In this week's cryptoacademy assignment, professor @levycore tells us about the private cryptocurrency revolution, and how they affect the crypto assets market, we can see how some investors they prefer privacy when carrying out their transactions and operations while remaining anonymous, that is why in my task this week I will talk a little about it.

I want to start by talking a little about private cryptocurrencies, as their name says they are those currencies that work under anonymity allowing to protect each of the data, user information and transactions made with her.

The use of private cryptocurrencies works with different types of consensus, which make it impossible to track or find any type of information regarding the user who uses said currency, be it their personal data, address, transaction records, etc.

Private cryptocurrencies have emerged as an alternative for those investors who do not want their steps to be tracked or monitored, that is why this type of cryptocurrency is ideal for them.

Zcash Analysis (ZEC)

Zcash (ZCE) is a private open source cryptocurrency, which allows us to carry out transactions completely anonymously, without revealing our data and identities, it is said that it emerged as an alternative to BTC, however we can see how both differ in this regard .

In its beginnings, it was introduced to the world of crypto assets under the name Zerocoin, however they were solving certain flaws in the project and renamed it as it is known today, Zcash. It is a currency that was gradually demonstrating that it was born to be fully decentralized and with a high level of privacy, working in turn with blockhain technology.

• How does it work?

If you work with the blockhain technology with which other NON-private cryptocurrencies work, how is your independence process carried out? , It is simply because the transactions carried out through this currency are seen on its public blockchain, however, the most important data is not reflected, it is kept private, including the amounts of the transactions.

Zcash, has a consensus algorithm that makes transactions run in a totally private way, this is what guarantees security and privacy in each of the transactions that are made, its proof-of-work algorithm was called SHA- in its beginnings. 256, however after its renaming, it was modified to the Equihash algorithm, which is the one that currently works.

Its implementation in zero knowledge makes each of the transactions to be verified effectively, while the information and user data is not revealed, it will only be reflected in the public book that an operation was carried out, but no details will be given , neither hours, nor dates of when it was carried out.

• Objective:

The main objective of the Zcash cryptocurrency is to allow users greater security and privacy in the implementation of their data, solving many problems that large investors have for the management of their assets, since there are many who have large amounts They prefer to keep it anonymously, and Zcash gives them that opportunity.

It proposes to be a great alternative, very different and effective compared to conventional currencies, bringing many benefits to large investors in the market, by keeping each of their steps within the network secret, avoiding fewer risks of hacking accounts, data and money.

Another of its main objective is to demonstrate that the fact of being a totally private currency, can grant a low implementation of commissions in its transactions, which calls even more the attention of investors or users who claim to handle it.

• Features:

One of its main characteristics is that, by working with its consensus algorithm (zk-SNARK), it allows that any type of data found on the network, is not exposed publicly, bringing the advantage that it is less prone to a massive hacking, since no public information is found that can be used in a malicious way.

Making it widely used in the financial market of crypto assets, for its security and privacy system.

We must also clarify that the mining method in this cryptocurrency is essential for the validation process of each of the transactions that are carried out on the network, also having the ability to create the currency's own tokens.

It is a cryptocurrency with a great support project, it is associated with many investors who support and collaborate for its use and management, which makes it increasingly effective and solid.

• Market position:

Zcash is currently at a price of 159.17 USD, however it is a coin that a month ago found its highest peak of 355.81 USD, this occurred on May 8, and then fell precipitously, to its current price. It has a market capitalization of $ 1,864,383,557, and a supply of 21,000,000 coins.

From what we can see, it has caused a stir in the world of crypto assets, causing many investors to take an interest in it and making its price too volatile.

It is a cryptocurrency that has shown that it came to continue growing and to improve many flaws that perhaps other cryptocurrencies have, it is also accepted in several well-known cryptocurrency exchanges, such as

• Binance
• Huobi Global
• OKEx

CoinmarketCap

Steps to create a wallet in Zcash

To find out a little more about what type of wallet Zcash can use, I went to their website, where they showed me a very detailed list of various types of wallet that I could use: https://z.cash/wallets/

However I decided to use the option: "ZecWallet Lite"

On his page he shares the link to download it automatically, this time he says it through my Android device.

Once the application was downloaded, I immediately opened it:

Right away we got the option to:

• Create new wallet
• Restore seed

And since in this case I want to create a new wallet, I will click there.

Then we will get a series of words that are in case we lose our "Wallet BIrthday" that the wallet gives us. (For security reasons I did not take capture or show it)

• We must write down in a safe place the "Wallet Birthday" that they give us.

• And the words for recovery

• After we have everything written down, we will accept and that's it, we automatically have our Zcash wallet created.

In the lower right corner, we can find a box that says:

• RECIVE

In this case, we can receive tokens up to our Zcash wallet.

