Zcash is a digital currency or cryptocurrency that works on a peer-to-peer decentralized format. The fact that the blockchain-related to transactions using other cryptocurrencies like Bitcoin is open for the entire world to view, and assess led many to believe that cryptocurrencies required more privacy. This, thus, became the core reason behind the evolvement of Zcash. This cryptocurrency saw the light of the day back on 28th October 2016. It was earlier called as Zerocoin, and then renamed as Zerocash and finally, it came to be known as Zcash. The owning company is called Zcash Company and the CEO cum Founder of this cryptocurrency is Mr. Zooko Wilcox. Zcash has a total supply of 21 million coins and at the moment a little more than 7 million is already in circulation. Similar to Bitcoin transactions, transactions related to Zcash is posted to blockchain meant for public viewing but the details are kept confidential.
Cover Zcash Coin common issue
As the markets for cryptocurrencies grow, the rate of crime related to the digital currency is also increasing solely because as technology gets sophisticated so do hackers. Here are a few common issues of cryptocurrencies including Zcash:-
1. One of the biggest issues being faced in the context of Zcash is by law enforcement agencies like the cyber cells of the police department. This is because of the increased privacy where users have the option of shielding transactions thereby making it difficult for the police to identify individuals who indulge in cybercriminal practices like cyber thefts and collect evidence against such suspects.
2. It has also been found that the trading platforms or exchanges that deal in cryptocurrencies like Zcash and other privately-secured cryptocurrencies are not as helpful with information and data as compared to other currency operators that handle other mainstream digital currencies.
3. Another common issue with Zcash and other cryptocurrency is the vulnerability of the exchanges to hacks and thefts of coins. Lack of proper security is one of the biggest threats to the cryptocurrency market today.
4. Lack of transparency and professionalism is another big issue with the crypto market where the power and influence wielded by the top wallets are under fire.
5. Scams are a constant happening in this industry. It has mainly to do with exchanges not paying much attention to verifying and assessing currencies before listing them up.
6. The other common issue is that of prices being manipulated with exchanges as they are not being regulated strictly and stringently by government authorities.
Pros and Cons of Zcash Coin
Like most other cryptocurrencies, Zcash to has its own set of pros and cons.
Advantages of Zcash
1. Private and confidential – Zcash users have two choices – first, choice of the public transparent address and the second, a completely hidden private shielded address. While the latter costs a bit more than the former, the second one is the main reason behind the evolution of Zcash in the first place. The high-encryption standards ensure that your transaction and details are completely protected from the public eye and hence possible cybercriminals.
2. The Zcash currency is fungible – it is interchangeable and hence Zcash is almost synonymous with transparency. By virtue of fungibility, all coins have the same value irrespective of its history which means that the ownership of the Zcash coins cannot be tracked thereby improving the trust factor associated with a cryptocurrency.
3. This particular cryptocurrency is free from application-specific integrated circuits (ASIC) which means that this particular cryptocurrency cannot be mined by miners who use the ASIC technology which is considered to be far more powerful than the usual Graphic Processing Units.
4. Dealing in Zcash comes with a guarantee that prices of Zcash will not fall too low as there is an upper limit on the total supply of this crypto coin.
Disadvantages of Zcash Coin
1. An easy target for online malicious activities – the fact that Zcash transactions are protected from the public and law-enforcing agencies makes it vulnerable and easy target for hackers and online criminals. Since encrypted transactions cannot be tracked, scrupulous online hackers can use the crypto currency for wrongful purposes.
2. The Zcash can be used mainly by users of Linux and can be mined by CPU mining method only. For Window or MAC users, the CPU mining method is not really the most profitable way thereby discouraging such users.
How to Sell or Buy Zcash Coin
Buying Zcash Coin
Zcash can be bought from an exchange or it can be mined. While mining is not that simple and requires the user to have the requisite technical knowledge, going to the exchange is an easier process. In order to buy this cryptocurrency from a crypto exchange users are required to register with the exchange and provide their personal information – however, once the user has Zcash coins in his digital wallet, he can choose to keep the address transparent and public or shield the address. The general process of registering with an exchange is to create an account and have it activated. Users also need to verify their identity to be able to sell and buy Zcash. Once your account is successfully created, users are required to fund their account or deposit Zcash or fiat currencies in their account. By this process, your account will have money which is required to buy Zcash.
Selling Zcash Coin
The process of selling Zcash is similar to that of buying. Users are required to login into their account, create a new sell order. Here, users need to enter into the exchange system, the price at which they want to sell and the quantity that they want to sell. Once the crypto coin has been sold, users can withdraw the funds to their bank accounts (in case of fiat currency) or to any other location as per their preference (a digital wallet in case of crypto coins).
With user-friendly front-end features on the software of most exchanges, buying and selling Zcash is not that difficult if users follow the guidelines and instructions thoroughly.
Is it safe for investment/or legally approved?
Investing in any kind of cryptocurrency is not without risks. The crypto market is highly volatile and marked by speculations and unpredicted results. Hence, users are always requested to read thoroughly and verify the said currency, its legal validity in their country of residence or operations before buying or selling Zcash or any other cryptocurrency. Many countries in the world do not permit cryptocurrencies – hence it is best to first refer to a relevant regulatory authority or body before venturing into this industry.
Specific to Zcash, it is to be noted that Zcash is not private and confidential by default – users need to choose the shielding option to make their transactions and history anonymous. The fact that the feature is an optional choice discourages many users from outright using it thereby negating the entire logic of Zcash that was launched to provide more privacy and security to users.
The other point to remember here is that ok-SNARKS, a technology that Zcash uses is still being tested and developed. Hence users need to be aware of all possibilities before making a decision to buy and sell Zcash. The other feature called the Founders Reward is also something new to Zcash and people gain more information about it before dealing in Zcash.