What is Zcash?
-A decentralized and open-source cryptocurrency that provides strong privacy protections.
-Shielded transactions hide the sender, recipient, and value on the blockchain.
-If Bitcoin is like http for money, Zcash is https—a secure transport layer.
Zcash is a cryptocurrency that grew out of the Zerocoin project, aimed at improving anonymity for Bitcoin users. The Zerocoin protocol was initially improved and transformed into Zerocash, which thus yielded the Zcash cryptocurrency in 2016. The founder and CEO of Zcash is Zooko Wilcox-O'Hearn. Its founding team includes cryptographer Matthew D. Green from Johns Hopkins University. Roger Ver was one of Zcash's initial investors.
Zcash payments are published on a public blockchain, but users are able to use an optional privacy feature to conceal the sender, recipient, and amount being transacted. Like Bitcoin, Zcash has a fixed total supply of 21 million units. In the first 4 years, 20% of the coins created in that period are allocated to a "founders' reward" shared between investors, developers, and a non-profit foundation.
Zcash affords private transactors the option of "selective disclosure", allowing a user to prove payment for auditing purposes. One such reason is to allow private transactors the choice to comply with anti-money laundering or tax regulations. "Transactions are auditable but disclosure is under the participant's control." Wilcox has hosted virtual meetings with law enforcement agencies around the U.S. to explain these fundamentals and has gone on the record of saying that "they did not develop the currency to facilitate illegal activity"
How to mine Zcash?
Zcash will use Equihash as a hashing algorithm, which is an asymmetric memory-hard PoW algorithm based on the generalized birthday problem.
It relies on high RAM requirements to bottleneck the generation of proofs and making ASIC development unfeasible, much like Ethereum.
In order to avoid Instamine, Zcash will have a slow mining start, where block rewards will be issued slowler than normal.
Unique mining model
Zcash’s supply model is rather similar to that of Bitcoin, although it has some key differences.
Like Bitcoin, the Zcash protocol caps the total number of tokens at 21 million.
In addition, its mining reward is cut in half roughly every four years, just like Bitcoin.
One major difference that sets Zcash mining apart is that 10% of the 21m units mined using the Zerocash protocol will go to Zcash’s stakeholders, ie: its founders, employees, investors and advisors. This is called the "founders’ reward".
This is called the "founders’ reward".
The stakeholders will not receive this reward in a linear fashion. In the beginning, the protocol results in the creation of 50 ZEC every 10 minutes, with 20% going to the founders and the remainder going to the miners.
Every four years, this mining incentive will be cut in half, but 100% of this reward will go the miners after the first four years.
Another important difference is that the Zerocash protocol harnessed a slow-start mechanism, which impacted the incentive provided for the first 20,000 blocks (mined over approximately 34 days).
The rationale behind taking this approach was managing the risk of the protocol having a “major bug or security vulnerability.”
If such a problem was discovered, the slow-start mechanism would help reduce its impact.
Pursuant to this mechanism, the mining incentive slowly increased until it reached 12.5 BTC at the 20,000th block.
. The rate of increase was such as the first 20,000 blocks would create a total mining reward of 125,000, half as much as the 250,000 it would be if they all provided an incentive of 12.5 ZEC each.
The Zerocash protocol scheduled the next halving for the 850,000th block, at which point the reward would decrease to 6.25 ZEC.
Official Website: https://z.cash/
Block Explorer: https://explorer.zcha.in/
White paper: http://zerocash-project.org/
Disclaimer: This document is compiled from the official whitepaper and relevant documents provided by the token team, to provide investors an overview of the token. The information in this document is collected through formal legal channels. We make every effort to provide complete and accurate information. However, we do not guarantee accuracy, completeness, timeliness or correct sequencing of the information. This information is not to be regarded as investment advice, or legal proof, or evidence.
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