Zcash (ZEC) plunged -9.65% on December 6-7. The first “open, permissionless cryptocurrency that can fully protect the privacy of transactions using zero-knowledge cryptography,” Zcash has been touted by whistleblower Edward Snowden as the most interesting Bitcoin alternative. Zcash has struggled to keep up with its main privacy coin rival, Monero which recently spiked on news of its adoption by big name musical acts like Mariah Carey.
Zcash is based on zksnarks, a cryptographic operation. As Bitcoin and the blockchain grow and mass adoption increases, cryptocurrencies will service different needs as an asset class, and will facilitate a growing number of goods and services. privacy coins can attract users who want full privacy.
Zcash can position itself as a key alternative because it remains in stark contrast to Bitcoin, but challenges remain with a small pool of fully shielded transactions.
Bitcoin transactions are transparent on the blockchain, which is a public ledger that discloses critical information about your trading habits. By typing “https://blockchain.info/address/” into a search bar, anyone can add any Bitcoin address and determine all trades and amounts assigned to that particular address.
Zcash options allow selective disclosure of certain information about private transactions. By allowing more flexibility as opposed to forced transparency, users can determine if they want to have their cryptocurrency balances in plain view of the world. With big money pouring into crypto markets, Zcash promises to maintain its privacy edge to protect users who want to do more than pay for pizza and coffee. At the same time, users need to be aware of the privacy options, transaction type, and the longer processing times required for a fully shielded transaction.