Steemit Crypto Academy Season 2 || Privacy Coin by @olaspecial

I really appriciate the wonderful lecture by proffesor @levycore. It's my pleasure to participate in the task.

Choose a privacy coin and perform a detailed fundamental analysis of the coin

Zcash uses a private cryptocurrencies, which uses a mechanism called Zero-knowledge Proof which permits users to hide transactions. This permits users to transact without showing their address and also obfuscating the transaction amount. As a crypto currency, Zcash is similar to Bitcoin. Just like Bitcoin, Zcash also has an including open source code, but their major difference lie in the degree of privacy and fungibility that they both provides.

The success of Bitcoin create a pathway for hundreds of alternative digital currencies, including ZCash. The demand for privacy increased as digital currencies users know that their transactions were easily traceable in the blockchain.

Cash was established by Zooko Wilcox-O'Hearn in October 2016 due to the demands of internet users for an open financial system with added privacy features.

Bitcoin was the first in the open financial system, ZCash also wants to maintain the same system as Bitcoin but with privacy and fungibility as an added feature. Fungibility means the ease with which one asset can be exchanged for another.

Bitcoin's solution to fraud and theft was to make all transactions completely and 100% traceable. Zcash came up with an idea by adopting Bitcoin's open ledger way and encrypting information about the ledger's users. This reveals that even though all Zcash transactions are been recorded on a blockchain, the transactions are converted into a code and can only be seen by users that have been given access to them.

The screen short show the current price of ZCash cryptocurrency which 164.4 USD and is in the #53 position of the cryptocurrency ranking on CoinMarketCap.

The statistics as at 7:27pm 02 - 06 - 2021

It 24hr trade volume of $489,065,219.88 and the market capitalization of $3,440,819,129.92 and dominance is 0.11%

Zcash Technology

zk-SNARK (Zero-knowledge): This means no one can prove possession of particular information. For instance, a secret key, without showing the information, without an argument between the proved and verifier.

Zcash gives two types of keys which are a view key and a spend key. The Zcash system also gives of addresses for its transactions. Private addresses (z-addr) are for secured transactions, while transparent addresses (t-addr) are used for more quality transactions.

Describe the step to create a wallet for the privacy currency of your choice. (Screenshot required)

Visit www.z.cash

Stroll down. You will find get a wallet. Click on it

After clicking on it. It will redirect you to download the app.

Download and install it.

Click on create

Click on new

Click on backup.

Some words will be given to be secure. Those word are for you not lost your asset in your wallet. It will help you recover your wallet. You can write it down and save it securely.

My wallet address

Thereafter it will download wallet balance.

After downloading, it will scan.

My balance. I have coin there yet.

Explain the reason you chose the Privacy Coin. (State the advantages and disadvantages)

Advantages

• Privacy
  One of Zcash's key features is the flexible option to secure transactions and obscure the identity of the sender and receiver on the blockchain. Its functions is not limited to protecting users' anonymity, but also blocking harmful actors from targeting an address with a huge volume of currency.

• Additional Application of zk-SNARK
  The zk-SNARK was created to secure transactions, has potential uses beyond payment transactions.

• Less Prone to Privacy Timing Attacks
  Because Zcash hide the quality amount in a secured transaction, it is much less at risk to a timing attack.

• Easily Accessible Mining
  The Zcash idea has embraced the Equihash proof-of-work system which permits miners to mine ZEC with freely available GPU hardware.

• Reputation And Track Record
  So far, no security bugs have been seen in Zcash system.

Disadvantages

• Limited Privacy Storage Options
  There are limited wallet options for saving and sending Zcash from private addresses. This might be deal for Zcash users who do not want privacy.

• ASCI Miners
  The ASCI mining hardware manufacturer disclosed that it has developed an ASCI miner that is capable of mining on Equihash-secured system such as Zcash. If embrace in huge numbers, this would centralize Zcash mining just the current case of Bitcoin, and it will be difficult for miners using GPU hardware to mine amounts of coin that they were able to mine previously.

• Potential for Misallocation of ZEC Quantity
  In the Zcash idea present state, if the network is exposed to bug that permitted for individuals to generate more Zcash coins than the planned money supply, the resulting inflation would crash the value of Zcash for users.

Conclusion

Privacy is necessary for blockchain users because some harmful actors might want to target an address with a huge volume of currency. Using private coin would hide the quality amount in a secured transaction, it is much less at risk to a timing attack.

Financial Privacy is very important because of some attackers. Zcash is a useful cryptocurrency because of it features and it useful technology like zk-SNARK

I hope I have covered all the required points in it.

Thank You.