Zcash.Review

in money •  last year  (edited)

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Dash. Review - August 2018.
Binance Coin. Review
IOTA. Review. August - 2018
NEM.Overview
Ethereum Classic.Review
TRON overview.
Cardano - review. Future plans.
Ripple - review. Further Perspectives
Litecoin. June'18 overview
The Dow Jones index. From where did it come to us?
Bitcoin Cash. June 2018 overview
Are cryptocurrency indices a new crypto market trend?
EOS. End of May'18 overview
Ethereum. May 2018 overview

Here on our Cryptoindex blog, we will be posting 100 articles about each of the top performing coins selected by our powerful AI algorithm#CIX100coinreview.

Today’s review: Zcash

Anonymity?

Unlike Bitcoin, Zcash (ZEC) uses different technology, which includes a zero-disclosure method of proofing. The essence of the method is that you can prove to someone that you own for example 10 ZEC, without revealing the general information about the transactions that you did. Such transactions are called ‘screen’.

The emergence of Zcash contributed to his demand for increased anonymity. Imagine that anyone could have access to sensitive information such as the amount of money on your account. Even though the transactions are legal, the basis of your transaction is private.

For example, there are services that can quickly track transactions and identify who you are. Chainalysis and Elliptic can learn the history of the interaction of addresses.

Among the followers of Zcash, there are also such individuals as Edvard Snowden. He said

“Zcash's privacy tech makes it the most interesting Bitcoin alternative. Bitcoin is great, but "if it's not private, it's not safe."

How does it work?

The Zcash algorithm is different from Monero. Zcash uses a high-tech form of zero-disclosure verification - zk-SNARKs. The enhanced privacy guarantee of Zcash is derived from the fact that shielded transactions in Zcash can be fully encrypted on the blockchain, yet still, be verified as valid under the network’s consensus rules by using zk-SNARK proofs.

It can be very useful when you need to hide your privacy. Zcash can make private transactions with the option of selective disclosure of information. Such transparency can be useful in situations where, for example, an enterprise needs to undergo an audit or provide information to the IRS.

This key for viewing is separated from the spending key. The division into two different keys ensures that the user can allow the third party's to view the transaction data, but not allowing it to spend money. Drawing an analogy with the existing financial system, you could say that the login information that is required to access your funds is similar to the key to spending, while your bank statement is similar to the viewing key.
Zcash also provides encrypted fields for sending secret messages from the sender to the recipient. This can be compared with a note on the check, however, such messages are only available the holder of the viewing key.

Main prospects

  • Interchangeability. There is no difference between the coins, regardless of the way they were obtained.
  • The history of the origin of the coin cannot be tracked
  • The zk-SNARK protocol hides any external data except the time of stamp
  • Guaranteed anonymity
  • Growing community
  • Regular updating of protocols

Problems and their salvation

Zcash has its limitations. In near future, there are two main limitations to zk-SNARKS - data set-up and initial calculations.

The disadvantage of zk-SNARK is that it requires the generation of public parameters when a group of persons must perform a multiprocessing operation as part of the initial creation of Zcash. To maintain the total money supply of Zcash, the system needs to know that at least one of the group members has successfully completed its part without being compromised. Please note that this setting does not affect the Zcash privacy guarantee. Already testing of new technology zk-STARK, which provides confidentiality, but does not require trusting settings.

The creation of screened transactions in Zcash requires a relatively large amount of memory and takes time, which makes it difficult to use the computer. Not all the transactions in Zcash are screened and this affects the interchangeability: some coins may be more valuable than others because they do not have a "dubious past". The team focused on improving the characteristics of future updates, which will significantly reduce the requirements for machine memory and speed up the process. Even mobile phones can be created with zero disclosure. This means that most of the Zcash transactions will be protected, which will result in a general result of confidentiality. The team even hints at the complete exclusion of transparent addresses.

Conclusion

The development of anonymous networks, hidden transactions contributes to the growth of money laundering and illegal transactions. On the contrary, among the supporters of crypto-anarchism, the existence of such crypto-currencies provides anonymity and the preservation of personal data, which is so lacking in the modern Internet. Particularly in crypto-currencies arises in countries with strict censorship and totalitarian politics.

At the time this article was published, Zcash makes up 0.324% of the total of CryptoIndex portfolio.
You can always check the current CIX100 composition on our MVP platform:
http://cryptoindex.ai/

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