The internet has made it easy to access information and connect with people worldwide. Yet, the internet threatens user privacy. Having their information sold or shared with external networks is unwanted for people who value their privacy. Users have their activities tracked and documented to assist in pushing ads. One of Zcash’s core missions is to preserve user privacy. This use case is essential in a world where user data is easily accessible. Using cryptography, Zcash crypto strives to enhance privacy, especially while users transact. This is important because many mainstream companies can access user data, allowing them to leverage that information to promote their businesses or check your activities.
What Is Zcash Crypto?
Zcash is a blockchain-based platform that focuses on enhancing user privacy by leveraging Zero-knowledge proofs, which hide transactions. According to the official website, the platform protects your information, giving you control. It is safe to mention that this blockchain was forked from BTC A fork happens when members of a blockchain community disagree on certain things. Some community members can decide to build another blockchain with the original codebase. This is known as a fork.
The core difference between other cryptocurrencies and Zcash is the latter’s ability to keep your transactions private. When you use a public blockchain, other people can see your transaction. While transactions on the public blockchain are anonymous, they remain transparent, making them accessible to other people. You can choose to keep your transactions private through shielded addresses. To keep things private, Zcash has Zero-knowledge proof, which allows verification without showing parties to the transaction.
What Makes Zcash Different From BTC?
Although Zcash is a Bitcoin fork, it has certain properties and features which make it different. One of the few things that differentiate them is privacy. Zcash and Bitcoin are both public blockchains. Yet, you may enjoy more privacy with Zcash. With Bitcoin, transactions can be seen by interested parties. However, this is different from the privacy blockchain because you can choose to remain anonymous so that no one will see your transactions. Another thing that sets them apart is called proof. Zcash utilizes zero-knowledge proofs, so there is no need for an interaction to settle the transaction.
History Of Zcash Crypto
This coin has links with the Zerocoin whitepaper, that Matthew Green and other experts created. They created the whitepaper to solve privacy issues in most blockchains. It’s safe to mention that they initially designed this solution for Bitcoin. However, this design would significantly change how the blockchain works. Another cryptographer, Zooko Wilcox, improved the design to create another cryptocurrency in 2015. In 2016, Zcash was officially launched as a blockchain.
The first Zcash cryptocurrency was also mined in that year. It quickly gained traction, pushing the asset value to new highs. Wilcox wanted to create a cryptocurrency that shields users. With this, it becomes difficult to trace their transactions. Also, the programmer believed that creating a privacy-focused asset would protect citizens in oppressive regimes. He also understands that Zcash will become attractive to cybercriminals, who need privacy to prevent authorities from tracing them.
How Does Zcash Work?
It maintains privacy through the presence of zk-SNARK, making anonymity possible. It also stands for “Zero-Knowledge Succinct Non-interactive Argument Of Knowledge.” This tool allows transactions to be verified without revealing the sender or receiver of the cryptocurrency. Zcash is one of the few ecosystems that has embraced zk-SNARK to ensure privacy. Transactions are encrypted to keep them private on the blockchain but can be verified with a zero-knowledge mechanism, making it possible to combine transparency and privacy.
The mechanism works by allowing a party to prove that a statement is correct without giving information about the transaction. This makes it possible to verify those transactions without having information on them. “Proof of knowledge” assures the verifier that details are correct. Often, it allows fast verification. The verifier and prover communicate in a non-interactive capacity but sufficient to make the transaction verifiable.
The addresses available with Zcash include the shielded addresses. These addresses keep transactions protected, private and encrypted. When you use this address, people will not see who the sender or receiver of the assets. The second type is the transparent addresses. You can view this type on the blockchain, making it possible for other people to know who sent it and who received the cryptocurrency.
What Is ZEC Crypto?
ZEC is the blockchain’s native token, and it presently trades at $182. This cryptocurrency has a limited supply of 21 million ZEC, and you can buy it on exchanges or from another individual. You can also transfer or trade the digital asset from one wallet to the other. Like other cryptocurrencies, ZEC’s growth is based on supply and demand. When demand becomes high, the digital asset experiences price growth. It’s safe to mention that Zcash is a Bitcoin fork, so it shares many characteristics with the king coin. ZEC helps the blockchain function properly. When using the blockchain, you pay gas fee in ZEC, which supports mining.
Is Zcash Still Worth It In 2022?
ZEC paved the way for private and protected transactions in the blockchain space because it leverages Zk proof. Today, this network is one of the most prominent ecosystems that use zk-SNARK. This blockchain also strives to provide users with Bitcoin’s utility. The only difference is that it gives an option to users. With Zcash, they can choose to enjoy a higher privacy level compared to other networks. Zcash is still worth it in 2022 if you are hoping to buy it as an investment. However, it’s important to do your research before buying into a project. Because of its position as a privacy-focused blockchain, users who need this unique use case would leverage it for transactions.
Price Prediction For Zcash in 2022
While Zcash currently trades below the $200 range, it may record some notable price growth in April. Looking at the fundamentals, it may stay about the $200 range if it can break the resistance at $200. If it’s successful, Zcash will be above $200 and move towards breaking the next resistance. Although the market is currently bearish, April should be a good month for Zcash, provided that market conditions enable it to record price growth.
Zcash should be around the $230 price range for May and June and may go as high as $235 with the right market conditions. On the other hand, if the market continues to record more price drops, the privacy coin may fall below $200. At the end of 2022, Zcash maybe around the $270 range if the market becomes more bullish. A bullish market would assure price growth because new investors would be willing to join the market. On the flip side, sell-offs will be disastrous to the fragile market and may push the coin to $180 before the game end of 2022.
Where Can You Buy Zcash?
ZEC is a pretty popular digital asset and is available on most digital assets across the crypto market. However, it is advisable to purchase your token on known exchanges. This is because these exchanges are open and have a reputation to protect. By so doing, your funds and your digital assets are safe in their custody. Some of the few exchanges where you can buy ZEC from include Coinbase, Kraken and Binance. You can also store your asset in a supported offline wallet if you do not feel comfortable with the security of these exchanges.
How To Purchase ZEC on Kraken
Although there are many exchanges across the crypto market where you can purchase ZEC, this guide will tell you how to do it on Kraken. Below are the steps that you should take to achieve your aim;
Step 1 – Sign Up
The first step to purchasing your digital asset is to sign up on Kraken. Here, you will need to submit basic details like your name and email. You will also need to verify the details. If you already own an account here, you can jump to the next step.
Step 2 – Fund Your Account
This is another important step to help you achieve your objective of purchasing ZEC. You will need to send in some funds into your wallet to be able to buy the amount of the token you want. Kraken provides users with a wide variety of options when it comes to finding accounts. It will be advisable for you to make use of one of them. However, you can choose to send in another digital asset that you own into your account.
Step 3 – Buy Your ZEC Crypto
This is the last step where you will open an order for the amount of ZEC tokens that you want to purchase. You should note that the exchange might charge a small fee as an incentive to help you facilitate the transaction. Once the token is in your wallet, you can choose to trade with them or keep them.
Conclusion
Although Zcash is a fork of Bitcoin, the digital asset shows different characteristics compared to the leading digital asset. However, traders should note that the market is entering a surge season, and most tokens would be at their best. Also, traders need to be mindful of the strategy they adopt in trading tokens, even in the best season. Finally, diversifying one’s portfolio cannot be over-emphasized as it would help you cushion the effect of losses from some tokens in your portfolio.
