The Zcash cryptocurrency was introduced to the community in January 2016. It was created by a group of professionals working in the computer science department at Johns Hopkins University. Cryptocurrency is developed by the «Zerocoin Electric Coin Company» which ensures the confidentiality and transparency of all transactions. Since March 2017, the project has been funded and developed by the «Cash Foundation». Zcash uses the Equihash mining algorithm. Zcash payments are published on the public blockchain, but the sender, recipient, and transfer amount remain confidential. Zcash’s competitors are Monero and Dash, and the technical data of its network is in no way inferior to that of Bitcoin. Like Bitcoin, Zcash has a fixed maximum total supply of 21 million units. The market capitalization of this cryptocurrency in 2018 was $2.1 billion. Zcash can be bought on most well-known exchanges, including Huobi, Bitfinex, Binance, HitBTC, Bithumb and others, as well as trade CFDs.
How Zcash System Works
The main technical feature of Zcash is the use of zero-knowledge proof, which allows you to confirm transactions without disclosing additional information and makes the use of cryptocurrency completely anonymous. Zcash uses the very advanced encryption algorithm zk-SNARK (Zero-Knowledge Succinct Non-Interactive Argument of Knowledge). zk-SNARK is one of the most advanced privacy technologies ever created. It completely hides data about the participants in transactions and the volume of transactions. It has a limited emission and economic model of bitcoin. The maximum supply of coins is 21 million units. The Zero Knowledge Proof protocol is used to verify a transaction. Verification occurs without specifying the sender or recipient and the size of the transaction.
Like Bitcoin, Zcash transaction data is posted to a public blockchain; but unlike Bitcoin, Zcash ensures your personal and transaction data remain completely confidential. Zero-knowledge proofs allow transactions to be verified without revealing the sender, receiver or transaction amount. Selective disclosure features within Zcash allow a user to share some transaction details, for purposes of compliance or audit.
At the core of Zcash is Blockchain technology that supports bitcoin and other cryptocurrencies. Nothing is stored in the currency blockchain except the very fact of the transaction. This cryptocurrency has definitely taken a solid position in the digital currency market. Zcash also provides transparent transactions for wallets and exchanges that do not support private transactions. The Zcash cryptocurrency has a set of key functions and features that distinguish the system:
- It takes 2.5 minutes to calculate each Zcash block;
- High level of cryptocurrency privacy protection;
- You can create apps using Blockchain technology;
- This cryptocurrency has cheap and fast transfers;
- The highest standard of safety;
- Use of scientifically based protocols.
Main Benefits of Zcash CFDs
According to the developers, this is an improved version of Bitcoin, and differs in that Zcash is a company. The cryptocurrency is in the TOP 30 of the best coins and is one of the most anonymous ones along with Monero. The level of anonymity of Zcash is noted by many well-known companies and personalities. At the moment, the cryptocurrency cooperates with: JPMorgan, StarkWare Industries, AirTM, WikiLeaks, Parity Technologies, Pundi X. To date, the currency of Zcash has great growth prospects and potential. According to analyst’s forecasts, the cost will only increase, as will the interest in the currency. It is different because it has really high volatility. Trading CFDs on cryptocurrencies allows for leveraged trading and provides higher liquidity. If you are only interested in speculating on Zcash price dynamics, the easiest way to do this is to use CFDs on the CFD trading platform without having to buy Zcash coins on the exchange.
It is advisable to start trading on the hourly chart, in accordance with the trend movement of the market, while it is advisable to use support and resistance lines and various technical indicators that help establish the direction of the trend. You can trade breakout strategies, they are quite effective. For all beginners, it is recommended to start trading cryptocurrency on a demo account, since this asset is quite specific and has many different features.