Sportlight on Cryptocoins - ZenCash / Zen

in story •  24 days ago

Good evening Steemians

In this series of articles I want to put a spotlight on a specific cryptocurrency and write about the details in all these aspects:

  • Aim of the currency

  • Technical details

  • Market position

  • Forecast

The cryptocurrency in focus will be chosen at random, although I am for sure following all recent news in the cryptocurrency world and am taking always one of the most interesting ones.

In this 3rd article of the series, the spotlight will be on ZenCash



PictureSource

Aim of the Currency

What is this currency about? What does it do differently than the rest?
Where is the unique selling point and at what audience is this coin targeted?

All that questions and more will be answered in the following paragraph.

ZenCash is the first forked Cryptocurrency that is covered in this series. It has been created by a chainsplit from ZClassic, which has been initially forked from ZCash. From these codebases, ZenCash inherits quite a few characteristics, especially the zero knowledge encryption part using zK-SNARKS. In difference to ZCash and ZClassic, Zencash puts the focus on the encrypted and secure communication capabilities that can be enabled with this protocol and can be even enriched further by using the IPFS (Inter Planetary File System). In fact, this is advertised as being an easy to use full encrypted, anonymous, worldwide available communication platform.
Further developments in the direction of domain fronting will make ZenCash useable even in crypto-hostile environments.

ZenCash is a very recent cryptocurrency, the Whitepaper has been written in May 2017 and it was launched at May 30th, 2017.

Technical Details

ZenCash bases on Zclassic and ZCash which inherits part of the code of Bitcoin, but with a lot of additions especially in communication section.
So like ZCash, ZenCash is a PoW (Proof-of-Work) Coin, meaning that the new blocks are getting mined by using computational power. The mining uses an algorithm called Equihash, which is deemed ASIC-Proof and can best be mined with modern GPUs (graphic processing units).
It is still possible to have a positive ROI when mining ZenCash, even though prices have settled a bit already if you want to check for yourself take a look at this link.
It also shares the same maximum amount of coins, 21 Million ZEN can be mined. 88% of the mining rewards going directly to the miners, while 8,5% is going to the Zen Foundation (a nonprofit entity) and 3,5% are awarded to the maintainers of the secure nodes.

The main difference between ZenCash and ZCash is basically the possibility to send or receive messages and files(IPFS) in an anonymous and completely encrypted way. Also, the possibility to use ZenCash in hostile environments using domain fronting is unique to ZenCash.

Market Position

At the time of writing this article(11/16/2017) ZenCash is placed 87th in market capitalization, with the total value of 57.883.796 $
ZenCash was in general not very much affected from the centralization issues to Bitcoin, to take leverage of the latest Fork. It was very stable during the last months but having a major jump from 10$ to 25$ once first rumors where spread that a working Secure Node has been in the testnet already. This would mark a major improvement in ZenCash and would, since there is 3,5% of block rewards redirected to, also make for another income possibility.



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If we are looking back further we see the quite bumpy start end of May 2017, in the middle of the surge that all cryptocurrencies had in this period of time. It was getting a bit quiet around ZenCash which can be seen in the period until August, when first rumors spread, only followed by the massive surge in October.



GraphSource

Forecast

The Idea setting up a new cryptocurrency, using the advantages that ZCash and ZClassic already implemented, and setting on top of this a whole suite of communication options and a enhanced resilience through Secure Nodes is making sense in many ways. With ZenCash it is possible to have total anonymity and privacy while sending money, messages and files around the globe.
In times where this all is a real asset, ZenCash will see a lot of love from investors for this possibilities.

Conclusion

ZenCash pushes the inventions into privacy and anonymity even further than ZCash initially wanted to. It will more or less all be depending on the development team and their ability to deliver what they promised in the roadmap.
If they can not only test but deliver the Secure Nodes soon we for sure will see another raise in price.

Last but not least there are also some drawbacks and they should not be unmentioned:

  • PoW Coin, mining can be seen as a waste of energy.

  • 8,5% of block rewards directly going to Zen Blockchain Foundation.

  • 3,5% of block rewards redirected to maintainers of Secure Nodes.

  • Privacy of transaction has been also viewed with criticism.

