreaking.
Created in 2016, Zcash is a p2p cryptocurrency that gives its users the option to choose between private transaction and transparent transaction.
Zcash is based on Bitcoin and its key difference from BTC is that users have the option to encrypt the details of their transactions. This means that optionally you can hide the sender address, recipient address and the amount sent from the public blockchain.
The technological innovation in Zcash is zk-SNARKs- a technology that allows transactions to be private. Zcash is the first coin running on this technology. Every time you use a Z-address the only thing others can see on the public blockchain is that a transaction happened.
ZK-Snarks offers an authentication method that allows two parties to verify if they have the same information without disclosing personal data. Transactions made with
ZK-Snarks contain an additional string of data with details about non-disclosure agreement we pointed in the previous sentence. It’s amusing that nodes of the network can verify a transaction without knowing any of the details.
As you know, Bitcoin is the first p2p electronic cash system, the first great step on a way to a global decentralization and anonymity.
Nowadays many people still believe that using Bitcoin is absolutely private only because their names or home address are not attached to the Bitcoin wallet. They just pretend they know nothing about IP address.
So modern society dwells on the fact that Bitcoin is pseudonymous.
Short Comparison Review
Bitcoin mining is a decentralized digital cryptocurrency which is used to verify the transaction in public ledger. Mining involves blockchain technology and confirms the transaction in the ledger.
Zcash mining, on the other hand, is the open source cryptocurrency that anonymizes transactions. Zcash mining algorithm binds the gap between the average miner and large mining farms by solving cryptographic problems.
Zcash is a fork of Bitcoin which means that they have a lot in common. The main difference is privacy. Bitcoin offers pseudonymity since everything is stored on a public blockchain.
Zcash is similar to Bitcoin but uses an innovative novelty to increase privacy. All transactions on Bitcoin are public and visible to anyone. Zcash offers two types of transactions: public and private.
Zcash solves the anonymity disadvantage of Bitcoin– that BTC discloses details about your actions on the blockchain.
Bitcoin creates a digital store of value and Zcash, on the other hand, provides full anonymity as well as a store of value.
ZCash and Bitcoin Similarities
- Both coins use the proof-of-work consensus.
- Both coins are sought-after: Zcash is one of the top coins by market capitalization of course Bitcoin occupies the first place in this list of top coins.
- ZCash and Bitcoin run on similar token supply models that are both capped at 21 million, and block rewards that reduce at the same rate. The only supply differences are Zcash’ later release
Zcash vs Bitcoin: Key Differences
- Hash algorithm: ZCash uses Equihash, new memory-orientated technology. Bitcoin uses the Secure Hash Algorithm SHA-256.
- Privacy: transactions in the Bitcoin Lightning Network are not fully anonymous. ZCash presents ZK-Snarks – a technology that provides private transactions.
- Average block time: for ZCash the block time is about 2-3 minutes, in opposite Bitcoin transaction confirmation which can lasts up to 10 minutes.