• We just have to click there, and we will get 2 types of addresses: Z and T

• Z: It is the address used for transactions that are totally private, they will only be reflected, but no details of the operation will be shown.

• T: On the other hand, the T address gives us the option of making our transactions in a transparent way.

We can see how we have these two options at our disposal, which I think is great, since we can choose what type of operation we want to perform.

Now if we go to the lower left corner, we can see that we have a small box that says:

• SEND

In which we can send our tokens to another address of a wallet.

• We only have to copy the address where we are going to send it, or we also have the option of scanning.

• We put the amount of how much we want to send and the amount will automatically come out in USD, to finish we will click on SEND and that's it.

Also in our wallet we have the option to see more information about the application, we just have to click on the upper right corner, where three white lines will appear horizontally, those are the settings.

• We have the option to see our "Wallet birthday:

• Technical information about the application.

• More detailed information on ZECWallet Lite.

As we can see, our wallet has no other options to use, however it is used specifically to send, receive and store our Zcash tokens, in a totally secure and private way.

Explain why you chose the privacy currency. (advantages and disadvantages)

Advantages:

• By having its own consensus algorithm (proof of zero knowledge), it is what allows the validation of transactions that are carried out privately and securely within the network.

• Zcash allows the option to carry out two types of transactions, the (Z) in a totally private way, and the (T) that allows us to carry out operations in a transparent way.

• It is a cryptocurrency with a great backup project (electric coin), which has shown in recent years that it has a bright future, in addition to being an alternative to Bitcoin, it has a lot to offer.

• It guarantees the privacy and security of investors who prefer to keep their transactions completely anonymous.

• As there is no specific information on your block network, you are less prone to hacking.

• Zcash has a great advantage compared to other cryptocurrencies, and it is its low commission in the operations that are carried out, attracting a lot of investors' attention.

• Despite being a private currency, if the user wants to show their data and information, they will have the option of giving a password so that they can be seen, the same happens if a legal audit were to be presented, Zcash would not have any problem to prove it.

Disadvantages:

• Being a totally private currency, it lends itself to transactions with illegal money, giving fraudsters more advantage to handle assets anonymously.

• What often leaves this currency at a disadvantage is its great volatility in the market, more than what is normally there. Since it is a very strong currency, and there are many investors interested in it.

We have been able to see how its price has fallen incredibly in the last month, after having positioned itself at its highest price.

• Privacy in many cases can become a great disadvantage, and it is that the high level of privacy that Zcash has, can leave it absent in many cases of the large technological projects that currently exist.

fuente

I chose the Zcash coin because it seems to me that it has a bright future backed by a good project, it is a cryptocurrency with one of the best capitalizations in the market, because despite its GREAT volatility I believe that we can get the most out of that. It is an asset that seeks to offer investors a more alternative way of operating, such as their privacy, however we can also have the option of making our transactions in a transparent way, which gives us the freedom to choose.

Despite starting from the cryptocurrency Bitcoin, it does not mean that it is the same, since both have different projects and objectives, however, Zcash seeks to position itself as one of the best, and little by little it is achieving it. The consensus algorithm that it has, also makes its network more efficient and secure for users, it is distributed by a large project that supports it, such as Electronic coin, which makes it grow more and more every day.

The capacity it has to generate new blocks every 2.5 minutes is impressive, that is why I also chose it, for its great scalability and speed with which it operates. It is a cryptocurrency that has come to break old schemes and to present new proposals regarding privacy and anonymity.

Zcash also allows us to make encrypted memes to be sent when making our transactions, which gives it even more privacy, and that is why I chose this currency, for all the mechanisms it has for the proper functioning of each of the parts that make it up.

Conclusion

Private cryptocurrencies have emerged as new alternatives to all users and investors who use it, although it is true that it can have great advantages that can benefit us, there are also disadvantages that we must take into account when operating with them. They are cryptocurrencies that we can get the most out of, since there are currencies that have an excellent backup project, which makes them increasingly safe and reliable.

It works with mechanisms and systems that make the operation of your network fast and secure, it gives us multiple options to have our crypto assets safeguarded in different wallets, such as

• Cold wallets
• Hot wallets
• Private wallets
• Transparent wallets

Zcash is a cryptocurrency that has shown a lot in recent years, so we should not miss the opportunity that it sometimes gives us, as I mentioned earlier in my task, it is a currency that I consider to have good potential in the future, we just have to analyze and study it very well. In addition, it has a very large block size, compared to other currencies, of 2MB.

Once again, thanks to professor @levycore for such an incredible task this week, where he explained to us in detail the use and impact that private cryptocurrencies have on the crypto-asset market, it was a pleasure to carry out his task. Until next time.

(All screenshots are my property)