Steemit Crypto Academy Season 2: Privacy Coins "Zcash" | for @hochiminhrm

Greetings to everyone, especially to professor @levycore, who I attend his conference again and who this week tells us about privacy coins and everything related to them.

Privacy currencies are cryptocurrencies keep their transactions anonymous and who performs them, you are using an advanced encryption system which allows transactions (sending or receiving money) completely anonymously without knowing the identity of both parties.

Zcash

It is open source decentralized cryptocurrency, which is based on the Bitcoin protocol, but it has its own blockchain as well as its own cryptocurrency (ZEC). The transactions of this currency are stored in public domain blockchains but keeping confidential information close to their senders.

This cryptocurrency uses the Zero Knowledge Protocol (ZKP), with this it is possible to validate operations without the need to reveal additional information, this protocol also makes use of zk-SNARKs which allows it to increase the performance of the protocol and minimize the computational cost. This currency seeks to ensure the privacy and transparency of its operations in a very December way and it is that with Zcash payments can be made between themselves and it does not offer information on its senders or the amount of the payment.

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Algorithm

Zcash uses an Equihash proof of work (PoW) algorithm, this algorithm was devised by Alex Biryukov and Dmitry Khovratovich. This algorithm is based on the Generalized Birthday Problem (or Generalized Birthday Problem) or also known as the birthday paradox.

And it is that this algorithm provides a much more efficient verification. On the other hand, Zcash supports ASIC and FPGA mining, and this is due to the high effort required by the algorithm.

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How does it work

Zcash uses two types of addresses which are Private and transparent, it should be noted that private addresses begin with Z while transparent addresses begin with T. An operation of private addresses, that is, from Z to Z are reflected in the block explorer, There we can see the rates as what happened, but I do not know how to see the amount, address or less since these are encrypted and are not publicly visible.

It also allows the owner, through their viewing and disclosure keys, to allow third parties to observe the operation in detail, this is called the trusted third party viewing option and is commonly used for auditing cases. We can also observe that transparent transactions occur in the same way as Bitcoin's. Although we must take into account that these two addresses are interoperable, what I mean by this that we can transfer funds from my address Z to my address T.

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Characteristics

• One of the main characteristics of this currency is that it has a low cost in its transaction fees, we are talking about 0.0001 ZEC per transaction.

• ZEC has two types of addresses to carry out its transactions, one private whose addresses are not seen publicly and transparent which can be visible.

• This currency also has the characteristic of encrypting the memos, in this way it is possible to send totally private messages with the transaction.

• Display keys, this allows owners to share transaction details with third parties, they are widely used in cases of account auditing.

• Multi-signature transactions, in this case ZEC offers the function of transactions that need several signatures, that is, the transaction must be approved by two or more people.

Creation of the wallet

• To create a Zcash wallet, the first thing we are going to do is go to Google play and download the Zecwallet application.

• After downloading the wallet we open the application, it gives us two options such as creating wallet or restoring wallet. In my case I will use the option to create wallet since I do not have any.

• You show us our security words which we will use in case we want to recover the account at another time, which I do not show because they are confidential personal data.

• After saving the confidential data we continue with the creation, and it sends us to the main page of our wallet that has already been created

• We can see if we select the receive option, you show us our Z address and our T address.

• Also at the bottom we see the option to send our funds, where we must place the address, the amount automatically appears in USD of the amount to be sent and after filling in all the information items we proceed to send our Zcash.

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

This currency despite not being as high on the top as if Monero and Dash are, which advance them in it according to the top of coinmarketcap, its system caught my attention since it allows you to have two types of addresses and these same can be interoperable, another thing that caught my attention was in its graph a very volatile currency but that has reached important peaks and a development of its algorithm that seeks efficiency above all and we must not leave behind its low transaction cost one thing to have a lot Keep in mind as the transaction fees are very small.

Its great Scalability is another point why I chose this currency since it offers fast and efficient transactions, it has the ability to create blocks every 2.5 minutes. It is very fast and efficient without leaving the security and privacy of its users behind.

Advantage

• It allows to carry out two types of transactions since it has a private address and a transparent one.

• Guarantees the security and privacy of its users since their data operations are encrypted and cannot be seen publicly

• It allows through its visualization and disclosure keys the audit of its accounts all this with the consent of the owner

• It is not prone to computer attacks since it has little information about its network of blocks.

• The transaction fees are extremely low, compared to other cryptocurrencies.

Disadvantages

• Because they are private transactions, it lends itself to the transfer of illegal money and embezzlement.

• It is usually a very volatile currency, its trend in the market is constantly changing.

Conclution

Private coins are coins with a high level of security where the information of the parties involved is kept, giving them anonymity and all the details of their transaction, giving protection and security to their users.

Zcash is one of the main private coins that are in the market, it offers security, protection and efficiency to its users, with a technology that allows quick validations as well as a low cost of fee per transaction. It is among the first private coins among the top of Cryptocurrencies.