  • Privacy of messaging has also been seen with criticism

Authored by: @jedigeiss






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Privacy coins are in an interesting class. On one hand they serve a very vital "need" for the transaction that many people make. Many people got into crypto currencies early on for this very reason. On the other hand they are the coins that are the biggest threat to governments, especially law enforcement. You might even say these are two sides to the same coin (pun intended).

My guess in the long run many governments will outlaw privacy coins. Block chain technology is just too big and important for countries to ban (or regulate it into uselessness) them all together. So governments will look to regulate these things and the easy way to strike a middle ground is to ban the coins that most easily could be used for things that governments tend not to like. I can see Monero as public enemy number one.

When anything looks like it will be banned, especially things that can be used for illegal purposes, the first thing you will see is a massive interest in acquiring these things. So privacy coins in the short run should be an excellent investment. In the long run it will scare out the people who were just in it for speculation, so in the long run the prices will probably plummet.

That being said, I do believe that the world will have a definite place for the "best in class" when it comes to privacy coins. If people are using these for things that could get them in a lot of trouble, second best simply won't do!

If ZEN turns out to be the best in class it could not only have huge short term potential but excellent long term potential as well. The only question is, will it be that best in the class of security coins. Because if you plan to hodl long term, that is what is going to matter. IMHO

Almost forgot, Great Post!

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Thanks alot @geonolan, good question you are raising there. I have a few other privacy coins that iam writing about soon. It is a very interesting market.
Thanks alot for your thoughts:)
Kind regards
Jan

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There is a lot of popular support for the "normalization" of crypto's. They want tax reform, like the $600 purchase exemption. They want EFT's so they can use Ameritrade. They want big institutional money coming in a driving up prices. But you can't get that without scrutiny.

Some kind of regulation is necessary for this space to grow. Some things will be better but some will be worse. I look forward to that happening. Yet with that said, I am not sure I am in a big hurry for that to happen. Coins like Ether and Ripple will do just fine under regulation, but privacy coins could take a real beating. However, if given enough time to grow and develop it might not matter what governments want. They don't want drugs and look how that worked out for them.

I think like minds think alike! As a Technical Analyst, I call Zen Cash the "ZEN of WEALTH!" and believe it has triple digit future in price. Below is my bullish chart that started as a Cup & Handle patern.

cooooool

ZCash ZenCash , quiet confusing right now, the abbreviation used almost the same like dash coin and Dash. I never notice the different until I try to withdraw and it said the wallet address unmatched haa

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Yeah agreed it is quite confusing with all the zcash forks. But in the end it could be worth it to know all the differences between them.
Kind regards
Jan

The big spike in October has already been credited to the Palm Beach Confidential group as after their newsletter went out to buy ZenCash the spike happened on the same day. Seems to be nothing more than a pump. However, since it continues to hold its gains it is definitely worth watching into next year. I have also heard that ex governemnt workers are the ones helping develop this privacy coin so that can definitely help add fuel to the fire.
Great article nonetheless! Let's see where this goes together as a community. Upvoted.

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Thanks alot @pinky405, lets see how this coin is evolving :)

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Sorry it took me a couple of days to see your reply, I look forward to its evolution too as I was finally able to snag some ZEN myself :)

Great post

Nice work

Great post, i did’nt know ZenCash until now. Thanks!!

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Nyc Post!! I like your Post!! Keep Sharing!!

Thanks for the information. Information is power, especially nowadays.

Thank you for your great post

Good post

Follwo me

i love ZEN

thanks for the post

Private coins betrayal the initial approach of Satoshi Nakamoto paper about transparency. Which is the main difference between the digital currency and Fiat.
Betrayal of the principles of the mother of all cryptocurrencies, our beloved Bitcoin. This is like betraying your own parents.
You mighty disagree but that what it is. I do not see it as an improvement but rather a lack of integrity.
Prevention from hostile environments?
Well Bitcoin has the value it has today within the so called hostile environments. Sorry, too much paranoia, which is a kind of mental illness.
Somehow the blockchain as open as it is , aloud this kind of project like Zen Cash to be released.
Charlie Lee the founder of Litecoin admits that without Bitcoin, Litecoin would not exist, now he also talks about privacy. Why? Simple. He wants to avoid people to see his high earnings & transactions like many others. Is it the beginning of the end?

This post is interesting. you have my upvote