Zcash
Zcash (ZEC) is a decentralized cryptocurrency that prioritizes privacy and anonymity for its users. Launched in 2016, Zcash was developed as an alternative to Bitcoin with enhanced privacy features.
The key innovation of Zcash is its implementation of zero-knowledge proofs, specifically zk-SNARKs (Zero-Knowledge Succinct Non-Interactive Argument of Knowledge). These cryptographic techniques allow for transactions to be verified without revealing any sensitive information, such as the sender, receiver, or transaction amount. This enables users to make private transactions while still ensuring the integrity of the blockchain.
Zcash offers two types of transactions: transparent transactions and shielded transactions. Transparent transactions function similarly to Bitcoin transactions and provide full transparency on the blockchain, while shielded transactions use zk-SNARKs to provide enhanced privacy features.
Zcash is mined through a proof-of-work (PoW) consensus mechanism similar to Bitcoin, where miners compete to solve complex mathematical puzzles to validate transactions and secure the network. However, Zcash also introduced the concept of the Founders' Reward, where a portion of the block rewards goes to the founders and early investors of the project.
Overall, Zcash aims to provide a decentralized and privacy-focused cryptocurrency that enables users to conduct private transactions without sacrificing security or transparency. It has gained traction among users who prioritize privacy in their financial transactions.