Cryptocurrency Zcash Vows to Offer Enhanced Payment Privacy
Zcash, a new cryptocurrency scheduled to be launched this coming October 28, vows to offer enhanced payment privacy.
“Zcash is strongest where Bitcoin is weakest; It gives users the easy ability to maintain their financial privacy. If anything can compete with Bitcoin, it will be on this front,” Roger Ver, Zcash Investor, said in a statement.
Similarities and Differences Between Zcash and Bitcoin
As explained by Zcash on its company website, this new cryptocurrency will offer “total payment confidentiality” while still maintaining a public blockchain.
A blockchain is a shared public ledger detailing the entire transactions involving a particular cryptocurrency.
Zcash clarified it will have its own blockchain, separate and distinct from that of Bitcoin’s blockchain.
“Unlike Bitcoin, Zcash transactions automatically hide the sender, recipient, and value of all transactions on the blockchain,” Zcash added.
The company explained that its own blockchain will maintain a secure public ledger of balances without revealing the parties involved in the transactions or the amounts involved.
Zcash adopted “ZEC” as its informal three letter currency and ⓩ as its currency symbol.
Similar to Bitcoin, Zcash is a mined cryptocurrency. This means that a new ZEC will be created every time a “block” is added to the blockchain of Zcash. According to the company, Zcash’s blocks will be mined four times as frequently as Bitcoin’s.
The company said that its cryptographic method called “zero knowledge proof” will maintain, not only a secure ledger of balances without revealing the amount and parties involved, but it will also be used to prove that nobody is stealing or cheating.
As to the proposal of making Zcash an embedded Bitcoin protocol, a sidechain or Ethereum contract, the company said, “Yes, we’ve explored all of those ideas in varying degrees. What we’re doing right now is the simplest thing that can make Zcash a real, live, permanent medium of exchange and store of value, and that is to create a separate blockchain.”
The people behind Zcash?
Zcash Company stated that the current organization is just a vehicle to bring together an expert team and to launch the Zcash technology. The company added that for the long-term survival of the new cryptocurrency, it is better that this will be managed by the Zcash Foundation – a non-profit organization that will equally serve the interests of all users.
The scientists behind the Zcash Company include Eli Ben-Sasson (Technion), Alessandro Chiesa (U.C. Berkeley), Christina Garman (Johns Hopkins University), Matthew Green (Johns Hopkins University), Ian Miers (Johns Hopkins University), Eran Tromer (Tel Aviv University) and Madars Virza (MIT).
Zcash Company advisors include Gavin Andresen, chief scientist at the Bitcoin Foundation; and Vitalik Buterin, founder and chief scientist of Ethereum.
While the people behind Zcash hope for positive results, they also issued the following warning:
While we hope to have a thriving economy facilitated by private, peer-to-peer transactions, we advise all users to consider the potential volatile and definite experimental nature of Zcash before investing money, time, hardware or any other asset of personal value above an amount they can afford to lose.
Featured image from Shutterstock.